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When getting quotes from companies who thrive on user friendly online insurance applications with no agent interaction, there are a number of important coverages that are left out because they are not required by the state.  One coverage that I have seen left out on many of these policies is the Medical Payments Coverage.  


In Indiana, my resident state, the minimum requirement for auto insurance is $25,000 per person of bodily injury coverage, $50,000 per accident of bodily injury coverage, and $10,000 per accident of property damage coverage....No other coverage is required by the state.  This poses a problem for many reasons, and I'll name a few:


1. Companies who don't care about whether or not you are liable for the damages your policy doesn't cover will provide you with state minimum coverage, leaving you extremely vulnerable to lawsuits! 


2. Customers are unaware of what coverages are out there and how important they are to the policyholder or driver when an accident occurs.  There are companies out there that won't stress the importance of these coverages enough because they want to be the cheapest company so you will buy their policy and not be concerned about missing out on coverages..just to save some money.


Today, I will be going over Medical Payments coverage.  The coverage that provides from $1,000 to $100,000 of coverage for medical bills depending on the amount of coverage you choose.  


Who does medical payments coverage cover? Everyone in or on your car!  


What does this coverage pay for?  See the picture above^^^...This coverage provides monies to the passengers to pay for those injury/death expenses resulting from an accident.  


What happens when this coverage isn't on a policy?  Well, your passengers are left to rely on their health insurance coverage.  If your passengers don't have accident plans, then they will be relying on the other driver's insurance company (ONLY IF THE OTHER DRIVER IS AT FAULT) to pay for their medical bills.  And if that driver is not at fault, you are left to sue your friend who was driving the car!  Now, who wants to be put in that position?


Let me give you an example of this.  You are driving down the road in your Chevy Impala...You are getting close to a yellow light getting ready to make a left turn....a car across the intersection is trying to make a quick right turn (he has the right of way) you crash into their vehicle going roughly 35 miles per hour, causing a T collision (Drivers side impact).  Two Passengers in your car are jarred around and two of them suffer injuries that need immediate care and are rushed to the hospital.  The injuries result in $5,000 in medical bills for each of them (hospital fees, Dr. visits, placement of broken bones, rehab, etc.).  That $5,000 per person can be covered by your insurance policy, so that your friends in the car are free from any added stress due to the cost of their injuries.  


Always remember that any mistake you make while driving that causes an accident is a liability on your part, whether it is the car you hit or the passengers in your own vehicle....you are held responsible.


These issues are very important to me.  We always have real life examples that we are able to show our clients but these are things I cannot discuss through this forum.  Please, feel free to contact me if you would like to meet or talk by phone or email and I would be happy to assist you with any questions you might have.  Visit the Contact Page and fill out the contact info and I'll reply to you as soon as possible.  Thank you for taking the time time to read this blog.  


Sincerely,


Jonathan Rolón
Personal Lines Specialist
Acosta Insurance Agency, Inc.

 
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This season on Shark Tank, a group of young inventors who call themselves "The Inventioneers" approached the "Tank" with a new innovative way to prevent drivers from taking their hands off the wheel.  The SMARTwheel is a device that uses touch sensitive receptors on a steering wheel that is made visible with an LED strand wrapped inside of the steering wheel handle.  This handle turns red and creates a ringing sound when the driver pulls one hand off of the wheel or is driving with unsafe hand positioning.  When the correct hand positioning is recognized by the wheel, the wheel turns green and the sound halts until the correct position is lost.  

While this sounds like a great idea, will it be an effective way to keep people from texting and driving?  What could make this product better and more effective?



If you are interested in learning more about the SMARTWheel, click on the picture above or view the video from "Shark Tank" below.
Please, comment with your thoughts on this product and feel free to throw out some ideas on how this product can be made better.




 
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So, I'm sure that this has happened to you or someone you know.  There are so many ways it can happen, and most of those ways are unforeseeable   When something happens fast and sudden, your natural human instinct kicks in and the fight or flight response is triggered.  You get into a car accident and BAM you are either freaking out and wanting to run away or you are ready to jump out of your car and whomp the person who hit you.  Well, the best way to avoid doing the WRONG thing in this situation is to mentally prepare yourself before it happens.  Since we can't rely on premonitions to prepare us for unexpected events, I suggest reading these tips and keeping a list of these tips in your car's glove compartment.  Having a helpful source within your grasp in a time of need will help you shake those nerves and anxiety.  Read on and learn more about how to prepare for an accident before it's too late.


(The following notes are provided by ERIE Insurance. Click HERE for more information on this company.)


What to do when you have an accident:


1. Protect yourself, others in the auto, your auto, and any other property from further damage the best you can.


2. Call the police! Some people make the mistake of talking to the other driver first, but it is more important to get the authorities on the scene as soon as possible. 


3. Don't say I'm Sorry!!  The worst thing to do after an accident is admit it is your fault.  Don't sign any statements until the authorities are on the scene and an appropriate evaluation of the situation has been made.


4. Exchange information.  Once the accident has happened, the officer is on site, and a police report is being created....get with the other driver and take down information on his insurance and his vehicle.  I encourage you to print out the form below and put it in your glove compartment.  Use it to take down information for your records.  It is always in your best interest to know as much as you can about the accident.


accident_form.pdf
File Size: 432 kb
File Type: pdf
Download File

Once you have completed all of these steps, it is now a good time to report the claim.  Calling your agent before you call your insurance company is the best thing you can do.  Let your agent help you through the claims process.  If you need help with anything, need advice on a how to handle claims, or would like to contact me for any reason...please email me at [email protected].
 
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The first thing I want to say regarding this topic is that insurance companies DO NOT discriminate by race or sexual orientation.  Insurance rating is based solely on factors that are "across the board" variable from person to person.  My way of describing insurance rating is likening it to the uniqueness of ones fingerprint.  Although, in this scenario, you are not born with a specific insurance fingerprint but rather YOU control the way it looks to the company.  So, keep on reading and learn about how your insurance fingerprint is analyzed and rated by the average insurance company.

The insurance rating system varies from company to company.  Some companies keep it simple and others use a vast number of variables to further diversify the premiums.  It really depends on how the insurance companies business plan is formed.  There is no right or wrong way to do it.  Rather than go through every single possibility, I will discuss the basic rating factors that are generally used by all insurance companies.  These factors include but are not limited to; age, gender, violations, at fault accidents, comprehensive claims, # of vehicles, # of drivers, type of vehicles, and many more.  Read on for some quick descriptions fo some common rating factors.

AGE: One of the biggest factors in insurance rating is the age of drivers on the policy.  The younger the driver, the higher the insurance company will rate the driver.  All drivers, male or female, have their highest rates from ages 16-24.  Insurance companies have decided that this age group defines the learning stages of defensive driving.  Statistics show that drivers have a much higher percentage of at fault accidents between these ages.  BUT, one way you can avoid being rated at the highest factor for your age group is by taking either defensive driving or taking drivers education.  All drivers between ages of 16-24 who have taken either course will have their rating factor decreased by most insurance companies.  From ages 25-54,  you see a steady decrease in premium rates from year to year.  From ages 50-55+ most insurance companies start implementing senior discounts, rating individuals at their lowest possible age rates.

Gender:  For all of you men out there, I want to apologize ahead of time for this.  Even though we think we are the better drivers, that isn't the case according to insurance companies.  Females have better rates than males in each age group.  Not much else can be said about this factor since you are born into this one.

Violations: One of the most obvious rating factors are violations and accidents.  Each insurance company looks at violations in different ways.  But, all insurance companies will increase their rates based on the # or types of violations you have. 

At Fault Accidents:  At fault accidents vary from company to company as well.  For some companies, if your at fault accident had no pay out, they may not count it.  For others, if it's on the record, your getting an increase in your rate.  For both violations and accidents, if you have none in the past 3 to 5 years, most companies will give you a discount for that.

Comprehensive Claims: Comprehensive claims are not always a factor.  With comprehensive claims, they generally increase coverages such as towing and labor, rental reimbursement, and the comprehensive coverage if you have a large number of these.  Just like at fault accidents, some insurance companies will give you first accident forgiveness.  So, if you have your first accident a year into your policy, with that endorsement you may not have an increase in your rate. 

# of Vehicles:  It should be fairly obvious that the more vehicles on the policy, the more your insurance premium will be.  Not much can be said about this one.  But, I will say that most companies will give you a multi-vehicle discount.  This feature will, instead of doubling the cost for adding a second vehicle, give the second vehicle to you for 3/4 or 1/2 the price depending on the company.  Now, not all companies have this feature, but I can help you find the ones that do.

# of Drivers: You may think that the more drivers on the policy, the higher the premium, but that isn't always the case.  Because of some of the other rating factors, you may receive credits for having certain drivers on the policy.  But, in most cases, the more drivers on the policy the higher the premium.  And, if you are a married couple who is getting ready to add your 16 year old son as a driver, don't be surprised to see a big jump in insurance premium.  The thing we generally advise is give the youngster an older car with liability only coverage.

Type of Vehicles:  One thing that catches many people off guard is when an older car is rated higher than a newer car for certain coverages.  The truth is that it isn't about the year, make and model of the vehicle but rather the size of the engine, the weight of the vehicle, and how often you use it.  Faster, bigger vehicles generally are rated higher for liability because they cause more damage.  Newer, more expensive vehicles will be rated higher for full coverage because they cost more to replace.  The amount of usage for the vehicle is the only way to change these rating factors for most insurance companies.  In other words, the more you use the vehicle, the more your vehicle make-up will affect the rate.

These are just a few of the rating factors that help to create your individual rating status for many of the companies out there.  The best way to keep your rates low is to drive safe and smart.  Some of us, like me, learn the hard way.  If you are one of those out there that have a hard time finding good rates, don't hesitate to contact me and I can help you find the company with the right formula for you. 


 
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So, you've just received your bill for the new auto policy period.  As you curl back the envelope (enter in suspenseful music) you start to wonder if you even want to look.  You know  you've just had a car accident last month and received a ticket for speeding the past year.  You pull that insurance bill out and see....wait for it....the same rate.  You think to yourself, how is that possible?  Well, remember that day you went to your new agent and he told you that you had the option of getting rate protection on your auto insurance?  He just saved you from a 10%-20% increase on your auto insurance rates.  Do you want more information on this amazing feature?  Click HERE and send me a request.

Now, most insurance companies don't have rate protection, and because of that, you will see an average of 1%-5% rate increases each year and up to 20% if you had a bad driving year.  Insurance companies don't do this because they are trying to make more money off of you, they do it so that they can pay for claims.  The way they see it, the more driving mistakes you make the better chance there is of you getting into an accident.  Rate increases also come when the company has more claims than they can afford, leaving their loss ratio in the red zone.  When this happens, insurance companies will compensate for their losses by increasing the insurance rates so that they can pay off the claims for the next year.

Now, you may wonder, how are insurance rates determined?  Well there is a long list of reasons that I will go over in my next blog entry.  But, keep in mind that each individual is rated by the same rating factors.  You'll learn more about that later. Moving on...

See the following list for reasons why insurance rates increase or decrease each year:

-# of Natural disasters
-# of Accidents
-# of Thefts
-$ of Claims
-loss ratio for company
-Expense costs for company...see description of this below.

Business expense costs for companies are most definitely a factor when determining rates.  Why? Well, most companies have formulas for how much money they spend in each area of business.  Remember, insurance companies are businesses and all businesses have expenses.  Don't be hard on them, they have to bring in more clients in order to make more money to make your claims process simpler....To make paying you off on a claim quicker and more seamless.  Now, most companies that are well known have fairly high costs because they market themselves frequently.  Companies you've never heard of, don't like to spend money on marketing because they want to be more efficient in other ways that help their current clients.  There is no such thing as a bad company trying to steal your money, there are just different business strategies.  IN all aspects of insurance, your coverages will always serve their purpose when you need them to. 

How can I find better prices for insurance? Well, I'm sure you see "answers" all over the internet.  Don't be fooled to thinking the least expensive policy is the best one for you.  Sometimes those inexpensive policies end up leaving you with much less than what you need.  If you aren't sure about your coverages...please, don't hesitate to email me and I will help you understand your policy and how it measures up to the standard.

That's it for today.  Remember, rates will always fluctuate higher or lower based on each different companies formula each year.   Don't be fooled by cheap insurance.  And if you ever have questions, I'm always here for you.



 
Have you ever been through a lawsuit before?  Well, I have not, and I hope that I never have to.  From my experience in customer service, lawsuits effect every facet of your life. Of course, there are many individuals who feel that a lawsuit is a means of income or similar to winning the lottery (i.e. The McDonald's Hot Coffee Lawsuit of 1994).  On the contrary to my aforementioned example, my premise is not regarding those who seek out or desire to hold others in contempt of court for their personal gain but for those who seek to avoid it altogether.  

Now, we all should be very aware of this important fact, insurance is not intended for personal gain but rather for indemnification (to be made whole again).  As insurance agents, our goal is to look at your assets and help you find insurance policies that will protect those assets in such a way as to replace them with money or with the appropriate property.   This is where I begin to LOVE my job.  I get to help others understand the true importance of insurance and how it is a vital piece of your financial puzzle.  The unfortunate thing about insurance is that when it is at work for you, you've just had some sort of loss.  Losses are always painful, physically and emotionally.  The best type of insurance is the kind that provides you with everything you need without having to face the gavel and a jury. 

Now, to the meat and potatoes of today's topic, Uninsured Drivers!  Now, think about this, if you get into an accident with someone who doesn't have insurance, who are you going to rely on if it was THEIR fault?  Well, certainly not them!  If they are not responsible enough to insure themselves, they are more than likely not responsible enough to have the income necessary to give you a cash settlement.  In some cases, you would end up taking this person to court and garnishing their wages to pay off your property damage and your medical bills.  Of course, I am not a lawyer and I am in no place to give you that kind of legal advice, BUT I can give you a way to prevent Uninsured Drivers from causing you multiple migraines and court appearances.  Read On...

Did you know that ONE in SEVEN drivers are UNINSURED?  That means that roughly 15% of drivers you see on a daily basis are driving without insurance.  And get this, there is a 30% chance any United States citizen will get into a serious auto accident in their lifetime.  Put those two statistics together and you've got a 5% chance of getting into an accident with an uninsured driver in your lifetime.  If you read my latest auto insurance blog "Literally Paying an Arm and a Leg", you may be inclined to take a second look at your uninsured motorist coverages.  Do you have enough coverage to make yourself whole again?  Don't let uninsured drivers ruin your day.  Do everything you can to prevent post-traumatic stress from controlling your life.  This is just one more nugget of information that I hope helps you understand how important each coverage on your insurance policy is to you and your family.  In an effort not to bore you, I will end this blog here.  But, don't hesitate to contact me for more information on Uninsured Motorist Coverages.  I would love to assist you and help you discover the perfect insurance policy for you.  I'm just one click away from making your insurance make more sense to you.
 
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Car accidents happen more often than people realize.  And, we have seen bodily injury claims amount to $200,000!  You may wonder, how does a car accident end up costing that much money?  Well, let me give you a realistic scenario that may help you understand.






Vehicle 1 impacts Vehicle 2 after running a stop sign.  Vehicle 1 going 50 miles per hour makes a perpendicular collision to vehicle 2, causing it to slide and roll.  Vehicle two consists of one driver and two passengers.  Vehicle rolling generally causes a neck injury, resulting in two months of physical therapy for each individual.  The impact causes the driver to dislocate their shoulder, resulting in one month of therapy, rotator cuff surgery, and six more months of therapy.  Front seat passenger  is middle aged.  This rolling and jarring of the vehicle causes a vertebral disc to herniate, resulting in corrective therapy for three months.  The back seat passenger's left arm collides with the window, causing a break.  The following is the resulting medical cost for each individual.


Driver (minimal costs based on no extraneous complications during surgery and therapy)
Initial Hospital Visit: approximately $4,000
Neck Injury Therapy:  $250 per day, 3 days per week, 24 visits = $6,000
Invasive Rotator Cuff Surgery: $17,000
Shoulder Therapy: $250 per day, 3 days per week, 72 visits = $18,000
Total Minimum cost = $45,000


Front Seat Passenger
Initial Hospital Visit: approximately $4,000
Neck Injury Therapy: $250 per day, 3 days per week, 24 visits = $6,000
Therapy for herniated disc: $250 per day, 3 days per week, 36 visits = $9,000
Total Minimum cost = $19,000


Back Seat Passenger
Initial Hospital Visit: approximately $4,000
Surgery on fractured olecranon (elbow) : $7,000
Neck Injury Therapy : $250 per day, 3 days per week, 24 visits = $6,000
Therapy for elbow: $250 per day, 3 days per week, 24 visits = $6,000
Total Minimum cost = $23,000

Total Minimum Cost for Bodily Injury = $87,000


As you see in my example above, the cost of bodily injury in a automobile accident adds up quickly.  Accidents that result in death generally cost up to $200,000 per fatality.  So, when you look at your auto insurance policy, check to see what your bodily injury coverage is.   Most individuals who are on a tight budget overlook the amount of coverage and just go for the state minimum.   The state minimum for bodily injury coverage is $25,000 per person and $50,000 per accident.  As you see in my example above, someone you injure will have to hope that they have uninsured motorist coverage to cover what your insurance policy will not.  If not, you can look forward to a lawsuit resulting you paying out way more than you ever expected when you purchased your insurance policy.


So, the lesson for today, pay attention to your bodily injury coverage on your auto insurance policy.  Our agency standard is to cover our clients with no less than $100,000 per person and $300,000 per accident.  This insures that your insurance will cover you and your liability without having to worry about getting sued.  Make the decision that best suits what you can afford, but make sure you are well protected.  For any advice on how to save or how to find good rates for standard coverages, send me an email at [email protected].