Meaning of Life........Insurance

I am a piece of paper, a drop of ink and a few pennies of
premium.
I am a promise to pay.
I help people see visions, dream dreams and achieve economic
immortality.
I am education for the children.
I am savings.
I am property that increases in value from year to year.
I lend money when you need it most, with no questions asked.
I pay off mortgages so that the family can remain together in their
own homes.
I ensure people the daring to live and the moral right to die.
I create money where none existed before.
I am the great emancipator from want.
I guarantee the continuity of business.
I conserve the employer’s investment.
I am tangible evidence that a man is a good husband and father,
and that a woman is a good wife and mother.
I am a declaration of financial independence and economic
freedom.
I am the difference between an old man or woman and an elderly
gentleman or lady.
I provide cash if illness, injury, old age or death cuts off the
breadwinner’s income.
I am the only thing that you can buy on the installment plan that
your family doesn’t have to finish paying for.
I am protected by laws that prevent creditors from assessing the
money I give to your loved ones.
I bring dignity, peace of mind and security to your family.
I supply investment capital that makes the wheels turn and the
motors hum.
I guarantee the financial ability to have happy holidays and the
laughter of children—even though father or mother is not there.
I am the guardian angel of the home.
I am life insurance.

States with highest uninsured motorists!

The Insurance Research Council estimates more than one quarter (25%) of Alabama's drivers operate their vehicles without liability insurance.  These figures are from 2007, and the uninsured rate is likely higher now because states with the highest unemployment rates also have the highest rates of uninsured motorist.  The following are the five states with the highest percentage of uninsured motorist (as of 2007, the last estimate available):

• New Mexico:  29 percent
• Mississippi: 28 percent (thank God for Mississippi!)
• Alabama:  26 percent
• Oklahoma:  24 percent
• Florida:  23 percent
• Where the heck is Louisiana and West Virginia? 

You say, "So what, how does it effect me?"  Well, this results in drivers with insurance paying more for their insurance, plus a premium covering them for uninsured motorist.  Not to mention, if you are hit by an uninsured motorist, your damage is paid only if you are carrying collision coverage on your vehicle, and yes, you incur your deductible.  If you are not carrying collision, then you have the "SOL" coverage.  If you are familiar with the "SOL" acronym, it basically means you are "outa luck".  The "S" is evidently used for emphasis. 

So, when you are stopped at the next red light, count how many cars are stopped around you at the intersection.  If you see 10 cars, go ahead and figure at least 2 or 3 are uninsured. 

Liability insurance is pretty cheap - about $35 to $65 per month and up depending on age, driving history, make and model of vehicle, etc.  If you know of anyone out there looking for coverage, please refer them to me.  I can write auto insurance anywhere in the state of Alabama. 

2010 least expensive vehicles to insure

Insure.com has posted it's list of least expensive vehicles to insure for 2010.  So, if you are looking to keep your insurance rates low, you might want to consider the following vehicles: 

The least expensive 2010 vehicles to insure
Rank	Make and Model	Style & Type	Cylinders	Avg. national premium
1	Mazda Tribute I	2WD 4 Door Utility	4	$1070.25
2	Honda Odyssey LX	5 Door 2WD SOHC Van	6	$1095.26
3	Mazda Tribute I	4WD 4 Door Utility	4	$1103.29
4	Chrysler Town & Country LX	2WD 4 Door 3.3L Wagon	6	$1119.83
5	Jeep Wrangler X	4WD 2 Door 3.8L Utility	6	$1124.38
6	Mazda Tribute S	2WD 4 Door Utility	6	$1128.29
7	Dodge Grand Caravan SE	2WD 4 Door 3.3L Wagon	6	$1131.06
8	Toyota Sienna CE	4 Door Wagon	6	$1133.97
9	Hyundai Tucson GLS	2WD 4 Door Utility	4	$1134.08
10	Kia Sportage LX	2WD 4 Door Utility	4	$1138.41
11	Honda Odyssey EX	5 Door 2WD SOHC Van	6	$1139.80
12	Hyundai Santa Fe GLS	4 Door 2WD Utility	6	$1141.07
13	Jeep Patriot Sport	2WD 4 Door Utility	4	$1145.58
14	Honda CR-V LX	5 Door 2.4L Utility	4	$1146.29
15	Dodge Grand Caravan C/V	2WD 4 Door Van	6	$1146.53
16	Mazda Tribute S	4WD 4 Door Utility	6	$1146.69
17	Toyota Sienna LE	4 Door Wagon	6	$1148.78
18	Dodge Journey SE	2WD 4 Door 2.4L Utility	4	$1149.59
19	Ford Escape XLS	4WD 4 Door SUV	4	$1149.67
20	GMC Canyon WT	2WD 2 Door 2.9L Truck	4	$1152.39
Source: Insure.com, from a study commissioned by Insure.com from Quadrant Information Services

Do Alabamians Drive Too Fast?

"I'm in a hurry to get things done, oh I rush and rush till life's no fun..."  Most of us recognize that line from a song by the group Alabama.  Maybe Randy Owen and crew knew a little something about how fast we seem to drive in this state.  Speaking of which......

I was doing a comfortable 81 mph on I-65 north yesterday as we were headed home from a short beach trip during spring break week.  That Kia is smooth when you get over 80...  Anyway, I came up on this idiot actually doing the freekin' speed limit in the middle lane and found myself very irritated at having to manuever around him.  I considered giving him the universal sign of displeasure, but since the kids were in the van, I decided against it.  (Just kidding, I don't use the bird. After all, the driver could have been a policyholder!)

And then, on the front page of today's Birmingham News, a report saying Alabama has more deaths because of speeding than any other state, and that our state ranks fifth in the nation for fastest drivers.  Of course, thank God for Mississippi, which ranked number one for fastest interstate drivers.  Probably Alabama drivers going through the state in a hurry to get to those casinos....

The article goes on to say Reader's Digest ranked Alabama in three Top 10 categories having the deadliest highways nationwide.  We ranked number 1 for highway fatalities caused by speeding, No 9 for road deaths in which alcohol was involved, and No 9 among the 50 states for having the deadliest roads overall.  I'd try to blame some of this on the Nascar mentality, but Nascar is huge in many other states, so I can't use that as an excuse.  Maybe if we just made those 200,000 fans that go to Talladega twice a year spend the night at the track and drive home sober on Monday, those numbers would decrease.  Hey, it's just an idea.  I'm brainstorming here. 

I'm guessing these stats influence our overall insurance rates as well, so maybe we're all paying the price for our desire to get from point A to point B as quickly as possible.  Well, I'd like to type more but I've got things to do, places to go, and people to see.  If you see a black 1997 Chev pickup doing 90 mph on I-459 in the outside lane, just remember I am keeping up with the normal flow of traffic...

I was robbed - they got my jewelry, guns, and tools!!

You leave for a weekend getaway and someone breaks into your house and steals your jewelry, guns, and tools.  Whew!  Thank God I had insurance so it will all be covered!  Well, hold on a minute.........

Most homeowner policies have coverage limitations on certain items for loss due to theft.  The reason is because of the high potential for fraudulent claims on items that can easily be sold, pawned, or concealed.  Jewelry is the most common item that is typically limited anywhere from $1000 to $2500 if stolen (check your own policy to see).  Unless you raise the limit or you purchase a personal articles policy (sometimes called a "floater" or a "rider"), you may find you have inadequate coverage.  If you purchase a floater/rider, an appraisal or other documentation (a valid receipt) is generally required at the time you buy the policy in order to substantiate your loss if you have a theft. 

Floater and/or rider policies generally provide expanded coverage that your homeonwer's policy would not provide, such as mysterious disappearance.  One of my policholders had a stone pop out of an expensive slide bracelet, and since the bracelet was on a floater, the insurance company paid to replace the stone.  This would not have been covered under the homeowner's policy. 

And, believe it or not, if something like a ring is simply lost, it is usually covered if it is on a floater policy.  The insurance company reserves the right to replace the item first with another of similar quality, but will pay for it if that cannot be done or it is not practical once it determines the loss is covered.  Of course, the insurance company is going to investigate the claim, but that is standard operating procedure. 

Items that usually need to be on a personal articles policy include the following:

• Jewelry, Watches, Furs
• High end cameras and video equipment
• Fine arts
• Guns
• Tools
• Muscial instruments
• Stamp/Coin collections

So take an assessment of what you own and talk to your agent (or me!) to determine if you need extra coverage for these items.  Better to find out first instead of being shocked that there is very limited coverage in the event something like this were to happen.  These policies are very affordable for the amount of coverage provided. 

Dog Bites! Ouch!

I recently came across this article and thought it was pretty interesting. 

One–third of all homeowners insurance liability claims are attributed to dog bites. The Insurance Information Institute states that in 2008 dog bites cost $387.20 million, up 8.70% from 2007. An analysis of homeowners insurance data by I.I.I. found that the average cost of dog bite claims was $24,461 in 2008 down slightly from $24,511 in 2007, but the number of claims has increased 8.89% to 15,823 in 2008 from 14,531 in 2007.  However, the cost of these claims has risen nearly 28% since 2003.

Increased medical costs, size of settlements, judgements, and jury awards are attributable to the rise in cost of dog bite claims.  More than 4.5 million people in the U.S. are bitten by dogs annually, and nearly 900,000 of those - half of them children - require medical care, according to the CDC. In 2006, more than 31,000 needed reconstructive surgery. With more than 50% of bites occurring on the dog owner’s property, the issue is a major source of concern for insurers. A dog owner who is legally responsible for an injury to a person or property may be responsible for reimbursing the injured person for medical bills, lost wages, pain and suffering, and property damage.

There are three kinds of law that impose liability on owners:

1) Dog-bite statute: The dog owner is automatically liable for any injury or property damage the dog causes, even without provocation.

2) “One-bite” rule: In some states, the owner is not held liable for the first bite the dog inflicts. Once an animal has demonstrated vicious behavior, such as biting or otherwise displaying a “vicious propensity”, the owner can be held liable. Some states have moved away from the “one-bite “ rule and hold owners responsible for any injury, regardless of whether the animal has previously bitten someone.

3) Negligence laws: The dog owner is liable if the injury occurred because the dog owner was unreasonably careless (negligent) in controlling the dog.

*Source: Insurance Information Institute. Sept 14, 2009. Avoid Being Bitten With a Lawsuit by Being a Responsible Dog Owner.

How Credit Affects Your Insurance Rates

Before I became an insurance agent, I had no idea that credit could affect my insurance rates.  I guess it's not something most people sit around and think about or even consider, but your credit can be a major factor in determining your rates.  I was given permission to use the following information by my company that you might find interesting. 
How can my credit score benefit me?

The way that you manage your credit is very important. Your credit helps determine such items as your home mortgage interest rate and auto insurance rates. A credit-based insurance score helps insurers to quote the fairest, most appropriate rate for every customer.

If my bank says I have good credit, does that mean I have a good insurance score?

Insurance companies do not look at credit the same way financial institutions do. Insurers only consider items from your credit report that are relevant to loss potential. A financial institution uses credit to assess credit-worthiness.

What factors do insurers consider when determining my insurance price?

Some of the rating factors that influence your premium include:

* age or driving experience
* how your vehicle is used
* driving history
* claims history
* make and model of your vehicle(s)
* geographic location

How does credit affect the price of insurance?
 Most insurers use a credit-based insurance score to predict insurance losses.

Studies show that considering credit creates a more accurate rate. Credit history is being used by a vast majority of insurers today. By predicting potential losses better, insurers can provide a more appropriate rate for each customer.

How do insurers determine this credit-based insurance score?
 Insurers use many factors to determine your score. Some of the more common factors are:

* Payment history (delinquencies or late payments)
* Length of time of credit history (when was your credit history established?)
* Type(s) of credit (credit cards, finance company installments, etc.)

When determining your score, gender, marital status, age, ethnicity, address and income are not considered.