Insurance News for Alabama

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

2010-05-23T17:54:00.000-07:00

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!

2010-04-05T12:58:00.000-07:00

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

2010-03-21T05:52:00.000-07:00

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?

2010-03-18T07:09:00.000-07:00

"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!!

2010-01-27T15:57:00.000-08:00

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!

2009-10-28T11:55:00.000-07:00

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

2009-10-27T09:10:00.000-07:00

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.

When should you buy Life Insurance?

2009-10-04T06:08:00.000-07:00

Life Insurance. Uhg. Bo-ring! No one wants to think about it and everyone jokes "What's in it for me?" When I'm dead and gone what will I care? Most people just put it off and say they'll get it later, which is usually too late. We insure our cars and houses, but we over-look insuring the most important asset of all - ourselves! We buy auto and home insurance for what might happen. We buy life insurance for what will happen!

True story: Recently had a lady contact my office for life insurance. She's in her 40's with two young sons. Her husband, also in his 40's, recently had a heart attack and died (how many times have we heard stories like this?). He had changed jobs and had not picked up the group life insurance offered by the company. He had no other life insurance. ZERO. Needless to say, she was devastated. Since her husband was the major bread winner, she will be struggling. She now has a major policy on herself and smaller policies on her two sons. She wanted to make sure if the unforeseen happened to her, her sons would be taken care of.

Another true story: Had a 78 yr old lady call my office wanting a small burial policy ($5000). No big deal, right? She was diabetic and had high blood pressure. I called underwriting and they said no way due to her age and existing medical issues. She will likely be turned down by most insurers, or if some company will write it, the premiums will be sky high. She has no money and lives with her daughter. So when she goes to meet the Lord (hopefully), someone (daughter) will have to come up with several thousand dollars for burial costs.

So when should you buy Life Insurance? As soon as possible. Life insurance rates are based on your current age and physical condition. Start adding on things like high cholesterol, diabetes, high blood pressure, etc., and the rates start climbing. If you buy life insurance at an early age and in good health, you lock in the best rates (usually dirt cheap). Wait till you are 45 and have some medical issues, and you will be paying a lot more for less coverage just to make it affordable.

One more true story: I had a young lady in her mid 20's contact me wanting life insurance because she was about to have a major operation. Married with one young child. Sorry, couldn't help her. It is unlikely any company will insure her until after her operation and she has completely recovered. Kinda like car insurance, you can't have an accident and then go buy auto insurance. It doesn't work that way. Plus, if she goes to buy life insurance after the operation, any company will want to know all about the surgery, which will probably result in her getting higher rates, especially if there's a possibility of a reoccurring condition.

I could go on and on. I've heard every excuse: I can't afford it; I'll wait till I lose some weight; I've got enough (hey dude, $25,000 is plenty for my stay-at-home wife and 3 small kids, right?); I'll wait till next year; I'll wait till I quit smoking; I've got it through my job (yes, until you get laid off or change jobs with no benefits, and then you are 50 yrs old with high cholesterol).

Okay, one more story. I still laugh about this. Earlier this year, a lady got out of her car at my office with cigarette in hand. She stood in front of my office door untill she finished her cigarette, then smashed it out on the ground and came in. She was in her 50's, over weight, and obviously a tobacco user. She needed life insurance but quickly bawked at the rate and left. Let's say she smokes 1 pack a day at $3 a pack (which may be cheap, I don't know). That translates to $1095 per year, just on cigarettes. The yearly amount on the life insurance? About $550. But, we all have our own priorities, don't we?

So go ahead and look at your life insurance coverage for you, your spouse, your kids, and talk to your agent to make sure you are properly covered.

A Liability Umbrella Policy Can Protect Your Ass-ets!

2009-09-29T19:53:00.000-07:00

Most people I talk to daily have never heard of an "umbrella" policy, or if they have, they don't know what it is, or they just think it is something that they don't need.

You work hard, have a nice house, nice cars, investments, savings accounts, in other words, you accumulate assets over time. An asset is any item of economic value owned by an individual or business, which could be converted to cash.

So what happens if you get in an accident, you hurt someone, get sued, go to court and a jury awards more to the plaintiff than you have coverage for? Your insurance company strokes a check for your policy limits and everybody is happy, right? Not so fast.

You recall what happened to OJ Simpson and Richard Scrushy after their civil trials? The jury/judge awarded the plaintiffs large sums of money. Since there was apparently no cash to settle the judgments, the plaintiffs have a right to seize the defendant's personal property (assets), as well as the ability to collect any future earnings.

A liability umbrella policy is excess liability coverage over and above your auto and home liability limits, often starting at $1 million, that will help protect your assets in case the unthinkable happens. A million dollar umbrella policy cost on average about $15 per month, or to break it down even further, about fifty cents per day! (Cost vary depending on number of cars, age of drivers, at-fault accidents, violations, etc).

True story that recently happened to one of my policyholders who agreed to let me tell his story: My policyholder loaned his van to his brother who needed to move some stuff. His brother rear ended a vehicle on I-285 in Atlanta. He hit the car in front of him so hard, the lady's seat broke and she was taken by ambulance to the hospital. About 2 months later, my policyholder got a letter in the mail from the lady's attorney advising that his client had $181,000 in medical bills, and to let him know how he intended to settle the claim. The amount of bodily injury coverage on his auto policy? $50,000. Let's say the case goes to court and the lady is awarded $750,000 for her medical bills, pain and suffering, lost wages, inconvenience, mental anguish, emotional distress, and future rehab. The attorney has every right to go after my policyholder's (and his brother's) personal assets.

You might wonder why my policyholder would be liable since his brother was driving. The titled owner of a vehicle can be held liable for the negligent acts of a permissive driver, and the owner's insurance is primary. (Think about your kid at college letting his friends drive his/her car titled in your name. Your kid's friend has a wreck driving your car- YOUR insurance pays!)

I had talked to my policyholder on several prior occasions about increasing his coverage, and the need for an umbrella policy. He always told me he just didn't see the need. After this incident, he said he wished he had listened. Of course, he now has an umbrella policy.

Look into getting an umbrella policy. Is peace of mind worth fifty cents a day?

Neighbor's tree fell on my property! Who pays?

2009-09-17T18:11:00.000-07:00

Well, since it is storming outside tonight, I thought it would be a good time to clear up one of the most common misconceptions when it comes to homeowner's insurance. I am asked about this all the time.

Let's say a storm comes through with high winds and your neighbor's tree falls over and smashes your wood fence, the kid's playset, takes out your deck, and part of your roof. When the storm clears, you go over to your neighbor and politely ask for his insurance information. After all, it was his tree that damaged my property! You start to envision that new playset, a new roof, new fence, and heck, might as well expand the deck while we're at it since his insurance will be paying for it, right? Wrong!

Sorry to say, but your neighbor's insurance will not be paying for your damage. You will have to file a claim on your own policy, and yes, your deductible will be applied too. This kind of occurrence is considered an act of God, beyond your neighbor's control. Unless your neighbor's tree was dead or rotten, you notified them about the danger it poses to your property in writing and requested they do something about it, they are not legally liable for your damage.

What is GAP insurance?

2009-09-15T18:39:00.000-07:00

Everyone is so excited when they drive that new car off the car lot. There's nothing quite like that new car aroma. Problem is, that new car depreciates as soon as you drive off the dealer's lot. A vehicle is considered a "used" car once the title is transferred from the dealer to the buyer.

So, what if you finance 100% of the cost of a vehicle with no down payment for 60 months or more? (Don't laugh, this happens all the time.) In the first few years, your monthly payments are comprised mostly of interest, so the principal is not declining much (kind of like our homes). If you have a wreck and total your car, the insurance pays your car loan off, right? Not all the time!

Let's say you still owe $10,000 on your car, but the car's book value is now $8000. If your car is totaled, the insurance company generally pays the book value ($8000) to the lien holder less your deductible. Who pays the difference between what you owe and what your insurance company paid? You do! Unless you bought a Gap policy.

A Gap policy pays the difference between what you owe and what the car is worth. These policies can be purchased from the car dealer, or from an insurance agent (like me!), for a minimal cost. They last for the length of the loan and may even pay your deductible if your car is totaled.

So keep this in mind when you buy your next car, or you know someone who might be looking to purchase. A Gap policy may save you a lot of headaches!

Alabama Insurers Raising Rates

2009-09-14T12:37:00.000-07:00

Article in the Birmingham News Friday Sept 11th:

Farmers Insurance Group: Statewide 25.7% average rate increase effective Oct 16th with "specialty" policies rising 35% on average.

State Farm Fire & Casualty: Statewide 19.1% average rate increase effective Nov 1st for new business and Jan 1 for existing policies.

Alfa: Statewide 5.8% average rate increase effective Sept 1 and 6.5% increase for customers of the smaller Alfa Mutual General Insurance Company.

Hey, don't shoot the messenger. Just call me for a quote!

Uninsured Motorist in Alabama

2009-09-13T06:17:00.000-07:00

Did you know Alabama ranks 3rd in the nation for the number of motorist on the highways who are not carrying the minimum amount of liability insurance as mandated by the state? Approximately 1 in 4 motorist on the highways are not carrying any liability insurance.