Life Insurance Policy – It’s Types and Significance

Life insurance is a policy by which an individual can protect oneself against any unexpected circumstances. The insurance policy is actually a contract between the policyholder and the insurance company. The life insurance company pays a death benefit to the beneficiary on the death of the policyholder. The policyholder is responsible for paying the premiums on time.

Significance of life insurance policy

Life insurance policy is a sort of financial security for a family when the earning member is no more present in the family. The policy helps to protect your family from any unusual happening like illness, death, etc. The cost of the policy depends on the age and the financial condition of the person who is buying the insurance policy. Young people purchase insurance policy for their family as a source of income in case anything happens to them. The old people buy insurance policy to leave an amount for the other members of the family when they will not be around.

Types of life insurance

The two types of life insurance policies are described below.

1. Whole life insurance– Whole life insurance policy or permanent policy covers you for your whole life. The death benefit and the premium remains the same in this type of policy. The cash gets accumulated which the policy holder can withdraw or borrow against if needed. The main reason to purchase this policy is that the policyholder can give protection to his/her family members.

2. Term life insurance – Term life insurance, also called cash value, is the simplest and most inexpensive policy. It is taken for a period of 10, 20 or 30 years. It is usually purchased to provide temporary needs like child’s education, home mortgage payments, etc. This policy is beneficial only if the policyholder is no more there. If the term of the policy expires, both the policyholder and the beneficiary will not get any benefit from the policy. Normally, the premiums are paid based on the age and health condition of the policyholder. This policy expires after a certain time period.

While buying a life insurance policy, it is advisable that you shop around and compare policies to purchase one which offers adequate coverage at the lowest cost. Before buying a policy, you should evaluate how much your family members will require to maintain their present lifestyle in your absence. It will help you purchase the required life insurance coverage.

Understanding Insurance Marketing and Search Engine Placement

When it comes to search engine visibility, the good news for local insurance agents is it’s not too difficult to get your company website to the top of search engines for localized keywords.  Most agencies can find their website reach top placement for geo-targeted keywords by consistently publishing fresh articles on their website and by building links to your website by writing for other relevant resources.

A few rules should be followed as far as onsite seo is concerned also. Ultimately, with local insurance keyword placement, content is king followed by relevant links. Some believe it’s the other way around. Either way, both tasks are very necessary. 

If you were to design a search engine who would have the best rank?

A local insurance agency with several useful Articles published as well as several relevant links back or a local insurance agency with a home and bio page.  Search engines generally have the same idea you have, they want the best resource on top.

General Information About Disability Insurance Protection

Do I Really need Disability Insurance Coverage?

Many individuals struggle to understand what disability insurance covers. There are two basic forms of disability insurance, short-term and long-term disability. Short-term as its name implies is for a short period of time usually less than a year. Group short-term disability is more prevalent in the work place than long-term. One of the failures that individuals make is assuming that their policy covers 100% of their income. The policy usually covers up to 66 2/3%, it may be only be 50% for 13 weeks only. (Check your employee handbook) Uncle Sam allows you to get the benefit tax free, but you cannot get more in benefit than your pre-tax salary. It is very important that people read their employee benefits carefully.

The two main definitions used to define if benefits under a disability insurance policy are paid include own occupation and any occupation. Own occupation disability means you are unable to perform the substantial duties of your current position in a nutshell. Any occupation includes the duties of a job that you have been trained for through education, training, or experience.

Individual disability policies cover a percentage of your income based on your occupation, the hazard of your responsibilities, and your income. The elimination periods for disability policies usually range from 30-365 days. If you become sick or disabled, exceed the elimination period, and become certified by a physician as unable to work, you may receive a tax free benefit except in rare cases (your employer pays for the policy). The policy is coordinated with any group disability benefits you may be receiving as well as Social Security Disability Insurance if you qualify.   

Things to consider when thinking about Disability Insurance:

Can I get sick?

Do accidents occur?

Can I afford to self-fund?

Can I live off my savings?

Does my coverage at work cover short-term & long-term disability?

A Few Words About Health Insurance

By Krista Farmer

If your health, well-being and pocketbook are three things that are important to you, you probably understand the significance of health coverage. “But I don't go to the doctor a lot,” you say. While you may not make many trips to the doctor, you never know when a medical emergency that could cost you thousands of dollars will occur; this is where health insurance steps in.

To help you better understand your health insurance policy, let's define some terms you will need to be familiar with.

Copayment - You are required to pay this amount towards medical bills according to your health insurance policy. Your policy will list whether or not this is a dollar amount or a percentage.

Deductible - total amount you will pay before your health insurance company takes over your insurance payments.

Excess major medical policy - This type of policy has a very high limit as well as a high deductible and could provide up to $2 million of financial protection. Other possible highlights include nursing home benefits or home health care.

Health maintenance organization (HMO) - HMOs encourage preventative care and strive to provide health care to its members at affordable prices. To do this, the HMO tries to stay away from deductibles or copayments. Most HMOs have their own private clinics and staff. Only visits to staff within the HMO network are covered by the policy.

Major medical - Severe or extreme health problems.

Major medical policy - This insurance policy covers most serious medical expenses up to a set maximum limit.

Managed care - Simply put, the purpose of managed care is to manage costs and make sure insurance premiums are affordable. Because cost efficiency is the main focus of managed care, medical decisions are made by the individual's insurance provider.

Out-of-pocket maximum - This figure is the greatest amount of covered medical and surgical expenses you might have to pay each year. It limits what you will pay at the end of the year between copayments and deductibles.

Preferred provider organization (PPO) - PPOs provide health care services at a reduced cost. PPOs are typically more flexible than HMOs and allow policy holders to visit out-of-network professionals. While HMOs own their own clinics, PPOs do not.

Glancing over these definitions will put you on the right track to understanding your health insurance policy. Still have questions? Be sure to contact your insurance provider if you're not sure about something in your policy. Uncertainties about your health insurance should never be neglected.

Health insurance is your key to financial security in the event of a medical catastrophe. Because medical emergencies are not predictable, it is important that you prepare for health coverage today!

General Information About Auto Insurance Protection

• What Is Liability Insurance?
• What Are Collision and Comprehensive Insurance?
• What Are Medical Payments Coverage and Personal Injury Protection Insurance?
• What Is Uninsured / Underinsured Motorist Protection?

Driving is a privilege, but it comes with a price tag. There's the cost of the vehicle itself, maintenance, repairs, fuel and auto insurance. Many states require you to carry a basic, minimum level of auto insurance. It's a way of sharing the risks of driving.  Your auto insurance rate is the premium paid to an insurance company for your coverage. In return, your coverage will protect you against most financial losses that might otherwise be your responsibility to pay. 

Auto insurance is more than a matter of insuring your vehicle for loss or repairs after an accident. It is a financial safety net that can help you offset the cost of:

• Bodily injuries to yourself or others
• Lost wages due to injury
• Benefits to survivors when an accident results in death
• Lawsuits brought against you as the result of an accident
• Repairs made to your car due to damage caused in an accident.

Below you will find information on the basics of auto insurance:

What Is Liability Insurance?

Liability insurance helps protect you and your assets if you cause an injury to others or damage the property of others with your vehicle and you are determined to be liable.Bodily injury liability protects you in the event you are determined to be responsible for an accident in which someone is hurt or killed. Property damage liability covers the damage your vehicle causes to someone else's property, such as their car, mailbox or a fence on their land.

If you are judged to be legally liable for an accident, you may be held responsible for property damage, hospital and medical payments, rehabilitative care, lost income and even the pain and suffering of the injured person. You can be sued for the full cost of the damages. If the cost of this loss exceeds the amount of your liability insurance coverage, you may have to pay the rest. So, be sure you have sufficient liability coverage to protect your assets.

Your insurance policy usually describes the amount of liability coverage you have as split limits. Suppose your limits of liability coverage reads 50,000/100,000/50,000. In this example, $50,000 is the maximum the insurance company will pay for bodily injuries to each person in the accident. The maximum amount paid for all bodily injuries, no matter how many people are hurt in the accident, is $100,000. The maximum amount paid for damage to someone else's property in the accident is $50,000. Your Bodily Injury and Property Damage Liability may also be shown as a single limit, e.g., $100,000 Combined Single Limit (CSL).  Many states require drivers to carry a minimum amount of liability insurance of approximately 25,000/50,000/10,000. That means there would be $25,000 to cover injuries to any one person, $50,000 total for all injuries, and $10,000 for property damage.

What Are Collision and Comprehensive Insurance?

Collision coverage pays for damage to your own auto that results from colliding with another vehicle or object, or from a vehicle rollover. Your car is covered no matter who caused the accident.

Comprehensive coverage pays for damage to your auto caused by something other than a collision. This includes theft and vandalism, and disasters such as fire, flood and hail.

Collision and comprehensive coverage's usually do not pay for the total loss. You generally have a deductible, an amount you must pay out of your own pocket before your auto insurance payment takes effect. Suppose, for example, that you have a $250 deductible. On a loss of $1,000, you would pay the first $250 and your insurance company would pay the remaining $750.  Depreciation will also affect the amount you recover for the damages done to your car. As your car ages and its value declines, the amount you would collect for a total loss declines as well. Your insurance company reimburses you for the actual cash value of your car or its parts, at the time of the loss. For example, if your car was purchased for $20,000, you will get less than your original purchase price to replace it due to the car's "natural" depreciation in value. You can find out the current value of your car by consulting the N.A.D.A. Official Used Car Guide, which is in most public libraries and banks.

Sometimes it may not make financial sense to buy collision and comprehensive insurance on an older car.  Why? Generally, speaking, cars depreciate as they age. The maximum amount that will be paid under Collision coverage is the actual cash value of your car minus the deductible. When making this decision, you need to know, the "book" value of your car, your deductible for each loss, the cost of coverage, and the amount you would receive if your car was "totaled" (after subtracting your deductible from the book value). Only you can decide after considering everything whether the cost of insurance is more economical than the cost of repairing or replacing the car at your own expense.

What Are Medical Payments Coverage and Personal Injury Protection Insurance?

Medical payments insurance covers the cost of doctors, hospitals and funeral expenses of you and/or your passengers, that result from an accident, regardless of who is at fault. This coverage will protect you when you drive another person's car (with permission) or if you or your family are struck by another vehicle as pedestrians. The coverage is relatively inexpensive and generally available with limits between $1,000 and $100,000. It also provides for funeral expenses, when necessary. The availability varies state by state.  Personal injury protection (PIP) is a form of no-fault insurance required in states with no-fault laws. This coverage is a broader form of medical payments insurance. It pays for medical care, lost wages and replacement services for the injured party (for example, paying for a baby-sitter for children while a mother is hospitalized). It pays regardless of who is at fault in an accident. States with no-fault laws usually limit the right to sue for non monetary damages such as pain and suffering, but you still may be able to sue in cases of incapacitating disability or death. This coverage varies by state and is sometimes an optional offering in states without no-fault laws. In your evaluation of coverage, remember that Medical Payments and PIP also protects your passengers. If you exceed your medical medical coverage on your auto policy, then Bodily Injury coverage may be needed.  Before choosing medical payments or no-fault protection, check with your state's insurance department for details of no-fault coverage in your state. Then review your other insurance policies. If you already have good medical and disability insurance, you may not need to purchase protection in addition to the minimum limits of your state (if Medical Payments/PIP is a required coverage).

What Is Uninsured/Underinsured Motorist Protection?

 If you are involved in an accident with an uninsured driver, you have very little chance of collecting payment for your damages from that driver. Uninsured motorist (UM) coverage* pays the cost of damages and injuries resulting from being hit by an uninsured driver or by a hit-and-run driver. Both you and your passengers are covered for medical expenses, lost wages and other injury-related losses. You may also be able to collect for pain and suffering.

 Similarly, Underinsured motorist (UIM) coverage* will pay for damages that exceed the amount of coverage carried by an underinsured driver. You choose the amount of coverage when you buy this protection.

 *Keep in mind that uninsured motorist coverage and underinsured motorist coverage vary by state law. 

So You've Had an Automobile Accident: What's Next?

Driving on America ’s highways can be a risky proposition.  Whenever you’re in a vehicle, there’s a chance you’ll be involved in a traffic accident.  Whether it’s a small fender bender or a major injury accident, knowing in advance what to do can help you avoid costly mistakes.  This guide discusses what to do after an accident and what to expect when you file an automobile insurance claim with your insurance company.  For your convenience, an accident checklist is contained herein which can be kept in your vehicle for future reference.

When purchasing insurance, carefully review the application before signing it to be certain that the coverages, policy limits, and deductibles suit your needs.  After you receive the policy, review the declaration page.  It contains important information on who is covered, the vehicles insured, as well as the coverage limits and deductibles. Make sure the information is correct and the coverage is what you purchased.   If changes are needed, send your request to your agent and/or insurance company in writing and keep a copy.  Use certified mail/return receipt requested to verify receipt of your letter.

Become familiar with your automobile insurance policy before it’s needed. Read the policy thoroughly so you know what is covered and what is excluded.

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Some of the most frequently asked questions about automobile insurance claims are discussed below:

What to Do If There Is an Accident

Q.  What Should I Do at the Scene of an Accident?

A.  Immediately stop at the scene.

• Call 911 if there are injuries.
• Call the police. In some areas police authorities may not come to every accident scene.   They may consider factors such as the severity and location of the accident (e.g., some police authorities will not come to the scene if the accident is on private property).  However, you should attempt to notify the police.  You should also be aware that most policies require notification of police within a specified time period if the accident is a hit and run.  Obtain names, addresses, telephone numbers, and driver’s license numbers from all drivers. 
• Obtain license plate(s) and vehicle identification numbers.  Ask to see driver’s license(s) and vehicle registration(s) to verify that the information is accurate.
• Obtain names, addresses, and telephone numbers of other passengers and any witnesses.  
• If you have a camera, take photographs of the damage, the position of the cars, and the accident scene (e.g., traffic controls, visual obstacles).
• If the owner of a damaged car or damaged property cannot be located, leave a note with the names and addresses of the driver and owners of the involved cars.
• Notify your agent and/or your insurance company immediately.
• If anyone is injured or the vehicle damage exceeds $750.00, you must report the accident to the Department of Motor Vehicles within 10 days.  Failure to notify the DMV may result in the suspension of your driver’s license.

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Things to Avoid at the Scene of an Accident

• Do not argue with other drivers and passengers. Save your story for the police and your insurance company.
• Do not sign statements regarding fault or promises to pay for damage.
• If another party offers to pay your deductible, don’t sign anything releasing him or her from further responsibility.  By releasing the other party, you jeopardize your insurance company’s subrogation right, and the company may refuse to pay for damage to your car.

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Frequently Asked Questions

Q.  What Happens After I File the Claim with My Insurance Company?

A.  Your insurance company will contact you for additional information, such as a detailed account of the facts, or a written or recorded statement.  An examination under oath may be requested.  As part of the investigation, other drivers and witnesses may be contacted. If you have medical payments or an uninsured motorist claim, you must provide documentation of your injuries, medical expenses, lost wages, et cetera.

Q.  What Should I Do If the Insurance Company Does Not Contact Me?

A.  A claim representative should contact you within a reasonable period, usually 24-72 hours after you report the loss.  If you do not hear from anyone, call your agent or insurance company for assistance.  If they are not responsive, or you believe there is an unreasonable delay in settling your claim, contact the Department of Insurance.

Q.  How Does the Insurance Company Evaluate Vehicle Damage?

A.  An adjuster or appraiser usually inspects the vehicle.  Do not authorize repairs until the adjuster has inspected the vehicle and you are satisfied with the scope of repairs and the repair facility.  If the damage is relatively minor, the company may ask you to submit competitive repair estimates.

Q.  What Will the Company Pay on a Physical Damage Claim Under a Standard Auto Policy?

A.  Generally, the company will pay the lesser of             The amount necessary to repair the vehicle or            The actual cash value (ACV) of the vehicle.

Read your policy to be certain of what is and isn’t covered.  Pay particular attention to exclusions. For example, there is usually no coverage for stereo equipment, a telephone, or a citizens band radio unless the equipment was permanently installed by the automobile manufacturer in the normal opening in the dash or console.  Coverage is usually available for such special equipment for an extra premium charge.

Q.  What Is Actual Cash Value (ACV)?

A.  Actual cash value means the fair market value of your car before the accident.  This is the price that a willing buyer would pay a willing seller, neither under pressure to buy or sell.

Your company may survey dealers, value guide books, and private parties for a similar vehicle to approximate the ACV.  A computerized market analysis system might also be used.

If you do not agree with your company’s figure for ACV, you may want to do your own survey of dealers and private party sellers in your area.  Companies are required to offer a fair settlement.  If you can show that your figure more closely approximates the ACV, your company should be willing to negotiate.  Your policy may also contain an appraisal provision.

Q.  What Is an Appraisal Provision?

A.  Most standard policies contain an appraisal provision which can be helpful in the event that you do not agree with your company on the amount of loss.  Read your policy to see if it contains one. Under this provision either of you can demand an appraisal.  Each party selects a competent appraiser.  The appraisers then select an umpire.  If the appraisers cannot agree on the amount of loss, their differences are submitted to the umpire.   An amount that any two agree upon is binding.  Each party pays its appraiser; the umpire fee is shared.

Q.  How Is the Check or Draft Prepared?

A.  The check may be made payable to the insured and any lienholder, such as a bank or finance company.  If the vehicle is repaired, the company may also include the repair facility as a payee.

Q.  Who Is Responsible for the Balance of a Car Loan?

A.  The borrower is responsible for the balance of the loan, even if the vehicle is stolen or damaged beyond repair.   If your claim payment is less than the loan balance, the lender will expect you to pay the difference.  Coverage commonly referred to as "gap" insurance can usually be purchased to protect against this situation.

Q.  Will the Company Pay for a Rental Car While Mine Is Being Repaired?

A.  Yes, if you have purchased rental vehicle coverage.  Review your policy before you rent a vehicle. Although policy limits vary, the company pays up to a specified amount per day for a specified number of days.  The coverage ends when your vehicle is repaired, the loss is paid, or after the specified period, whichever comes first.

If your vehicle is stolen, the policy may automatically provide transportation expenses. Again, review your policy to be sure.  This type of coverage usually begins 48 hours after the theft and ends when your vehicle is recovered, the loss is paid or after a specified period, whichever comes first.

Q.  What Is a Collision Damage Waiver and Will the Company Pay These Charges for the Rental Vehicle?

A.  The terms of the rental agreement make the customer responsible for collision damage while he or she has possession of the vehicle.  Additionally, rental companies insure themselves for damage  to the vehicle caused by collision.  For an additional fee, the rental company will waive all or a portion of the customer’s obligation to pay repair costs for damage to the vehicle caused by collision.  Both the amount of the fee and the language of the waiver vary. 

Coverage for collision damage to the rental car under your  personal automobile policy depends upon the policy language.  Read your policy carefully.  Ask your agent or company before you rent a vehicle.

Q.  What Is the Salvage Value?

A.  This is the remaining value of your damaged vehicle if your vehicle is determined to be a total loss.  It is usually determined through bids from salvage buyers.  The company may sell the salvage to the highest bidder.  However, it is not obligated to do so. If you decide to keep the damaged vehicle, the highest salvage bid may be deducted from your settlement.   In effect, you are "buying back" your vehicle for the salvage value.   If you retain possession of the salvaged vehicle, it is your responsibility to file a salvage certificate with the Department of Motor Vehicles.

Q.  What Is Subrogation?

A.  Subrogation is the right of the insurance company to recover from a third party the amount of damages it paid to you.   For example, if another party is at fault in an accident that damages your car, and you have a collision claim, your company will ask the other party to reimburse the money it paid on your claim.  The policy requires your cooperation with the company’s subrogation efforts.  Also, you cannot do anything that jeopardizes the company’s right of recovery.  For example, you cannot sign an agreement releasing the other party in exchange for payment of your deductible.

Q.  Is the Company Required to Help Me Recover My Deductible?

A.  Yes and no. The insurance company must advise you as to whether or not they intend to pursue subrogation.  If the company pursues subrogation, they are required to include your deductible as a part of the process.  However, if the company does not pursue subrogation they are required to advise you of that fact so that you may pursue your deductible on your own.  If their efforts are successful, in whole or in part, the company will reimburse you in accordance with the recovery.  For example, if 100 percent of the paid claim is recovered, you will receive 100 percent of your deductible; if the recovery is 65 percent, you will receive 65 percent of your deductible.  Any expenses or fees (e.g., legal fees, incurred by the company in its recovery efforts) will be apportioned between the company and you, if recovery is made.  However, if you choose not to have the company include your deductible in its efforts, you can seek recovery directly from the other party on your own.  But before you do, discuss the matter with your company to avoid jeopardizing its recovery.

Q.  Is the Car Covered Outside of America?

A.  Most policies provide coverage in other states, U.S. territories and possessions, and Canada. Most states and territories have enacted financial responsibility laws requiring drivers to carry a specified amount of automobile insurance to cover losses resulting from ownership or operation of a motor vehicle.  If the financial responsibility requirements where you are traveling are higher than your policy limits, your company will meet the higher requirements.  Most policies do not provide coverage in Mexico, so if you plan to drive your car there, it’s wise to buy that coverage separately.  Check your out-of-state coverage before you travel. 

Q.  What Should Be Done If a Lawsuit (Summons and Complaint)Arises Out of an Accident?

A.  Notify your agent and insurance company immediately.  Keep a copy for yourself and mail or deliver the original documents to your company.  Do not give statements or discuss the accident with anyone except a verified representative of your company.  If the lawsuit arises out of a covered loss, your company will provide legal defense.

Q.  Is a Newly Acquired Vehicle Covered?

A.  Most policies provide 30 days automatic coverage for a vehicle that replaces a vehicle already on your policy.   The coverage normally is the same coverage you had on your previous vehicle.   Notify your broker-agent as soon as possible of any replacement vehicle. If you wish additional coverage, there is usually a requirement that you notify your agent or your company within a designated time period.

Most policies also provide automatic coverage for a newly acquired vehicle that is an addition to the vehicles you already have on your policy.  There are usually specific conditions that must be met. For example, the purchased vehicle must be reported to your agent or company within a designated time period (e.g., 30 days) or there may be a requirement that in order for coverage to automatically apply, all of your other owned vehicles must be insured with the company.

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Important Tips

Read your policy. Don’t wait until after an accident.
2. If you don’t understand your policy,
ask your agent and/or company for clarification.
3. If you have an accident, call the police.
  If there are injuries, call the paramedics.
4. Get as much information as possible at the accident scene
to furnish to your agent and/or insurance company.
5. Immediately notify your agent and/or insurance company
of an accident.
6. Cooperate with the insurance adjusters/investigators to aid
in their efforts.
7. If you don’t understand something about the claims procedure (e.g., amount of settlement offer), ask your
agent and/or insurance company representative to explain.
8. Notify your agent or company in writing of any change in
your vehicle ownership.

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Your Rights Under the Fair Claims Settlement Practices Regulations  

In general, insurance companies are required to do the following:

• Advise you of all benefits, coverage, time limits, or other provisions of your insurance policy.
• Acknowledge claim, start investigation, provide forms and instructions, and provide reasonable assistance immediately, but in no event later than 15 days after receiving notice of claim. (Notice of claim is any written or oral communication to the insurance company which reasonably apprises the insurer that you wish to make a claim.)
• Respond to communications received from you immediately, but in no event later than 15 days.
• Accept or deny the claim immediately, but in no event later than 40 days after receiving proof of claim. (Proof of claim is documentation in your possession which provides any evidence of the claim and supports the magnitude or the amount of the loss such as estimates of repair or police report indicating theft of your vehicle, et cetera.)
• Unless the insurer has provided you with the name of a specific towing company prior to your using a towing facility, the insurer must pay reasonable towing expenses.
• Offer a fair settlement.  If you suffered a total loss, settlement must include taxes, license and transfer fees.  The settlement must reflect the value of a comparable deductions from the settlement for salvage must be fair, measurable, and discernable.
• Once the claim has been accepted, the insurer must pay the claim immediately, but in no event later than 30 days from the date settlement was reached.
• Advise you whether or not they will pursue subrogation.  If the insurance company pursues subrogation, they must include your deductible unless you have already recovered your deductible.

The above represents a paraphrased brief overview of some of the Fair Claims Settlement.

Automobile Insurance Fraud

Red Flags

Automobile insurance fraud in the U.S. historically has  taken several forms.   The most common fraud schemes involve automobile property and automobile accidents.

Automobile Property - This type of fraud most often involves dishonest auto body and repair shops and/or insureds who may employ a variety of illegal or questionable techniques including:

• Reporting parts of vehicles as damaged or lost when in fact they were not damaged or lost prior to the shop receiving the vehicle.
• Making final cost in excess of the original estimate of damage.
• Billing for repairs that were not authorized.
• Charging for genuine parts when aftermarket or used parts from a junkyard were used.
• Pounding out dents or using bondo when charging for brand new auto parts.
• Falsely reporting stolen vehicles or vandalism of vehicles in order to collect insurance monies.

It is always important for the consumer to review carefully all paper work from auto body and repair shops in order to protect against potential fraud.  Also, consumers should be cautious of any auto body or repair facility that makes referrals to medical or legal offices. This practice may be an indicator of "capping." Capping (a felony in most of the U.S.) is the illegal referral of clients to legal offices for a fee.

Automobile Accidents - Automobile fraud often involves organized auto accident rings. Staged auto accidents, which are not accidents at all, follow several basic schemes including:

• Suddenly stopping for no apparent reason
• Intentionally disregarding the right-of-way
• Giving up the right-of-way in order to cause an accident
• Claims report list passengers who were not in the vehicle at the time of the accident
• Witnesses are listed who were not at the scene of the accident
• Injuries claimed are excessive compared to vehicle damage
• Driver has a temporary vehicle registration
• Prior damage to the other vehicle
• Contact by an attorney without being solicited

If you have been in an auto accident, be cautious of any unsolicited referral to a body shop, law office or medical office.  Organized accident rings and cappers actively solicit others in the community to participate in the creation of accidents.  Often these accidents only exist on paper (referred to as paper accidents), and no innocent parties are involved.  Paper accidents have gained in popularity among fraud perpetrators, as they are less dangerous from a bodily injury standpoint, and there is less likelihood of police involvement.

Auto Body Repair Shops

Under California Insurance Code §758.5, for example, an insurance company cannot require that an automobile be repaired at a specific repair shop.   However, an insurance company can recommend that an automobile be repaired at a specific repair shop under the following conditions outlined by law:

• The consumer specifically requests a recommendation from the insurance company to a repair shop.
• The consumer has been informed in writing of the right to select a repair shop of his or her choice.
• If the consumer agrees to use the recommended repair shop, the insurance company must restore the damaged vehicle to its condition prior to the accident or loss with no additional cost other than as stated in the policy or as otherwise allowed by law.
• If the company makes an oral recommendation to a repair shop, and it is accepted by the consumer, then the company must follow the oral recommendation with the prescribed written notice within five calendar days as specified by law.

If the vehicle is repaired in a shop chosen by the consumer, then the insurance company must pay the reasonable costs to repair the vehicle in a workmanlike manner.  The insurance company is prohibited from limiting or discounting reasonable repair costs based on charges that would have occurred if the vehicle had been repaired at the company's recommended repair shop.  Also, the insurance company must stand behind the repairs of the recommended shop if the vehicle is not repaired properly.

Auto Replacement Parts

In some cases an auto repair may include replacement of damaged parts with after-market parts.  After-market parts are parts which are not made by the original manufacturer.  After-market parts may be equal, better, or worse in quality than original equipment manufacturer parts.  Consumers should take note of the following:

• An auto repair shop is required to provide a written repair estimate of the cost of repairs prior to initiating repairs to the vehicle.  Once the work is completed, the shop must then provide a written repair invoice.  State law requires that the type of auto parts used in repairs must be identified on the repair invoice.  Consumers should carefully check their invoice to ensure that the auto body shop has identified each auto part replaced as being used, reconditioned, rebuilt, an original  equipment manufacturer part, or an after-market part.

Home-Based Business Owners, You Need Insurance Coverage

When you start a home-based business, buying insurance may not be your first priority, but you cannot afford to ignore it either. When the unexpected happens -- and it will -- having insurance coverage may mean the difference between the success and failure of your home-based business.

You may not require all types of insurance listed here, but taking some time now to consider your insurance needs can save you money and headaches in the future. Ultimately, after reading this article, the best way to determine your complete needs is to consult with your insurance agent. Explain to them the details of your home-based business and he or she should be able to determine the best insurance coverage for you (and any employees).

Health Insurance

Health insurance should be the first consideration for yourself and any employees you may have. If you have just left your current job to start your own business, you may be eligible for COBRA, which will provide temporary interim coverage. This will keep you covered while you search for the best health insurance policy.

Disability Insurance

Disability insurance will guarantee that you have some income should you suddenly become unable to work because of injury or illness. Having this extra peace of mind is almost always well worth the extra money you pay.

Life Insurance

Life insurance will help ensure that your family has the money it needs should you meet with an untimely death. Some lenders require that you have life insurance before they'll issue a loan; this guarantees that the loan will be repaid if you meet with an untimely end.

Business Property Insurance

Business property insurance helps protect you against loss of inventory or equipment. If your business equipment or inventory is damaged in a flood, fire, or other disaster, this type of insurance will allow you to recoup your losses.

General Liability Insurance

Comprehensive general liability insurance is necessary for your home-based business if you plan on having clients or customers visit your home. Whether you plan to hold meetings, allow customers to pick up merchandise, or have members of the public enter your home for any other reason, this insurance will protect you if someone is injured while on your property. This insurance will typically pay for your legal defense should you face a lawsuit as the result of a fall or other damage that occurs on your property.

Business Interruption Insurance

Business interruption insurance will help your business recover from natural disasters. It will cover you for income lost during the disaster, and will pay for operating expenses that continue to accrue, even though your business isn't up and running.

Workers’ Compensation Insurance

Workers' compensation insurance is an absolute necessity if you plan on having employees working out of your home. Without workers' comp, you'll be responsible for any medical expenses arising from injuries employees sustain while working for you. Many home-based business owners mistakenly believe that this type of insurance is only required by businesses that have a retail or separate location, but that's not the case. Another mistake is assuming that only ‘dangerous’ employers (such as construction or movers) need this type of insurance. But what if your employee slips on the stairs or their chair breaks? While those are both unlikely, they are possible and the less risky your business, the cheaper the insurance will be.

These insurance plans can help ensure that you are prepared to face any eventuality that might occur while you are running your own business. Disasters, accidents, and crises can strike at any time. By preparing now, you may be saving you and your company significant financial loss, wasted time, and difficulty.

Tips for getting the best insurance quotes.

General insurance tips: Have your current insurance policy with you when requesting your insurance quotes. Consider a higher insurance deductible. Place all of your insurance policies with the same company to qualify for a multiple policy discount. For car insurance quotes Be sure all vehicle discounts are applied (Anti-lock brakes, Alarm system, daytime running lights, vin-etching, etc.). Take a defensive driving course. Be very accurate about your mileage to and from work. Ask about affinity discounts. For a homeowners insurance quotes Be sure that your home is insured to its value Be sure all home discounts are applied (Alarm, smoke alarms, fire extinguishers, dead bolt locks, etc.). If your older home has been renovated, tell your agent. For a life insurance quotes Consider level premium term insurance. If you are a smoker, quit for at least 13 months and request that your insurance company consider you for a nonsmoker insurance rate. For a health insurance quotes Consider a higher co-payment or deductible. Join a group health insurance plan. For a long-term insurance quotes Consider a longer elimination (waiting) period. Purchase coverage when you are young (premiums are lower). Pick a daily benefit based on where you live.

Auto Insurance Tips – Sealing the Deal on Affordable Car Insurance

By Krista M. Farmer

Okay. I admit it. I’ll stand in line for the latest Harry Potter book. You can probably convince me that I “need” the latest Dior volumizing mascara and yes, I have eaten turtle cheesecake for supper before. I have several guilty pleasures. Buying auto insurance is not one of them, but it’s a necessity. Read on to learn why, in addition to being a legal stipulation, auto insurance is important to you and your assets.

First things first – While penalties vary state to state, you can guarantee that driving without coverage will take some clank out of your bank. Uninsured drivers can face a myriad of punishments for merely being stopped and not being able to prove coverage. This fact alone should be enough to convince you to start researching reasonable insurance coverages for your vehicle.

Not persuasive enough? Consider your possible liability in the event of an accident…

Your vehicle collides with Mrs. Baker’s vehicle. Mrs. Baker is a fourth grade teacher at the local elementary school and is now facing $80,000 in medical bills, $65,000 in lost wages and is requesting $200,000 for pain and suffering. That’s a $345,000 claim that, unless you have adequate coverage for, you will be pulling out of your pocket. Certainly in this case, as the too familiar adage wisely states, it’s better to be safe than sorry.

So, you know you need auto insurance. While it’s not sinfully delicious or nearly as enjoyable as turtle cheesecake, lack of adequate coverage will definitely leave you with a bellyache in the event of an automobile accident. It is possible to find insurance you can afford.

Remember! Your car insurance rate is based on your insurance risk assessment. If an insurance company determines you are a high-risk driver, your monthly cost will be higher than that of the average driver. You CAN remedy this! Let’s take a look at a few things you can do to reduce your auto insurance risk which, in turn, could lessen your auto insurance cost…

1) Purchase home/renter’s insurance from the same carrier as your auto insurance. Some insurance companies offer multi-policy discounts.

2) Always obey traffic laws, specifically the speed limit. Insurance companies take note of your driving record. More speeding tickets = higher risk driver = increased auto insurance cost.
3) Study hard. Insurance companies often reward students with good grades with a student discount.4) Purchase a vehicle that receives notability for low damageability and increased passenger safety.5) When given the option, purchase additional safety features for your vehicle. (Air bags, antilock brakes, etc.)6) Take a driver safety course. A defensive driving class could possibly reduce your insurance rate. If not, it would at least make you more aware of the importance of being a defensive driver.

Other things to keep in mind…

1) To the insurance company, plain and simple, you are a set of risks. Anything you can do to decrease your “risk factor” might affect your cost of coverage.2) Always ask for discounts. Many insurance companies offer deals for safe drivers. If you’re considered less of a risk, they’ll likely reward you. 

3) Always comparison shop. You can always find a bargain if you know where to look. Insurance is such a commodity. Comparison sites like HometownQuotes can help you shop for affordable insurance.

You can always eat too much cheesecake. You may get tired of Harry, Hermione and Ron. And that tube of Dior mascara will eventually get clumpy. Your auto insurance, however, is one purchase that you should never regret or feel guilty about. It will only cushion you in the end. Are you covered?

Car Insurance – California, Do You Have Auto Coverage?

By Krista M. Farmer

Trying to find an alternate route to work when nearly 280,000 other commuters are scrambling to find their way into the city can definitely increase the odds of getting involved in a fender-bender. San Francisco Bay area interstate travelers will be the first to tell you that you cannot predict accidents or catastrophes. Whether you are involved in a natural disaster, auto accident or other catastrophe, insurance plays an important role in securing your funds for the future. Californian or not, it’s always important to see what auto insurance coverage your state suggests or requires.

There’s a long stretch of road between Redding and San Diego, California – which means many opportunities for unexpected auto accidents to occur. The Bay Bridge between Oakland and San Francisco, for example, is a hotbed of confusion and congestion that travelers are trying to navigate and conquer.

Between the excitement of summer and trying to secure your vacation plans, preparing for an auto disaster is probably the last thing on your mind. But the summer heat and unexpected bumps in the road can both wreak havoc on your auto and put you in jeopardy if you’re not prepared. If something happens while you’re driving down that long California interstate, are you covered? Let’s sift through your car insurance policy to consider your options:

What coverages are included in an auto insurance package?

When you purchase auto insurance, you usually have several options – you can purchase medical, liability, property and under/uninsured motorist coverage.

Medical coverage in an auto insurance package will take care of treating injuries to those in the policyholder’s automobile. Medical coverage will be provided if the person is a passenger or hit as a pedestrian.

Liability is your financial responsibility to someone for damage you cause – whether the damage is to another person or to someone’s property. When you purchase liability coverage, the insurance company agrees to defend you in court and/or reimburse the other party for damages you cause.

California state laws require motorists to purchase the following liability insurance amounts.

$15,000 - bodily injury liability for one person injured in an accident$30,000 – bodily injury liability for all injuries in one accident

$5,000 – property damage liability for one accident

Covering property damage includes comprehensive and collision insurance.

Comprehensive coverage insures accidental damage to the auto including fire, wind, sleet, theft, vandalism and similar damages.

Collision coverage reimburses for damage caused by colliding with another object, regardless of who or what is at fault.

What happens if the person that hits you is uninsured or does not have proper coverage to take care of your entire loss? Purchasing uninsured and/or underinsured motorist coverage will cover both of those situations.

If you have not glanced through your auto insurance policy in awhile, it’s time to consider reviewing it. The warm summer weather means your air conditioning will be running longer and your engine will be working harder. It’s important to take time right now and make sure you will be covered if you find yourself stuck on that long stretch of California road between Redding and San Diego.

Shop for Insurance Online = Save Precious Time and Money

By Krista Farmer

Your time is valuable, so save it! Between shuttling the kids to soccer practice, mowing the lawn, finishing that huge research project that’s due in tomorrow’s political science class or just finding a few minutes to simply take a break and unwind, it can be difficult to find time to shop for affordable insurance coverage. Wherever you are in life’s many stages, why dig through the phone book when the insurance quotes you are looking for are at your fingertips?

How will shopping for insurance on the Internet save time?

1) ONLY ONE FORM. When you shop online for insurance quotes, you only have to complete ONE brief form. When you search for quotes by phone, you often have to complete quote applications for each individual company from which you would like to receive a quote – that’s A LOT of time spent repeating the same information over and over. Searching for quotes online eliminates that hassle. Fill out ONE quote form and let the agents come to you, rather than vice versa.

2) INSURANCE AGENTS COMPETE FOR YOUR BUSINESS. Shopping online for affordable insurance means multiple insurance agents will compete for your business. THEY call you. Don’t go around banging on doors when you can sit back and let someone else do all the work for you.

3) COMPLETE SHOPPING EXPERIENCE. Requesting insurance quotes through insurance shopping portals allows you to compare multiple quotes – putting you in the driver’s seat and giving you a complete shopping experience.

How will searching for insurance online save money?

Time is money, right? Shopping for affordable insurance coverage online saves time, so that means you’ll automatically save money and have more time doing things you WANT or NEED to do. PLUS, most online insurance shopping sites provide you with multiple, FREE insurance quotes. Why should you spend money on something you might not use when you can compare insurance quotes for free?

Recent studies show that most insurance consumers want to receive at least three insurance quotes when shopping for auto coverage. At HometownQuotes, not only do we offer free, multiple insurance quotes to consumers looking for affordable insurance, we also offer reliable customer service, insurance information and resources and access to several insurance professionals.

Don’t let searching for affordable insurance consume valuable time when your to-do list is nowhere near completed. We know you have other things competing for your time. When you let HometownQuotes do the work for you, finding insurance that fits your needs won’t be one of them.

Understanding Insurance Marketing and Search Engine Placement

When it comes to search engine visibility, the good news for local insurance agents is it’s not too difficult to get your company website to the top of search engines for localized keywords.  Most agencies can find their website reach top placement for geo-targeted keywords by consistently publishing fresh articles on their website and by building links to your website by writing for other relevant resources.

A few rules should be followed as far as onsite seo is concerned also. Ultimately, with local insurance keyword placement, content is king followed by relevant links. Some believe it’s the other way around. Either way, both tasks are very necessary. 

If you were to design a search engine who would have the best rank?

A local insurance agency with several useful Articles published as well as several relevant links back or a local insurance agency with a home and bio page.  Search engines generally have the same idea you have, they want the best resource on top.

Review of HomeServe Boiler Insurance

Customer Review Comments: Went to HomeServe for my boiler cover after British Gas became too pricey. Despite promising a service call during the firts year, I received no call and had to request a visit. This was carried out and the fitter left promising to return with service parts which needed to be ordered. He did not return. One month later, the boiler packed up. I called them and a call out was arranged (Alpha Boilers). After carrying out a temporary repair, the guy left promising to return with spare parts. We heard nothing for a week so I called to chase. I was advised that they had unilaterally decided that my boiler was not covered and that my policy had been cancelled. No one had called me to advise and I am now left high and dry having spent over a years worth of premiums. Totally unnacceptable.

Good Points: None Bad Points: No Service call, takes money but does not provide service Customer Service Rating: 0/5 Value for Money Rating: 0/5 Overall Rating: 0/5 Made a Claim? Yes Recommended? No

Do You Need Business Insurance if You Work From Home?

With around 2.1 million businesses run from home in the UK, and an estimated 1,400 created every week, there's no denying that it's a popular and economical way of starting out on your own.

But whilst working from home has some great advantages, there are some important aspects that many overlook. One of these is the need for separate business insurance to cover things from office equipment to stock. Many home-workers assume that all their business related equipment and activities will be covered by their home insurance policy but this is designed to protect your domestic space and personal items only. In fact, failing to inform your home insurance company that you are conducting a business from your domestic premises could leave your entire home uninsured.

What’s more, if your home-based business employs at least one member of staff in addition to yourself, you’re required by law to take out employer’s liability insurance. Whether or not you have any employees, business insurance that is designed to protect your commercial assets and equipment is still important. Home contents insurance is rarely suitable even when extended and the potential losses from being under-insured should the worst happen could end your new venture before it’s had chance to get started.

What Business Risks Might You Need to Cover?

There are several different types of business insurance that might be applicable to your home-based enterprise depending on the type of operation, the value of your assets, and other factors.

• Office contents and computer equipment: Limits for cover range between £7,500 and £20,000 depending on factors such as the value of your business and the insurance company you are insured with.
• Stock: You can insure stock held in your home for around £1,000 (higher amounts may be available if you make the request to your insurer).
• Portable items, including laptops, mobile phones, and PDAs, can be insured for a maximum cover of around £1,500.
• Business interruption insurance applies in cases where the normal flow of business is interrupted. This will apply where your business cannot function normally and can cover lost wages or revenue, and increased costs of business operation that might result.
• Public and employer’s liability insurance provides you with cover in case any member of the public, or an employee, makes a legal claim against your business. Limits may be around £2 million for public and £10 million for employer’s insurance. (Note that if your business employees at least one person in addition to yourself, employer’s insurance is required by law.) Public liability cover is needed if your clients or customers enter your home for business reasons.

Check Your Existing Insurance

Regardless of the type of commercial insurance you choose, it’s also a good idea to give your home insurance company a call and let them know you’re operating a business from your home. In most cases the existence of a small, office-based business won’t affect your existing home insurance premiums, but if your business involves an activity that increases fire risk, for example, your insurer may adjust your premiums. If you withhold or fail to declare this information, the insurance company may void the policy and decline any claims.

Check your car insurance too, and find out if it allows you to drive your car for business purposes.

Common questions about public liability insurance

What is Public liability insurance?

Public liability insurance covers costs relating to injury or property damage caused to the public that are deemed to be the responsibility of your business or staff members.

In most cases this cover awards made by a court, legal fees and expenses in bringing in a case. In some situations you may also have to pay compensation to the National Health Service towards medical treatment; these costs can also be covered.

Does this cover employees?

Injury to staff members is instead covered by employers' liability insurance. This is mandatory under a 1969 act.

Injury or damage to the public caused by your employees does come under public liability insurance.

How is the cost decided?

The pricing of public liability insurance can vary from business to business. Most will take into account the size of your business, in terms of employees and/or turnover. It's also common for a company to take into account any previous claims you have made (or incidents where you would have made a claim if covered). In some cases, there will be specific adjustments to the premium based on the safety practices you follow in your business.

You will need to check the terms and conditions of your policy carefully as in most cases acts of negligence on your company's part may limit or invalidate the protection which insurance gives you.

Is public liability insurance compulsory?

In most cases public liability insurance is a voluntary measure. In practice, though, you will often find that suppliers and customers won't deal with you unless you have adequate cover.

One example is live events such as entertainment or sport, where most venues will demand you have public liability insurance. This is to make sure that in the event of an audience member being injured, the claim can be dealt with by the company running the event, drastically reducing the chance of action against the venue.

There are certain types of business where public liability insurance is mandatory. Generally these include businesses where the service offered to customers involves inherent dangers such as extreme sports.

Are there any exceptions to what is covered?

As a general rule, you won't be covered for damage caused by a business activity you carry out which is illegal in itself.

Do self-employed people need public liability insurance?

A self-employed person, particularly one who works from home, is less likely to need this cover. The question to consider is where your work-related actions pose a risk of causing injury to others. If clients visit your office or home, you may want to look into cover in case they are injured on your premises.

Do I need cover if I have a great safety record?

It may seem that insurance cover is not needed if you strictly adhere to safe working practices when dealing with the public, but there are a couple of reasons why public liability insurance is still worth considering. One is that there may be a "freak accident" which is still deemed to be your responsibility. Another is that the policy may cover your legal fees if you successfully defend against a liability claim, minimising the risk of you losing out even when you are not to blame.

Is it possible to compare public liability insurance quotes like other types of cover?

Thanks to the internet, it is now possible to compare multiple policies and providers of public liability cover in a similar way to car and home insurance. Although the choice of companies is much more limited, online business insurance comparison sites such as Coverzones, Simply Business and Swintonoffer price and policy comparison services for most types and size of business. However, if your enterprise is a little more unique, there are a range of more specialist brokers who may be able to help.

Home contents insurance - limit your risk with the right cover limit

Article by UK Insurance Index
Article added: 30/7/2010 - Last updated: -
Rating: 0.00 (0 votes)

Whenever you take out a home contents policy, you'll be asked to set a cover limit: the higher the limit, the higher your premium. In some cases you can pay an even higher premium for cover without a limit, though naturally you'll still only get a payout high enough to cover your actual losses. The problem is that these can seem like huge amounts and it can be easy to underestimate the value and become underinsured. Most estimates of the cover required for the contents of an average home are in the £40-£50,000 range. Underinsurance Its important to remember that some insurers use a policy known as averaging. This means that whenever you make a claim, they'll adjust the payout based on your cover level for the entire house. That means that if they decided your entire possessions are worth £50,000 and you only have £25,000 cover, they'll only payout half of each item's value. This applies even if you are only claming for a single item which is well below your cover limit. Renting vs Owning You'll notice as you go through the list that some items won't apply if you are renting. This is usually reflected in the cover limit suggested to tenants rather than homeowners, and thus in lower premiums. Cover Checklist Here are a few reminders of some of the things you might forget to include when checking your total contents value. Bear in mind that you need cover for replacing everything: it's unlikely to be needed if you are burgled or even flooded, but in a fire everything really could go. Kitchen: You'll need cover for all your gadgets, your cookbook collection and that rare whiskey in the cupboard. Don't forget the value of the food in your fridge and freezer which could be ruined by an electric outage: a full load can easily approach or reach three figures. Bathroom: You won't have to worry too much about a tub of Brylcream, but even a half dozen bottles of cologne or perfume can soon add up. Bedroom: Don't forget all that stuff you have buried away under the bed or in the cupboard. OK, not everyone has diamond earrings worth a fortune, but that tent, rucksack and airbed could be an extra couple of hundred quid to replace. Outside the house: Most of us will remember to include the costs of garden furniture and the lawnmower, but look up to the roof: anything from a blazing inferno to a storm and you could be looking at a hefty parts and labour bill for replacing an aerial or satellite dish. Living room: Fair enough, the British Film Archive isn't going to declare your house as its next venue, but 50 DVDs, a dozen or so old VHS tapes, 100 CDs and that batch of old vinyl, and you could be safely into the thousands of pounds range. And even if your shelf will never be mistaken for the British Library, 50 paperbacks at a fiver a piece and you're talking £250.