Simply Explaining Insurance

There are two coverages that should be built into your auto policy.  They are called Uninsured motorists and underinsured motorists.  They protect you and anyone in your car if you are hit by someone who doesn’t have ANY insurance or if they don’t have enough insurance.  These are an important defense to making sure you don’t find yourself in a situation where you may be stuck with unwanted medical expenses.

The coverage is generally very inexpensive and is something that my agency includes on EVERY auto insurance policy.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post What if you are hit by an uninsured driver? appeared first on Dietz Agency.

The post What if you are hit by an uninsured driver? appeared first on Dietz Agency.

This is a question I get once in awhile. “Why did my insurance go up, I have never even filed a claim?!”.  When you have a true understanding on the mechanics behind how insurance works, I think you will see why rate increases occur.

When insurance is needed, it is used to pay for dozens of different things.  It pays for medical bills, it pays to rebuild homes, it pays to replace property, it pays for lost rental income, it pays for a rental car if you need it, it pays for a towing company to help you out, it pays for lost wages if an employee is hurt on the job, to name a few.  Insurance isn’t a stand alone product.  It’s pricing is determined by the cost of other goods and services and all of these services, have increased in cost in the past few years and will continue to do so.

The average cost of a new car in 2016 is over $33,000.  Every time there is a fender bender and a bumper has to be replaced you are looking at at least $1500.  There are sensors and cameras in every car these days,  so it’s not like they are taking an old bumper off and slapping on a new one.

The cost of medical has increased over the past 10 years so when you are in an accident and there are injuries, it’s the insurance from the at fault driver who pays those medical bills.  These are a couple of factors that cause rate increases.  Check out the short podcast below for more!

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post “Why does my insurance go up?” appeared first on Dietz Agency.

The post “Why does my insurance go up?” appeared first on Dietz Agency.

I think it is amazing when a company offers group life insurance as part of their benefit package and if your company offers it, get as much as you can.  There can be some shortcomings though if this is the only policy you have to protect your family.

For starters, most people have no idea how much life insurance they have from their employer.  When they look an find out, they realize that they probably don’t have enough.  Most employers offer 1-2x their annual salary.  That’s great and all, but it is wildly short than what a family needs.  What happens when that money runs out?

The other thing that people don’t consider, is that this group life insurance policy, isn’t theirs.  It belongs to the employer.  When you leave that employer, so does the insurance policy.  Not only is that policy not enough, it’s not even yours.

According to the Bureau of Labor Statistics, the average tenure of an employee these days is 4.6 years.  What if your next job doesn’t offer group life insurance?

As with health insurance, you don’t want gaps in your life insurance coverage, because you never know when you might need it. Most workers who get coverage through work don’t know where their life insurance will come from if they change jobs, are laid off, their employer goes out of business, or they switch from full-time to part-time status. You usually won’t be able to keep your policy in these scenarios. Lack of portability can be a problem if you aren’t going directly to another job with similar coverage and aren’t healthy enough to qualify for an individual policy. Some policies do allow you to convert your group policy to an individual one, but it will likely become much more expensive, as you’ll be converting your term policy to a costlier permanent policy. And if you’re losing your coverage because you were laid off, the premiums might be unaffordable.

Group life insurance plans should be secondary to a policy that you own.  You can choose how much you actually need, or you can let a licensed professional help you figure that out.  You can choose how long you want to have it, you can choose if you want term or permanent.

The last thing is, some people think they have life insurance plans through work, but they are flat out wrong.  I have seen some people look at their policy only to realize they have an Accidental Death and dismemberment policy (AD&D).  Or the policy dictates that it will cover them, but only if they die on the job.

Do yourself a favor and look at your policy you have at work.  Find out how much you need.  Use your employer’s policy as a secondary policy and protect your family properly.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post Your group life insurance plan, should be secondary to your own plan. appeared first on Dietz Agency.

The post Your group life insurance plan, should be secondary to your own plan. appeared first on Dietz Agency.

To steal a line from my childhood hero Ferris Bueller, “Things move pretty fast these days.”  You can now order a cab from your phone using a rideshare service.  I used Uber for the first time recently and was amazed at the entire process.  The simplicy, the elegance of the app and the fact that you don’t need cash all added to the experience.   Owning an insurance agency got me wondering how these drivers are insured so I did a little research.  Turns out if you drive for a big company like Uber or Lyft, there is a serious gap in your insurance, UNLESS, you have the proper endorsement on your personal auto policy.

Some companies have evolved, and are providing coverage to fill this gap.  Farmers is one of the few companies that currently offer this coverage.  The gap occurs when the driver is “for hire” but hasn’t received a request for a ride yet.  The company policy has very limited liability coverage at this time, and NO physical coverage for the driver’s vehicle.

Research shows that about 90% of rideshare drivers don’t have the proper coverage to fill this gap.  If you are a driver for a rideshare company, call your agent and see if you have the proper endorsement on your policy.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post 90% of rideshare drivers have a gap in their auto insurance appeared first on Dietz Agency.

The post 90% of rideshare drivers have a gap in their auto insurance appeared first on Dietz Agency.

Short little tip here.  If you have a car that you use seasonally and have it stored for months at a time, make sure you let your insurance agent know.  They will strip all of the coverage off of it except for the coverage called “comprehensive”.  This covers it if it is damaged while in storage, if it is damaged in a fire, or stolen.  This coverage is super cheap and it will save you quite a bit of money.

Just don’t forget to call your agent before you take that car out of storage.

My Website

Music by Roger Clyne and the Peacemakers

Simply Explaining Insurance on ITunes

On Android use Podcast Addict and search for Simply Explaining Insurance.

The post When you store your car, store your insurance too appeared first on Dietz Agency.

The post When you store your car, store your insurance too appeared first on Dietz Agency.