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I don't own a vehicle, why do I need to carry insurance?
If you are a licensed driver in
the state of Ohio, whether you own a vehicle or not,
you must carry automobile liability insurance which
includes your Bodily Injury, Property Damage, Uninsured
and Underinsured Motorists, and Medical Payments to
others. A Non Owned Automobile Policy will give you
these coverages at a reduced price. However, you are
only covered in vehicles you do not own or have daily
access to and there is no coverage for the vehicle itself.
What is an SR22 filing and why do I
need one?
An SR22 filing is an official document
that notifies the state of Ohio you are carrying liability
limits in order to drive. This is usually required by
the state if your license has been or will be suspended/revoked
due to a violation. If you should let your policy lapse
during this time period, the insurance company will
notify the state immediately and you could be charged
with costly fines, as well as, driving under suspension
(which is a serious offense).
My son/daughter has their temporary
driver's license, do I need to add them to our policy?
It varies from one company to the
next. Some carriers require you to add your youthful
drivers once they receive their temporary driver's license
while others will add them only when they receive their
permanent license. A few, however, require that the
youthful driver be added at age 16, even if they have
not yet received their permanent license. We suggest
that you call us when your youthful driver is about
to apply for their temps so that we can discuss your
situation with you in more detail.
Why have my auto rates gone up?
It could be a number of reasons:
Change in vehicle, accidents, tickets, coverage, drivers,
or simply the company has chosen to take an increase
in their rates.
Does the premium need to be paid in
full when purchasing an insurance policy?
In most cases the Insurance Companies
offer a wide variety of pay plans to benefit your budget.
If I need to make a change to my policy,
who do I contact?
Please contact your agent. He/She
can make the change with the company and keep all copies
of changes on file.
Do I need to file a police report if
I'm involved in an auto accident?
Yes. Always file a police report
for your own protection. The insurance company may surcharge
your policy for an accident that may or may not be your
fault based on not filing a police report.
Who do I call if I have claim to file?
Most cases you would contact your
agent unless he/she specifically advises you to contact
the insurance company direct. Some companies will only
take a claim directly from the insured.
Whose policy pays for an accident with
a borrowed car?
If you lend your car to a friend
and your friend has an accident, it might be your insurance
that's on the hook. It all depends on the insurance
company that issued your policy. One company’s
policy may state: "the insurance follows the car";
while another company’s policy states "the
driver’s insurance is the primary coverage"
even though you own the vehicle involved.
Should I purchase rental agency coverage
for rental cars?
If you have collision and comprehensive
("other than collision") coverage on your
own car, you are most likely covered if you're traveling
in the United States, its territories and possessions
or Canada (for example, travel in Mexico, the Bahamas
or Europe would not be covered). Most policies (except
business policies) cover any rental car that you drive
at no additional premium. Business cars frequently require
an extra premium to afford the same coverage. Give us
a call before you leave for your "fun in the sun
and/or snow" to confirm your coverage.
What do I do if I have an accident?
Here are some general guidelines
about what to do if you find yourself in this situation:
- Stop at
once. Never leave the scene of even a minor
accident.
- Seek medical assistance and summon
the police.
- Do not
admit fault. Do not comment
about the accident to anyone but your insurance representative
and the police. Never accept
or make an offer of cash, check or "private"
settlement.
- Obtain information on the other
driver including: name, address, phone number, make
of car, vehicle license number, insurance company
and agent's name and telephone number.
- Record a description of what
occurred.
- Draw a diagram of the accident
showing the direction of both cars and the point of
the accident. Include street names and location of
traffic signs/signals.
- Report the accident promptly
to your insurance agent.
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Do I really need Uninsured Motorists
Coverage?
You're driving your son to soccer
practice when you are rear-ended at a stop sign. Dealing
with the initial trauma of the accident and injuries
and the subsequent disruption of a period of medical
recovery and the inconvenience of car repairs is bad
enough. What if the injuries are serious and what if
the at-fault driver has no insurance? Where do you turn?
This is where your Uninsured Motorists
(UM) Coverage comes into play.
What is UM Coverage? The Ohio Insurance
Institute defines it as coverage that "pays the
policyholder and passengers in his/her car for losses
sustained by reason of bodily injury ... caused by the
owner or operator of an uninsured automobile or a hit
and run driver."
What is the difference between Uninsured
and Underinsured Motorists Coverage? Underinsured Motorists
Coverage covers you and passengers in your car for "losses
unpaid because sufficient bodily injury liability limits
are not available from the policy of an at-fault driver."
In other words, Uninsured Motorists covers you if the
wrongdoer has no insurance while Underinsured Motorists
covers you in the event that the wrongdoer has some
coverage but not enough.
Many people wonder if UM is really
necessary. After all, isn't liability insurance mandatory?
How can there be any uninsured drivers out there? The
problem is not everyone obeys the law. The Office of
Public Safety for the State of Ohio recently quoted
to us in a telephone interview that 7% of the drivers
convicted of moving violations in a recent six-month
period were found to have no insurance. There are upwards
of 11 million automobiles registered in the State of
Ohio. If even 5% of them are uninsured, that's a frighteningly
high number!
Others question the necessity of
UM in light of the fact they have very comprehensive
medical coverage. In the event of an accident with an
uninsured driver, they assume their own medical coverage
will fully protect them. Yes, medical insurance would
likely cover most medical expenses. But it will not
generally compensate the injured person for lost wages,
disfigurement, pain and suffering, mental anguish, and
changes in quality of life. For a person permanently
disabled following an accident, even things such as
modifications to make a home and a vehicle more accessible
can cost tens of thousands of dollars. UM can compensate
the victim in these broader areas.
There are ways insurance dollars
can be saved, but paring down or going without UM is
one we strongly discourage. The largest claim in our
agency history is not a huge fire loss or a big liability
settlement. It is, you guessed it, a UM claim.
It is estimated that 1
out of every 20 motorists is driving uninsured.
Although this figure represents only 5% of today's drivers,
uninsured motorists are responsible for approximately
13% of all auto accidents. If you become involved in
an accident with an at-fault driver of an uninsured
motor vehicle there are coverage options available to
ensure that you are adequately protected:
UMBI- Uninsured Motorists Bodily Injury Coverage provides
bodily injury coverage for you and for the occupants
of your vehicle. Most policies already provide this
coverage.
Uninsured Motorists Property Damage
(UMPD) provides coverage for your vehicle. Vehicles
without collision coverage have no protection for damage
resulting from an accident with an uninsured driver.
If the optional UMPD coverage is added to your policy
and you find yourself tangled in an accident with the
at-fault driver having no insurance, you won't be left
to pay for the damage to your car out of your own pocket.
Please contact us if you want to
check into how your particular company's UMPD coverage
is structured and priced.
What is Lease Loan Gap Coverage?
If you are thinking about leasing
or buying a car, you might consider adding Lease Loan
Gap (LLG) Coverage to your auto policy. LLG Coverage
is an extension of your auto's physical damage coverage.
Ordinarily, your comprehensive and
collision coverage provides you with up to the actual
cash value (the vehicle's cost minus depreciation) in
the event of a total loss. When you sign a lease or
loan agreement, you may be obligating yourself for an
amount higher than the vehicle's actual cash value.
At a cost of approximately 5% of
your current comprehensive and collision premiums, LLG
Coverage protects you from out-of-pocket expense when
such a "gap" occurs. Although there are some
limitations, LLG Coverage will pay up to your lease
or loan amount if your car is stolen or if the cost
of repairs is greater than its salvage value. Contact
our office and we'd be happy to discuss this coverage
further.
Note: Some car manufacturers may
provide gap coverage as part of the lease agreement
-- check your particular contract for details.
What is Ohio's Graduated Driver Licensing
Law?
A graduated driver licensing law
became effective in Ohio on July 1, 1998. It is designed
to provide new drivers under age 18 with additional
experience and skills when behind the wheel of a motor
vehicle, this law:
- Allows 15 1/2 year-olds to obtain
temporary instruction permits which are valid for
one year.
- Requires a parent, guardian or
licensed driving instructor to accompany the teen
driver at all times.
- Requires the temporary permit
to be held for a minimum of six months before a license
may be obtained.
- Requires permit holders to have
50 hours of driving experience, including 10 at night,
with a parent, guardian or licensed driving instructor.
- Changes driver education requirements
effective January 1, 1999. New drivers must have 24
hours of classroom and 8 hours of behind-the-wheel
instruction.
- The Ohio Insurance Institute
supports this new graduated driver licensing system.
Similar systems in other states have reduced the number
of crashes involving teens. Call our office or stop
by for your free copy of The Driving Challenge - A
Guide to Ohio's Graduated Driver Licensing Law published
by the Ohio Department of Public Safety. Or
for further information call the Department directly
at 1-800-462-2269.
If a cellular phone is stolen from
my car (or along with my car if it is stolen), is the
phone covered by my auto insurance?
No, it is not unless the phone is
permanently installed and powered by the car's electrical
system. You may want to check with your cellular phone's
service provider to see what type of insurance coverage
they provide in the event the cellular phone is lost,
stolen or broken.
The Insurance Institute for Highway
Safety has published a shopping guide for those wanting
to buy a new car based upon safety features. While the
guide does provide specific car lists (from station
wagons to sports cars) it also reveals some overall
safety basics to keep in mind.
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What are some ways I can reduce the
cost of my auto insurance?
- Vehicle size
- Quite simply, bigger means safer. According to the
shopping guide, "People in small vehicles are
injured more often and more severely than those in
large vehicles." In relation to their number
on the road, small vehicles account for more than
twice as many occupant deaths as large vehicles. Small
sport utility vehicles have the highest death rates
of all, in part because of their greater involvement
in fatal rollover crashes. "While utility vehicles
and passenger vans might go head-to-head in a popularity
contest, passenger vans have good on-the-road crash
experience -- similar to that of station wagons."
- Air bags - Serving
as a buffer between vehicle interiors and occupants'
heads and faces, air bags provide automatic protection
in frontal crashes. The Institute advises that although
"the speed and force of air bag inflation may
occasionally cause minor injuries such as abrasions,
this slight risk is far outweighed by the benefits."
This type of injury can be reduced by selecting a
seat position that is not too close to the steering
wheel.
- Safety belts
- Remember, the more comfortable the safety belt,
the more likely you are to always use it. Even though
shoulder belts allow some forward movement, automatic
crash tensioners and/or belt webbing grabbers can
reduce the chance of an occupant hitting the steering
wheel or dashboard in a serious frontal crash.
- Antilock brakes
- Especially designed to avoid skidding and loss of
control, antilock brakes automatically pump several
times a second. Drivers need to become familiar with
the difference in braking style as antilocks require
heavy braking pressure to activate this safety feature.
- Head restraints
- Required in the front seats of all new passenger
vehicles, head restraints prevent occupants' heads
from snapping back in a rear-end crash. Look for a
fixed head restraint or an adjustable restraint that
is designed to protect tall and short people even
in the "down" position. Avoid a poorly-designed
adjustable restraint that would only protect the shortest
occupants.
- Built-in child seats
- Several cars and vans offer built-in child safety
seats as options.
What does credit have to do with getting
homeowner's insurance?
A few years ago, insurance companies
started research on a new criteria for underwriting.
It was discovered that there is a strong correlation
between a consumer's credit history and the number/severity
of claims that they will likely submit.
Does an insurance quote affect my credit
score?
When an insurance company does a
credit inquiry to price an insurance policy, it usually
does not affect a consumer's credit rating. While the
inquiry does appear on the
credit report, it is clearly identified as an insurance
company that checked. Most reputable lending institutions
realize that you're not borrowing money from that insurance
company and will ignore that entry on your credit report.
I only had one claim! Why am I being
canceled?
This situation occurs quite frequently
and the usual response is, "well what am I paying
insurance for?" It is an unfortunate response and
one that has been given a lot of attention as of late.
Week after week, the Beacon Journal has been publishing
articles about the state of property insurance in Ohio
and, slowly but surely, consumers are understanding
what is happening at the company level.
The factors include the insurance
industry's first ever net loss of $7.9 billion dollars
in 2001. To make up for the loss, insurers are taking
or are expected to take an average rate increase of
24% this year. Companies that still can't cover that
loss have either pulled out of our state completely
or are no longer writing homeowner's in Ohio. We're
at the company's mercy at present and until things improve,
make sure you only claim something REALLY
worth claiming.
Why am I being declined homeowner's
insurance because I own a high risk dog?
Another frequent problem with homeowner's
insurance is the presence of high risk dogs. Dog bites
are extremely expensive for property insurers and the
company has the right to avoid those risks.
High risks dogs include Pit Bull,
Rottweiler, Doberman, German Shepherd, Akita, Chihuahua
and sometimes Labrador. Standard companies will usually
deny coverage to anyone owning one of these animals.
The Ohio Fair Plan (our state supported
program) will take any of these dogs EXCEPT
pit bulls and any dog that has bitten someone.
Am I covered for tornado damage and
does this also include windstorms?
Since the policy specifically refers
to windstorm as a covered cause of loss, some residents
have wondered what exactly a windstorm includes. Tornadoes,
hurricanes, high winds, thunderstorms and blizzards
are all included in the definition of a windstorm. Your
homeowner's policy also provides 'loss of use' benefits
to cover additional living expenses while repairs are
being made to your home.
Please call us with any specific
questions regarding your property coverage. We are always
happy to review your current coverage needs.
Am I covered for volunteer activities?
You are a volunteer soccer coach,
a 4-H advisor, a chamber of commerce committee member,
on the church board, or you helped raise contributions
for the last United Way campaign. Perhaps you have volunteered
hundreds of hours this year without a thought of insurance
coverage. If someone is injured, who pays for any legal
action brought against you in these volunteer activities?
If you serve as a board member and are sued for breach
of duty, imprudent investments, discrimination in hiring
or wrongful termination -- are you covered? To answer
these questions, there are two places to check: your
homeowner's insurance and the organization's insurance.
Let's look at them:
Your homeowner's insurance policy
gives you liability protection for bodily injury and
property damage to others in non-business activities,
like a child who is injured when you are the volunteer
soccer coach or 4-H advisor. On the other hand, no protection
is provided if your volunteer activity is related to
a business (i.e., chamber volunteer, union, trade or
professional association representative, etc.) or if
you receive any compensation. Any legal action other
than bodily injury and property damage is not covered
(an exception: some homeowner's policies cover personal
injury -- libel, slander, false arrest, false imprisonment,
etc.).
Also check for coverage under the
organization's policy. Ask the organization leadership
for proof of insurance for general liability, directors
and officers liability and employment practices liability.
Also check to see if volunteers are covered (named as
additional insureds) under those policies. Some other
potential loss situations could include:
- Failure to examine documents signed
- Silence with respect to improper
conduct of fellow officials
- Improper rejection of bids
- Failure to exercise diligence
in management
- Incurring unnecessary expenses
Communities are fortunate to have
so many volunteers donating their time in a host of
different areas. This discussion is not meant to discourage
any present or prospective volunteers. Rather, our intent
is to help individuals be well-informed, comfortable
and adequately protected when it comes to volunteering.
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Will I be covered for earthquake, flood
and sewer back-up?
While not wanting to dampen your
anticipation of this long-awaited season, it is a good
idea to review some optional coverages you may wish
to add to your current homeowner's policy. Flood insurance
as well as the sewer back-up and earthquake endorsements
are worth a brief examination.
Since flood damage is excluded under
your homeowner's coverage, you should be aware that
flood insurance is available from the National
Flood Insurance Program. Most Ohio communities
have qualified for the program that provides coverage
for surface flooding only. Structural and contents protection
are offered. A $500 deductible applies.
Sewer back-up provides protection
for direct loss caused by water that backs up through
sewers, drains, or sump pump wells. Just as flood insurance
excludes coverage for sewer back-up, this endorsement
excludes any coverage for damage due to flooding. Coverage
is subject to a deductible.
Earthquake coverage is available
with the premium determined by the structure of your
home or building. Since it will better withstand an
earthquake, a frame structure is less to insure than
a masonry one. A substantial deductible (often a percentage
of the amount of insurance that applies to the destroyed
or damaged property) is in effect.
For clarification of your current
policy or information regarding the above coverages,
please contact us. We welcome the opportunity to evaluate
your present needs and to discuss possible insurance
improvements for you and your family.
Does homeowner's insurance cover me
for my home based business?
While caring for a child for a fee,
the child is injured in your home. The parents expect
you to cover the hospital bills.
You replace your friend's car brakes
for a "few bucks" and the car is damaged or
your friend is hurt in some way. He expects compensation.
A friend slips on an icy walk or
trips on a toy while picking up the craft item she paid
you to make. She expects you to cover medical bills.
You use your detached garage for
a small woodworking business and the garage is damaged
in a windstorm. You want your garage rebuilt.
You do word processing for a fee
from your home. Your computer is stolen. You want it
replaced.
You are a self-employed sales representative
with an office in the home. While entertaining a client
in your home, the client is injured and expects compensation.
In each situation described, the
answer is probably "not covered" -- unless
you have added specific coverage to your policy for
this home business. Take away the compensation, or business
aspect, and each would probably be "covered".
Situations like those described can be covered in one
of three ways:
- Your employer may cover it if
your business is conducted on behalf of your employer.
- A business insurance policy may
be purchased to cover it.
- Your homeowner's insurance policy
can sometimes be broadened to cover it.
If you have any concerns about a
business-type activity in your home, call us. We'll
be happy to discuss it with you.
How broad is my homeowner's insurance
coverage?
The HO15 endorsement broadens a homeowner's
policy so that it also covers other personal property
lost due to extraordinary situations. Consider these
other covered losses:
- Lost jewelry or gemstones
falling out of jewelry not specifically insured (subject
to a policy dollar limit).
- Loss in value when a gemstone
is scratched or cracked (subject to a policy dollar
limit).
- Cameras or other personal items
falling overboard from a boat or a capsized canoe.
- A hot iron falling on and scorching
an area rug.
- A deer crashing through a sliding
glass door causing extensive damage to household contents
as it struggles to deal with the unfamiliar surroundings
of a family room.
- Raccoon damage (rodents and vermin
are not covered).
- Lost hearing aids, eyeglasses,
telescopes, cameras, etc.
- Spillage of paint, India ink,
nail polish, acid, bleach, and other chemicals that
damage household contents.
Most homeowner's insurance policies
list 17 or 18 different perils of coverage for household
contents that do not include the above or numerous other
bizarre possibilities. The H015 will cover most of these
-- subject to your policy deductible.
Is my portable cell phone covered by
my homeowner's or renters insurance?
Sometimes it is, but coverage is
subject to the policy provisions and deductible in your
homeowner's or renters policy.
Can I buy broader coverage for my portable
cell phone?
Yes, most companies offer a special,
broader coverage for portable cell phones that can be
added to a homeowners or renters policy. Call us for
details.
What if I lease a portable cell phone?
If you lease a phone, check with
the company you lease the phone from to see what (if
any) coverage they may provide. You may then want to
check with us to compare coverages and cost.
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