In the last two years, America’s housing industry has just been booming. New home sales, existing home sales, all of the statistics were on the up tick. The only thing the proper estate community had to worry about was how long the ride might last. Share of the reason that the housing market boomed so much was because of all of the original creative financing options which would allow people who normally would not be able to afford a home be able to afford to. These people are often strapped for cash, and as a result these homeowners don’t buy nearly enough insurance, which will get them in trouble.
A original study which is going to be released by Marshall & Swift/Boeckh LLC, states that 58% of houses are actually undervalued for insurance purposes, and that the average homeowner has enough insurance to rebuild 80% of their home. This means that the values on insurance policies for homes are less than what the actual home would take to rebuild, so if a disaster were to happen, the family would be in quite a bit of trouble.
How is this happening? Part of it is because insurance companies are cutting the types of disasters that they cover. Farmers Insurance is reducing the wind damage cover they have in costal regions and Allstate is cutting earthquake injure in many states. Perhaps the biggest piece of the trend comes from the virtual elimination of “replacement cost insurance”, which essentially meant that even if the policy was for less than the amount of money it would take to replace the home, the insurance company would still pay the full sum of money that it cost rebuild the home. Since these policies proved to be too costly with booming home prices, companies eliminated them largely and instead pay the face value.
So what can you do to make sure you have enough insurance? Look for a policy which has an option to have “Extra value insurance” which will usually pay a fixed percentage higher than the value of your home on the insurance agreement if it is worth that. This might cost you a few extra dollars but will save you tens of thousands of dollars if something should ever happen to your home. Read your policy each and every year to scrutinize if something has changed significantly that you need to know about. Finally, make sure you have enough insurance to rebuild your home as it is and replace your personal possessions. You can have a simple appraisal done on your home to get its value, and then add up the amount of your assets to calculate this number.
Filed under Aaa Auto Insurance by on Feb 22nd, 2011. Comment. 
As a former Insurance Producer, I am well aware that insurance can seem complicated and difficult to understand. Why are there so many different names for different coverages? Why do they sound so cryptic? Why does my car seem to cost so much? It is can be very difficult some people to pay hundreds of dollars a year for a product, especially when they don’t understand what it is they’re paying for. So here are some important things you need to understand about auto insurance.
1. What does “state minimum coverage” mean?
Every state has certain minimum amount of insurance they require citizens to carry. This coverage is your liability coverage, the amount that the company will pay to someone else if you hurt them in an accident or damage their car. In most states, coverage looks something like this: 15/30/10. While this may look like some crazy futuristic date, the numbers actually stand for the fifteen thousand dollars the company will pay per person you hurt, thirty thousand dollars for the total accident, and ten thousand for and wound to vehicles or other property caused by the accident. The 15/30/10 model is Arizona’s minimum coverage requirements, but every state has different laws requiring different amounts of liability coverage.
Remember, liability does not cover you if you’re hurt or your car is damaged; only others in accidents that are your fault
2. What coverages cover me and my car?
There are many different bells and whistles you can add onto your basic liability coverage (the only coverage required in most states). The most celebrated are called Collision coverage and Comprehensive coverage.
Collision coverage is self explanatory. If you are hit by something or you distress your car by running into something, your insurance company will pay for the amount to fix your car, minus your deductible. A deductible is an amount for which you determine to be responsible in case you need repairs. The most common deductible today is $500, but some people like to increase their responsibility to $1000, making their insurance premiums lower.
Comprehensive is the coverage that pays for your glass and windshield repairs and any other damages besides collision damage. Comprehensive coverage is also subject to a deductible, but you usually have the option to select a $0 deductible for glass coverage, which means you are not responsible for anything when you need to replace your windshield.
There are also coverages like additional medical expenses, tow truck coverage, rental car coverage. For those on a budget, these coverages often overlap with something you may already have (such as AAA or your health insurance) or may simply be unnecessary.
3. What is uninsured or underinsured motorist coverage?
Uninsured and underinsured motorist coverage allows you to have a backup plan for injuries you might sustain in an accident with a driver who is not insured. If an uninsured driver causes you injuries, you can recover from your auto insurance to help pay for your medical bills. Underinsured works the same contrivance, just for those drivers without enough insurance to pay for all of your bills.
In some states, there is also uninsured motorist coverage for damage to your vehicle.
4. My insurance seems really high-priced, what can I do?
There are several things you can do to ensure you save yourself money on insurance.
-Cut out unnecessary coverages that may be on your policy. Some people haven’t looked at their insurance in 20 years and have no idea that the coverage they bought in 1987 is completely unnecessary.
-Check with your agent to see if your policy is up to date. Most insurance companies update the types of policies they offer every few years (something only the companies themselves understand, consumers can’t bid the difference) to ensure market competitiveness.
-Do you have a teenage driver? They cost a lot of money, no matter what company insures you. Most companies offer good student discounts for 3.0 or above GPAs, so befriend your young drivers to get a (or tell them they can’t drive until they have a) good report card.
-Are you no longer a teenager, but not yet 25 years old? Insurance becomes cheaper after your 25th birthday, and after you score married. This is because after age 25, people are less of a risk, as are married drivers.
-Shop around. Then go back to your current company and see what they can do for you. If you have an agent, they will try to fudge the numbers to see what works best for you and what can save you some money.
5. Do I really need an agent, or can I trust those 1-800 number or website type companies?
That really depends on what kind of service you’re looking for. If you don’t really feel like you need a one on one relationship with an agent, you don’t care whether you talk to the same person when you call, or you never deem you’ll talk to anyone at all, insurance like Geico, Esurance, and others might work best for you. On the other hand, if you like to drop by and pay your monthly bill in person, call frequently, or have a difficult policy (a commercial policy or multiple cars, RVs, etc) you may want to decide and agent that can help you when you need it. Often times the costs is dependent upon the driver, not the company. So having an agent won’t cost you more, even though some companies like to make you contemplate that way. If you have tickets or accidents, of course your insurance will cost more.
If you follow these tips and understand your coverages, you will be less likely to pay for things you don’t need, and you’ll be able to save hundreds of dollars on your insurance!
Filed under Aaa Auto Insurance by on Feb 17th, 2011. Comment.
Many frequent travelers use a GPS to accept from point A to point B and even several stops in between. This piece of technology has absolutely revolutionized the way individuals take family vacations or even day trips. Shining where to go is one less thing to worry about and the many features on a GPS can even make the trip more delicious. The latest GPS model manufactured in Korea is called the Sad Box and it offers a whole new way to travel.
The Black Box : Mercury Black Eagle
The Mercury Black Eagle goes above and beyond the traditional features of a GPS. The turn by turn navigation, easy access to nearby gas stations or attractions, and even the sleek design are standard on all GPS models. How the Black Box differs from other brands are with its newly added safety features. This particular global positioning unit has a camera on it that shows various areas of the vehicle. You can check your blind spot or search for what's coming behind you without having to even turn your head. Simply shift your gape from the road ahead to the GPS unit attached to either the dash, windshield, or built in and you can behold all around your vehicle while driving.
The device shows a graph of your speed and how you've been accelerating and decelerating during your trip. It also helps you in changing lanes safely and suggesting trip routes that will avoid dense traffic. This unit tells you when you can safely merge onto a highway or into another lane and can even warn you if it believes you are heading into a possible collision!
It Records Too?
This diagram will make insurance claims much easier because it comes standard with a recording device that takes a short video of a car accident. The video is approximately eighteen seconds in length but anyone who has been through a traffic collision knows just how hasty they occur and how distinguished information can be gathered in that short about of time. The video captures the twelve seconds before the accident and six seconds after. Most of the important information will occur during the initial collision and as such there is more time allotted to before the accident. The time after will show anything that happened after the collision that caused further damage. Not only ill this device serve prevent accidents, warn you of potential threats, but it will also record the accident.
Filed under Aaa Auto Insurance by on Dec 17th, 2010. Comment.
