An Auto Insurance Update
Most people have some gaps in their personal insurance coverage. We do our best to help our clients understand where these are and provide solutions so that these gaps don’t exist. Having an independent agent help, you find the right kind of personal insurance for you can go a long way in providing you with peace of mind.
Personal insurance is, and we are here to help you understand the complex, so you have made an informed and educated decision.
What are Insurance gaps?
Insurance gaps can be areas where you thought there was coverage, but in reality, there is not. It may be that the coverage is not available or is too expensive or you just did not know about it. Gaps can occur if you have more than one agent handling your personal insurance. Between your home, auto, RV or personal umbrella there might be times when one agent thought the other was taking care of the issue. Insurance gaps can include:
• Flood insurance
• Identity theft
• Sewer back-up
• Auto insurance limit issues
• Your home is undervalued
• Lack of a personal umbrella
• Limited coverage for other drivers on your auto policy.
These are just a few of the personal insurance issues that can create real problems for you. Call our office for a free review.
Are you one of the people who think you don’t need life insurance? Please think again. Life insurance provides real security for those you care about. Life insurance benefits can provide financial security and resources for your family or loved ones after you are gone. Let’s look at a few of the reasons to consider life insurance:
• Payment on Debt– If you have any outstanding debt (mortgage, credit cards, etc.) at the time of your death, it does not go away. Your estate will still be responsible to settle all accounts. Life insurance can provide the financial resources to cover debt.
• Continuation of Income- Life insurance can provide the funds to replace your income upon your passing. Family income will certainly diminish with the loss of an income earner, which means your family will experience a lower standard of living. The death benefits of a life insurance policy can prevent this from happening, or at least keep the impact to a minimum, by replacing income lost with the demise of the breadwinner.
• Unpaid Medical Expenses- It is highly likely that you will incur medical expenses prior to your death. Some of which may not be covered by health insurance. Adequate life insurance proceeds ensure that these final expenses are covered.
• Funeral Expenses- Most people don’t plan for, or fund, funeral expenses. Again life insurance is there to help.
The good news is that life insurance rates are low and there are many different kinds of products to select from. One question we often get is, “How much life insurance do I need”? The answer to that depends on your individual situation, but the general guideline is, a life insurance limit of at least ten times your annual gross income is a start. For example, if you earn $50,000 per year, your family would need to replace somewhere close to that amount. A $500,000 life policy could return $45,000 to $50,000 annually, depending on interest rates.
The most cost effective type of policy is term insurance. Term insurance provides protection for a specific, limited amount of time, usually in five-year segments, such as for 10, 15, 20, 25 or 30 years. Typically you pay annually and the premium is locked in for that period of time.
William G. Mechling Insurance Agency has some excellent affordable plans available, so please email or call us at 724-465-4261 so we can help you plan for the future.
This state requires everyone who owns a vehicle to have personal auto insurance. Auto insurance comes in many different shapes and sizes. There are many different terms and coverage’s you need to understand if you are going to protect you and your family. As you consider the many different kinds of coverage, we can help you find the right combination of price, coverage, and service.
Important Auto Insurance Terms
Bodily Injury Liability
Liability coverage may be required if you own a vehicle in the State of California. This coverage pays for costs or claims associated with injuries to the other persons (third parties) or people involved in the accident. This coverage also provides defense coverage in the event that you are sued for damages. California State Law requires all drivers must carry at least the following auto insurance: Bodily injury liability coverage: $15,000 per person / $30,000 per accident minimum. Property damage liability coverage: $5,000 minimum. Uninsured motorist bodily injury coverage*: $15,000 per person / $30,000 per accident minimum
We always recommend having higher than the minimum limits. If a claim exceeds your own policy limit, you will be responsible for all costs.
Collision Coverage For Your Vehicle
Collision and comprehensive is often referred to as 'full coverage.' If you have collision coverage, and are in an accident or hit with another vehicle or property, you will have coverage to repair or replace your vehicle after your deductible is satisfied. Collision and comprehensive coverage are not required by the state of California, but they may be required by your loan company or leasing company.
Collision Deductible Waiver
If you are in a auto accident in any state where the at-fault motorist is uninsured, you may have to use your own collision policy to get your vehicle repaired and pay the deductible. If you decide to purchase a collision deductible waiver as part of your auto policy, then your own collision deductible will be waived when your insurance company determines that the liable party is uninsured.
For example, if you have a $250 collision deductible and an uninsured motorist hits you, the CDW will cover your $250 deductible amount, and then your collision coverage will pay for the outstanding costs of the repairs to your vehicle.
This deductible waiver is only available when and if there is actual physical contact, damage or loss with another vehicle, and the accident is caused by an identifiable driver. Hit and run accidents are generally not covered unless the at-fault driver is found and is identifiable as being uninsured.
This coverage can help cover accident-related miscellaneous medical expenses for you or your people in your vehicle.
Comprehensive. Comprehensive coverage can cover for your car in case of natural disaster, vandalism, theft, fire, falling tree branch, or hitting a deer. Glass is also part of this coverage.
Loan-Lease Gap Coverage
By adding this coverage on your personal auto insurance policy, the insurance company will pay for the difference between what you owe (loan) on your vehicle and what your insurance pays if your vehicle is declared a total loss.
Roadside Assistance And Towing Coverage
Collision & comprehensive covers the vehicle when it is damaged. Emergency roadside assistance and towing coverage can be added to your personal auto policy in most cases. Coverage will help with gas fill-ups, battery jumps, tire changes, and towing. Make sure to check if you have necessary towing (up to 15 miles) or extended towing (up to 100 miles).
Original Equipment Manufacturer
If you want your Acura factory installed equipment put in after an accident, you will want to add this coverage. Without OEM coverage, most insurance companies may use after-market parts. A few carriers only offer this coverage. Aftermarket parts may not offer the quality as the original.
Rental Car Reimbursement
When your vehicle is in the repair shop after a covered accident, your policy will provide you a rental car while your own car is getting repaired. You will need to have purchased comprehensive and collision on your policy in order to add rental car coverage. Coverage is subject to limitations.
Roadside Assistance & Towing Coverage
Collision & comprehensive cover the vehicle when it is damaged, Emergency roadside assistance and towing coverage would apply at the time of the loss and can be added to your auto policy in most cases. It will help pay for, battery jumps, tire changes, and towing. There are limitations in this coverage.
Personal Insurance may be confusing to some people. However, here are a few interesting facts to get you thinking about your personal insurance program. We can offer the right combination of pricing and coverage on your home, auto, and boat insurance. If anything, these are great reasons to have us complete a review of your personal insurance program.
There were over 26,000 arson fires in the U.S. in 2016.
Hail causes about $1 billion dollars in damage to crops and property each year.
There were over 2,000,000 home burglaries in 2016.
One third of consumers believe they do not have enough life insurance.
721,000 autos were stolen in 2016.
Did you know that if the price of gold goes up, you may need to increase your insurance on your jewelry?
September is the most common month for hurricanes making landfall in the U.S.
Identity theft claims increased over 19% in 2016.
24% of fatal auto accidents were caused by driving too fast.
According to the National Fire Protection Association, in 2016, on average, a fire department responded to a fire every 23 seconds in the United States.
Most homeowner’s insurance does not cover flood damage. Just a few inches of water from a flood can cause tens of thousands of dollars in damage.
The average renter paid about $200 for insurance in 2016.
Alcohol was the largest human factor in boating deaths in 2016 (97 percent of boating fatalities), causing 140 deaths in 368 accidents and resulting in 317 injuries.
There were 3,720 distraction-affected fatal crashes in 2016. Turn off your phone!
We hope this has given you a chance to think about your home, auto, boat, motorcycle, and business insurance needs. Please call us today and let us help you sleep better at night, knowing you are better protected.
According to the Small Business Administration, 25% of businesses do not re-open after a disaster. Most of these failed businesses did not have a disaster plan in place. Small business disaster preparedness planning is easier than you think.
Disasters Can Include:
What Should Go Into a Disaster Plan?
Emergency contact information on all employees.
Contact information for key vendors and clients.
A plan to continue operating after a disaster; this may include a secondary location.
Determine what operations are critical and need to continue, and which activities are not.
Have a clear evacuation plan and general meeting area for staff.
Make sure you have a disaster kit that includes water, blankets, flashlights, and other safety equipment.
Have a plan for the security of personal information.
If you have any hazardous materials, make sure you have a plan to manage spills.
Have a communication plan for clients, suppliers, employees, and the community.