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Does my auto insurance pay if someone else is driving my car?

Your auto insurance policy is designed to cover you or any other licensed household residents you list on your policy. It is very important that all of your household drivers are specifically listed on the policy. If any other driver were to operate your vehicle they are covered under your policy on an occasional basis. Check with your agent or us if someone needs to drive your car on a more regular basis as the insurance company may have other requirements. You will also want to check with your agent for student drivers.

All this aside if a licensed driver borrows your car you can be assured they have the same liability coverage your policy provides you. Car insurance policies are meant to be flexible to fit your lifestyle.

By Aaron Wallrichgeneral information, insurance 101 No comments yet

If my car breaks down, will my automobile insurance cover a rental car?

If you vehicle is disabled due to an accident your insurance covers “rental reimbursement” coverage can help get you back on the road while your car is being repaired. Gone are the days when your auto repair shop will give you a loaner. Its important to make sure you can continue living life without disruption. Rental coverage can help with that.

Rental reimbursement coverage is very inexpensive and usually covers you for up to thirty days. There are different tiers of coverage which will reimburse you for $30 per day up to well over $100. Check the rental car rates in your area to verify the local pricing. Obviously renting a compact car is cheaper than an SUV, this is a comfort decision you will have to make. Check with us to see what adding rental coverage to your vehicle insurance will cost.

Will Rental Reimbursement coverage pay for you to rent a car whenever you need to? No. It is only designed to reimburse you for rental of a vehicle while your vehicle is being repaired as part of a covered loss.

By Aaron Wallrichinsurance 101, insurance coverages No comments yet

Classic Car Insurance for Collectors

If you have a vehicle that qualifies as a classic or collector automobile you may want to look into some specialized insurance. While you can just add that vehicle to your normal Auto insurance policy there are benefits in a more taylored classic policy you should consider.

Storage in cold climates

One of your activities as a collector car owner, especially if you live up north like Wisconsin, is storing it. Unless you feel like paying high rates 12 months out of the year you will likely have to call up your insurance agent twice a year to remove coverage then add it back on. The risk in such an activity is forgetting to add your coverage back on because you take your beautiful vehicle back on the road.

Storage coverage generally only covers your vehicle for comprehensive coverage. This coverage pays out for perils like roof collapse, theft, vandalism or fire. One large coverage notably absent from this list is liability. You will want that coverage if you are out on the road. A collector car policy understands you aren’t going to drive that vehicle all year round and so it builds that into the rates. This means you wont have to alter your policy at all The fact that most companies like Hagerty or American Collectors Insurance are based in northern climates proves this.

Valuation of your classic vehicle

Most auto insurance policies are designed to base your rate off a blue book value which determines what you will be paid out in the even of an accident. A forty year old vehicle that is kept in mint or pristine condition should be valued differently. Collector Car companies understand this and employ experts to aid in proper valuation of your vehicle up front. They also understand that fixing or repairing damage to older vehicles is a more intense process for a mint collector vehicle.

Limitations to consider

Obviously to qualify for the lower rates and specialized coverage there will be limitations. For instance, your vehicle will likely have to be in a completed status, or not in the restoration process. You will be required to provide many photos of your car including interior and trunk photos. A further limitation is a cap on total annual miles. The rates are low because folks that own older collector vehicles generally do not use their cars as primary auto. For this reason they only accept vehicles driven under a number of miles per year.

Other types of coverages

These companies don’t just stop at private passenger cars. Many have branched out to other specialized markets like collector tractors or collector boats. Some will insure collections in general. Because collectors take extra good care of their machines these companies can provide a very specific service and save you money overall. Call your agent or us today for a collector vehicle quote!

By Aaron Wallrichinsurance 101, product information No comments yet

Will Rising Lumber Costs affect my Insurance

Insurance is an old industry. Through the many ups and downs of the Economy Insurance has been a way to balance risk within the real world. Lumber costs have recently seen a large increase due to demand, supply and transportation issues. You may look at your home’s replacement cost (rebuilding cost) and wonder if you are adequately covered in the event of a total loss.

Many policies these days have Extended Replacement Cost. Under a modern home policy form you should be covered up to the amount shown on your policy dec page. If you have an extended replacement cost endorsement you may be covered for 10%, 25% or 50% higher than your total replacement value. This is an additional protection in case you had added on to your home or building costs skyrocket. Check your current policy or ask your agent what your total replacement cost is.

When we write home policies we do initially calculate your homes replacement value with a replacement cost estimator. These estimators are built by companies who are always updating costs and pricing using market trends and forecasts. This means that even when hurricanes strike and create mass catastrophic losses we are prepared to rebuild the home you lost even if prices increase dramatically.

All this being said it is still a good idea to let your agent know when you add on that sun-room or remodel your kitchen. That helps your agent keep your policy current.

By Aaron Wallrichinsurance 101, insurance coverages No comments yet

Preparing to save money on insurance

It seems like an odd topic; preparing to save money on something. Most people get an itch to go online and quote their insurance. Usually this is prompted by a bill that is higher than expected or bad service. While you can always shop anything and find a lower price out there I do have some helpful tips that could make the process slightly more productive.

What is the pain-point

First its important to understand why you are shopping. I’m guess there are more exciting ways to spend your time? If you received bad service it is completely understandable that you would want to find someone who values your business. After all, they are getting paid to help you with your insurance. Are you switching because you feel like you are paying too much? Was it a gradual increase or the result of a new purchase like a vehicle? These will be important factors in searching for your next policy. Be sure to tell the next agent why you are shopping so you can immediately have a better situation and everyone is on the same page.

What are your coverages

Make sure to have your current coverages at your finger tips. Its not a good idea to shop insurance and guess. Likely a licensed insurance agent put time into determining what your home should be insured for. There also may have been a risk analysis done to determine how much liability protection is best suited for you. Matching your current coverage is smart but also can help you really determine if your current rates are really that much higher after all. If you can save $30 per month but you have reduced your liability in half that’s not a great value. Also keep in mind once you switch you may lose discounts like “longevity” which will take time to reacquire.

Be prepared to shop your entire “package” of policies

Usually people feel like shopping their car insurance is the fastest way to save money. It seems easier and most insurance companies advertise this type of shopping. There may be hidden discounts you are giving up when you just move your auto insurance. Make sure you don’t save money on your car insurance then your home policy, and other, increase because you lost a “multi-policy discount”. You also may get benefits of having your car and home with the same company and you may lose those benefits as well.

Shop smart

Finally, make sure to shop smart. If you go online and get a quote make sure you are seeing comparisons and not just a quote from one company. You may end up spending an entire day shopping when an independent agent like us can give you 10 separate quotes and thus a more complete view of how competitive your current policy really is. We get paid to shop for you and we love it!

By Aaron Wallrichinsurance 101 No comments yet

What is Equipment Breakdown Coverage

Equipment Breakdown coverage is usually an add-on endorsement to a homeowners or Business Policy which affords you additional protection for household systems and appliances if they’re damaged due to a mechanical or electrical failure. These systems might include your HVAC unit, Water Heater possibly even your personal computer. As these types of systems become more complex and expensive it may be worth insuring against this additional peril.

If these systems or appliances are damaged due to a typically covered peril under your home policy like Fire, or Windstorm your policy will cover the damage however sometimes these systems become damaged due to electrical failures both on premise and off. Typical breakdowns could consist of mechanical breakdowns like a ruptured water heater, power surges, failures due to improper installation or pressure system breakdowns.

Some items will not be covered. Generally if the failure is due to normal wear-and-tear, molding or pest related damage this coverage will not apply.

Equipment breakdown coverage protects many different appliances and devices in your home when they break down because of a covered incident.

Here are some examples of covered equipment or systems:

  • Heating and air conditioning systems
  • Home security systems
  • Refrigerators
  • Freezers
  • Washers and dryers
  • Ovens and microwaves
  • Water heaters or tankless boilers
  • Computers and computer equipment
  • Back-up generators
  • Sump pumps
  • Jacuzzis or Hottubs (external or internal)
  • Boilers and furnaces
  • Electrical power panels

Equipment Breakdown endorsements read very differently across different companies so make sure to discuss this with your agent. Adding breakdown coverage is generally not expensive. Its also important to remember your normal home deductible will apply. Always remember many small claims can jeopardize your renewals with certain companies. Though, usually these breakdowns occur in tandem with larger events and losses.

By Aaron Wallrichinsurance coverages No comments yet

Using Deductible tools to save yourself money

As long as there have been insurance policies there have been insurance deductibles. The general idea of a deductible is that if you have a loss the deductible is your “share” of the loss. So, lets say you have an auto colission loss and your deductible is $1,000. The total amount of damage or “cost to repair” is $12,000. The insurance company will pay you $11,000 to repair your covered vehicle.

A deductible is the amount you pay out of pocket when you make an insurance claim. Deductibles are usually a specific dollar amount, but they can also be a percentage of the total amount of coverage on the policy. Some deductibles are the same across all your policy perils, some have separate deductibles. Some homeowners insurance companies, for instance, have seen alot of wind claims in certain areas over the course of many years. You may see a wind deductible that is separate from say a fire loss. Many companies will have a 1% deductible. This doesn’t mean you pay 1% of the loss, it means you pay 1% of your total coverage. If you have a $500,000 home limit your deductible is $5,000 on a loss.

As you can see the insurance companies will use the deductible as a tool to offset claims and thus keep premium amounts reasonable. Some insurance companies have come up with tools to help you save money on your deductible while rewarding customer loyalty.

Combined Deductibles

Some companies will offer you a combined deductible, so if you have multiple covered cars involved in a single accident or maybe a scenario where your vehicle and home are both damaged in a single event, like a hale storm or backing into a garage door, you will only pay one deductible.

Deductible Bank

Some companies have a “deductible bank” or “deductible savings bank”. Its a bit misleading. In most cases its like a loyalty system where every year you keep a policy active you gain $100 in your deductible bank. So after a year your deductible would still be $1000 but at the time of loss they would reduce it by the $100. Once you use it the total resets in your bank. Every company has different rules but be aware that in some cases this is an option you actually pay more for.

If you are savvy or have a great insurance agent you can use these tools to your advantage. Ask about these options today in so you can start saving money.

By Aaron Wallrichinsurance 101, product information No comments yet

How Much Liability Coverage is Enough

When you think about insurance you usually look to what property you can lose due to a fire or accident. What will I do if my house burns down? How will I get to work if my car is involved in an accident and becomes undrivable? These are important things to worry about and insurance surely can address them but a larger problem could be your liability to others. If I cause an accident and inflict bodily injury onto another driver how will I pay their medical bills? If I am sued for a multiple vehicle accident will I lose my home? These are real scenarios that play out every day in our country.

Should you go out and buy a five million dollar umbrella policy just to be safe? Perhaps, but generally you can determine how much liability coverage you need by determining your net worth. If you don’t have a lot of assets then there isn’t much incentive to sue you for a high amount. Matching your net worth is a good first step and your underlying policies like your automobile or homeowners policy can usually cover that. If they max out then you can purchase an umbrella policy fairly inexpensively to meet that need.

In some states you can be sued and have your wages garnished in addition to the liquidation of your asserts, in this circumstance you may need to account for that in your coverage.

The last thing to consider is your risk tolerance. Are you willing to pay out more from your savings in the event you are found liable rather than paying higher insurance premiums for the coverage. This is a valid factor to consider and we do that everyday. You may be a person who has high deductibles because you are comfortable paying out more after the incident rather than ahead of time in premium dollars.

As you can see its important to think ahead of time about what you could lose if you are brought into a law suit and do your homework determining your net worth. Its better to be prepared and we can help you accomplish that task,

By Aaron Wallrichinsurance 101, insurance coverages No comments yet

Are Insurance Companies on TV the Cheapest

We all know the ads. Whether its a Gecko talking to us in a fancy british accent or a quirky girl holding a price gun we have the ads indelibly etched into our brains. The more I see the ads the more I think to myself, “wow, maybe they have this thing all figured out?”. This is obviously the point of mass marketing – to convince us who is the best.

Most insurance carriers who market in this way are selling insurance to you direct. This means they have a call center in this country or elsewhere with staff that are selling you a policy and hopefully solving your problems. Whether that staff person earns commission or not their goal is to sell you an insurance policy and complete the task their lizard or weird girl began. its what occurs after the sale that is important and could potentially cause you issues.

Will you have insurance coverage if you buy a policy online? Yes. Is it enough coverage for your risk… this depends on how well you conveyed your data to them or how good they are at listening.

At your renewal in six or twelve months will they help you determine if your risk changed or if their company is still the best fit for you? No. That will be up to you. This is why so many who buy online or over the phone from a direct or captive company (meaning they only sell products for one insurance company) shop often. They have transferred that job to you.

An independent agent like us by comparison works for you not the company. We are not staff and we have no allegiance beyond the policy contract. If a different company is better for you we can move your policy safely to the new insurance company.

So while we do not have lots of TV or Youtube ads or sales lizards working for us we do offer a much needed solution for our clients. We also can keep our rates lower because we didn’t spend billions on TV ads. Its a win-win!

Find out if we can save you money here.

By Aaron Wallrichgeneral information No comments yet

How Protection Class affects your Home Insurance Premium

If you look closely at your homeowners insurance policy you will see a summary of your risk. You will see what is covered like the structures on your property and the “limits” of that coverage broken down. Occasionally the summary will contain descriptions of your buildings like is your home “frame” or “masonry” construction. One item that may not make sense is “protection class”. What is that?

What is Protection Class

Protection class is a code or number that the insurance company uses to determine how well your home is protected by your municipal or rural fire department. It is derived by an audit of that fire department by a third party organization like ISO and Verisk. That in addition to your distance from that fire department are the major factors in your PPC Code or protection class code.

Generally you will see a PPC from 1-10. 1, 2 and 3 are likely a code you have if your home is located in a city with a full-time fire department staff who can respond to fire calls immediately. If you have 1-5 protection class your home is likely very close to a fire hydrant and your fire department has been a very responsive organization.

Why might I have a higher Protection Class like 9 or 10?

Some homes are over 5 or 6 miles from a fire department obviously some are way beyond that. If your home is that far from a part-time department and it starts on fire it is highly likely your home will be a total loss by the time the hoses are hooked up. In addition to the response time the fire department will likely have to find a water source that is far away from your home and thus must be transported in a tank truck so they will not be able to work as effectively as they would in a city with fire hydrants. For these reasons your Protection class and your home insurance premium will likely be higher in relation to a home in a large city or even a small town.

If I have a high protection class will every company charge me high premiums?

The answer to this question is complicated. With a certain company you will pay higher premiums than a home with a PC3 (insured at that same company). Some companies do specialize in rural homes and homes farther away from a fire department. Since insurance policies rate with many factors and home more than just fire damage coverage these companies see lower losses on rural and remote homes in areas like liability and theft. This means they can charge you less for those items and give you higher discounts for say, having a connected and central fire alarm installed for instance.

All things considered, if you have a high protection class you should have options. A good independent insurance agent will have markets for many risks including yours. Many direct marketing insurance companies target suburbs and thus will likely rate your home insurance higher since they do not target your risk directly. Find a good insurance agent who takes more into account than your address and you will be fine.

By Aaron Wallrichinsurance 101 No comments yet