Author: Steve G

Insurance blog, articles, and news written by Stephen Gebhardt, founder and CEO of Gebhardt Insurance Group an Insurance agency in Casa Grande, Arizona.

What is Workers Compensation Insurance?

by

Workers Compensation Insurance

Workers’ compensation insurance is a type of policy which compensates workers for injuries or illness caused by their job while simultaneously protecting employers from crippling liability and excessive litigation. As such, an injured employee has the option to either file for compensation of their injuries or sue their employer for negligence, intentional harm, or poor workplace safety.

These types of policies follow the “common law” of the state, meaning that which benefits are available and how the policies are enforced, depends entirely on existing state laws and court rulings.

Which Injuries Are Covered?

While Workers’ Compensation laws vary by state, they all  cover the same category of claim: employees who sustain work-related injuries while carrying out a duty specifically related to their job responsibilities.

What Benefits Are Available?

The benefits earned between a Worker’ Compensation claim and a traditional lawsuit can be somewhat different, with lawsuits offering more flexibility in relation to damages, but also a higher risk of loss. Workers’ Compensation however, was made for the narrow cause of providing aid to injured workers. As such, the damages you can claim through this type of insurance are straightforward and easy to prove with the correct documentation. Among them:

Lost Wages: Here, insurance compensates for wages missed after the injury until the employee is able to return to work.

Medical Expenses: Any medical expenses, including necessary treatments, medications, and tests, associated with the workplace injury.

Rehabilitation and Retraining: Covers the cost of any rehabilitation or vocational retraining needed for the employee to return to work or continue working.

Permanent Disability: any ongoing care costs associated or directly related to being injured on the job.

Death Benefits: In cases where the employee dies due to the injuries they sustained on the job, death benefits help covering costs such as funeral preparations for the affected family.

However, be aware that this is the full extent of the damages you can recover for in a workers’ compensation case. Unlike a lawsuit, you are not allowed to file and claim damages for pain and suffering, or request punitive damages against your employer.

How Do I File a Claim?

In Workers’ Compensation, it is the employee’s responsibility to begin the claims process. This claim must further be filed within one year of sustaining your injuries or you will no longer be eligible for benefits.

The most important step to filing your claim is making sure you seek any necessary medical attention and report your injury to your employer as quickly as possible. If possible, document the time, date, the exact circumstances under which the injury occurred, in addition to the symptoms of your injury.

Next, you will fill out a Worker’s Report of Injury form (resources here) and send these forms, by mail, to the Industrial Commision of Arizona. Filling this form will constitute filing a claim, and therefore fulfil your responsibility of fulfilling the claims process.

Finally, it is your employers responsibility to file a claim with the insurance company.

How Quickly Will I Receive Compensation?

If all the above steps are taken correctly, the insurance carrier has 21 days to respond to your claim. Depending on the type of care needed and the extent of your injuries, some benefits can be immediate and others will take longer to arrive.

Without taking the above steps as quickly as possible, it can result in a delay of processing your claim and potentially limit your employer’s ability to complete an investigation. If this occurs, it could potentially put your claim in jeopardy, thus causing you to lose benefits.

Hiring and Insurance Expert

Workers compensation coverage varies by state. As such, it’s important to speak with a local insurance agent to know which insurance companies can offer you the best policy based on what your state requires. At Gebhardt, we can put you in contact with an expert from Workers’ Compensation Insurance in Arizona.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those who are looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

How to Lower Car Insurance After an Accident

by

Lower Car Insurance

Everyone who owns a vehicle needs insurance coverage in case of an accident or unexpected damage. Not only does this help you financially if you do experience an accident, it wards off fees you will acquire if you are pulled over while uninsured.

If you are reading this article, it is probably safe to assume that you have suffered such an event, filed an insurance claim, and are not looking at ways to lower your rates following the accident.

While the unfortunate reality is that it sometimes takes years of being violation-free for your rate to be returned entirely back to normal, there are many ways to lower your car insurance without relying on your driving record alone. Keep reading to see how.

Shop Around

Insurance shopping is a perennial activity. Even if you found the best rate a couple years ago, there are several factors that may have changed since then. As such, it’s a good idea to keep an eye on what other insurers offer to ensure you don’t miss out on a potentially better rate.

Factors to keep an eye on while rate shopping include:

  • Offering a discount for good grades 
  • Safe driver discounts
  • Vanishing deductibles 
  • Car insurance premiums and deductible ratios 

While this list is non-exhaustive, it gives individuals a good starting point to compare one car insurance company to another.

Raise Your Deductible

If the premium of your policy is unaffordable, opting for a high-deductible plan can help lower overall costs. Let’s look at a quick example to explain how this works.

Let’s say you originally had a deductible of $500 on your comprehensive plan. Raising this deductible over this amount could award you a reduction of up to 30% of your overall premium cost. If you opt to raise your deductible even further to $1,000 or more, that premium percentage decrease can become as high as 40%.

This means that if you had a premium of $130 per month, raising your deductible to $1,000 could save you $52 on each payment. That leaves you with a premium of only $78 a month.

A word of caution: when opting for a higher deductible, make sure you have enough funds put aside to cover the cost should an accident occur. While some policies allow you to pay a high deductible in installments, many do not. Without paying this amount, you could potentially face delays in getting your vehicle repaired.

Know When to Reduce Coverage

Insurance cost depends on more than just your driving record. In many cases, a large percentage of your rate will depend on your age, the age and type of vehicle you’re insuring, and any added safety features.

However, this is a two-way street.

When your car is old, lacking safety features, or worth very little, it may be a better idea to scale back on your coverage. After all, if your car is worth less than the premium and deductible for comprehensive coverage, it won’t be worth fixing if you get into an accident. Knowing how to balance these variables are key to ensuring the best rate for your specific scenario.

Other Options

The options above are often the most common for individuals seeking to quickly reduce their coverage expenses. However, there are a few more options that can provide savings in more creative ways.

  1. Accident Forgiveness
    If you are a safe driver and have a clean record, sometimes asking about accident forgiveness is the easiest way to ensure that your policy rate remains the same. While not all auto insurance companies offer this kind of benefit, the ones that do can be a lifesaver.

    Generally, these policies work by offering individuals with a safe driving record one freebie at-fault accident. While this normally doesn’t cover large collisions, it can definitely save you from increasing car insurance rates after a minor accident.
  2. Coverage Bundles
    For individuals who have multiple vehicles, a home, or both, bundling your different insurance plans with the same provider can save money across all of your policies.
  3. Good Credit
    Finally, when shopping for policies some insurers will give you a discounted rate based on your credit history. While credit history may initially seem unrelated, there are statistically significant correlations between individuals with a good credit history and individuals who make fewer insurance claims overall. Simply put, having a good credit report shows you’re responsible and therefore less likely to get involved in an accident.

Finding a, Arizona Car Insurance Expert

As you can see, finding your perfect policy is not a one-size-fits all matter. There are many variables in each individual situation and many different ways these factors interact to create your overall rate.

We also understand that sometimes, crunching the numbers yourself and trying to think of every possible option is just too complicated. This is why we build our company around helping individuals find the best and most affordable coverage for their personal needs.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those who are looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

How Does Renter’s Insurance Work?

by

How Does Renter's Insurance Work

Many people do not think having renter’s insurance is necessary. While there may be several reasons for this, a common misconception is that their landlord’s insurance coverage will serve as a buffer to loss of damage to their personal belongings. This is not the case.

As such, when renting in Arizona, you should consider getting renters insurance. As you will see below, this helps cover for any unexpected financial responsibility you may face while renting in addition to many more benefits you may be eligible for when purchasing additional coverage.

What is Renter’s Insurance? How Does It Work?

Renter’s insurance is also known as tenant insurance. Renter’s insurance in AZ is a type of liability insurance and will protect your loss of personal property as well as from injuries and medical payments caused by named perils, whether they be brought about by weather or non-weather circumstances.

These insurance products also give individuals some of the benefits of homeowners insurance without the added cost of insuring the structure of the building. This structural insurance coverage is already in place through your lessor.

So what does a policy like this actually cover? Most importantly, the movables that you own in your rented space—computers, electronics, furniture, bikes, even your clothes and other belongings. Renter’s insurance will cover you from losses caused by events listed in your insurance policy such as: fire, storm, hail, lightning, flood, freezing, theft, vandalism, riot, and many more. Your renter’s insurance also covers expenses incurred when your dwelling becomes uninhabitable. Thus, the insurance company shoulders your expenses for repairs and alterations on your dwelling.

Finally, there are policies which even cover your hotel expenses, including your meals, if you need a place to stay while repairs are made on your rented place.

If you’re wondering what is covered, you can refer to your actual insurance policy for a complete list of covered losses.

Coverage Options

A renter’s insurance policy in Arizona has two types of coverage options to protect your personal property after damage.

The first one is Actual Value Coverage (AVC). This means that in the case of damage, you are repaid the depreciated value of your lost property.

The second option is Replacement Value Coverage (RVC). Here, you are paid for the replacement cost of a new unit. Experts say that RVC costs about 25% more than the AVC policy.

As a form of liability insurance, renter’s insurance policies in Arizona cover the full amount or a portion of your medical expenses and those of the people who are injured in the event or accident. Depending on the extent of your coverage, this may also extend to coverage for when your guests suffer from an unexpected mishap.

How Much Does Renter’s Insurance Cost in Arizona?

Many people think that renter’s insurance is not in their budget or is not a necessary expense. But it is! It really is!

According to the National Association of Insurance Commissioners, the average policy cost for an apartment is $184 per year, or about $15 per month. The coverage for such a policy ranges from about $30,000 to $50,000 for property, with a $500 to $1,000 deductible, depending on where you live. Such insurance also has $100,000 in liability coverage.

In a recent study, experts say that the average annual rate in Arizona ranges from $212 to $490. This covers a rental property of about 1,000 square feet of living space, $30,000 to $50,000 coverage and a liability insurance of $100,000.

Further, smaller cities and places just outside urban centers tend to have the best rates for renter’s insurance. The cheapest places for renter’s insurance in Arizona are located northwest of Phoenix and scattered across the southeast corner of the state.

Is Renter’s Insurance Required?

At present, no state legally requires renter’s insurance. However, there are certain lease contracts in which the lessors require the tenants to purchase renter’s insurance AZ for liability purposes.

Note that if your landlord acquired home insurance for the dwelling place, such policy covers only the building or the structure. The loss of your personal property inside the structure is not covered by your landlord’s insurance.

Moreover, your landlord’s insurance may not fully cover the damage for someone who is injured inside the dwelling place. Remember, a lawsuit of personal injury and the associated medical bills, can be very costly to you. Having renter’s insurance can certainly reduce such risk and can give you peace of mind.

At the end of the day, you have to realize that having renter’s insurance is an affordable way to cover your belongings and protect you and other people from unexpected damages and injuries.

Renter’s Insurance Casa Grande

You have the power and the ability to make things better after a mishap. You can protect the things which matter and which are important to you, and you certainly can have a new start after such mishap.

No insurance is simple. But as they say, with careful planning and with the help of your insurance agency, you can certainly make an informed decision in order to get a renter’s insurance in Arizona that gives you good coverage, and at the same time, keep your rate affordable.

Get a free quote from us today to protect your possessions. We’re happy to help answer any questions you have.

Hospital Confinement Indemnity Insurance: What You Need to Know

by

Hospital Confinement Indemnity Insurance

Having insurance that provides you with the correct level of coverage is an important part of getting stable and affordable healthcare treatment. For those with health concerns, or simply for those who want to be prepared for the worst, having basic insurance coverage is normally only the first step in getting properly covered. This is particularly true for families in which a loved one is frequently hospitalized due to an existing health condition.

In cases like these, both private plans and plans through the Affordable Care Act can be made more effective through various types of supplemental insurance. Of the available options, Hospital Confinement Indemnity Insurance is one of the most affordable and more beneficial should you find yourself in an extended hospital stay.

If you are thinking of purchasing an indemnity plan to ward against hospitalization expenses, keep reading to learn more about what they are and what they offer.

What is Hospitalization Insurance (And What its Not)

Confinement insurance is a type of supplemental plan covering, through an accumulative benefit system, the expenses associated with an hospital stay. This is meant to act as a buffer for your finances during your time in the hospital, planned or unplanned, by entitling you to a certain cash amount for each day you are confined.

By nature, these types of plans are made to serve as an additional benefit should you find yourself in the emergency room and unable to work. It is not a replacement to a regular health insurance plan.

Depending on your insurance provider, an indemnity plan can pay up to several hundred dollars for each day you are confined in the hospital. This additional income, if you will, can be used to help pay for the medical bills associated with getting admitted to the hospital, major medical expenses, and any other out of pocket expenses your regular insurance plan or copays do not cover.

What Health Plans Exist

The type of hospital indemnity plan for individuals or families will vary depending on your insurance provider. However, these supplemental plans are often affordable and varied, offering added security to those who may not have enough set aside for a hospital visit or who are worried about an existing insurance plan with a high deductible.

As with any kind of insurance, your current health status, age, and other factors play an important role in determining your premiums. Similarly, the particular triggers needed to engage the plan, and the plan-specific exclusions and limitations, depends on your policy and provider.

What Do They Cover Cover?

It is important to remember that these types of confinement plans are not technically insurance, instead, they are supplements to your existing health care plans to save you unexpected medical costs.

As such, after experiencing a qualifying event as per your policy, your plan pays you a specified amount per each day you remain in the hospital. This money is often made payable directly to the insured and can be used for any variety of expenses.

The Final Analysis: Is Hospital Indemnity Insurance Worth It?

For those who are worried about the cost of an unplanned medical emergency, hospital indemnity insurance is an affordable addition to an existing healthcare plan. However, as different providers offer different types and levels of coverage, it is often easiest to speak to an insurance provider to learn which offers the best coverage for your needs.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those who are looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

Special Enrollment Period: Who Quialifies and Why

by

Special Enrollment Period

If you are an individual who lacks insurance or recently suffered from a loss of coverage, the Coronavirus Pandemic will weigh heavily on your mind. Without individual health insurance, facing the risk of needing unexpected prescription drugs or hospitalization will create an enormous bill without the proper health coverage for your needs.

In the insurance world, there are protections against these unexpected losses of coverage. They are known as Special Enrollment Periods. Should you meet the requirements, special enrollment offers a re-opening of the insurance marketplace for a limited time. Thus, you are able to enroll in a plan without going uninsured.

As such, we have complied an article outlining some of the most common special enrollment periods you will encounter in addition to the life events you must meet to satisfy re-enrollment requirements.

What is a Special Enrollment Period?

When applying for insurance, individuals must apply during a specific period of time called the open enrollment period. In times of national crisis, or after certain qualifying events, these enrollment periods can either be extended or reopened all together. This allows for individuals who are otherwise not insured, or not ensured properly, to apply for a plan with comprehensive coverage.

These are known as special enrollment periods (SEP) as they give individuals special access to a new enrollment window. You may qualify for an SEP no matter what your previous insurance coverage was. As such, whether you were formerly enrolled in a prescription drug plan, medicare part program, or insurance from your employer, you can still qualify to re-enroll outside of the normal period.

Qualifying for a Special Enrollment Period as an Individual

Not everyone qualifies for a special enrollment period nor are they always within the appropriate window of time to enroll. Generally, you are eligible to for special enrollment under when the following circumstances are met:

  • Marriage that can result in a change of coverage
  • Death of another member on the same marketplace plan
  • Adopted a child
  • Lost health coverage after a divorce or legal separation
  • Lost health coverage due to job loss, being furloughed, or a reduction of working hours

For an in-depth explanation on these circumstances in addition to more government resources, please see the following linke at healthcare.gov. 

Special Enrollment Period for Group Health Insurance 

Special enrollment periods for group health works in two parts: the first is on behalf of the employee sponsor, the second is on behalf of the individual seeking coverage.

For individuals, the special enrollment triggers remain the same as those listed above.

For small businesses with 2-50 full time employees, there is a time each year to take advantage of a special enrollment period for you and your staff. This period aims to make it easier and more affordable for small companies to offer health benefits. The two main advantages of this particular SEP being:

  • Your business will not be required to contribute to insurance premiums 
  • Only one employee is needed to establish the group plan

Special Enrollment Period: Medicare

For those working at an employer after you turn 65, you were likely given a choice to either maintain your employer coverage or choose to defer your enrollment in part (or all) of your medicare benefits. For some, this causes them to miss the Initial enrollment period– a span of time that begins 3 months before your birth month, lasts through your birth month, and finally remains open for 3 additional months after.

If you miss this initial time to enroll, there is still time to get health coverage through medicare up to and including prescription coverage and the Medicare advantage plan.

Special enrollment periods for medicare are calculated based on slightly different qualifying standards than those for group or individual health plans. There are also different requirements for each of the different Medicare “Parts.”

For Parts A and B, special enrollment qualifications include:

  • When you are still covered under a health insurance plan from you or your spouse’s employment 
  • The 8 months following a loss in coverage

For Parts C and D, special enrollment qualifications include:

  • Must concurrently enroll in Parts A and B
  • The 63 days following termination of employment or loss of employee-sponsored coverage

Finally, there are a few more qualifying events that can trigger a SEP for Part D. Those additions are:

  • Moving away from the area served by your current plan or your current plan no longer servicing your location
  • Change in living situation including entering, leaving, or moving ruesing homes
  • You receive Extra Help for your prescriptions

Calling an Insurance Expert

When looking for insurance plans after experiencing a lapse in coverage or uncertain employment, trying to get the information you need from the internet can be confusing. Especially when looking at potential exceptions to the open enrollment process, your individual situation makes a difference between whether you qualify to re-enter the marketplace or will face a penalty. This is why speaking to an insurance expert is the best way to ensure you get the best possible coverage available to you.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine whether you can take advantage of special enrollment periods. Give us at call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

Should I Get Short Term Health Insurance?

by

Short Term Health Insurance

As we enter into another recession, US residents are searching for alternatives to employer-sponsored healthcare.

Why? With skyrocketing unemployment rates and an uncertain job market, short term plans (also known as “term health insurance plans”), may be the only affordable option to bridge the gap experienced in coverage.

Unfortunately, there is no easy way to find the short term plan that works for you. Each insurance provider has their own requirements, limitations regarding coverage, and plan details.

As such, the information below is a starting point to explain some of the most common routes insurance providers take when developing short term insurance plans, in addition to some of the unexpected consequences consumers face when failing to read the fine print.

What is Short Term Health Insurance?

Many major insurance companies offer plans that offer health insurance coverage. In the state of Arizona, these policies are offered up to 364 days at a time. This gives you the opportunity to re-enroll after your current plan has expired, or, simply end your coverage period and allow employer-sponsored benefits or Medicare to kick in.

As these plans are open for enrollment at any time (with some offering coverage as soon as the next day), they provide a flexible option to remain insured if you have missed the open enrollment period for the Affordable Care Act.

What Does Short Term Coverage Actually Cover?

Generally, these policies seek to provide coverage for individuals against major medical events such as unexpected illness or accidents. However, several policies also include provisions for prescription drugs, preventative care, and maternity care.

Pitfalls of Short-Term Plans

While these plans are flexible, inexpensive, and allow you to keep your current medical providers, they are riddled with unexpected problems.

They Are Often Not ACA Compliant

any short term health plans are not compliant with the Affordable Care Act (ACA) and therefore do not provide the “10 essential health benefits” designated by this program:

  1. Hospitalization 
  2. Ambulatory services
  3. Emergency services
  4. Lad services
  5. Mental Health and Substance Care
  6. Rehabilitation 
  7. Prescription medicine 
  8. Maternity and Newborn Care
  9. Pediatric services
  10. Preventative and wellness care

As such, you are never guaranteed minimum essential coverage by short-term plans and can, in the future, find out that your policy covered far less than you originally expected.

You Might Face Balance Billing

The flexibility of short-term plans comes from the fact that they don’t have a “network.” Without a network, there is no set or established list of health care providers who you know will accept your insurance policy. As such, you might visit a doctor only to find out later that they do not accept your insurance, thus resulting in a medical bill that must be paid for mostly out of pocket.

No Coverage for Pre-Existing Conditions

One of the largest differences between short and long-term insurance plans is how they cover pre-existing conditions. Short-term plans are meant as a backup for medical problems that have not yet happened, they are not made to cover a condition you are already aware of.

Here, some insurance providers will trust your portrayal of your previous health conditions until you file a claim while others will not. In either case, verifying your health status requires an underwriting process in which up to 5 years of your past medical records can be used to determine your status. If they find you do, in fact, suffer from pre-existing conditions, this is grounds to deny you coverage.

Navigating Insurance Providers

As you may have gathered, insurers have a great deal of autonomy when it comes to what they offer as part of their temporary plans. Because of this, it is often necessary to check in with individual insurance providers to get information on what they cover. In the state of Arizona, the following providers are offering temporary coverage:

  1. Blue Cross Blue Shield of Arizona (in partnership with IHC)
  2. Everest Prime
  3. Golden Rule (UnitedHealthcare)
  4. Independence American Insurance Company
  5. LifeShield
  6. Madison National
  7. National General
  8. Philadelphia American Life Insurance
  9. Standard Life
  10. Companion Life
  11. United Security Health and Casualty

While these are the current providers offering plans in Arizona, this information is subject to change. For the most up to date information, it’s best to check in with the insurance providers themselves to see whether they are still offering coverage.

Some Insurance is Better Than No Insurance

When it comes to your health, having sub-par insurance for a period of time is almost always better than having no insurance at all. However, it’s important to think in the long-term and start shopping for a plan that is sustainable enough to maintain on a regular basis.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those who are looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

10 Tips on How to Prevent Car Theft

by

Prevent Car Theft

Auto theft has always been something of a particular problem for Arizona residents. Back in 2007, Arizona used to be #1 in the United States for car theft. While we have made it down to 15 on that list, auto theft is on the rise again.

For many, finding that your car is stolen creates not only a hassle, but an expense they cannot afford. If you are worried about car theft or simply looking for ways to reduce the chance that it happens to you, keep reading our list of 10 helpful tips below.

1. Don’t Leave Valuables in Your Vehicle

Leaving your wallet in the glovebox, some spare cash, or even an expensive pair of sunglasses, is the first habit to break. While this does not directly stop car theft, it leaves few items to steal for car thieves who are looking for a quick catch.

2. Lock Your Doors

The next tip to avoiding car theft is to keep your doors locked at all times you are not in the vehicle. Many times a theft or break-in can happen in a community where you believed your car to be safe– locking your doors makes it that much harder for thieves to be successful.

3. Take Your Keys With You

While it may be a surprise to some, leaving a spare key fob in or around the vehicle is a common practice. A car thief knows all the hiding places for your keys, so leaving one near your vehicle exponentially raises the risk of it later being stolen.

Be mindful that some thieves know how to “hotwire” a car– a process which thieves use to bypass the traditional ignition system and drive your car even without a key.

4. Keep Windows Rolled Up

For Arizona residents, keeping the windows slightly open in summertime is a common practice. Many believe this can help save their windshield from cracking, but it can potentially lead to much worse outcomes.

When you leave the window of your car open it comprises your cars security. Leave it open enough to get a tool through the window to unlock the car from the inside and a potential thief will be able to break in.

While you may believe that this isn’t an issue if there are no keys in the car, remember that cars can be started and stolen via hotwiring.

5. Turn Your Car Off

In the summer months, it’s common to want to leave your car running to keep your air conditioner cool. Unfortunately, leaving your car running and unoccupied makes it incredibly easy for thieves to steal your car. All that needs to be done is for them to get in and drive away.

6. Park in a Visible Location

Whether it’s on a street or in a parking garage, make sure to park your car in a well lit and highly visible location. Most public parking locations are equipped with security cameras– being in plain sight makes it less likely that a thief will target your vehicle.

7. Install an Alarm System

There are a multitude of anti-theft devices on the market which act as miniature alarm systems for your vehicle. The added noise and attention caused when these alarms are activated will help deter thieves looking for an easy getaway.

Remember that in the cases of alarm systems that utilize your cars built in horn, you will likely need a mechanic or installation specialist to properly install and set up your system. However, for many this is a worthwhile investment.

8. Install Kill Switches and Steering Wheel Locks

Two more popular anti-theft devices on the market are kill switches and steering wheel locks. These types of systems make your car undrivable by either rendering the ignition system useless or by making the steering wheel impossible to move.  

9. Track your Vehicle

The final category of devices are tracking systems. By installing a tracking device in your car, you will know its location in case of a theft. Some systems are even integrated with local law enforcement, raising chances of finding your vehicle as quickly as possible. 

10. Etch Your Windshield 

While many dislike this option as it causes damage to your vehicle, it also makes it less likely to steal. This is because by etching the vehicle identification number into your windshield, it makes your car more identifiable to law enforcement and further requires repair before the thief can resell your car.

Insurance Providers that can Help

Using a combination of the above methods is more effective than using any one tip independently. That said, even the most careful individuals experience theft or damage to their vehicle from time to time. At that point, it’s the insurance you have that will make a difficult situation a little easier.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the right coverage for your vehicle. Give us at call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

Maricopa County Excise Tax Bonds

by

Excise Tax Bonds

Excise tax bonds can come into play in multiple industries and vary by state and county.  For instance, in Maricopa county ADOT has issued Transportation Excise Tax Bonds to help fund the design and/or construction of certain highways within Maricopa County. Excise tax bonds may also be used in liquor, state and fuel industries.

What Are Excise Tax Bonds?

“A special tax bond is a type of municipal bond that is repaid with revenues derived from taxation of a particular activity or asset. These bonds are repaid with either excise taxes or special assessment taxes, but not by ad valorem taxes”. In layman’s terms a special tax bond is raised by a federal, state or local government entity. These funds are generally used for special projects such as improving highways, public schools, etc. Investors that purchase these bonds earn interest and then when the bond matures are paid back the principal.

Bonds are issued for a specific purpose and the funds can only be used for that purpose. Investors need to be paid interest on their investments which is where excise taxes come in. Excise taxes are implemented on a specific item to then pay the interest to the investors. For example, if a bond is issued to help fund cancer research, a tax may be levied against the sale of cigarettes to produce excise tax revenue.

Excise Tax Bonds in Maricopa County

Sales tax bonds or, excise tax bonds are types of surety bonds, which many businesses are legally required to have to operate in Casa Grande and Maricopa County. These types of tax bonds are typically required on “luxury” items such as cigarettes, alcohol, gambling, etc. The state of Arizona reserves the right to require businesses to post a bond to make sure that the business can pay the tax amount. In this manner, the state protects its potential revenue and earnings.

How Do These Bonds Work

There are three parties involved in these types of bonds.  There is the principal, the obligee and the surety. Here’s how each party is involved in the process:

The Principal: The principal purchases the bond to ensure the revenue is ultimately paid. If you need are required to provide a bond you would act as the principal.

The Obligee: The obligee is the government entity that is requiring the bond. The obligee is the entity that’s financial interests are protected by the bond.

The Surety: The surety is the bond company (us). We can issue the bond and provide financial security to the obligee. We can discuss your specific industry needs and ensure that you meet state and local bond requirements and bond amounts for the best price possible.

How Much Will Your Excise Tax Bonds Casa Grande Cost?

There are many different factors that go into determining the cost of your bond.

  • Risk – Think of your surety company like an insurance company. If you don’t hold up your end of your financial and business obligations, the surety has to pay the bond to the government entity. The higher the risk that the surety has to pay out the bond, the higher the cost of the bond. 
  • Credit Score – Credit scores are often used to determine your fiscal responsibility. Businesses with good credit are typically rewarded with lower rates and costs while lower credit scores may result in higher costs. 
  • Previous History – If you have a strong track record of successfully meeting your businesses financial obligations you can often obtain better rates than a new or struggling business. 
  • Bond Amount – The higher your required bond amount the higher your rates/cost. Conversely, the lower your bond amount the lower your rate/cost.

If you are looking to do business in Casa Grande or Maricopa County and think you need a bond, give our office a call. Our experienced staff can walk you through the process and requirements and make sure you get the bond you need so that you can focus on what’s important – running your business.

Maricopa Permit Bonds

by

If you are in the energy business you are probably familiar with energy surety bonds. These types of permit bonds are regulated by government agencies and in most cases required by the state and/or county. As an operator of a type of energy business such as wind, solar, or oil drilling installation of new sites or operation of existing entities you will be required to follow a slew of laws and regulations.

Regulations:

This can include obtaining proper permits, following all compliance regulations and carrying the appropriate insurance to protect the state and/or county in the event you don’t meet your obligations.

For instance, if you want to install a gas pipeline, you are required by Maricopa county to obtain a permit. You must complete an application as well as payment and submit it to MCDOT for approval. Your application may be returned with comments or items that are required to be changed prior to being approved. When you are granted approval, and all your other obligations have been met you can begin work. Some projects will have inspections throughout and all projects should notify MCDOT upon completion. As you can see, the county has a vested interest in these types of undertakings and regulates them as such.

Surety Bonds:

Surety bonds are like a type of insurance for the state or county. You, as the principal of the project, are required to carry a surety bond for any new or ongoing energy activity in Casa Grande or Maricopa county. The surety bond protects the county financially in the event that you do not live up to your responsibilities and that lack of performance has a negative financial impact.

The Mechanics of Surety Bonds:

Insurance companies issue a surety bond to the principal, in this example you, and name the County as the obligee. As the principal, you are responsible for the cost of the bond. Then, if you fail to fulfill your obligations, the obligee can file a claim which the surety bond will pay. The bond company can then in turn recoup the money from you. There is typically an annual premium for the bond for the length of your project.

Which Bond is Right For You?

There is no one size fits all solution here. You want the type of surety bond required, for the amount of coverage you need without overpaying for coverage you don’t. Some items that will help determine the type and amount of the best bond for you include:

The type of project you are working on: if your project is potentially more expensive or complex, the cost to insure against financial loss may be greater.

The number of sites: Multiple locations/sites mean more complex projects and opportunities for things to go wrong. This typically increases the risk and expense of a bond.

Where you live: Your state and county will have specific bond minimums that will have to be met so your location is an important factor.

Your obligations (and the length of said obligations): Your financial obligations and the time frame of the project can both impact the cost of your bond. The longer your project and the more financial responsibility, the greater the potential risk.

Your credit: The bond company doesn’t want to deal with a claim against you or their bond. It acts like any other insurance company in that the lower the risk, the less expensive the fees. Your credit is taken into account when reviewing your bond application. If you have good credit, it can help lower your costs, while a lower credit score can do the opposite.

If you are navigating the world of surety and permit bonds, leave the heavy lifting to us so that you can invest your time in your project. Whether you want to install a new wind generator or are taking over existing oil wells we can get you through the bond process in no time at all. Our team of experts have years of experience making sure our customers meet their legal obligations and have the bond that they need. Give our office a call and give us the opportunity to earn your business today.

Comprehensive vs. Collision Coverage for Car Insurance in Arizona

by

Comprehensive Insurance and Collision Coverage

In the United States, almost all jurisdictions require drivers to maintain minimum levels of auto liability insurance. There are also various types of optional coverage that motorists may consider. In this post we will take a close look at comprehensive and collision coverage for Arizona residents. 

What is Comprehensive Coverage?

Comprehensive coverage pays for damage that your vehicle incurs from things such as theft, vandalism, or a hail storm. Without this type of coverage, you would have to pay for losses or repairs “out of pocket.”

This form of coverage is purchased in conjunction with collision coverage. When a motorist adds these two types of coverage to their liability insurance policy, they have “full” coverage.

What is Collision Coverage?

As the name implies, this form of coverage is used to repair or replace your vehicle following a collision. It is applicable in collisions with objects or those involving other motorists.

Unlike bodily injury coverage or property damage liability insurance, collision and comprehensive insurance may apply regardless of who is “at-fault.”

Coverage Requirements for Drivers in Arizona

Arizona requires all drivers to maintain minimum levels of liability coverage. Current requirements are $15,000 in bodily injury per person and $10,000 for property damage.

Those leasing a vehicle or financing the purchase through a lender will be required to maintain collision and comprehensive coverage. The reason that a lender requires drivers to maintain these coverages is for their financial protection.

During the period when the borrower is making payments, the vehicle acts as collateral in case of default. If the vehicle was damaged or stolen and the motorist didn’t have adequate coverage, that collateral would lose its value and the lender or motorist would have to foot the whole bill.

Understanding “Full Coverage” Auto Insurance

Collision and comprehensive auto insurance are generally purchased together on a policy. The term “full coverage” describes when a motorist adds these two forms of coverage. This is in addition to the minimum requirements of liability insurance. The difference between the two is that collision insurance covers damage that occurs while the driver is operating the vehicle.

Collision Insurance

When you are the cause of a crash that damages your vehicle, collision insurance is used. This is coverage that would be used if you strike a tree or ended up driving your car into a ditch. The cost of collision coverage has continued to escalate due to the higher costs of repairing today’s newer vehicles.

Comprehensive Insurance

This coverage is applicable for use when the insured party incurs losses or damage that do not occur while driving. Some of the most common uses for comprehensive coverage are as follows:

  • Windshields: Damage to the vehicle’s glass are generally covered by comprehensive coverage. Windshields are positioned in a vulnerable location and can be struck with considerable force. For example, a piece of metal or a rock may fly out of a truck bed on the highway. This flying object has some momentum of its own. It then strikes the windshield of another vehicle traveling at a high rate of speed.
  • Animal collision: The most common major collision that occurs between vehicles and animals involve deer. These animals are dangerous for various reasons. They can easily weigh more than 100 pounds. They are a taller animal that often will be dangerously propelled on to the windshield following impact.
  • Hail damage: A hail storm can potentially create significant damage to the exterior of a vehicle.
  • Fire damage: It is possible that an electrical problem can create a fire. When a fire is exposed to highly flammable materials such as gasoline, the damage may result in a total loss.
  • Theft: Comprehensive coverage can be used when a vehicle is stolen. Arizona is among the 10 leading states for the total number of vehicles stolen. The state’s close proximity to Mexico makes it easy for thieves to transport stolen vehicles across the border to be sold.
  • Vandalism: Arizona law makes vandalism a felony when the damage is valued at more than $250. Unfortunately, it may not deter teenager troublemakers from randomly causing damage.
  • Falling objects: A storm or high winds can cause problems such as falling tree limbs that can cause significant damage to your vehicle.

Uninsured Motorist Coverage

This coverage protects you if involved in an accident with a motorist who does not have the required liability insurance. It may also apply if you are in a “hit-and-run” accident where a motorist flees the scene, leaving no one to pay for the damage.

Underinsured Motorist Insurance

Underinsured coverage protects a motorist if the cost of injuries or property damage exceeds the liability limits of the driver’s policy. For instance, underinsured motorist insurance would apply if someone is involved in a crash that costs $12,000 worth of repairs to their car and the at-fault driver only had liability insurance to cover $10,000.

Other Optional Coverage

Many insurers offer medical payments or personal injury protection policies. These are specifically used to cover medical expenses in case you or your passengers are injured in an accident.

Perhaps you need surgical care for a broken arm? In very serious accidents you may also require a hospital stay or some type of therapy or rehabilitation. These costs can quickly become unpalatable.

Rental reimbursement are another common option. When your car is in the shop being repaired after an accident, the policy may offer a daily reimbursement amount towards renting a car. This is helpful in allowing you to continue to go to work and travel.

Understanding Deductibles

Comprehensive and collision insurance both generally have deductibles, which is the dollar amount a driver must first pay “out of pocket” when filing a claim. They often range from between $500 to $2,500. After the deductible is paid, the insurer pays the remaining costs of repair or replacement up to the maximum coverage limits. The average monthly premiums usually decrease as the deductible amount increases and vice versa.

Is Your Vehicle Costly to Insure?

The type of vehicle that you choose to drive has a considerable impact on comprehensive and collision insurance premiums. The worth of the vehicle itself is also a major factor. Insurers know that high-priced vehicles will cost more to replace or repair, so they compensate for that by charging more on the premiums.

Newer cars are more costly to repair because they are more likely to have advanced features, such as blind spot monitoring and rear cameras. On average, a five-year-old car costs roughly 12% less to insure than a new model. As the car ages, motorists can expect that rates will decrease by roughly 2.5% annually.

Do these new safety features result in lower rates? Many new advanced safety features are designed to help with preventing accidents. The problem is these additional features increase the costs of repairing or replacing the car. These vehicle owners may notice a slight reduction in the cost of their liability insurance, but these savings may be offset by an increase in comprehensive and collision coverage.

Hybrid, electric, or other “green” vehicles generally will cost more to insure. This is because higher costs may be incurred to pay for the damage. A recent report indicated that this increase equates to roughly 7% compared to traditional gas-powered vehicles.

Most Expensive to Insure

Average Annual Premium

Least Expensive to Insure

Average Annual Premium
Audi R8

$4,102

Subaru Outback

$1,392
BMW i8

$4,032

Chevrolet Colorado

$1,414
Dodge Viper

$3,921

Ford Escape

$1,438
Nissan GT-R

$3,865

Fiat 500X

$1,441
Porsche 911

$3,403

Subaru Crosstek

$1,446

Factors That Impact the Cost of Comprehensive and Collision Policies

Insurance companies use statistical data to determine the rates of their policies for different drivers. They consider a host of factors that relate to the likelihood that you will have an insurance claim. These factors mainly are assessed to determine the likelihood that you will file an insurance claim. They will consider your demographics information. For example, teenage males will have higher premiums because they are inexperienced drivers and tend to take more risks.

  • Age and demographic. New and inexperienced drivers are among the most costly to insure. Aside from their inexperience behind the wheel, they are more prone to distractions and reckless decisions. Men pay slightly higher insurance rates than woman across most age ranges. Those who are married and those who own a home are more likely to have lower rates.
  • Location. Accident rates are generally evaluated by insurers based on your zip code. Your neighborhood may historically have a high rate of vehicle theft. Arizona ranks as #22 among U.S. states for the cost of car insurance.
  • Driving record. Those who are cited for traffic violations are typically going to pay higher rates. The insurance company will likely review your driving record initially and then each time the policy is renewed.
  • Claims history. Insurers will check your history of filing insurance claims. The more claims you file, even though these claims usually aren’t because of your fault, the higher your premiums will rise. There is a central database that retains this data.
  • Credit history. In the majority of U.S. states, insurers may check your credit history when determining rates. Your previous history is a major factor in the rate you pay. Data suggests that those with a poor credit history are more likely to file an insurance claim. 
  • Vehicle safety rating. All vehicles are evaluated for safety. They are subject to crash tests that may reveal the likelihood of serious injury in the event of a wreck. Insurers look at your recent driving record to see if you have any violations. They also look at your recent history of claims. The safer your car, the less your premiums should be. 
  • Theft. Certain models of vehicles are more commonly stolen than others. Overall, auto theft rates have declined considerably since the 1990s. Arizona ranks close to the national average for the number of vehicles stolen. 

Arizona drivers pay approximately 12% less compared to the national average. The following charts analyze two examples of how rates are impacted by certain factors.

Your Credit Rating

The following analysis was done showing how the amount of money paid by Arizona motorists changes based on their credit.

Exceptional Credit Score (800-850)$1,024.30
Very Good Credit Score (740-799)$1,238.79
Good Credit Score (670-739)$1,529.22
Fair Credit Score (580-669)$1,915.90
Poor Credit Score (Less than 579)$2,443.66

Your Geographic Location

The same organization also did a rate comparison based on where the policyholder lives in Arizona.

Phoenix$1,602
Glendale$1,536
Avondale$1,502
Peoria$1,409
Mesa$1,408
Tucson$1,362

The 10 Percent Rule

Some experts subscribe to a guideline known as the “10% Rule” for when to drop comprehensive and collision insurance. This means that the added annual cost for these coverage types should not surpass 10% of the vehicle’s book value.

For example, if the value of your vehicle is $3,000, the additional premium cost should not exceed $300 annually. Keep in mind that this is merely a guideline and may not apply in all circumstances.

Finding Discounts for Auto Insurance

There are a tremendous number of discounts offered by auto insurance companies. Many providers offer discounts for those with a clean driving record.

One commonly offered discount is available to those who “bundle” other types of insurance together. An example would be purchasing your home and auto insurance through the same insurer.

Multi-car discounts may apply to those who have multiple cars or motorcycles. Some insurers will offer “usage-based” discounts. These may be available for those who drive significantly less than the average motorist. Those who are active in the military are also commonly eligible for discounts.

Benefits of Having a Local Agent for Comprehensive Insurance in Phoenix Arizona

In today’s fast-paced environment, there are many benefits of having a local, independent insurance agent. You can save money and time because your agent can quickly compare insurance quotes from multiple insurance companies. Your agent will find a great policy suited for your specific needs and provide you with personal service and support.

Car Insurance Coverage for Arizona Drivers

The Gebhardt Insurance Group provides auto insurance solutions for drivers across demographics. With decades of combined experience, our team of professionals will assess the specific coverage needs for you, your family, or your business. Contact us today at (520) 836-3244 to speak with one of our local agents.