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.

Auto Insurance Minimums, Are They Worth the Savings?

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Auto Insurance minimums are the amounts of insurance that are required by the state. By utilizing the bare minimum coverage you may save money on your monthly premiums, but is utilizing the bare minimum coverage really worth the savings?

The state of Arizona has mandatory insurance laws of liability coverage in the minimum amount of $15,000 bodily coverage for 1 person and $30,000 bodily coverage for 2 people. The state of Arizona also requires $10,000 property damage liability coverage. More details about the Arizona insurance requirements. These laws establish the bare minimum requirements that you must have when insuring your car, motorcycle, or golf cart. In general, the higher your coverage amounts the more expensive your insurance premium will be. If your insurance company potentially has to pay out $300,000 when you are involved in an accident instead of $10,000 you will pay typically pay a higher premium for that higher coverage amount.

Auto insurance minimums may not cover the cost of an accident. $10,000 is the minimum property damage liability coverage required. If you are responsible for an accident you may easily exceed this amount in property damage and be responsible for the remainder due. For instance, if you were to accidentally run a stop sign, side swipe another car and damage a city sign and sidewalk in the process, you could potentially be responsible for the damage to the other car and the city property. In the best case scenario, the insurance company would pay $10,000 towards these bills minus any required deductibles. If the damage to the other car costs $15,000 to repair and the stop sign and sidewalk cost $5000 to replace and repair for a total of $20,000 in damages, you could potentially be liable for $10,000 in damages which you would have to pay out of your own pocket.

Another scary scenario is using the same example but this time there are 4 people in the other car, each with medical injuries from the accident. If you are carrying the minimum insurance coverage you will only have insurance for up to $30,000 in bodily coverage. Medical bills can easily skyrocket beyond that amount and you would be responsible for the difference.

An increase in coverage doesn’t have to break the bank. If you are using the Arizona state auto insurance minimums because of budget restrictions call an experienced insurance agent. If you have a clean driving record or are a mature driver, an increase in coverage may not break the bank. You can also ask your agent to quote your policy with different companies to see if a better rate is available with increased coverage. Another option is to look at increasing your deductible to keep your premium low but get increased coverage amounts.

Bare minimums are better than nothing. If you are living paycheck to paycheck, have little to no assets, and are driving minimally, at the very least be sure to maintain the auto insurance minimums required by your state. If you are in an accident and your coverage is not enough, you can be held liable but something is better than nothing. If you do not meet the requirements of your state you can land in very serious trouble. You are required by law to maintain the insurance listed above. If you are pulled over and do not have insurance you can face suspension of your car registration and driver’s license for a minimum of three months. You can also have your license plates taken away. Once your suspension is over you may have to provide documents proving your financial responsibility and ability to pay for insurance before your license and registration will be reinstated. This is called SR-22 and it a document that verifies that you have auto insurance. If you are already having financial difficulties and find yourself pulled over without insurance you could create even more problems for yourself. If you have no driver’s license you will have a tougher time getting to work and you may face fines and fees to get your license reinstated. Be sure to have at least the bare minimum as stated by law when it comes to your auto insurance.

The state of Arizona has resources available when it comes to researching auto insurance. The mandatory insurance laws in Arizona are implemented for everyone’s protection and there are websites for your reference to help you understand and follow the law if you happen to commit insurance fraud, insurance companies has the ability detecting insurance fraud so you better think twice. The Arizona Department of Insurance’s gives the insurance minimums and explanations of the different types of insurance available. This site evens gives tips on how to reduce your premium including taking advantage of your insurance carrier’s discounts such as good driving or multiple policy discounts as well as increasing your deductible for a lower premium payment. It also gives a New Driver’s Guide to Auto Insurance and highlights the need for insurance, in particular for new drivers:

  • “The risk of an accident per mile driven among 16 to 19 year olds is four times the risk of older drivers.
  • Risk is highest at age 16, with the crash rate per mile driven almost three times as high as the risk among 18-19 year olds.
  • Car accidents are the number one cause of death among 16-19 year olds.”

This site also explains uninsured motorist insurance. Uninsured motorist insurance is available to protect you in case you are hit by someone who does not have insurance. Even though it is illegal, some people will run this risk.

While maintaining the minimum auto insurance coverage and having the accompanying lower premium may be tempting it is important to weigh the risk of being underinsured against the actual premium cost. There may be other cost effective alternatives that will not leave your bank account and assets exposed in the event of an accident. Are auto insurance minimums savings worth it? Work with an experienced agent to find the right amount of coverage for the right price. Don’t leave your financial health to chance.

What happens if you get pulled over with no insurance in Arizona?

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no insurance in Arizona

The penalties for driving without insurance vary by state. There are serious repercussions for being pulled over with no insurance and for being in an accident uninsured. Some of the most common penalties include having your driver’s license suspended, having your vehicle registration suspended, fines, and increased insurance costs. There are many reasons to make sure you are not pulled over without insurance, especially in Arizona.

Driving without insurance is illegal

First and foremost you should remember auto insurance is not just important to cover the “what ifs” of driving but is part of the responsibility of car ownership by law. The Arizona state website: www.azdot.gov discusses this law in explaining, “Arizona requires that every motor vehicle operated on roadways be covered by one of the statutory forms of financial responsibility, more commonly called liability insurance, through a company that is authorized to do business in Arizona. This requirement also includes golf carts, motorcycles and mopeds. This is covered under Arizona’s Compulsory Insurance Liability Law.

Minimum levels of financial responsibility are

  • $15,000 bodily-injury liability for one person and $30,000 for two or more people.
  • $10,000 property-damage liability.”

Insurance from a company that doesn’t do business in Arizona is not valid

If your car, golf cart, motorcycle, or moped is registered in Arizona then it has to be insured in the state of Arizona as well. If you relocate to Arizona you have to register and insure your vehicle in Arizona. This would generally be handled by the MVD or Motor Vehicles Department. This is the equivalent to the DMV in some other states. You are generally considered an Arizona resident is you register to vote in Arizona, have an Arizona driver’s license, have a business based in Arizona, work in Arizona, live in Arizona 7 months or more out of the year, or meet additional criteria. If you relocate to Arizona be thorough with your to do list and don’t let out of state insurance get you into trouble.

Arizona restricted use permits are not exceptions to the insurance laws

The state of Arizona has a restricted use permit law. This law states that any newly purchased vehicle, new or used, has to be registered prior to being driven. The restricted use permit can be applied for online at: https://azmvdnow.gov/guest/customeranonymous/titleregistration/permits/start. It is a three day permit that allows you to drive your newly acquired car. One of the first requirements to start your online application for the permit is insurance. You must have proof of insurance for your new vehicle or you will not be able to apply for the restricted use permit.

The cost for being pulled over without insurance in Arizona is steep

The penalties for the first offense are a $500 fine and the suspension of your license and registration. Your license plates are also taken. The second offense within 36 months will cost you at least a $750 fine, suspension of your license and registration for 6 months and your license plates are taken. If you were to have 3 or more violations within 36 months the fine is at least $1000 and the suspension is for 1 year. In addition you may be required to file proof of financial responsibility. The fines listed do not take into account increased insurance rates, court costs, or any other financial consequences that you may incur.

In Arizona a SR-22 certificate can be a consequence of getting caught driving without insurance. An SR-22 certificate is not insurance but is a form of a proof of insurance. This can be required to reinstate your driver’s license or registration if you have been found guilty of failing to pay an accident judgement or convicted of a DUI. Certain suspensions will only require you to pay your fines, while others will require a SR-22 certificate.

Arizona is a comparative fault state

This means whoever is at fault for the accident is responsible for paying for the damages that occurred. This also means that fault can be divided between the parties. For instance it is possible for you to be 40% responsible for an accident and the other party to be 60% responsible. The costs associated with the accident would be split accordingly between the responsible parties. If an accident occurs in the state of Arizona you have several options; you can take a claim to your insurance company, submit a claim with the other parties’ insurance company, or file a personal injury lawsuit in a court of law. If you are an uninsured driver in the state of Arizona and you are at fault in an accident the other driver can take you to court and sue you for damages. You could be sued for medical bills, damage to the other person’s vehicle, lost wages, future medical costs, pain and suffering etc. The potential damages could greatly impact your bank account.

If you want to cancel your insurance do so deliberately

Don’t ever just stop paying your insurance premium. You will want to notify your insurance carrier that you are canceling your policy. You also must notify the MVD. If you are changing policies to move to another carrier work with that carrier to make sure your coverage begins at the same time your old coverage ends.

Keep your auto insurance policy up to date

Here are some tips to make sure your coverage never lapses:

  • You can utilize auto pay so that you never miss a payment. Most insurance companies are happy to set this up for you and some will even give you a discount for using this service.
  • Similar to auto pay, you can also enroll in auto renewal with many insurance carriers. This means there is no paperwork to fill out when your policy term is up.
  • You should always make sure your address is current with your insurance carrier. If you move, make sure you contact your carrier with your new information.
  • You can set a calendar reminder for yourself to make payments.
  • Some insurance carriers have a grace period that is extended if you miss a payment. Check with your agent or carrier to see if this applies to you. If it doesn’t, make sure you get your payments in on time.

Being pulled over without insurance in Arizona is expensive and has many possible consequences. Remember that by law you must have car insurance and have proof of insurance with you and available for a police officer at all times.

If you are uninsured, or aren’t sure if you have enough insurance give us a call at Gebhardt Insurance Group. We can help you find the best deal on car insurance so you can stop worrying about being pulled over without it.

Do I Need Insurance for My Business?

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Do I Need Insurance for My Business? The short answer is yes; you absolutely need insurance for your business. Your business is the product of your blood, sweat and tears. It may be a new enterprise or a booming and established business but either way, it is important that you protect what you have worked to build. Doing business without insurance leaves you and your company open to a world of potential problems.

When looking at insurance for your business you have lots of options and things to consider. As a business owner you have a lot to protect. Just like no two businesses are exactly the same, no two businesses will have the exact same insurance needs. Some insurance offerings are appropriate for a business based on size or industry. It is important to talk to an experienced agent that can help you cover all your business insurance needs without overpaying for insurance you don’t need. There are many different types of insurance offerings out there for you to consider.

Property insurance: Property insurance typically covers losses and damages to real or personal property. You can purchase additional insurance that covers specific things such as debris removal and glass replacement. If you own a restaurant you may consider a specific property insurance to cover your equipment such as your kitchen appliances, cash registers, booths, and bar area in case of a fire or other covered loss.

Liability insurance: Despite the fact you are the model business owner you always face the possibility of a law suit. Liability insurance comes in many shapes and sizes. “Any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. Liability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of policies.” In this litigious day and age liability insurance is a very wise investment. The cost of coverage can vary and depend on what industry you are working in and the size of the business you own. For instance, a large construction company may find liability insurance much more expensive than a small marketing company.

Workers Compensation: If you have employee’s you will more than likely need workers compensation insurance. As of 2010 workers compensation was required by 49 of the 50 states, with Texas being the only exception. Workers compensation regulations vary by state. Some states require workers compensation for companies with only one employee while others require it for companies with at least three employees. Workers compensation provides coverage for employees that are injured on the job. It can cover the injured employee’s medical expenses and partial disability payments while the employee is unable to work. For a comprehensive list by state of the workers compensation regulations visit the National Federation of Independent Business’s website: https://www.nfib.com/. Because workers compensation is generally mandatory by law you should consult a state specific insurance expert to help guide you in your obligations and make sure you are compliant.

Life Insurance: Could your business continue if something unexpected were to happen to you? If you are a key employee, partner or owner and you were to die suddenly could the business go on without you? If the answer to either of these questions is no, life insurance for your business may be a consideration. A good example of this would be a husband and wife that have a family and own a small business together. If either spouse were to die unexpectedly not only would the family need funds to supplement the loss of income, so would the business. Life insurance designated for the business allows an influx of income if needed due to the loss of a key partner.

Data Breach Insurance: This insurance is an additional policy intended to cover the cost of a data breach. In this day and age of technology and hackers this policy may be well suited to your company, depending on what you do and if you handle sensitive data. An IT company or a doctor’s medical practice might be good candidates for this insurance. According to USAToday, 43% of companies experienced a data breach in 2013. In 2014 Target, Neiman Marcus, Michaels, UPS, Dairy Queen, and Home Depot were just some of the bigger named companies that experienced data breaches. Your general liability insurance may address a data breach to a limited extent. Consult with an experienced agent to make sure you have coverage appropriate for your industry and potential risk.

Commercial auto insurance: If your car is used for business purposes or is owned by your company you may need commercial auto insurance. If you use your vehicle for personal and business purposes you still may want to consider commercial auto insurance. Without it, if you are involved in an accident the insurance company may deny your claim under your personal car insurance because the commercial use of the vehicle may violate the terms of your insurance policy. The use of your vehicle and type of business will help determine your need for commercial auto insurance.

Directors and Officers Insurance: This is commonly known as D&O insurance. This business insurance is designed to protect you from personal losses if you are sued as a result of serving as a director or an officer. It may also cover legal fees for the organization should a lawsuit occur. D&O insurance can take different forms based on the industry and potential liability. Typically, D&O insurance does not cover fraud or dishonest acts.
As you can see you have many different options when it comes to insuring your business. Don’t let an unfortunate accident or lawsuit damage the business you have worked so hard to build. Your business needs insurance. Some policies will be required by law while others are optional and case specific. Consult an experienced insurance agent to figure out which insurance options are appropriate for you.

Spotting Insurance Fraud: How Insurance Companies Detect Insurance Fraud

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Insurance fraud is a costly business. Insurance companies, the government, and other entities work to detect and deter insurance fraud. Because fraud is not always detected it is hard to estimate just how expensive the losses truly are. Often fraud schemes are not reported or caught. According to The Coalition Against Insurance Fraud’s website: http://www.insurancefraud.org/the-impact-of-insurance-fraud.htm#.V0InRfkrK70 at least 80 billion dollars in fraudulent insurance claims are filed annually. Insurance fraud can take many forms from staged car accidents to false workers compensation claims. There are typically two types of insurance fraud: hard and soft. Hard fraud is a deliberately fabricated claim while soft fraud is adding fraud to a legitimate claim. The fight to detect and prosecute fraud is important as the cost of fraud is high and potentially dangerous. There are some common insurance schemes that are widespread and impact different types of insurance.

Some of the most common insurance fraud schemes are:

  • A staged car accident: A driver and accident victim work together to cause an accident. Then they inflate their injuries and damages to collect larger settlements from the insurance companies. With some of these schemes a witness and physician may be in on the scam while other times it may be just a driver and accident victim. This type of fraud can be dangerous to innocent bystanders who may be impacted or injured in the staged accident. If into a real one, here’s what to do after a car accident.
  • Stolen car/items: A person claims that his car or valuable item is stolen when in reality it has been sold. The person then collects the proceeds from the sale and the reimbursement from the insurance company.
  • Health insurance fraud: Health insurance fraud can take many forms but a common version is a doctor or medical practice bills the insurance company for procedures that never took place. Another form of health insurance fraud is ordering unnecessary tests for the patient and overbilling the insurance company. If you ever feel that your doctor or health care practitioner is ordering unnecessary tests, ask for an explanation. Many times patients are unknowingly involved in health insurance fraud.
  • Arson: Home and business fires are unfortunately common. If a person or business owner is in financial trouble and desperate sometime arson seems like a solution. A home or business owner will remove the most valuable or sentimental items from the home or business and will hire someone to burn the building down.
  • Storm fraud: Some homeowners will take advantage of opportune circumstances. If a severe storm hits, a homeowner may exaggerate, or make up altogether, the damage done to the home. This is often an example of soft fraud, with the homeowner exaggerating the original and valid claim.
  • Faking a person’s death: A person fakes his or her own death for the financial gain of the beneficiary. The life insurance policy is paid out and both people typically disappear resurfacing with new names in a new town.

With so many schemes out there, insurance companies have to use every tool available. There are many ways that Insurance companies detect fraud.

Other ways to detect insurance fraud:

  • Analytics and Technology: Insurance companies often rely on statistical models to detect fraud. If an individual or company has a high number of claims or unusual circumstances it may be flagged by the insurance company’s software for further review. Insurance companies are also starting to leverage technology such as analytics and social media to pull together all available information. It is not uncommon for an insurance company to look you up on Twitter, Facebook and other social media to help verify that you are not lying about the circumstances of your claim.
  • Common Sense and Typical Red Flags: If you submit a claim that doesn’t make sense or looks highly suspicious the insurance company will investigate. For example, if you own a business that has a large insurance policy and it is struggling financially and there is suddenly a fire that burns your business down to the ground, the insurance company will want to investigate. Increasing the amount of insurance shortly before filing a claim is also a red flag. Other flags can be missing police reports, no witnesses, and a long delay in filing a claim.
  • Claim History: If you have a track record of filing many claims, the insurance companies will scrutinize your claims more closely before paying out. There is a difference between being unlucky and dishonest. The more claims you have filed the more red flags that are raised and the insurance companies will invest more resources in investigating.
  • Cooperation: According to the Consumer finance website: http://www.consumerfinance.gov/askcfpb/1821/do-auto-and-homeowners-insurance-companies-share-my-information-about-claims-and-policies.html there are specialty consumer reporting agencies that collect and share information regarding insurance claims you have filed. The insurance companies have access to these reports and use them to decide whether to issue you a policy, establish your rates, and help detect fraud. An example of a specialty report is CLUE (Comprehensive Loss Underwriting Exchange). CLUE is a database of claims made by LexisNexis. CLUE’s auto insurance database tracks your loss history including your contact information, claims paid, claims unpaid, and any serious inquiries made. This means that all insurance carriers have the same access and information to your prior claim history. The good news is you can get a copy of your CLUE report and see what information is there. The insurance carriers also have access to your motor vehicle record. Driving infractions on your record such as tickets or accidents will be accessible to all potential insurance carriers.

Once an insurance company is alerted to a possible case of fraud, a special investigative person or team is assigned to investigate. An investigation is held to either verify or disprove the claim. If the insurance company is able to prove a strong case of fraud, the company may deny the claim, revoke the person’s insurance policy or get the police involved. Depending on the circumstances insurance fraud can be prosecuted as a misdemeanor or felony. Insurance fraud creates increased premiums which are passed on to all policy holders. It can also be dangerous to innocent people and the insurance companies take fraud seriously. They use every tool at their disposal to fight and prosecute fraud. If you suspect insurance fraud, you can contact the insurance company directly or call the National Insurance Crime Bureau at (800) 835-6422.

What You Need to Know About Insuring an Older Home

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Older homes can be great. They are charming, full of character and have a story to tell. But before you let yourself fall in love with a home that was built before the 1970s. be aware that they also usually also have more advanced wear and tear. This means potentially expensive repair and replacement costs. It also means that insuring an older home can be more expensive than insuring a home that was  built recently.  An experienced insurance agent can help you understand your options when insuring an older home, but here are some large ticket items to watch for that can make your insurance more expensive and might even have to be replaced before you move in to bring the home up to code:

The electrical system:

Electrical systems and wiring were very different 60 to 70 years ago. Homes that were built in the 1930s didn’t have the same kind of electrical appliances that we have today. An older home may not have sufficient capacity to handle a family’s modern day electrical needs. An older home may not even have enough electrical outlets for all of the appliances, light switches and the average family’s electronics like TVs and computers. Using extension cords and power strips isn’t a permanent solution. Overloading a home’s electrical system is dangerous and can potentially cause a fire.

Safety codes were also quite different 50 years ago. Some homes built in the 60s and 70s used aluminum wiring instead of copper. Aluminum wiring connections can loosen over time and can be a fire hazard–and can lead to higher premiums when insuring an older home. Homes built before the 19070s also often have electrical fixtures that are ungrounded. If an electrical outlet is not grounded or polarized you have no protection against shocks from defective fixtures or appliances using that outlet. According to the National Fire Prevention Association, faulty wiring is the leading cause of residential fires. Each year, household wiring and lighting causes an estimated 32,000 home fires resulting in nearly $674 million in property damage.

Outdated plumbing:

  • An older home will have older plumbing. Plumbing from the 1960s and before used galvanized steel. Galvanized steel pipes might suffer from corrosion and blockages over time.
  • Pipes are not confined to just the house. Outdated plumbing can result in massive sewage issues. Sewer lines can be made of cast iron, clay, or plastic. Some older sewer lines may be made of tar paper used from the Civil War to the 1970s. This type of sewer line would need to be replaced as soon as possible.
  • Sewage issues are not just smelly and expensive, they can also be dangerous. If methane gas is inhaled it can lead to health issues such as headache and heart palpitations. If it builds up in your home it can be a fire hazard.

The roof:

  • A roof should last approximately 20 – 30 years depending on the materials, how well it has been maintained and where you live.
  • Roofing materials have been updated over the years. Up until the late 1970s, asbestos was a commonly used fire proofing material and was used in roofing products. If you find out that your home contains asbestos, you will need to have a professional asbestos removal company handle the removal.
  • If your roof is more than 15 years old and you see any examples of possible damage such as buckling and curling, algae growth, rotting, or blistering, you should have it professionally inspected. A damaged roof can ruin your attic, ceilings and walls. It can also contribute to the growth of mold and mildew, create a fire hazard, and compromise the structure of the home.

Historic or antique value:

An important point to consider when insuring an older home is the historic or antique value of the home. Those original light fixtures, beautiful stained glass panels and custom woodwork are beautiful, no doubt, but it will be more expensive to purchase antique materials and supplies and hire skilled labor to repair or rebuild a these features, so you will need to count on paying more for you insurance—unless you are fine with having the cheapest possible repairs made.

Aged appliances:

  • Older homes typically have older appliances. These appliances can be potential fire or electrocution hazards. Refrigerators in the early 20th century relied heavily on gases like ammonia and ether to help the cooling process.
  • Older appliances might contain Freon and mercury switchboards that must be disposed of properly.
  • Aged appliances have to be vented properly. Over time an appliance’s vent mechanism may deteriorate creating exposure to dangerous gases. Vents should be free of cracks and gaps.

Old Decks:

Brackets and fasteners can become corroded and fail to support older structures such as an outdoor deck. Hardware can become worn with exposure to the elements creating a potential hazard. When purchasing and insuring an older home, be sure to have a professional inspect the deck, porch and any additions to the house for structural stability.

Chimneys:

Old chimneys pose a possible fire hazard. Older chimneys are often unlined creating a draft that can leak toxic gases into the home. If the chimney is used for wood burning, the build-up can create a fire hazard.

Given that older homes can come with so many potentially expensive repairs it is important to have an experienced insurance agent guide you through the process of insuring your older home. This does not mean that your home is unsafe. It just means that you will have different considerations when buying insurance. You may be advised to have inspections or repairs completed prior to insuring an older home. You may look at additional considerations for insuring your older home such as:

  • Increased dwelling protection to cover expensive replacement costs
  • Water backup coverage to help cover the plumbing and sewage
  • Roof surfaces extended coverage
  • Coverage for today’s building costs to cover the increase in costs to rebuild the home to today’s safety regulations

When insuring an older home, be sure to purchase enough coverage by working with an experienced agent who can assess your situation. Long story short, don’t be scared off by an older home. As long as you have the money to bring the home up to code and are willing to pay a little more for insurance, the charms of an older home will far outweigh any setbacks.

4 Reasons You Need to Buy Life Insurance

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No one likes to think about dying, but since it is inevitable, it’s important to plan ahead. In addition to creating a will or a trust and naming beneficiaries on retirement and bank accounts, you may need to buy life insurance. A life insurance policy is the best way for many people to leave money to their families to cover funeral expenses, replace income or simply have some money to leave behind to the people they care about. Here are some other reasons you may need to buy life insurance.

  1. You have student loans from a private lender.

Federal student loans are forgiven if the borrower dies. This also goes for ParentPLUS loans. If the parent or the student dies, the loans are forgiven (and, unfortunately, treated as taxable income). However, private lenders aren’t required to provide the same forgiveness and some will demand immediate payment of the loans in full upon the death of the borrower.

If you have taken out student loans from a private lender and someone co-signed those loans, you should see if you are eligible for a cosigner release or take out a life insurance policy so that the individual or individuals who co-signed for you aren’t ruined financially if you die. If you are a parent and have co-signed student loans for your child, you can also take out a life insurance policy in your child’s name. Regardless of who takes out the insurance policy,  make sure you are purchasing enough to cover the loans and any interest that may accrue.

The same advice applies if you are married and want to protect your spouse from having to pay back your loans. If you live in certain states (including Arizona) loans that you took out during the time you were married will become your spouse’s responsibility, generally speaking.

  1. You have children—young or old—who depend on you for financial support.

Did you know that 63% of parents aged 55 and older still support their children or grandchildren? Who would replace that income if you were to die tomorrow? If you provide financial support to someone in your family and he or she would not be able to live without it, you need to buy life insurance to replace that income if you die.

If you have a child with special needs who will need care throughout his or her life, it is especially important to make sure there is enough money provide them care if you die unexpectedly. You should estimate how much money will be needed to take care of your child if you were to die tomorrow and then start making a plan.

You will need to set up a special needs trust and, when you buy life insurance, name the trustee and trust as the beneficiary. Setting up a trust is important because if you simply name your child as the beneficiary of your life insurance policy, you will disqualify him or her from receiving government assistance. That’s because people with disabilities can’t have more than $2,000 worth of assets in their names in order to qualify for government financial programs.

  1. You have installment debt.

Installment debt refers to a loan that requires the borrower to make fixed payments for a fixed number of months. Do you have a car loan or a mortgage that isn’t paid off yet? You aren’t alone. Out of all the individuals ages 65-74 who have installment debt 64 percent have car loans that aren’t paid off, they are still in debt an average of $2300 from student loans and 41 percent have mortgage debt, according to the LIMRA Secure Retirement Institute.

This is especially important to keep in mind if you have a mortgage. Whoever inherits the house and the mortgage will be responsible for making payments. If they can’t afford to make the payments, the bank can take it back or it can be seized to pay other debts. If you don’t want your family to inherit your installment debt, you need to buy life insurance so that those debts can either be paid off or the person who inherits them can afford to make the payments.

  1. You have a pension that ends when you die.

Some pensions don’t have a survivorship option. This means that your spouse won’t be able to receive money from your pension if you die. If this happens, he or she may not have enough income to cover expenses. Luckily, you can replace that income stream with life insurance.

To figure out how much life insurance you will need, you can use this life insurance calculator or call an insurance agent who will be able to answer all of your questions. It’s important to keep in mind that the older you get the more expensive life insurance will become and the more difficult it will be to get, in general. It is extremely easy and relatively inexpensive for a healthy 20-something to get life insurance, but is much harder to get life insurance as you get older. That’s because the older you get the more likely it is that you will die. So if you need to buy life insurance for any of the reasons on this list, don’t delay.

If you buy life insurance when you are young, you can always add to it as you get older and your situation changes, like if you have kids or get married. The important thing is not to wait to get life insurance until it is too late. Because if you die without it, there aren’t any re-dos.

10 Things You Need to Do After a Car Accident

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After a car accident, you may not be thinking clearly—even if you weren’t injured. However, it’s important to try to remain as calm as possible so that you can follow the proper procedures. Here’s what you need to do after a car accident.

  1. If you can, move your vehicle out of the way.

This is especially important if the accident happened on a busy roadway. The last thing you want is to get struck again by another oncoming car that doesn’t see you or isn’t able to slow down in time. If your car is still drivable, pull it onto the shoulder or into a side street or parking lot and turn on your emergency flashers. If you are unable to move your vehicle, turn on your emergency flashers or set up emergency cones or warning triangles.

  1. Check yourself and your passengers for injuries.

Sometimes you don’t realize that you are injured right away if you get into an accident because your adrenaline is pumping. Give yourself a once over and make a quick assessment of where you might be hurt. Have your passengers do the same.

  1. If there are injuries, call 911.

If there are injuries in your vehicle or the one that hit you, you should call 911 to get help to the scene as soon as possible. Only move an injured person if he or she is in imminent danger—like if the vehicle is on fire or they are in danger of being hit by oncoming traffic. Improperly moving someone who is hurt could make his or her injuries worse.

  1. If there are no injuries, call the police department’s accident or non-emergency line.

If you have a smart phone, you should be able to easily look up the police department’s non-emergency or accident line. But if you don’t have a smart phone call 911 so they can transfer your call.

  1. If the police do not come…

Sometimes the police won’t come to the scene of an accident. This might be because you live in a large city and there are more serious matters that the police need to attend to, or there might be a more pressing matter happening at that time. If the accident happens during a weather emergency, there might be a lot of other accidents happening and the police may only able to respond to the most serious.

If this is the case, you still need to report the accident. This is crucial. If you don’t get a police report, it will be your word against the other driver’s. If there is a dispute about what caused the accident and there isn’t a police report you might have trouble proving that you weren’t at fault. Also, if the other driver tries to sue you for damages or you notice damage to your car after you have left the scene, you might be out of luck if there is no police report on file.

To report the accident, you just need to go to the nearest police department—or go online in some cities—with the names and insurance information of the drivers involved in the crash. It helps if you have pictures of both of the vehicles at the scene of the crash and the names and contact information of witnesses.

You will also need to get the insurance information, names and contact information of the other driver (or drivers, if multiple were involved).

  1. If the police are on their way, you can take the time while you wait to do the following:
  • Get the names and contact information of witnesses. This will be important if the cause of the accident is disputed down the line.
  • Take photos of the damage and any injuries.
  1. Do NOT accept any money or make any deals.

Some people who are involved in car accidents will beg you not to call the police or file an insurance claim. This may be because they were intoxicated or otherwise at fault for the accident, or they may not have insurance. They might offer you money to cover your expenses or try to make a deal with you. This is a bad idea. You might not know the extent of your injuries or the damage to your vehicle without seeing a doctor or mechanic and the money that the other driver offers you might not be enough to cover your medical bills, car repairs and a rental car. Plus, if the driver is intoxicated or made a blatant error that caused the accident, the police really should be informed. What if they choose to make that mistake again and next time they kill someone?

  1. Just the facts.

When the police officer arrives, he or she will question each driver involved separately and give you directions for what steps to take next. Depending on the police department’s protocol and the severity of the accident, you might be asked to complete a portion of the police report on your own and either deliver it to the police department or submit it online.

It’s important to be honest when speaking with the police officer, but don’t overelaborate. After an accident, you might be flustered and blurt out something that you don’t mean. Stick to the facts of the situation and avoid apologizing—or blaming anyone—while speaking with the police and the people involved in the accident.

  1. Call your insurance company right away.

They will talk to you about the accident and either send someone out to look at your car or have you take it to a shop to get an estimate for repairs. The other person’s insurance company may also contact you. Be polite, but again, only state the facts. Or have them call your insurance agent. The sooner you contact your insurance company to get your repairs started, the sooner you can get back on the road again.

  1. If your insurance rates go up, shop around for car insurance.

Sometimes your car insurance rates can go up after an accident–even if it wasn’t your fault. If your rates go up, it may be time to shop around for a new plan. At Gebhardt Insurance Group, we do the shopping for you, searching more than 40 different insurance companies to find you the best value. Give us a call at (520) 836-3244 or get an online quote for free.

How to Insure Your Personal Belongings

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One great thing about a renters, homeowners or mobile home insurance policy is that it allows you to insure your personal belongings. However, many people don’t take the proper steps to ensure that their belongings are protected if they are lost stolen or damaged, rendering this feature of their insurance policy useless.

Here’s how to make sure your insurance policy will be there to protect your personal belongings when you need it.

Make sure you have the right type of insurance policy

This is an issue that comes up especially often for renters. Many landlords require tenants to have renters insurance so that they are protected if someone is injured or sustains damage to their property while on the property. A renter’s insurance policy can also pay for damage caused to the property by the tenant so that the landlord doesn’t’ have to make a claim on his or her own insurance policy. However you’re your renters insurance policy doesn’t have coverage for personal belongings, then it won’t do you any good if your items are damaged, lost or stolen.

Many apartment complexes in Arizona offer liability insurance through an affiliate so that renters can just add on the cost of the insurance to their monthly rent. It’s important to carefully examine the details of this insurance policy. Some renters are under the impression that the insurance offered by their landlord will protect their belongings if they are lost, stolen or damaged, but that is not usually the case. Normally, the landlord with only offer liability insurance. That alone does not insure your belongings.

Insuring Expensive Items like Jewelry and Electronics: So you have an insurance policy that says it will cover your belongings if they are lost, stolen or damaged. All set, right? Not necessarily. If you want to insure your personal belongings that are very expensive–think $1500 or more–you will most likely need to purchase additional coverage. That’s because your standard insurance policy may max out before it pays for you to replace your expensive handbag collection or home theater.

To avoid this gap, you can purchase a supplement to your insurance policy called an endorsement, or a floater, that will provide protection for your expensive belongings. It may cost you a few hundred dollars more a year to protect your most expensive items, but many people find that the peace of mind it brings is worth it.

So how do you know if an item needs an endorsement or a floater? Find out how much your insurance policy will pay out for each item you might need to replace. If your policy will only pay you $1000 to replace your diamond necklace, and it’s worth $5,000, you will need to buy additional protection if you want your item to be protected. Each time you acquire an expensive item, call your insurance company to let them know so they can talk with you about options for insuring.

Take inventory of all your important belongings

Many people can’t take advantage of the protection that their homeowners or renters insurance policy offers because they haven’t kept detailed records of their purchases. An insurance company won’t be able to help you insure your personal belongings and help you replace them if you can’t prove that you ever owned them.

To do this, you should take photos and video of all of the items you want to insure. Some common items to start with are furniture, expensive clothing, electronics like TVs and laptops and jewelry. Some people do video walkthroughs of their homes, filming their belongings as they go. This is a great way to provide proof of your belongings and it doesn’t take much time.

Now you need to start a list to keep track of the items you have. The list should include:

  • Exact product name
  • Detailed description of the item
  • Price you paid for the item
  • Price the item appraised for (if applicable)
  • Whether or not you have the receipt (and a photo or screen grab of the receipt if you do)
  • The serial number or identifying number (if there is one)

The Insurance Information Institute has a free home inventory tool that allows you to create and maintain a home inventory and keep it stored safely in the cloud. If you don’t want to use a tool like this, you could just create your own list and store it on your own cloud-based storage or email it to yourself. That way, even if everything you own is destroyed in a fire, you will still be able to access your proof.

Update this list regularly and save all necessary documentation—this includes owner’s manuals and receipts. You can take photos of the receipts and add them to your list, but it’s also a good idea to come up with a filing system for your really important receipts.

How much it will cost to insure your personal belongings

Once you have completed you home inventory list, add up the value of all of the items you have written down. This will give you an idea of how much insurance coverage you will need. In general, the larger the cost of your items, the more your monthly premium will be. If you are a renter, you can get coverage for up to ten or twenty thousand dollars worth of items for a very low premium, often less than $150 per year. Keep in mind, for any very expensive items you may need to purchase a floater because your policy may have limits in place for how much it will pay you for each item.

Be honest.

Never intentionally over-estimate how much your items are worth in hopes of getting more money from the insurance company. Doing this is a felony and if you insurance company thinks you are being dishonest, your settlement can be drawn out for weeks or months. Do the right thing so your insurance company can help you.

If disaster strikes…

If your home is burglarized or your items get damaged or lost, give your insurance agent a call right away. You should also read through the most current version of your homeowners insurance policy so you know what to expect when making a claim. If you didn’t plan ahead and don’t have proof that you owned the items that were lost or stolen, you will have a hard time getting any help from the insurance company to replace them. Search for receipts for online purchases in your email or online accounts, check for proof of purchase on your bank or credit card statements, and look for photos or videos taken in your home that might contain images of the belongings that were stolen.

 

If you want to insure your personal belongings and gain some peace of mind, give us a call at Gebhardt Insurance Group. We shop more than 40 different insurance carriers to find you the coverage that best fits your lifestyle and budget and we can walk you through how to insure your personal belongings. Call us today at 520-836-3244 or calculate your coverage costs now.

Safe Driving Tips for Your Teen Driver

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In Arizona there are roughly 100,000 car crashes each year. In 2014, more than 8,000 crashes involved people under the age of 24. Teaching your teen driver to be safer while driving is an important step to make sure that they are not only safe from injury, but that they don’t harm other people on the road.

The first step in teaching your teen to be a better driver is learning what distractions they might face on the road.

Cell phones—Not Just for Texting

Did you know that 53 percent of all American 6-year-olds have a cell phone? Letting your child have a cell phone, especially when they reach driving age gives you peace of mind knowing that they can call you, or call for help if they need it.

But phones aren’t just for talking anymore. Kids use their phones for building their perfect driving playlist, for getting directions to the new store where they are meeting their friends, scrolling through social media and texting. All of these things can cause unnecessary distractions while driving.

GPS: Teach your teen to input the address of their destination before leaving the driveway or parking lot. That way they aren’t flying down the street, glancing at the phone on their map, still trying to figure out why Siri wants to take them to an address in the next town over.

Same goes for music. Teach your teen driver the “set it and forget it” mindset. They should not be looking at their phone trying to skip to the next track while they are cruising down the freeway. If they have a passenger, encourage them to let that person DJ. If the passenger is you then by all means crank up that 80s rock. Then next time they are the passenger in your car, let them pick the music. Setting a good example for them is one of the best ways to ensure that your teen will be a safe driver. It might not seem like it anymore, but your teen is looking to you for driving tips, and your opinion means more than you think.

Texting: Some cities in Arizona have adopted stricter ordinances than others to try to manage texting and driving, but it isn’t technically illegal. However, that doesn’t mean it is encouraged. A study conducted by the Transport Research Laboratory showed that texting and driving is just as dangerous as drunk driving.

Teenagers often feel invincible and have a “that could never happen to me” mindset, but the truth is that even sending just one text could be enough to distract them from the road long enough to cause an accident or fail to react to another car coming into their lane. This means no browsing through Facebook or Instagram while driving either.

Non-Electronic Distractions

Passengers: Every 16-year-old is going to want to take their friends for a drive as soon as they get their license, but studies show that the more passengers in the car, the more likely an accident is to happen.

One way to limit this danger is by putting a restriction on how many people are allowed as passengers in your teen’s car. In Arizona, new drivers aren’t allowed to have passengers in the car for the first 6 months he or she has a license unless the passengers are siblings or a parent or legal guardian. After that it is up to you to limit the number of people your teen drives around.

If you aren’t comfortable doing that (or don’t think they will listen to you) teach your teen driver that when they do have passengers in the car, it’s okay to ask them to turn the music down or stop rough housing in the back. It doesn’t make them lame, it makes them a good driver. Their friends will likely respect their wishes and may even adopt the same attitude themselves when they are driving.

Drinking and driving: Even if you don’t think your child is drinking, the fact is that 11 percent of all the alcohol consumed in the U.S. is consumed by young people ages 12 to 20. Even if you know your teen hasn’t experimented with alcohol yet, you never know when they will. So it is important to let them know that it is never okay to drink and drive. Set a zero-tolerance drinking policy and lay out the consequences clearly. Let them know that if they ever are in a situation where they have experimented with alcohol, they can call you to pick them up, no questions asked.

Late night driving: Did you know that in 2010, 41 percent of all teen driver fatalities happened between 9 p.m. and 6 a.m.? That’s why it’s a good idea to limit your teen’s nighttime driving—especially during the first year they have a license. In Arizona, individuals aren’t allowed to drive between midnight and 5 a.m. during the first six months they have a license.

While it may be more dangerous for teens to drive at night, it’s also important for them to practice, so be sure to go driving with them after dark at least a couple of times a month so they can get the hang of driving at night with you there to provide tips and support.

Before They Hit the Road

Buckle Up: Of the teens that died in car crashes in 2012, 55 percent of them weren’t wearing seatbelts. Just because you set a good example and taught your child to always buckle up, it doesn’t mean that they will practice that same behavior when you aren’t around. Especially if he or she has a friend who doesn’t like to wear theirs—peer pressure can be a powerful thing. Teach your teen driver to not only buckle up each time they enter a vehicle, but to make sure their passengers are buckled up too. In Arizona, the driver of the car can be ticketed for having unbuckled passengers in their vehicle. Which reminds me, make sure your teen knows what to do if they get pulled over.

Vehicle maintenance: Before handing your child the keys, make sure they know some basic vehicle maintenance. You should teach them how to change a flat tire, check their vehicle’s fluid levels and jump-start a dead battery—all without the help of a smart phone—you never know when they might be stranded without it! Also make sure that your teen knows who to call if they need a tow. Many insurance policies will cover this service if you use one of their approved towing companies.

You can’t control every situation, but having a new driver in the family doesn’t have to be scary. As long as you teach your teen driver to limit distractions, never drink and drive, buckle up and maintain their vehicle, they will be at less of a risk.

At Gebhardt Insurance Group, we shop more than 40 insurance carriers to find the best insurance value in Arizona for your whole family. Call us at 520-836-3244 or calculate your coverage costs for free today.

Should I file a homeowners insurance claim?

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A homeowners insurance claim could cost you more than just your deductible.

So you came home from work to find your floor covered in water.  What now? Your first thought may be to call the insurance company to get someone to come out to look at the damage, but knowing when to make a homeowners insurance claim and when to fix the damage yourself could save you money—right now and in the coming years.

Here’s what you should do to make sure you choose the repair option that will save you the most money upfront and ensure that your insurance rates don’t skyrocket in the future.

Ask a professional first.

Without knowing the extent of the damage, it’s hard to estimate how much the repairs will cost to determine whether or not you should file a claim and pay the deductible or pay out of pocket.

It’s a good idea to find a reputable restoration company to come to your home and take a look at the damage. They will be able to tell you how much damage is done, what it will cost to fix it, and may even be able to give you advice on whether or not to make an insurance claim. Slate Restoration, a company based here in Arizona, will educate you about your options so you will know whether or not the problem is something you can fix yourself, pay them to fix for less than your deductible, or if you really do need to make an insurance claim.

Determine the cause of the damage.

Is your roof leaking because you should have had some shingles replaced a while back? Did a water pipe burst due to negligence on your part? Don’t attempt to claim any type of damage that was caused due to a lack of routine maintenance because even if your claim is denied, your insurance rates may go up.

Know what types of damage are excluded from your policy. For example, many policies don’t cover termite damage, sewer backups, and mold.

Know your deductible.

Sometimes home insurance deductibles work a little differently than auto insurance deductibles. Depending on your policy, you might have a typical flat-rate deductible (like you do for your car insurance) or you might have a percentage-based deductible that’s based on the insured value of your home. There’s also a split deductible, which works like a flat rate deductible for most claims, but changes to a percentage-based deductible for particular scenarios laid out in your policy.

Home insurance deductibles vary greatly. Like $500-$25,000 greatly. It may seem like a no-brainer that you should pay your deductible if your damages are going to exceed that number. However, there are other things to keep in mind when making this decision, like how much your insurance premiums will go up if you do make the claim.

A $1000 claim now could mean higher insurance premiums for years to come. A report released by InsuranceQuotes.com found that, on average, a single claim will raise your monthly premium by 9% and a second claim could raise them 20%.

Some insurance companies will even drop you if you make too many claims. After that happens, it might be hard to find another company to insure you thanks to CLUE (the Comprehensive Loss Underwriting Exchange). It’s a database that tracks your auto and property insurance claims going back seven years. It’s available to all insurers and they use this information to determine whether or not they can cover you and how much to charge.

Pay out of pocket if you can.

Think about your homeowners insurance policy as a backup in case your home sustains catastrophic damage, like in a fire. If the repairs are going to cost you $3000 and your deductible is $1000, it may seem like the right idea to make the claim and pay the deductible. But if you are able, you should really try to pay for the repairs out of pocket. That’s why it’s so important to have an emergency fund set up.  Some repair companies will also let you make payments if you aren’t able to pay for the repairs upfront.

It may be frustrating that it isn’t advisable to file a homeowners insurance claim every time your home sustains damage, but just remember that your homeowners insurance is there for you if major damage happens in the future. And the money you pay each month for that peace of mind is totally worth it.

And if you think you are paying too much for your policy, let Gebhardt Insurance Group shop around for you. It’s our job to find you the best value for your homeowners insurance policy. Give us a call at (520) 836-3244 or get a free quote right now.