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.

How to Save on Auto Insurance

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How to Save on Auto Insurance

One of the first things that come to mind when securing your investment if you own a car is car insurance. Essential if you get into an accident, the insurance can have you covered for damages caused by you or another driver.

Unfortunately, car insurance can be rather expensive, but the good news is there are solutions to help you reduce your car insurance rate by a significant amount.

12 Ways to Cut Car Insurance Expenses

Shop Around

A recent U.S. study reported that roughly 33% of Americans have never shopped around or compared automobile insurance costs. Among these individuals, the leading reasons mentioned were a lack of time and a dislike of paperwork.

However, it is wise to make comparisons by obtaining insurance quotes either online or through your agent. Always maintain adequate coverage levels to repair or replace your vehicle and protect you from potential liability. As a precaution, be sure to review the “fine print” on policies that appear overly affordable as well.

Look For and Take Advantage of Car Insurance Discounts

Auto insurance companies routinely advertise discounts for which you may be eligible. Students are often eligible for a discount by maintaining good grades. Senior adults or active members of the armed forces often receive discounts as well. Some companies will even offer a discount if you complete a defensive driving course.

If you get all the discounts you are entitled to, you may save a significant amount. The insurance agent can provide you with more information and walk you through the process.

Reduce Coverage to Only What You Need

If your car is worth less than your deductible plus the amount that you pay for annual coverage, then you might consider dropping them. Collision insurance and comprehensive coverage never pay more than what the car is worth. Look for opportunities to reduce your coverage safely. You can use tools online such as Kelley Blue Book or Edmunds to estimate your vehicle’s value.

Select a Higher Deductible

You can save a lot of money by raising your deductible. The deductible is the amount that the company doesn’t cover when paying for the repairs. For example, if the repair bill is $2000 and you have a $500 deductible, the insurer will have to pay $1500.

Just imagine, if you increase your deductible from $500-$1000, you might be able to save about $200 per year on car insurance. However, you need to be sure that you will comfortably afford to pay the higher deductible if necessary.

Consider a Low Mileage Policy

According to the Federal Highway Administration, motorists in the U.S. currently drive an average of 13,476 miles annually. Those who drive well below average should consider a policy geared for low mileage drivers. It is estimated that these policies could save up to 10% on auto insurance premiums.

If your insurance company offers usage-based insurance, consider using it to help you lower your rates. This type of insurance takes into account how often and how well you drive. To participate, you will install a small device in your car to provide information about your driving habits to the insurance company. If you have low mileage and safe driving habits, your score can significantly discount your insurance.

Multi-Policy (Bundling)

Consider available ways to save through “bundling” policies. You may be eligible for savings if you have multiple vehicles on the same policy. You may be able to switch your homeowners, renters, or life insurance to the same company and get better rates. Consult with your insurance agent to identify potential offers.

Improve and Maintain a Good Credit Score

Insurance companies use statistical data as a means of determining rates. Data has shown that those with good credit are less likely to file an insurance claim. It may be helpful to review a copy of your credit report to check for any errors that may hinder your credit standing.

If you have excellent credit, your car insurance rates will go down. Do you need to improve your credit? Consider taking the following steps:

  1. Make all your credit card payments on time.
  2. Keep the credit card balance below your credit limit.
  3. Only open new credit accounts when necessary.

Drive safely

Every car insurance company has different insurance rates for varying age groups. For example, younger people tend to have higher insurance rates because they are prone to accidents. If you can prove yourself a safe driver for an extended period, your insurance rates can drop tremendously.

If you get a ticket, DUI, or sent to traffic school, these violations can increase your insurance rate. One of the most common causes of car accidents is driving while texting. Refraining from violations like these can significantly reduce your chances of getting into an accident.

Maintaining a clean driving record through safe driving can typically afford you lower rates. Similarly, those who do not file any claims for several years may be eligible for better rates. Keep in mind that insurers will look for any claims in the prior six-year period.

Consider a Less Expensive Vehicle

Before buying a new car, it’s essential to check the insurance rate for the models you have in mind. The type of vehicle that you drive can affect your car insurance premium. Expensive cars will be more costly to repair and replace.

Expect sports and performance cars to be more expensive to insure. Specific models have minimal theft prevention measures and are commonly stolen. Be sure to check insurance pricing before purchasing your next vehicle.

Do well in school

A lot of car insurance companies love to reward students with a high GPA. If you have a GPA higher than 3.5, your auto insurance company will reduce your premium rate by a lot. A 4.0 GPA might even cut it by more than half. This is a positive reinforcement technique that auto insurance uses to encourage students to work hard academically.

Potential Group Discounts

Those who are members of a professional organization or involved in an alumni group may be eligible for specific discounts. You should check with your employer to see if they have any group discount arrangements as well.

Established Agency for Auto Insurance in Arizona

The Gebhardt Insurance Group has been providing insurance solutions in the region now for over 15 years. We remain committed to providing our customers with excellent coverage at affordable prices. We currently represent over 40 of the top insurance carriers. Contact our office today at (520) 836-3244.

Auto Insurance Cost Arizona

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Auto Insurance Cost Arizona

In 2017 in Arizona, there were over 127,000 vehicle accidents. Among these accidents, roughly 919 were fatal and over 37,000 injuries were incurred. These crashes caused approximately $10.7 billion in losses.

These figures show just how important having the correct auto insurance is for anyone out on the road— the risk of an accident always near. Unfortunately, this reality has caused some shifts in the insurance market, making car insurance costs increase as time goes on.

A report early in 2019 showed that drivers in Arizona saw a roughly 3% increase in auto insurance premiums. As a state that requires minimum coverage from all drivers, finding the right policies at affordable prices could have a significant impact on your personal finances.

It is important to note that these increases are happening across the board, with drivers experiencing an increase even if they have not received a speeding ticket, accident, or other moving violation.

With this reality ever present, it’s more important now than ever to understand how to lower your car insurance and why your current plan might be so costly.

Minimum Requirements in Arizona

Arizona requires that all drivers maintain a “15/30/10” auto liability insurance policy. These policies indicate certain dollar amounts of coverage that are in $15,000, $30,000, and $10,000 dollar blocks.

  • Bodily Injury Liability: $15,000 per person / $30,000 per accident
  • Uninsured Motorist Coverage for Bodily Injury: $15,000 per person / $30,000 per accident (may be waived)
  • Underinsured Motorist Coverage for Bodily Injury: $15,000 per person / $30,000 per accident (may be waived)
  • Property Damage Liability: $10,000

These state required minimum coverage levels in Arizona also apply to personal golf carts, motorcycles, and mopeds.

Types of Automobile Coverage

Not all coverage types are the same. Some policies cover a greater or lesser extent of damage than others, thus changing the overall car insurance rates you pay as a driver. Generally, more coverage results in a higher expense.

While the right policy for you ultimately depends on your car, its age, and your driving records, most individuals opt for one of the policy types listed below.

Liability (Bodily Injury/Property Damage)

These forms of coverage are mandatory for all those operating a motor vehicle with the “15/30/10” minimum previously discussed. They apply exclusively when you are deemed as “at-fault” in an accident.

This type of insurance includes both Bodily Injury Insurance and Property Damage insurance.

Bodily Injury policies used to pay for costs such as medical expenses and lost wages for those injured. Property damage liability is used to repair or replace someone’s vehicle or other physical damage caused.

Collision

Collision coverage is used to repair or replace damage that occurred to your vehicle. It applies whenever your vehicle strikes any moving or fixed object.

Collision coverage is most common on financed, leased, or rented vehicles as a way to protect the lender from loss. As such, the more expensive your vehicle, the more expensive the potential repairs and the more expensive the overall insurance premium.

Comprehensive (a.k.a. Full Coverage)

As the name suggests, comprehensive coverage policies cover miscellaneous damage caused from non-collision accidents. Types of covered events could be theft, fire, vandalism, and extreme weather.

Both collision and comprehensive coverage typically include a predetermined deductible amount ranging from $500-$1,000 dollars.

To lower your monthly auto insurance rates, you may increase the amount of your deductible. This offers added financial flexibility for policies that might otherwise be too costly.

Uninsured/Underinsured Motorist

This type of coverage may apply when you are involved in an accident with a “hit-and-run” driver or a collision with someone who does not comply with state-minimum coverage requirements. Underinsured coverage is used when the damages in an accident exceed the maximum limits of the at-fault driver’s liability insurance. The minimum amount of coverage that may be offered by insurers is equal to the state’s minimum liability requirement.

Other Factors in Car Insurance Cost

While the type of policy coverage you have likely has the largest impact on the overall cost of coverage, there are many other factors that ultimately contribute to your rate. These include whether or not you are a young driver, financial history, accident history, and even your location.

Cost of Vehicle and Deductible Amount

The value of the vehicle you are insuring is of obvious importance to insurance companies when issuing comprehensive and collision policies. The replacement cost of many of today’s newer vehicles is sizable. In most cases, your premium will decrease as your deductible amount increases. For example, you may notice that changing your deductible from $500 to $1000 results in considerable savings.

Demographics

Your age plays a major role in the amount of your policy premium as represented by the following chart.

Teenager
25-Years-Old
30-Years-Old
45-Years Old
60-Years-Old
$344.78
$111.89
$100.44
$95.78
$91.44

Teenagers are viewed by insurers as being higher-risk motorists. This is because of their lack of driving experience and also their tendency to demonstrate risky behavior.

Driving Record and Claims History

A car insurance company will typically place great emphasis on your history of traffic violations and filed insurance claims. The Comprehensive Loss Underwriting Exchange (C.L.U.E) is a database that shows any claims that a driver has filed with their insurance company for the prior seven-year period.

Location

Your zip-code has a larger impact on insurance premiums than many understand. While initially this seems unfair, the raised cost seen in urban location is grounded in the increased liabilities in those areas. Cars in an urban environment, even those that don’t get much road-time, have a higher likelihood of being involved in an accident or experiencing theft. Because of this liability, insurance companies must charge for the added risk.

The same is true for your overall location— the state in which you live.

The following analysis is based on “full coverage” for a 40-year-old male with policy limits of 100/300/50 ($100,000 for injury liability per person, $300,000 for all people injured, and $50,000 for property damage). The policy has a $500 deductible for collision and comprehensive coverage. The driver has a clean driving record and satisfactory credit score.




Average

National Rank
New Mexico

$1,382

# 27
Arizona

$1,449

# 22
National Average

$1,457

–
Nevada

$1,525

# 19
Colorado

$1,761

# 12
California

$1,846

# 6

As you see, it’s easy to pick out which states represent a higher accident liability to insurers than others. For Arizona residents specifically, this shows we are ranking just under the average national cost.

How To Ensure Your Rate is Lower

The final step after reading all the above is determining whether the policy you find is as cost effective as possible. There are several resources and manners with which you can do this, both through state-level departments and through practical matters like bundling policies.

Arizona Department of Insurance (ADOI)

The ADOI encourages competition among insurance companies. When shopping for insurance, use this resource to compare key variables across different policies. This includes the limits of coverage and the deductible amounts—when applicable. While you want a good price, choosing the cheapest car insurance is not advisable if it does not cover your needs.

Multi-Policy Reductions

Multi-policy discounts are often available when “bundling” different types of insurance from the same company. This means that if you take out an auto insurance policy with State Farm, you also use them to insure your home, your boat, and your RV. By getting all your policies with a single company, the cost of insuring each individual asset decreases.

Demographic Discounts

Finally, most companies offer discounts based on certain key demographic markers such as age, profession, or behavioral categories. These include discounts for having good credit, being a good student, being a senior, or being part of the military. If you fall into more than one category, these smaller benefits can quickly add up, making even higher coverage plans more affordable.

Casa Grande Insurance Agents

Finding the right car insurance in Arizona can be challenging due to the overwhelming number of choices on the market today. For this reason, it’s recommended that you use an independent insurance agent to help navigate the market and find the best policy 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.

How to Lower Car Insurance Cost

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How to Lower Car Insurance Cost

Car insurance is a necessity for anyone who drives. For most driving Americans, however, the cost of an insurance plan puts a painful dent in the monthly budget. In times of great economic hardship, this strain can sometimes be too much to bear.

The good news in all this is that getting a lower rate is possible for most individuals, it’s just about knowing how to get it and where to look. In the article below, we will show you exactly that.

Search the Market

For most individuals, searching for car insurance is something that happens infrequently at best. Typically, once they pick a provider, they stick with the same company for years on end.

While this is the easy way out, it’s not always the smartest decision for your pocketbook.

Like any type of insurance, car rates fluctuate over time, meaning the company that saved you money last year might now be more expensive than its competitors. As such, taking time once per year to shop around for the best rates is a simple way to maximize your savings.

The work may be tedious but can save you hundreds if you find a plan that works better for your situation.

Balance Premiums and Deductibles

Similar to health insurance, auto policies with higher deductibles normally have lower monthly premiums. These lowered premiums reflect that you are responsible for a larger out-of-pocket payment if you are in an accident. Since the insurance company has less to lose, they give you a break on your rate.

However, there are considerations to make when opting for lowering premiums in this manner; it’s not the right choice for everyone.

The most important thing to remember is that you must have your full deductible amount available in case of an accident. With needing $1,500 or potentially more in savings should you get into an accident, it makes the high-deductible route impossible.

Change Your Coverage Amount

Reducing your coverage may sound like a bad idea, but it might be a smart option if you drive an older vehicle. The reason for this rests in how insurance companies decide whether to fix a vehicle or call it a total loss.

When an older vehicle is involved in a collision, the damage they receive is often more expensive to fix than the car’s market rate. No matter how much insurance coverage an old vehicle has, an insurance company will never pay you more than the value of your car.

Thus, overinsuring an old vehicle is almost always a waste of money.

Behavior-Based Discounts

One of the most accessible ways to earn cheaper car insurance is by taking advantage of behavior-based discounts. These are discounts given to good drivers, good students, and those with a clean driving record free of violations.

The logic behind these plans is that good behavior in one area of life indicates good behavior in others. As such, if you pay your bills on time, have a good credit score, are a safe driver, and qualify for a good student discount, insurance agents will assume you are a lower-risk driver overall.

Most major insurance companies offer some type of behavior discount, meaning you should check which best fits your needs and driving history.

Usage-Based Insurance

Some drivers, especially stay at home parents, the elderly, and those who work from home may benefit from mileage-based insurance coverage. These plans calculate your insurance rate based on the average number of miles you drive, meaning some can save hundreds per year depending on their driving habits.

Drive a Low-Risk Car

Car insurance companies determine their pricing based not only on you but also on the type of car you drive. When you drive a statistically safe car, it’s common that you see a drop in your car insurance rates. Start driving a sports car and the opposite happens.

So why does a safe car offer an answer on how to lower car insurance premiums? The logic is in the risk pool.

Like all types of insurance,  companies set their rates based on the risk factors of the individuals they insure. Cars that prove their worth in safety testing like the MSRP are ultimately categorized in a lower risk pool than vehicles that under-perform. As such, insurance companies charge lower rates for safer vehicles, knowing that even if an accident occurs, it’s less likely to result in serious injury.

Defensive Driving Courses

Taking a defensive driving course in the near future might show your insurance company that you are a lower risk on the road, thus scoring you a car insurance discount. While the cost of a defensive driving course may not pay off right away, the lasting impact it has on your insurance when coupled with a safe driving record can grant you substantial savings.

Casa Grande Insurance Experts

Arizona residents are hard-working individuals who need to make their paycheck stretch around their busy lifestyles. This is why at the Gebhardt Insurance Group, we are dedicated to helping residents find the lowest insurance rates around.

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 business. 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.

Health Insurance for Unemployed Individuals

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Health Insurance for Unemployed

American’s as a whole already have staggeringly high rates of individuals who lack health insurance. There are many reasons for this: plans are often too expensive, while eligibility thresholds for government benefits are too low. Furthermore, many individuals cannot afford traditional, privately bought plans. Couple this with the mass job loss resulting from the Covid-19 pandemic and there is a recipe set for disaster.

The above in combination leaves individuals in a bind: we are in a time when we need health insurance more than every but are in a uniquely challenging spot to receive or afford it.

Below, we outline the most accessible ways for individuals to regain coverage while they are unemployed and qualifications of special coverage groups such as Medicare, Medicaid, and CHIP.

The Options That Work for Most

Across the board, Special Enrollment plans and COBRA coverage is the preferred option for most individuals experiencing job loss.

The Marketplace

Many individuals don’t realize that losing a job triggers a Special Enrollment Period for marketplace coverage. As the name suggests, this is an enrollment window outside of when the health insurance marketplace is ordinarily open. The period lasts for 60 days after losing your job, giving you time to find an alternative and affordable healthcare plan.

Job loss is not the only trigger for such a period, however.

  • 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 more information on how to qualify, see our article on it, here.

COBRA

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federally mandated safety net for employees who depend on their employers for health insurance coverage. Through this program, you can elect to maintain the same plan coverage you had through your employer for up to 18 months after your employment ended.

However, for individuals experiencing unemployment, COBRA comes with some marked downsides in pricing.

Because employee provided plans are subsidized (your employee pays for part of it), enrolling in COBRA can be more costly than many can afford. The reason for such a significant jump in price is that employers typically subsidize 75% of the total cost of your plan. Additionally, they pay for a 2% administrative fee. Through COBRA, all these added expenses become your responsibility.

However, there is an upside: you may elect to enroll in COBRA coverage and still have the option to cancel later if you find the cost is not feasible.

The Options that Work for Some

While the above two options work for many, if you qualify for other health insurance options, there may be more cost-effective ways of continuing your medical benefits.

Short Term Health Insurance

Short-term health insurance plans are designed to bridge gaps in coverage for individuals who are unemployed, between jobs, or those suffering from other circumstances that caused a lapse in coverage. These plans often offer less extensive coverage for individuals who can’t, or don’t want, to pay for major medical coverage.

While short-term may seem appealing for the chance at low premiums at first, this type of coverage often lack-luster for most individuals.

The expense of short term plans varies greatly depending on your provider and the type of coverage you select. While some plans can have low monthly premiums, it is common for short-term plans to have higher deductibles or a significantly reduced scope of coverage.

Unfortunately, individuals with pre-existing conditions may not be covered at all. This creates a variety of challenges as nearly half of all Americans have some form of a pre-existing condition.  Furthermore, since short-term plans require you to re-apply at the end of each term— developing a pre-existing condition now loses your coverage later.

Medicaid, Medicare, and CHIP

These three government programs are all federally subsidized forms of health insurance that help individuals or families who meet specific enrollment requirements. These programs allow disabled and low-income individuals to find affordable health insurance and potentially provide long-term coverage.

Medicaid is a needs-based program supposed by social security tax payments. For individuals below a certain income threshold and asset cap, they can apply for this type of insurance policy. To find out if you qualify for Medicaid coverage, look to medicaid.gov for more.

Medicare, while similar, is based on entitlement and need. As such, individuals over the age of 65 of those with a qualifying disability are eligible to apply for this kind of coverage. For more information on Medicare eligibility, see the eligibility requirements on hhs.gov.

CHIP, also known as the Children’s Health Insurance Program, is for families who earn too much for Medicaid but too little to afford health insurance for their children through other means. CHIP has a strong connection to the Medicaid program, thus, more information about the program is located at medicaid.gov.

Casa Grande Insurance Agents

With the constant changes in the landscape as the coronavirus pandemic, ensuring you and your family have health insurance coverage is critical.

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 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 yourself and your family.

8 Red Flags: Health Insurance Scams

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Health Insurance Scams

Many Americans receive health insurance through a government entity or platform. This is true for younger individuals who may be looking to healthcare.gov or older individuals that rely on Medicare programs for their health benefits.

Scammers know this. They use the information to form clever and even threatening scam tactics to try and steal the personal information of countless individuals. Unfortunately, many are quite successful. This leads to a cost of $68 billion lost to scams each year.

As such, it is important to know the signs of a scammer before you interact with one. Not only will this save you from identity theft, the information can help you educate countless others. Keep reading for 8 red flags of health insurance scams.

1. You Are Asked Upfront For Money

A common tactic involves scammers pretending to be insurance agents. Commonly, they will say that they can get you a better plan rate or higher discount, but you will have to pay them first to render this service.

Simply put, government entities and insurance companies alike do not function this way. Never give your financial information or personal information to individuals like this.

2. They are Trying to Sell a Specific Plan

Similar to the point above, insurance agents and government entities alike don’t work this way. Agents and government aids do not have a preference to sell you one plan over the other, rather, they want to find the best plan for your needs.

If you find an individual pushing a hard sell on one specific type of plan, it’s a red flag that the caller is illegitimate.

3. They Can’t (or Won’t) Answer Simple Questions

When someone is hired as part of an insurance agency, they know all about the plans up for offer. This is how they help connect you with the plan that best fits your needs. When you are dealing with a caller who either can’t, or won’t, answer very simple questions about their policy offerings, the only policy they are offering is a scam.

4. They Say They Work With The Government

Whether it’s for healthcare or for your taxes, a federal government agency will never call you and never ask for your personal information such as your name, address, social security number, and bank information.

However, we understand that this particular scam makes many individuals nervous for risk of missing something important. In these cases, it’s best to hang up on the caller and contact the government body directly to verify the origin or purpose of the call.

5. They Claim You Need to Update Your Insurance Card

Healthcare reform is a big headliner anytime a new bill is circulating in congress. As such, when there is healthcare legislation happening, the uptick in scams starts happening fast. This is because a scammer will try to exploit your uncertainties by blaming reform on the need to collect your information.

Like in the point above, the government will never call and ask for your information. If you are worried however, you can always contact the government agency directly to verify the origins of the call.

6. The Offer is Too Good To Be True

Oftentimes scammers will offer you plans and discounts that are far too good to be true, especially when compared to the general average of plans from open enrollment. In cases like these, scammers may be offering you “insurance” that only amounts to a medical discount card at best, and an entirely fake plan at worst.

Depending on when you find out about the dupe, it may be too late to enroll in another plan.

7. You receive a Phishing Email

Phishing emails might be difficult to spot at first as they are made to look as legitimate as possible. However, even the best scammers can’t make a fake email look real.

Red flags to look out for include an email coming from an incorrect or unknown address, spontaneous requests for information, or links which direct you to financial forms. These warning signs usually indicate the email is a scam.

8. You are Being Threatened

Some scammers go the aggressive route and attempt to harass and threaten other individuals into divulging their credit card, banking, and personal information. Know that, like asking for personal information, you will never be threatened over the phone by a legitimate government entity.

Resources for Reporting

In the event that you suspect a scammer, there are several reporting agencies available to help keep yourself and others safe. The following is a list of agencies that allow you to report scams, fraud, and file formal complaints.

Working With Trusted Arizona Agents

One surefire way to avoid a scam isto work with an agency that boasts years of experience on the local and state-level.

A staple in Casa Grande Arizona, the Gebhardt Insurance Group offers 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 business. 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.

Is Covid Testing Covered by Health Insurance?

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American health insurance is in disarray when compared to the rest of the developed west. In 2018 alone, over 30 million people were uninsured the entire duration of the year. In the middle of a public health crisis, this leaves many in the dark— how will they afford a test? Who will help with medical expenses should they fall ill?

These questions do not only plague the young, but also those who are elderly, many of whom wonder: is a coronavirus test covered by medicare?

In either of these cases, the waters are muddy. The standard of care is being written as we go. As such, while it’s always best to speak to an insurance agent in review of your current policy, the following is a guideline that many are adopting when deciding who gets tested and who ultimately pays.

Two Types of Test

At the moment, there are two types of COVID-19 tests available and each is used for a different purpose.

First, there is the PCR test. Taking the form of a nasal swab, the PCR measures whether you may be capable of spreading the virus. Commonly, this type of test is given to individuals who are presently showing symptoms and meet CDC testing criteria. These tests are represented at public covid drive-through centers in addition to take-home testing kits.

Second, there is an antibody test which is done by drawing blood. Unlike the PCR, this test looks for COVID-19 antibodies in your bloodstream. Should antibodies be present, it is likely that you have either had the virus asymptomatically, or, have been exposed and developed an immune response. These tests are generally done at labs, clinics, hospitals, and some doctors offices.

Insurance Coverage: Necessary vs. Employer Mandated Tests

There is a debate in the insurance community regarding the “runaway costs” of mass public testings. In addition, there is a rising number of employers mandating the consistent testing of their staff, especially those who work with high-risk populations such as nursing home staff. The result of these mandates is that care workers are being tested at least once a week and the jury is still out on whether they will be compensated.

At the moment, insurance companies are only mandated to cover testing costs when deemed “medically necessary” as outlined by the Families First Coronavirus Response Act (FFCRA). This leaves many individuals unprotected against the cost of periodic testing.

While there is a growing pushback in the legal community to allow insurance companies to cover the cost of this type of healthcare, especially when mandated by an employer, the battle is far from over. As such, it’s best to speak with your insurance provider about how best to proceed and whether or not your test will be fully insured.

Mental Health Coverage

Due to the strain COVID has placed on many individuals, there is a growing need and leniency for responsive mental health services. As such, insurance plans who did not always cover for mental health costs are growing more forgiving in their policies, seeing some types of mental health care such as prescriptions drugs and telehealth services as necessary additions to policy coverage.

Again, as so many pieces of information are quick to change, it’s best to speak with your insurance provider to determine if any changes to your plan are long or short-term in nature.

Special Considerations for Medicare Recipients

If you are currently covered by Medicare Part B, the Original Medicare, or Medicare Advantage, you will likely be covered for the full amount of your test, whether it is a PCR or antibody assessment.

Casa Grande Insurance Agents

With the constant changes in landscape as the coronavirus pandemic reaches a boiling point, it’s important to make sure you know exactly what your plan does and does not cover should you or a loved one get sick. Furthermore, with open enrollment in the near future, it’s also time to think about whether your current plan is best for you or whether you need a change.

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.

Who Needs Life Insurance?

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Who Needs Life Insurance

Any time family members depend on your livelihood and services for their daily needs, life insurance becomes an important part of your financial planning. In the event of your death, expected or otherwise, your policy coverage is the difference between your loved ones being financially protected or buried in grief and debt.

From this perspective, the decision to get life insurance seems rather simple. Unfortunately, many individuals delay getting coverage far longer than they should, creating an avoidable risk for those they love.

Below, we discuss the different types of life insurance you can purchase and the different life milestones that indicate it is time to enroll in a plan.

Types of Life Insurance

Life insurance is not a one-size-fits-all solution to financial security. Depending on your health and the stage you are at in life, some policies may hold more appeal than others.

Term Life Insurance

The simplest form of life insurance by far is a term policy. This is a bare-bones, no-strings-attached plan that offers a set term of coverage (30 years, for example) in exchange for a premium. If you pass away before this term is up, your spouse, family, or beneficiary will receive a death benefit— a sum of money paid on your passing to cover expenses, repay outstanding loans, and ensure the financial security of your loved ones.

Whole Life Insurance

Similar to term life insurance, “whole” policies also offer a death benefit in exchange for a premium. However, in comparison these premiums are far higher for the same amount in death benefit due to the different overall structure of these plans.

When purchasing whole life insurance, there is no term limit. So long as you pay your premium, you will have coverage for the remainder of your life.

Furthermore, “whole” policies have a cash value that earns a set interest rate over time. This is possible as part of your elevated premium cost goes to funding this value, essentially acting as a tax-deferred savings account that is attached to your policy.

Universal Life Insurance

Building on the policies above, we have Universal insurance. As the others, they function off the same premise but have slightly different policy structures.

For a universal policy, you have more control over your premium and death benefit by being allowed to alter these amounts at any time. Because your premium goes toward both the death benefit and the cash value of your plan, by lowering these thresholds you can readjust your premium to be far lower than before.

Here, the cash value also works a bit differently. Unlike whole plans which accrue interest at a fixed rate, Universal plans will accrue interest that fluctuates along with market pricing.

The above three policy types represent the most common life insurance options for most individuals, however, there are many more policies than what we have described here. With policies such as variable life insurance, variable universal insurance, simplified issue insurance, and even final expense insurance, individuals are recommended to speak with an insurance agent to pick the plan that meets their needs.

Knowing that such a variety of plans exists, it’s time to look at some of the major life events that should have you considering life insurance.

When Life Insurance is a Necessity

Discussed previously, life insurance is a way to give financial security to those who rely on you for their daily quality of life. This includes having a large enough death benefit to cover expenses, outstanding loans, and potential funeral costs.

As you will see, many of these events are those which happen earlier in adulthood. This serves to debunk the rather harmful myth that life insurance is reserved for the elderly. Not only can life’s unpredictability leave our loved ones in a challenging situation if we pass prematurely, it is universally cheaper to begin coverage when young and healthy.

Some telltale milestones are listed below:

1. You are married or own assets with a spouse 

For most individuals sharing a life with their spouse, financial security rests in the balance of both partners shouldering some of the burden. Should one spouse die unexpectedly, this would create financial hardship in maintaining assets, repaying loans, and a host of other expenses normally shared between two earning individuals.

Here, it is recommended that your policy death benefit covers any existing balances on loans and other major expenses. This is especially true for private student loans, most of which are not dischargeable after death. If your death benefit fails to cover your outstanding loan amount, your partner will be responsible for paying the balance.

2. You are the breadwinner of your household

In single-income households or households where the lifestyle of one partner is largely dependent on the increase in earning capacity of the other, you will similarly want to buy a life insurance policy. In the case of your unexpected death, your benefit should help cover your personal finances and any outstanding loans such as those for vehicles and education.

For individuals in this situation, Term life insurance is a highly recommended policy type, given that your policy term limit will cover your working years.

3. You have minor children

As an addition to the above, you want to ensure that if you have children, you also have life insurance. This allows for your remaining spouse or guardian to meet the financial obligations left behind while still providing adequate financial support to your children’s day-to-day life.

As with calculating the worth of a stay-at-home parent, you need to be honest and exact when calculating the costs of your children, potentially even adding expenses such as college tuition. This will help you arrive at a more accurate number for your ideal death benefit amount.

4. You are a stay at home parent

While the stigma of being a stay-at-home parent is lifting as the years go on, there is still some confusion as to how life insurance benefits as a spouse who does not earn an income in a traditional job.

The recommendation here is to compile the costs that would accumulate should you have to pay for the services this partner provides. This includes housekeeping, child care, meal preparation, school help, and more. According to Salary.com, the worth of a stay-at-home parent is upwards of 162,000 annually, giving more than enough reason to purchase insurance should something unexpected arise.

5. You Have disabled adult children or support aging parents

Similar to minor children, a disabled adult child or family elder often does not have the capacity to support themselves. As such, if you are a part of contributing to their daily expenses, getting insurance that can maintain that support in your absence is integral to their quality of life.

In these cases, life insurance can help cover their immediate needs, but it is also wise to speak with an estate planning attorney to ensure your family has secure, long-term care.

6. You own a business that employs other individuals

Similar to how a buy-sell agreement ensures a company has a plan of action should a business partner pass away, life insurance can provide an added benefit to the financial stability of the company when placed under the same circumstances.

Many small business owners fund their start-up process with a series of loans, some of which they use personal assets as collateral. Furthermore, their business is a reliable source of income for their employers. Because of these two factors, having a life insurance policy that can repay your loans and maintain employee payroll for a set period of time is integral to being a responsible business owner and planning ahead.

7. Your job is high risk

A high risk job means your chances of becoming fatally injured are far higher than normal. If you are in this category, life insurance is integral to the financial health of your family, even if your premiums reflect a higher price.

Shop Local: Insurance Agents in Casa Grande, AZ

The above instances are only a handful of examples where an individual may need life insurance. However, as a rule, if anyone depends on you financially, no matter your age, life insurance is heavily recommended. Even though it may be a challenging thought to engage with, it’s the responsible decision to make.

At Gebhardt Insurance Group, we understand the different policies of several life insurance companies. As experts in the field, we can help you understand the various benefits and offers made by different plan providers, all in a way that is concise and simple, helping cut down on time, misunderstanding, and potential mistakes in coverage.

Ready to speak with an insurance experiment about the plan that’s right for you? Give us at call at 520-836-3244.

What is Business interruption Insurance

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What is Business interruption Insurance

While not sold as a separate form of insurance in and of itself, business interruption insurance coverage is a common rider on many comprehensive policies. This allows for a given package to cover more than just general liabilities, such as property damage that can occur in face of a natural disaster or unexpected event.

However, in the age of coronavirus, business owners are now looking to their insurance policies to see if it can help them cover the cost of lost income, reduced hours, and the myriad of challenges they face during the pandemic.

Unfortunately, there are limitations to all insurance plans. Do you qualify for compensation? Keep reading to Find out more.

There Must Be Physical Damage

A main tenant of business interruption insurance is physical damage. Furthermore, it must be shown that the physical damage itself was the main cause for necessary interruptions in the business. For most policies, if this element is not present, coverage is not triggered.

If you believe this is limiting, you are correct. The origin has to do, coincidentally, with another virus.

Since the SARS pandemic, insurance companies have been careful about the wording in their policies specifically to exclude coverage caused by viruses and bacteria. This is due to the general fragility of the insurance industry as a whole— should too many claims be paid out at once, there is the risk of serious financial destabilization and even bankruptcy.

What Does Business Interruption Insurance Cover?

If your policy does qualify you for business interruption insurance, there are several types of damages for which you can seek compensation. These include the following:

Profit Loss

Profit loss is calculated by comparing your average monthly earnings before the interruption to your average monthly earnings after the interruptions. Generally, you can seek compensation for the resultant difference in those two numbers.

Temporary Location Coverage

For businesses that have to move to a temporary location during a period of restoration, the cost associated with such an accommodation is sometimes covered.

Civil Authority Coverage

Commonly included as part of a commercial property insurance plan, this type of coverage protects your business against loss relating to government closure orders. Similar to property damage, you must be able to show your business losses were a direct result of these mandates.

Employee Wages

This offers coverage for employee payroll to maintain staff during a period where there is little to no income revenue to support payments.

Fixed Costs

This is reimbursement for operating expenses of running your business. Depending on your industry, what these costs include will vary greatly.

Extra Expense Coverage

This is added reimbursement for costs that may not otherwise fall into the “fixed costs” category.

It must be noted that not all policies are the same and, as such, my yield different levels of coverage for some of the options listed above.

There is More Than One Type of Insurance Coverage

Finally, there is one more type of insurance coverage some individuals can potentially use for help cover losses. This is known as contingent business interruption insurance.

Unlike regular BI insurance, contingent plans relate to losses covered due to third party instability. Common third parties for this type of claim are suppliers, as if they did not fulfill their obligation, those who contract with them would suffer a financial loss.

Insurance Experts of Arizona

One of the only ways to know what your policy covers is to review your specific plan. This can help you understand whether you are experiencing a covered event in addition to make insurance adjustments going forward.

We know that finding the right insurance policy is difficult, especially with the vast number of policies there are to choose from. This is why it’s important to work with an insurance specialist who is knowledgeable about the market and who can guide you to the best policy for your situation.

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.

Business Interruption Insurance COVID-19 and Coverage Concerns

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Business Interruption Insurance COVID-19

Business interruptions have swept the nation and the world as the coronavirus crisis continues. While states and countries tentatively reopen, businesses are left with the damages of months spent with closed doors, lower operating capacity, and reduced hours.

With the prospect of a second wave on the horizon and a need to help the small businesses currently suffering, determining how COVID-19 will ultimately impact business interruption insurance policies is of global importance.

What is Business Interruption Insurance?

BI insurance is a type of policy that seeks to provide support if there is physical loss or damage to a business. This damage would need to create enough distress that the business itself could no longer function, operate, or provide services normally. When these conditions are met, insurance coverage is triggered.

Unfortunately, in these unprecedented times, insured companies are finding that their policies, in large part, do not necessarily offer coverage from damages resulting from communicable diseases. This is because while there has been a marked decrease in business function, the requirement of physical property damage goes unmet.

This reality has created an increase in litigation as businesses try to receive compensation for truly unavoidable circumstances.

A Spike in Business Litigation

As the coronavirus pandemic develops, there is an increasingly complicated legal web enveloping the insurance industry.

In a study done by Lex Machina, insurance disputes and contract litigation are both on the rise. This indicates insurance claims are getting contested as are work contracts going unfulfilled and delayed in the aftermath of lockdown.

When looking at these cases, it becomes clear that the legal field is attempting to find exceptions to bring greater flexibility to rigid policy limitations.

To support their view, lawyers are becoming creative in what they determine as “property damage.” This results in arguments claiming that if a sick customer were to utilize a service, they could potentially be contaminating the area. This contamination would result in the area being unsafe to visit, effectively “damaging” the property.

This is just one of many ways legal professionals are adapting their strategies to better serve businesses affected by COVID-19. Unfortunately, we will now know for quite some time if these efforts are truly effective.

How are Claims Being Handled?

After declarations of a States of Emergency and Shutdown Orders were implemented, many businesses were left without income. Unless business owners were in healthcare or directly part of the supply chain of distributing and selling essential goods, doors were closed due to COVID-19.

Unfortunately, due to the wording implemented in most politics, insurance companies have taken the stand that these types of losses are not included in insurance coverage.

Recall from the previous section that business interruption losses are those caused specifically by physical damage. This is the standard wording in most insurance policies. At this point in history, that places business and insurance companies alike in the midst of a heated debate.

For the insurance industry, covering losses from the virus would result in unprecedented payouts and financial destabilisation. For shops looking to receive compensation from mandated lockdowns, these business interruption claims are the lifeline that will keep many from closing their doors permanently.

Who is Affected Most?

Those industries affected most by COVID-19 are those which are non-essential and whose business income relies on a steady flow of customers. Particularly, the restaurant and hospitality industries were particularly affected.

Even once lockdown restrictions ended, these companies still suffer from extended damage as they are unable to work at full capacity for the indefinite future. Furthermore, as cases begin to spike, there is the omnipresent speculation of whether a second lockdown will be instituted, where it will occur, for how long, and to what effect.

Arizona Insurance Specialists

These are uncertain times for everyone, with business interruption coverage producing intense turmoil for smaller businesses of all types. This makes it dire that you have knowledgeable insurance personnel in your life who can help connect you with the best policies, policy resources, and understanding of your plan limitations.

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.

What is Commercial Auto Insurance

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Commercial Auto Insurance

When you need it and What it Covers

Anytime you operate a vehicle you are assuming a large amount of risk. While we have culturally made driving a coming-of-age milestone and a normal part of our daily routines, we can’t lose sight of the fact that any vehicle is still considered heavy machinery.

In case of an accident, not only will you cause damage to your vehicle, but you could cause damage to other drivers. The result is unexpected damage, repair, and medical payments resulting from bodily injury.

When driving a personal vehicle, we protect against this liability through personal auto insurance. Unfortunately, when operating a vehicle for business purposes, our personal plans often do not provide the correct amount of coverage we ultimately need.

This is where commercial auto insurance becomes important.

In the article below, we will outline the benefits to drivers and business owners alive when opting for business auto insurance including some of the most useful types of coverage your insurance company likely provides.

The Difference Between Personal and Commercial Insurance

Just like renter’s insurance doesn’t cover business liabilities, personal auto plans don’t cover commercial vehicles. This is because the needs of each group are different in both scope and price. Business insurances often have higher coverage limits to account for the increased liability of day-to-day operations while protecting a fundamentally different class of work vehicles.

While it’s best to check with your policy provider to determine whether any of your existing liability insurance covers your business vehicles, this will likely not be the case. As such, you need to purchase commercial vehicle insurance to protect your business against staggering losses should a claim occur.

Generally, you will need commercial auto insurance if your business actions qualify in any of the following criteria:

  • Transport of materials needed to complete your duties (cleaning supplies, building materials, etc.)
  • Transport of hazardous or flammable materials
  • Transport of passengers who pay for said service
  • Transport of goods paid for and delivered to a customer (such as pizza delivery)
  • Tow, freight, and trucking vehicles
  • Any company owned vehicle 
  • Any vehicle with a gross weight of over 10,000 pounds or a carrying capacity over 2,000 pounds

However, make note that each company treats their policies differently. As such, it’s important to check your individual policy to ensure you fully understand the limits of your coverage.

What Does Commercial Auto Insurance Cover?

Commercial Auto Insurance acts as an umbrella term for several different types of policies that protect you from liability in various areas of operation. These categories of coverage are similar to those found in personal policies, but commonly have higher limits to adjust for the higher expense business liabilities can create.

Collision Coverage
This type of coverage does not take fault into account and instead allocates funds to the sole purpose of fixing damage resulting from a collision.

Comprehensive Coverage
This category covers damages not caused by collision, such as harsh weather or other environmentally uncontrollable outside factors.

Liability Coverage
The broadest coverage classification, liability coverage can range across several different categories of liability. Of particular importance are Bodily Injury Liability and  Property Damage Liability, both of which protect against damage occurring to either your employees or your clients.

Personal Injury Coverage
Applied to only the drivers and passengers of vehicles under your policy, this allocates funds to treating bodily injuries that are resultant from an accident.

Uninsured Motorist Coverage/Underinsured Motorist Coverage
Covers damages caused to you by a motorist who did not have adequate insurance to compensate their action.

Preparing for the Cost

Unfortunately, with higher risk comes a higher price tag. As such, commercial policies are often more expensive than their personal counterparts to account for the added cost should property damage or bodily harm occur.

As with personal insurance, your commercial premium varies. Variance is based on a variety of factors including which insurance company you choose and what extent of coverage you need. Furthermore, policy pricing is influenced by the driving records of employees, number of vehicles insured, and even the general risk involved in your industry.

Finding the Policy That’s RIght for You

Whether you run a large corporation, a small business, or even are a sole proprietor, having commercial auto insurance is an important part of financial protection. All it takes is one mistake to send even the best business owner into a spiral of claims, lawsuits, and the perils of inadequate coverage.

We know that finding the right insurance policy is difficult, especially with the vast number of policies there are to choose from. This is why it’s important to work with an insurance specialist who is knowledgeable about the market and who can guide you to the best policy for your situation.

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.