Ask Your Absolute Agent: I am moving in with my boyfriend and he already has his own renter's insurance policy. Do I need to keep my own policy?

We usually recommend that each person carries their own renter's insurance policy.  This way, their contents are covered and they are provided liability coverage as well.

Renter's insurance only covers the named insured and resident relatives.  This usually means the named insured’s spouse and/or children.  Your specific renter's insurance policy will list who is considered a resident relative and how they would be covered on the policy.

Roommates, boyfriends, and girlfriends are different.  They would not be covered on the policy unless they are listed as a second named insured.  Some companies will allow a non-relative to be listed as a second named insured on a renter’s insurance policy, but not every company does.  You would need to check with your agent to see what your company allows.

What is the risk of adding a roommate, boyfriend, or girlfriend as a 2nd named insured?  Any claims that are filed under the policy go on your record too - even if you didn’t have anything to do with the claim.  If your roommate/boyfriend/girlfriend files a claim, such as theft of property, this would go on your property insurance record as well and could affect your future insurance rates for up to 5 years.

Ask Your Absolute Insurance Agent: When should my kids get their own auto insurance policy?

Q: ”When should my kids get their own auto insurance policy?”

A:  This is a question that we get often with our clients.  When children obtain their driver's license we list them as insured drivers on their parent's auto policy.  Every policy requires all licensed members of the household to be listed as an operator on the auto insurance policy.  We recommend letting us know when your children get their driver’s permit and when they get a school license, intermediate, or regular driver's license.  As kids grow up, when do they need to get their own auto insurance policy?

If your child has moved out of your house and is no longer a dependent, they need to have their own insurance policy.   Under most personal auto insurance policies, the “insured” covered by the policy includes “family members”.  Family members are limited to “a person related to you by blood, marriage or adoption who is a resident of your household.”  Once an adult child moves out of the household, they would no longer meet the definition of the “family member/resident relative” on your insurance policy.  We know your adult children will always be your family member, but unfortunately, they won’t be defined as an insured on your auto policy once they are no longer a resident in the household.  Why is this important?  Here are some examples to show why:

• Your daughter Amy is excited to go to her former ISU college roommate’s destination wedding in Colorado.  She rents a car and doesn’t buy the insurance offered by the rental car company.  If she were to be in an accident, the liability and physical damage from your insurance policy will not extend to the rental car.

• Your son Brent borrows his friend’s truck to move from an apartment in Waukee and to a new apartment in Ankeny and rear-ends another vehicle, injuring the other vehicle’s driver.  Since Brent is no longer a resident of your home, he has no liability coverage for the other driver’s bodily injury or the property damage to the other vehicle.  

• Your child is crossing the street in Des Moines and hit by a hit-and-run driver.  There would be no medical payments or uninsured motorist’s coverage for his or her own injuries.  Same if they are riding a bicycle and struck by a vehicle that was uninsured, underinsured, or left the scene.

Without coverage from an auto insurance policy, your child will have to pay these expenses themselves. Some of our largest claims come from the uninsured or underinsured motorists coverage.  This is why we are discussing this.

Another factor of whether to keep your child on your insurance is how the vehicle is titled.  With some companies, all vehicles on an insurance policy have to be titled to the named insured.  If your son or daughter has their own car titled in their name (even if they still reside in your home), they might need to have their own insurance policy.  Some of our companies do allow vehicles to be titled in different names - this is something that you should talk to your agent about.  

Each insurance company has its own guidelines, so it is best to talk to your Absolute insurance agent about your specific details.

Spring Fever & Toys

Spring is here and the toys are coming out of storage and going to be used again. Everyone loves their classic cars, motorcycles, boats, RV’s, & other ATV’s. They are fun and exciting, especially on a nice sunny day! Let’s be honest, once the weather is nice we are ready to go. Before heading out, here are a few tips.

Tip number one is maintenance. Maintaining your toys will help them perform better and last longer. Some basics to remember are replacing spark plugs, changing fluids, cleaning or replacing filters along with your wash and wax. Lastly, before operating any vehicle you should conduct a thorough inspection!

Tip number two is insurance. Making sure you have insurance in force and being adequately insured will help prevent unnecessary cost and headache! Some basics to remember are discount’s do add up, not all home policies cover your toys, not all coverage is the same & don’t be afraid to ask your agent questions. Your insurance agent is only a phone call or email away! 

www.insaia.com

515-279-2722

Absolute Insurance Agency, LLC

7400 University Ave, Ste A

Clive, IA 50325

Rainy Days Ahead! Time To Grab Your Umbrella...Policy!!!

"Rain, rain, go away. Come again some other day"

This was a verse I heard over and over and over and over again this past weekend. You see, I have a 4 year old daughter and a 2 year old son and these types of songs are sang ad nauseam! As the clouds settled over our neighborhood and started pouring; we were outside playing (working) in the yard. For adults, this is an obvious break period. For children, the fun only ramps up!

The kids dashed down the sidewalk, trying to dodge the rain drops. They found puddles forming and made sure to jump in. They did all the amazingly fun things kids do that remind us that we all need to tilt our perspectives at times and keep life playful.

Then, as the rain started to up-tick, my wonderful daughter ran up to me- completely soaked at this point- and asked for her yellow umbrella. Sure, this was frivolous, but her and her brother truly enjoyed playing in the driveway underneath the protection of the umbrella.

As a father, I will never outgrow this... I can never have enough of these wonderful moments. They are truly beautiful. As an insurance agent, these moments are a reminder of the good that can be accomplished from a little extra protection. In this instance, with the rain pouring down, with that yellow umbrella held above their little heads, they giggled, they sang, they kept doing the things that children do despite the weather.

An umbrella policy does this for adults! I personally carry one. It is dollar-for-dollar the cheapest liability coverage I have ever bought. This policy, like an actual umbrella, covers over my home and cars. If I was brave enough, it would cover over any other vehicles I had as well- like a boat, motorcycle, ATV, or RV.

Much like my children, I can feel confident with my umbrella that the negative consequences of a liability claim will be mitigated by this wonderfully inexpensive and broad policy. Granted, I don't purposefully put myself in bad situations in order to utilize this coverage, but I have the peace of mind that if something happened- if I was the cause of a tragic accident- I would have the shelter of my primary policies liability limits in addition to the extra liability limits afforded to me via my umbrella.

Don't let the rainy days of life ruin your livelihood. Protect yourself. Take all your normal and necessary precautions and add to those an umbrella policy. You never know when the storms will come and that is exactly what makes life so exciting and frustrating. Help put yourself in a position to keep singing in the rain, contact your Absolute Agent today at 515-279-2722 or go to www.insaia.com and send an email to your agent. We would love to help you.

You've Got Q's; We Got the A's

Q:  The color of my car affects my insurance rates, right?

A:  False.  The color of your car does not impact your car insurance rates.  What does influence your rate is your vehicle's year, make, model, body type, engine size, safety-features, and anti-theft features, along with your credit history, driving record, and geographic location.


Q:  No Fault Insurance means it's not my fault, correct?

A:  No.  It means that your company will pay for the damage to your vehicle (if physical damage is purchased) regardless of whose fault it is.  This type of policy is not available in Iowa and is a state specific type of coverage.  I, for one, am thankful that Iowa has not adopted this type of policy!


Q:  If I recently paid my insurance bill, the new car I just bought is covered?

A:  Yes, to a point.  Most insurance companies require that you notify the company of the agent within a specified number of days after the purchase.  There is a short grace period where the coverage does automatically transfer from one full coverage vehicle to a new full coverage vehicle.


Q:  If I lend my car to a friend and they get into an accident, will their company cover the damages?

A:  False.  Your car, your responsibility!  However, your friend's insurance could act as excess insurance if the damages exceed your policy limits.


Q:  I don't want uninsured/underinsured motorist because I don't want to pay for those drivers' cars!

A:  This is a common misconception.  That coverage is purely for your protection.  It pays for your lost wages and medical bills if you are struck by a driver without or not enough coverage (relative to the accident).  It does not pay for ANY vehicles, yours or theirs.

Off Season: Keep the Boat Insured

Summer is over, and you've taken your boat out of the water.  To save a few dollars, you cancel your boat insurance.  After all, what could possibly happen to your baby while it's hibernating? 

A lot, according to Progressive.  "You'd be shocked at the number of claims filed in colder months," says Dominic Mediate of Progressive.  "Nearly two out every 10 Progressive boat claims filed in northern states happen between Labor Day and Memorial Day."  Don't take a gamble on nothing bad happening.  Common off-season claims include:

• Fire, theft, vandalism, and flooding:  Most claims are filed for one of these reasons, which can occur anytime of the year.  Without coverage, boats damaged by fire, theft, vandalism, or flooding aren't protected
• Injuries that occur on or around your boat:  Some boaters don't realize they could be responsible for injuries that occur on or around their boat - even if the injured person was there illegally.  Without liability coverage, you could be responsible for the damages or the injured person's medical bills.  

Keeping your policy all year round might also save you a few bucks.  For example, Progressive's disappearing deductibles reduce your Comprehensive and Collision deductible 25 percent for every claim-free policy period.  Four policy periods in a row without a claim equals a $0 deductible.  Canceling your policy could mean paying more or the entire deductible, generally $500 or $1,000.

Check your policy and consult with your Absolute Agent before making any decisions.

Spring Time Fun: Insurance for Toys

Insurance is not like the old one size fits all ball cap.  Rather, people with specialized needs will want to get a policy that provides coverage for those needs in specific.  Often times, especially with boat insurance, it is often overlooked or attached to a homeowners policy to cover liability, however, often times this is truly basic coverage that may not suit your situation.

Most often, it is better to separately insured your toys with specialized policies that can provide coverage for Custom Parts and Equipment or to add coverage to possible belongings, such as fishing equipment on a boat owners policy.

Much like an auto insurance policy, special coverage can be purchased for towing, roadside assistance, and rental reimbursement on many specialty lines products including motorcycle, RV, ATV, boat, and personal watercraft.

Another important, and often times, neglected coverage comes by way of the RV, with an optional replacement cost endorsement (if new) and vacation liability coverage.  These can be added to your specialty lines insurance coverage at reasonable cost and leave you worry-free.

We understand that these aren't just toys, they are a way of like.  Your life.  We pride ourselves in partnering with companies that hold this same view and offer competitive rates for specialty claims centers with representatives trained specifically to handle your custom needs.

Call your Absolute Agent for further details on coverage and rates.