Ask Your Absolute Insurance Agent: My daughter is buying a new car - Can I put it in my name, or should she title it in her name?

My daughter is buying a new car - Can I put it in my name, or should she title it in her name?

Before we can answer, we would need to know the answers to a couple of follow-up questions:

• Is there a loan on the vehicle?  If so, whose name is the loan in?  This sometimes dictates what name(s) the vehicle needs to be titled in

• Does your child still live at home?  If your child lives elsewhere, they should really title the vehicle in their name.  If your daughter still lives at home, some of our insurance companies allow vehicles to be titled in your son’s name and still be on your insurance policy - we would list them as an additional insured on your policy

One thing to keep in mind is that if the vehicle is involved in an accident, and you are a title-owner of the vehicle, you could be held liable for the damages even if you weren’t the driver.

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.

Ask Your Absolute Insurance Agent: What is the difference between comprehensive and collision coverage on my auto insurance?

"What is the difference between comprehensive and collision coverage on my auto insurance?"

When you look over your auto insurance declaration page, you will notice that there are a lot of different coverages and amounts listed. If your vehicle is covered with full coverage, you will have coverage for Comprehensive Coverage and Collision Coverage, each with a deductible listed.  What is the difference between the two, and what does the deductible mean?

Collision Coverage
Collision Coverage comes into play if you are involved in an accident with another vehicle or if you hit an object such as a mailbox. Collision coverage also covers damage caused by potholes. Collision coverage will pay to repair the damages to your vehicle, minus your deductible.

• Example:  Maria has collision coverage on her insurance policy with a $500 deductible for her Ford Explorer. An unknown driver hit her Explorer while it was parked and drove off. Maria is told that it will cost $4200 to repair her car. Her insurance company will pay $3700 to have her vehicle repaired ($4200 in damages minus her $500 deductible)
• Example: Joe has collision coverage on his insurance policy with a $500 deductible. He is driving his minivan and backs into a cement wall behind him. The wall has no damage, but the collision with the wall has caused $2000 damage to his vehicle. His insurance company will pay $1500 to have his vehicle repaired ($2000 minus his $500 deductible)

Comprehensive Coverage
Comprehensive Coverage is sometimes referred to as “other than collision” coverage. This coverage can help pay for damages to your vehicle not caused by a collision, such as: accidents involving an animal, hail, fire, certain falling objects such as a tree branch, theft, and vandalism.  Comprehensive coverage will pay to repair the damages to your vehicle minus your deductible.

• Example:  Shirley has comprehensive coverage on her insurance policy with a $250 deductible on her Toyota Camry. Shirley is driving home and hits a deer. She gets an estimate of $3000 to fix her vehicle.  Her insurance company will pay $2750 to have her vehicle repaired ($3000 minus her $250 deductible)
• Example: James has comprehensive coverage on his insurance policy with a $500 deductible on his truck. A hail storm sweeps through James’ town and his truck suffers $2000 in hail damage. His insurance company will pay $1500 to have his truck repaired ($2000 minus $500 deductible)

Your insurance company might decide that your vehicle is “totaled” when the cost to repair the car is greater than the value of the vehicle or in some cases when it reaches a certain percentage of its value.  In that instance, your insurance company will issue payment for the Actual Cash Value of the totaled vehicle minus your comprehensive or collision deductible.

Telematics - What is it? How can it help me save money on my auto insurance?

Several of the insurance companies that we work with offer a potential discount for customers who sign-up for “usage-based insurance (UBI)” or “telematics”.  Customers can either plug a device into their vehicle or download an app to their Smartphone, and the insurance company will use data collected to offer their customers a discount based on their driving habits. 

This year, when our auto insurance policy with Safeco Insurance was renewed, our family signed up for their Telematics program called RightTrack.  Safeco’s RightTrack program gives an initial discount to all drivers who complete the 90-day review period, and the policy could receive a discount of up to 30% when the review period is over.  The discount will roll over at each renewal and stay on for the life of the policy. 

Safeco’s Right Track program looks at the information gathered by the device to calculate a discount based on your driving habits.  RightTrack looks at information including: 

• Total number of miles driven 

• Nighttime driving (between midnight and 4 am) 
• Rapid Acceleration 
• Hard Braking 

How did it work for my family to use RightTrack?   

We have 3 drivers in our household – myself, my husband, and my mother-in-law.  Once we registered for the program online, all 3 of us downloaded the apps to our smartphones using the activation code that Safeco emailed to us – this helped to connect the app to our insurance policy.   Once the app is installed, it lets you know how many days remaining in the review period, lists projected policy savings and shows your overall performance on braking, acceleration, and nighttime driving.  There is also a log of all the driver trips that you have taken.   Since the app would register any trip, you would need to go into the app within 7 days to mark any trips where you weren’t the driver.   

Overall, we found the RightTrack app easy to use – the app will automatically record a trip, so you don’t need to open the app each time you drive. The RightTrack app ranked the 3 drivers on our policy against each other so we had sort of a friendly banter going back and forth about who was the better driver.   

Currently Safeco, Progressive, and Nationwide offer a telematics program on their auto insurance policies.  Each company’s telematics program works differently so you would need to either read up on the specific program or ask your agent how your insurance company’s telematics program works, and whether the program might be a good fit for you and your family.  

You can also check out this video with more information regarding Usage-Based Insurance or Telemetrics Insurance.

~ Janna Dailey, Insurance Agent at Absolute Insurance Agency, LLC

Why do I need Uninsured Motorist coverage on my auto insurance? Why am I paying for the other person?

Why do I need Uninsured Motorist coverage on my auto insurance?  Why am I paying for the other person?
 

This question, or a variation of this question, is something that we hear frequently from our insureds.  Do I need uninsured motorist coverage?  Why am I paying for the other person?

On your auto insurance policy, you might notice Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages listed where your liability limits are listed on your auto insurance policy.  These coverages are on your policy to help you – not to pay for the other person.

Uninsured Motorist Coverage:  This coverage may cover damage costs if you are involved in a covered accident with a driver who does not have insurance, or from a hit-and-run driver.
Sometimes, Uninsured Motorist coverage is separated into two different coverages: 

• Uninsured Motorist Property Damage (UMPD) may cover damage to your property, including the damage done to your car that you are legally entitled to recover.  (This is a coverage that is not available in Iowa, but is available in some of the other states that we work in.  This is an optional coverage for liability only vehicles.)
• Uninsured motorist bodily injury (UMBI) will pay for injury-related medical expenses to you or anyone in your vehicle. 

Underinsured Motorist Coverage:  This coverage may cover damages related to an accident where the other driver’s insurance policy limits are not enough to cover the damages.

A recent study by the Insurance Information Institute found that about 13% of drivers (1 in 8) don’t have auto insurance.  In Iowa, that number is a little lower with about 8% of drivers not having auto insurance.  Uninsured and underinsured motorist coverage protects you and your family against injuries caused by a driver who does not have insurance or does not have enough insurance.    
As always, your Absolute Insurance agent can help you with any questions about coverage on your insurance policy.

What Can I do to Lower the Cost of My Car Insurance?

We hear this question a lot when we start working with our clients.  Each of our companies that we write for asks different questions in order to determine eligibility, find the most accurate rate, and see which discounts a customer might qualify for – this is one of the reasons that we ask so many questions when we are gathering information from current and prospective customers. 

There are some different rating factors that are automatically included in the rate: 

• Accident-Free & Good/Safe Driver:  All auto insurance companies look at an insured’s driving record and claim history when determining the rate for auto insurance.  If you are “accident-free” or have a clean driving record for the last 3-5 years, many insurance companies apply a discount to the premium quote 
• Vehicle Safety Features:  While most of your car’s safety features are automatically incorporated into the rate from your VIN#, it is still good practice to let your insurance agent know if you have optional safety features in case it is eligible for an additional discount.  Does your car have blind-spot detection?  Automatic braking?  Lane Departure Warning System?  Does it have an anti-theft system?  If so, let your agent know! 
• Multiple Car Discount:  If you have more than one car insured on a policy, your policy will receive a mult-car discount 
• Driver Age:  Some companies give an automatic discount to drivers over the age of 55  

 Companies also offer a few different discounts you might be eligible for: 

• Usage-Based Insurance / Telematics:  This is something that is relatively new and several of our auto insurance companies offer.  Using either a device that you plug-into your car or an app on your smartphone, the program tracks your vehicle usage and driving habits.  Common things that they look for are hard braking, fast acceleration, and night-time driving (between midnight and 4am).  Some companies give a discount for enrolling in the program, and then additional discounts are available at the end of the monitoring time or at the renewal.  Each company’s program is different, so make sure that you talk with your agent to get the specific information for the company that your auto insurance is with.  
• Bundling your auto/home insurance with the same insurance carrier:  Most of our companies offer a discount if you have your auto and home insurance insured with the same company.  Some companies also offer further discounts if other insurance policies are also written with that company as well (motorcycle, boat, RV, personal umbrella, etc.) 
• While most companies offer a discount if your auto and home insurance are written together, this doesn’t always mean that it will be less expensive to do this.  Sometimes it is cheaper to have your auto insured with Company A, and your home insured with Company B.  As independent insurance agents, we take that into consideration when we are quoting our customers and look to see which is best for each customer 
• Company Car:  Are you provided a company car or truck that you drive to/from work?  If so, you may be eligible for a company car discount 
• Low Mileage:  Do you put less than 7500 miles on your car a year?  The number of annual miles varies by company for what qualifies for low miles - one of our companies gives the discount for under 10,000/year

• Good Student:  If your student is between 16-24 years old, a full-time student, and has a “B” average, they may be eligible for a good student discount.  This if for both high school and college students 
• Distant Student:  Does one of the drivers listed on the policy go to college over 100 miles away from home and not have a car with them at school?  If so, they may be eligible for a distant-student discount 
• EFT/Paid-in-Full:  You might be eligible for a discount if are you paying for your policy in full, or are paying up for payments automatically withdrawn from your checking/saving account.   
• Paperless Discount:  Would you prefer to get most of your insurance documents via email instead of through the mail?  A couple of our companies offer a discount if you do! 

If you think that you might be eligible for a discount that you are not currently getting, please reach out to your Absolute Insurance agent so that we can review your policy.   

Also, let us know if you have had anything change in your life that might affect your insurance:  

• Did you recently retire?  Will your vehicle usage and annual mileage change?  If so, let us know! 
• Do you have a new job and now have a company car?  Let’s discuss whether the company car discount is an option for you. 

• Do you telework from home?  We should review the current vehicle usage and mileage to see if we still have it listed correctly. 

Are you thinking of buying a new car?  Call us before you make your final decision and we can quote to see what it would be to add to your existing policy.  This is helpful if you are debating between two different vehicles – the type of vehicle and the safety features that it has can have a huge difference in the insurance rate.

At Absolute Insurance Agency, we know that getting the best coverage at the best price is important to our clients.  One benefit of being an independent insurance agency is that this allows us to quote with multiple companies to see what the best insurance policy would be for you and your family.  Interested in an insurance quote?  Click here for a quote or contact us at service@insaia.com.

What is the right Rental Car Reimbursement amount for you?

If you have full coverage insurance on a vehicle on your auto insurance policy, you might also have rental car reimbursement coverage.  The amount of Rental Car Reimbursement coverage varies from plan to plan but the lowest coverage that any of our companies offers is around $30/day.  In Iowa, this will typically pay for a full-size car. If you normally drive a SUV, van, or truck, the $30/day coverage might not be enough to pay for a rental car for a replacement SUV, van, or truck.  We have clients who have multiple children or other needs where renting a full-size car would not work.  

Please contact us if you want to increase your rental car coverage or if you want a quote on how increasing rental car coverage would affect your insurance premium.

Teen Monitoring Discount - Auto Owners

Auto Owners now offers a new 5% discount for teen monitoring.  How does the Teen Monitoring discount work?  You can use an app on a phone or certain GPS units.  The information from the app/GPS must go to the parents.  It is not shared with Auto Owners.

If your teen is between the ages of 16-20, they are eligible for this discount.  All it takes is a GPS unit attached to the vehicle the teen principally operates OR the teen in an eligible application on their smartphone. This discount will be applied upon the receipt of the proof of the purchase or other documentation.

Eligibility:
Eligible GPS units and smart phone applications must meet the following criteria:
Locate Vehicle-the ability to determine the vehicle’s location via Web or phone.
Speed-the ability to know the teen driver’s speed and other various

The discount is removed when the operator turns 21, gets married, or is removed from the policy.

An otherwise eligible operator is no longer eligible for this discount if they have had:
More than 1 at-fault accident, or
More than 1 violation resulting in 2 or more conviction surcharge points, or
One violation resulting in 4 or more conviction surcharge points, or
One at-fault accident and 1 violation resulting in 2 or more conviction surcharge point.

If this is something you are interested in, here is a hyperlink of 5 companies that could help you with the discount! https://www.hellotech.com/blog/5-of-the-best-teen-driving-apps-for-parents/.  Auto-Owners has recommended these two apps that are eligible for this discount: Life360 and SafeDriver which are both mentioned in the article.  If you are interested in a different teen monitoring app, let us know and we can check to make sure that it would be eligible for the discount too - they need to monitor location, speed, and other driving habits if available.

We have an insured who uses the free version of the Life360 app and they really like it.  They know that their college child is in class so not to call, or that their child made it to work or a friend's house, etc.  Even if you don't have your auto insurance with Auto-Owners, you might want to see if these teen monitoring apps might be useful to you and your family.

If you have any questions regarding this new discount, please contact your agent directly, email us at service@insaia.com, or call our office at (515)279-2722.

Classic Car Insurance

Do you have a classic car, truck, motorcycle, or boat?  Before you bring your beauty out from winter storage, make sure that your classic vehicle is insured correctly.  At Absolute Insurance, we know that insuring a classic or collector vehicle is different than insuring the car you drive everyday.  By insuring through a classic car insurance company, you are able to get insurance tailored to your unique vehicle. 

At Absolute Insurance, we work with several different companies that understand classic and collector cars.  Why is this important?  Classic Car insurers understand that there isn't a set "blue book" value for your vehicle.  You, as the customer, tell the insurance company what the value of your classic car is.  The company affirms the value of your car, and then guarantees that amount will be paid to you in the event of a covered total loss.  They also have claims specialists that help in finding stock replacement parts for your vehicle in case your car is involved in an accident or other claim. 

Contact your Absolute Insurance agent today at (515) 279-2722 to get a quote or additional information about insuring your classic car today!

Tips for Traveling with Kids

Do you have a trip planned this summer?  Here are 10 tips to make your trip a little less stressful:

• Set reasonable expectations - know the limits of your children.  For example, will your kids be able stay engaged for a 3 hour architecture tour, or would a shorter version be a better fit?
• Bring plenty of food - bring a variety of treats, space them out throughout your trip, hide a couple “extra special” treats for when it gets a little crazy.
• If you are flying with a baby, make sure to bring an extra outfit for you and baby in your carry-on in case of a diaper issue or throw up.
• Most airlines allow for family boarding, but if you have an assigned seat I will sometimes wait to board so my kids can run some energy out.
• If you are flying solo with kids, you can ask at the ticket counter if you can get a “gate pass” for someone to assist you through security and to the gate.
• If you are driving, plan a picnic or take food to a park/playground instead of sitting down at a restaurant.  This way your kids can run around and wear themselves out.
• Pack some new activities for when the kids get bored - a new book, raid the Target dollar area, a new app on the tablet, etc.
• Have your kids pick out an activity they want to do or a place they want to visit along the way or at the destination.  Kids love getting to pick things out
• Have a photo contest - post a picture taken by each person on social media and have people vote on their favorite. Winner gets to choose an activity or restaurant
• At the end of a long travel day, have a glass of wine, read this description of another mom’s disastrous flight with her child, and maybe your long day won't seem so bad :) 

When do you have to stop for a school bus?

As kids head back to school, drivers need pay extra attention to the rules of the roads and be on the look-out for school buses, pedestrians, and students riding their bikes to and from school.

1.  Make sure to slow down in school zones - know the times of day that the reduced speed limits are in effect.  If you will be driving through a school zone on your commute, give yourself a few extra minutes because there will likely be extra traffic in addition to the reduced speed limit.  Speeding tickets are double what you would normally pay in some school zones.
2.  Pedestrians have the right-of-way at all crosswalks and intersections - be on the look-out for kids crossing at unmarked crosswalks as well.  Not every school has a crossing guard to help students and parents cross the street.
3.  Make sure to slow down or stop for school buses.  If you encounter a school bus with its yellow lights flashing, you must slow down and go no faster than 20 mph.  If the red lights are flashing or the stop arm is out, you must stop at least 15 feet from the school bus.  You must remain stopped while the lights are flashing and the stop arm is out.  After a school bus has stopped to let students off, watch for children on the side of the road.  

When do you have to stop for a school bus?  

SCENARIO 1: YOU ARE TRAVELING ON A TWO- OR THREE-LANE ROAD
If you are approaching the bus from the rear: When you see flashing red or yellow warning lights, you are not permitted to pass the school bus and you should be prepared to stop.  You should stop behind the school bus when the school bus stops and the stop arm is extended. Stop no closer than 15 feet from the rear of the bus, and remain stopped until the stop arm is retracted and school bus starts moving again. Proceed with caution.
If you are meeting the bus from the front: When you see yellow warning lights flashing you must slow your vehicle to no more than 20 mph and be prepared to stop. You should stop in front of the school bus when the school bus stops and its stop arm is extended. Your vehicle needs to remain stopped until the stop arm is retracted. You should proceed with caution.




SCENARIO 2: YOU ARE TRAVELING ON A ROAD WITH TWO OR MORE LANES IN EACH DIRECTION
If you are approaching the bus from the rear: When approaching from the rear, the rules are the same as for a two- or three- lane road. When you see flashing red or yellow warning lights, you are not permitted to pass the school bus and you should be prepared to stop. You should stop behind the school bus when the school bus stops and its stop arm is extended. You need to stop no closer than 15 feet from the rear of the bus, and remain stopped until the stop arm is retracted and school bus starts moving again. Proceed with caution.
If you are meeting the bus from the front: When you are meeting the bus in one of the opposite two lanes (or more), you do not need to stop, even if the bus has stopped with lights flashing and stop arm out. The bus is not permitted to load or unload children who must cross this type of roadway, unless there are official traffic control devices or law enforcement present. This is the only time you may pass a school bus that is stopped and has its stop arm extended.

Meet Dan

Meet Dan. Dan is not a "1-800" number. He is ready to assist you with all your personal lines insurance. Have you compared your coverage and rate lately? Let Dan help: 515-279-2722 or www.insaia.com. Serving the Des Moines Metro and surrounding areas.

Things Insurance Fans Love

As a Local Independent Agent, I often have the pleasure of discussing many facets of life with clients over the phone or in the office. Sometimes these jovial discussions remain just that: jovial and entertaining. However, other times, folks tell me things they don't necessarily care for about insurance. I understand many of these concerns, but when it comes down to the reality of what insurance actually does and how it responds when we are in our most desperate positions, I cannot help but to be a fan and advocate. Usually, upon reflection with the clients, we both end up feeling better about the situations.

Here are just a few items that insurance fans love:

• Risk Transference. This is the basic tenet of insurance. For a fee, we allow another entity to absorb our first dollars worth of liability. This is AWESOME! The insurance company gets behind us when we have momentary lapse of judgement and cause damage to another party up to our policy limits. Without this, our bank accounts, wages, homes, and retirements would all be subject to lawsuit that follows! Better yet, get yourself an umbrella policy and boost those limits even higher with broader ranges of coverage.
• Roadside Assistance. If you have ever broken down alongside the side of the road, then this is an awesome endorsement available via most companies auto policies (restrictions apply per company).
• Water Back-Up/Sump Pump Failure. This is another one of those special endorsements via the home insurance policy. What happens to your sump pump when the power goes out? You guessed it- it goes out as well. If you have a finished basement, these mild irritant just became a costly mess. However, if you this endorsement on the home insurance, it will pay to cover clean up and the cost to replace ruined building items and contents (subject to policy limit).
• Rental Car Reimbursement. You've just had the accident. Sure enough, you were at fault. You have great liability limits and the other party will be handled well through your carrier, but now your sole means of transportation will have to be in a shop for the next two weeks to get repaired. This is more than a mild annoyance. This is devastating! Thankfully you and your Absolute Agent added rental car reimbursement to the full coverage on your vehicle so that you can utilize a rental car while your vehicle is being repaired. Another day saved through a proper conversation with your Absolute Agent (limits apply to per day cost and coverage is only available if comprehensive and collision coverage is purchased on the vehicle).

These are but a few of the things insurance fans love. There are definitely more to review in detail and we will definitely touch on them in the future. Until then, contact your Absolute Agent today at 515-279-2722 for more information. www.insaia.com

What's Insurance Up To?

In a world where the only constant is change, it can be difficult to keep up on the little things (and big things) that affect us on a daily basis. Between our families, jobs, and pets; the essential daily grind of our lives; as we connect ourselves further and further into the macrocosm of society to free up our time to get involved in even more activities... as .... as... as... Full stop....

We are busy. The reasons for this are as varied as we are from person to person. Each of us has a particular skill set that make us valuable to, and within, society. However, for most folks, insurance is NOT that thing. But do not despair! There is hope! Like a shining beacon on a hill, there is hope for those lost in the dark landscape of insurance unknowns and that shining beacon on the hill is none other than YOUR ABSOLUTE INSURANCE AGENT! They have the knowledge and expertise to know what insurance is up to!

Contact your local, independent ABSOLUTE AGENT in order to help you weather the STORM of liability, deductible, and endorsement talk. They can help you through the confusing maze of insurance speak and set you on a path to smooth sailing. Call us today at 515-279-2722.

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.

You've Got Some Q's: We've Got the A's

Q:  Why does it matter whose name is on the title?

A:  This is an important questions and the answer is because the owner (titled individual) is ultimately liable for the vehicle.  For instance, if you are driving your friend's vehicle, and you get into a horrible accident that is your fault, the owner could still be sued after all insurance has been exhausted.  As the liability of the insurance follows the vehicle, so to does the liability of the titled owner of that vehicle.  Most insurance companies will want the insurance named in the same way the cars are titled.


Q:  Flood insurance will cover my belongings in my basement, right?

A:  No.  Flood insurance has limited coverage in basements period.  In fact, Flood Coverage will only recognize food freezers, heat pumps, sump pumps, water pumps, washers, and dryers as covered property in the basement.  These are NOT covered to replacement cost either.


Q:  I was waved through while trying to get out of a parking lot and was hit by another driver.  Is this my fault since I was waved through?

A:  Yes.  This actually happens quite a bit.  To begin, never rely on another driver to be your eyes and ears on the road.  Often times, the other driver is not looking at all parts of the road to make sure you are safe to pass through.  As the first article in this newsletter explained, be wary that you might be waved through and then hit by the driver that did the waving!  Fact is, only you know when it is best to go through and you can never rely on the judgment of another driver.  Be cautious of these situations, and better to be slow or late than in an accident.

Steering Clear of Staged Accidents

It happens more than you think - a driver causes an accident to collect the insurance money - and you could become the victim.

The Sudden Stop:

• "It happens like this," says Hartford Special Investigations Manager Odie Waters, "I'm driving along, minding my own business, in rush hour traffic, and the car in front of me inexplicably slams on (the) brakes.  I read-end that car and I get blamed for the accident."  The driver of the first car will claim that a "phantom" dog or child ran into the road, or that the car in front of them had stopped suddenly, although that car will not be involved in the accident.  Any witnesses will have driven off long before the policy arrive, and it's nearly impossible to prove a dog didn't dart out.

Inattentive Targets in Traffic:

• The drivers in such a scam cruise clogged highways and city streets, watching in the rear view mirror, looking for someone not paying attention.  In the past, two cars might employ a tactic called the "swoop and squat," where one car would crowd the victim from behind and another would stop suddenly in front.

The Phantom Wave:

• Another type of staged accident can occur when a driver is trying to merge.  The scam artist will wave you into the lane and then crash into the side of your vehicle.  This can also happen when someone is backing out of a parking space.  A second car will stop and wave the first car out, as if waiting for the space, but then drive into the first vehicle.  In both cases, the scam artist denies stopping or waving, and police find the victim at fault for failing to yield the right of way.

Tips to Avoid Staged Accidents

How you can avoid a staged accident:

• Pay attention to the road - no applying make-up, shaving, texting, or talking on cell phone.
• Be wary of "beater" cars - especially if they are changing lanes suspiciously.  Even if the driver has no ill-intent, the condition of the car might mean a poor driver
• Maintain a safe following distance
• Call policy and the insurance company promptly after an accident.  If the other driver discourages you from doing so, it is all the more important to call promptly
• Tell your claims handler if the accident seems suspicious