Annuities: Safe Choice in Choppy Market

With the recent credit and market insecurities, many people have lost as much as 55% of previous investments in their stock driven 401k's and IRA's.  For some, this isn't the end of the world as they may be young enough to make up for the losses in the future.  For others, the loss comes right at the time of retirement and will have devastating financial outcomes. 

Given the current market conditions and the see-saw nature of the S& P and Dow Jones, now may be a great time to consider an investment in an annuity backed IRA.  These operate in much the same way as stock driven IRA's, except without the risk of losing your investment.  These types of IRA's offer guaranteed interest rates which, as we have all now seen, stocks do not!

There are various types of annuity products available, some of which are readily available to transfer your existing stock driven IRA's directly over to a guaranteed interest rate annuity IRA.  Whether you have a qualified or non-qualified fund, we have a solution to fit your needs.

Now is the time to talk with your Absolute Agent and discover the awesome power of guaranteed interest rates combines with the power of compounding interest.  Don't let your money slip away in the market.  Call today for information. 

Insure Your Snowmobile Property

It's getting to be that time of year, when motorcycles and ATV's are being put away in storage while the snowmobiles are being brought out.  If this winter shapes up anything like last year, than this will be another great year for outside snow-related fun (that should translate into another bitter cold and snowy winter for the rest of us!)

Most people typically know to get out the thick coats, hats, gloves, goggles, and scarves to protect against the worst winter has to offer us, but one should not forget about whether or not they've checked up on their snowmobile insurance to protect them from teh other elements that may occur during the recreational fun.

Just as motorcycles and ATV's have their own type of coverage, so to do snowmobiles.  We offer specially designed policies from industry leaders to make sure you can get the most out of your winter-time fun without the bothersome worries of whether or not you protected properly.

Whether it be physical damage protections to make sure your snowmobile is protected itself or the vast array of liability protection, we strive to make sure you are worry free for the season opener.

While we are not rooting for winter this year, we are rooting for you and the time you'll have this time of year to enjoy the best an Iowan winter has to offer.

Remember just as it is important to do occasional check-ups on your auto, home, motorcycle, and boat policies; it is also a good idea, and a good time, to explore getting or checking up on your snowmobile policy.

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

Q:  I am a pizza delivery driver and I hit another vehicle.  My policy will cover the damage, right?

A:  NO.  A personal auto policy will not cover a vehicle being used for delivery purposes.  The same policy will also not cover paid-for snowplowing or people transportation (i.e. taxis).

You would need to have a commercial auto policy in order to cover this vehicle and the liability properly.

If you engage in these types of business, call your Absolute Agent today to ensure you have the right policy!


Q:  I failed to pay the renewal, but companies have a grace period, right?

A:  NO.  If the renewal payment has not been paid, then there is no coverage at that moment.  There are no grace periods on renewal payments as the policy period has expired.  These are handled differently than regular monthly bills that do have a short grace period.


Q:  How often should I get my jewelry appraised in order to keep it as a separate rider on my insurance policy.

A:  You'll want to get such things appraised about every 3-5 years.  This is in your best interest as the price of gold and precious metals and stones have increased drastically over the past 2 years.  For instance, if you had a ring appraised in 2002 and it came to a value of $2,000 and now it would appraise at $10,000 in order to replace, then the company would only be responsible for providing the $2,000 in coverage.  As you can see, given the vast increases in value on these types of things, it is very important to update these every 3-5 years.

Get Your Snow Plow Covered Correctly

As the winter months approach with the memory of last year's crazy long wintery months still vivid in our minds, some folks will consider adding a snowplow to their trucks and make a little extra money. While this is not necessarily a bad thing, it could turn into a nightmare if you don’t first consider how to insure yourself properly.

The private passenger insurance policy you have for your vehicles is not meant for things such as transporting people for a fee, deliveries, or paid snowplowing.  Your personal auto policy is meant for the purpose of insuring you against the standard perils of to and from work and recreational activities.

Once you get paid for snowplowing, you’ve left the door open for many possible consequences and liability concerns that are not wrapped into a personal auto policy. In the case of snowplowing, or  even delivery driving, you’ll need a commercial policy in order to cover the risks associated properly. While the premium may be a little more, it is worth it in the event that a claim arises as your personal
auto policy will rightfully deny a claim if the vehicles are being used in a commercial manner.

As with most things, careful consideration should be given when thinking about either of these types of activities. Talk with your Absolute Agent to find the best and most affordable way to insure yourself properly before engaging in these types of business pursuits. Often times, a few minutes of going through the in and outs may end up saving you big in the event of a claim or liability concern.

Let us help you find the right policy and price for your needs.  Call us today at 515-279-2722 to ensure you are covered correctly.

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

Back to School: Kids in College

As the days slowly close out sooner and the weather begins to cool down, we know it is time for recent high school grads to ship off to college and start their higher education process.  This is a wonderful time for both parents and students alike, but also one that can be emotionally and financially depleting.  As your student goes away to school, some interesting problems can develop in terms of how to cover the property of the new student while living outside the home.

To begin, living arrangements for new students can vary widely, whether they must stay in the dorms or our living in an apartment, or rented home.  Some other issues may present themselves as to whether the student will return home for the breaks and summer, or will they have a permanent address while living in the college town.  Some of the answers to these situations may lead you down different paths for the proper coverage of the students property.

While most companies are willing to extend the personal property out to the student in the event that they are full-time students and their permanent address is still at home, there can be variances on how things are covered in the event that they live in an apartment and consider that their permanent mailing address.

Another aspect to consider is the fact that some of these students will be operating a vehicle while at school and it will become important to correct the vehicle garaging zip code.

Consult your Absolute Agent and describe your situation in order to ensure you have the correct coverage for you and your college student.