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.

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

Q:  My wife lost her wedding ring while we were on vacation.  Is this covered under my house insurance?

A:  No.  It would have to be stolen in order to be covered UNLESS it was scheduled on the home policy as "Scheduled Personal Property"


Q:  A tree has landed on my house and has caused damage to my home.  Will insurance replace the tree?

A:  No.  Home insurance protects your home and detached structures.  Trees are not covered.


Q:  My vehicle was broken into and personal property was stolen, is this covered under my full coverage auto insurance?

A:  No.  Only items that were attached to the vehicle as stock items are covered.  Personal property losses would only be covered under a home, renters, condo/townhome, or mobile home policy.  Auto insurance never covers personal property.


Q:  Water came up through my sewer drain and destroyed my roommate's belongings.  Will my homeowners insurance cover this?

A:  No.  Your home insurance will cover only those things belonging to you or a family member.  Unless you have Water Back-up coverage, your home insurance would not even cover your belongings.  In this situation, your roommate would need to get a renters insurance policy to cover their belongings in an event of a loss, and in this situation, they would also need to have the renters insurance policy endorsed with the Water Back-up of Sewers and Drains coverage in order to be protected.

Life and Home: Similarities Galore

Why do some people buy houses for their primary residence instead of living in apartments?  In most cases, there are a number of reasons, ranging from the desire to own instead of renting to tax-advantaged growth to building equity to overall security.  Do any of those reasons sound familiar?

Permanent life insurance offers many of the same benefits as home ownership.  You buy a home because you want permanence, a place to put down roots, because you are always going to need a place to live.  Renting an apartment is generally a temporary solution to housing needs.  Buying permanent life insurance, whether it be whole life or universal life, is what one does to cover a need that will always be there.  Term insurance is temporary, and the premiums continue to increase, just like rent on an apartment.

Permanent life insurance also offers equity buildup, just like home ownership does.  The cash values will generally increase year to year and can provide equity that can provide equity that can be tapped for emergencies, for college funding, for additional retirement funding, or for many other needs, just like home equity.  The growing cash values in the permanent life insurance policy also offer tax advantages because you don't pay income taxes on the growth as long as it stays in the policy.  The earnings are income-tax deferred.  You can say the same about a home in that you don't pay income taxes on any increase in the value of your home as long as you live there.  Once you sell the home, you may have capital gains tax to pay on the growth if the gains exceed allowable levels and the money is not reinvested in another home.

Permanent life insurance also offers a peace of mind security, just like a home.  You know it's always there protecting you from whatever storms may come, financial or otherwise.  Term insurance, on the other hand, eventually will go away go away because the price gets too high to continue.

For more information on life insurance, contact your Absolute Agent today!

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.