An Uninsured Motorist can really ruin your day

Imagine you’re stopped at a traffic light; engine idling away as you listen to your favorite music, waiting for the light to change green and you can proceed. Out of no where another car comes barreling down the road and slams into the rear of your vehicle.

The back end of your nice automobile is squished together like an accordion which is a little like the way your spine is feeling. Carefully you extract yourself out of the car to address the other driver and assess the damage and make sure everyone is OK. The other guy gets out of his car and, shaking his head, he approaches you with a look of deep embarrassment and regret.

As you take out your insurance card the other guy holds up his hand and amongst the babble of his sob story he tells you he doesn’t have any automobile insurance.  Aside from the mental picture of you giving him the beat down of his life, you’re thinking…….

“Will my insurance cover this?”

“Is my insurance company going to rise my rates even though this was clearly not my fault?”

“Am I supposed just let this guy go and have everything fall on my shoulders?”

“Can I kill him, stick him in the back seat and then dump him somewhere out at sea?”  Ok, so maybe that last one isn’t a question you should be asking, at least not out loud and it’s not one we’re going to talk about in this article.

But the question of what to do in the case of uninsured motorists  is one that comes up more frequently than we’d like. A little over 20% of drivers pilot the roads without any insurance at all and almost as many are driving without a licence as well. As a responsible individual concerned about the welfare of yourself, family and your vehicle, as well as the other motorists, having full coverage is a no brain-er and making sure that your policy includes uninsured motorists should be second nature.

If you have the misfortune to get into an accident and the other driver is without coverage, here are a few things to be aware of.

1.First and foremost - You’re covered. Being covered doesn’t just mean that you can have your car repaired, it means medical expenses and property damages. And this goes for the other guy. Oh yes even if the accident was the fault of the other driver, he can still sue you for damages.He may not win but sometimes weird things can happen if you have to go to court so it is always best to let your Insurance company, with their staff of lawyers, handle that end of the deal.

2.Be prepared for litigation. - Most insurance companies will pay claims up to a certain point and will expect you to go after the other party for the balance. Since most people that drive without insurance don’t have a lot of money be sure to get all the information you can from them “before they leave the scene”.  This means anything and everything such as driver’s licence (hopefully they have one), phone numbers, address, employer information, car licence and any information you can from passengers that may have been in the car with them. The most information you get the easier it will be to find them when you have to serve them. You may also find out they have assets such as a house of bank accounts that will be accessed in the lawsuit.

3.Be cognizant of what they are driving and find out if they work as a delivery person. If so, confirm if they were working at the time of the accident. This is very important because if they were on the clock, the accident will be on the company dime.This in itself can make a big difference in the amount of damages paid as you can imagine. Many people and some lawyers as well are unaware of statute in the law (California) that says that an employee whose duties involved transportation/delivery for the company; whether they use a company car or their own in the commission of their responsibilities, are on company time from the start of their day upon arriving at the office, “until they reach their home.”This means if the uninsured motorist is working for a company that is  dumb enough to allow them to work for them without insurance, whether provided by the company or by the employee, and they get into an accident - the company can be sued for damages and held liable.


4. Make sure you know before you sign on with an insurance company what their policy is about rising rates after accidents. Some are more forgiving others but you better find that out first. As with most things in life, being prepared makes the unexpected easier to deal with. That’s what insurance is all about.

Medical Insurance for the Self-Employed

As a person who has spent the majority of his life being part of the corporate cubicle hamster wheel, I’ve never had to give medical insurance much thought. After all which ever company I was working for at the time made the choice pretty easy. HMO or PPO. The decision regarding which provider to pick wasn’t up to me and as long as I could have coverage for my family and myself all was well.

Most companies carry insurance plans whether they are HMO or PPO’s and all have basically the same amount of coverage, co-pays, etc. Most of the time I chose a HMO because I could easily find a doctor in my area, the co-pays were low as well as the deductibles and all the services were there.

But when I struck out on my own and started my own business, getting decent comprehensive medical insurance was a bit more of a daunting task.The challenge became a balancing game. How much coverage would my policy allot me without requiring that I sever an arm and a leg. And if I did have to cut off an appendage to pay for it would my insurance cover it?  Would that be above the deductible?

It comes down to really investigating your options and understanding just how much you need vs how much you can afford.There are some decent carriers that can offer fairly creditable policies but make sure you look over the deductible clauses as well as how well they handle emergencies and almost as important, will they accept payment plans when you don’t go over the deductible.

If you’ve got a $5,000 or even a $10,000 deductible as part of your plan don’t think that if you are in an accident the hospital bills will most certainly go over it and the insurance will kick in and take care of it all. Not always the case and sometimes you get “lucky” and your injuries aren’t that bad. Just maybe about $4,000 worth.Do you have $4,000 in cash available for this? No? Better make sure your insurance company will be willing to take payments. Either that or get into another accident while in the emergency room.

As a former employee of the corporate world and an advent user of the HMO system, I was accustomed to having low co-pays like $10 to $15 office visits and getting full vision and dental coverage with my employer’s fully catered plans.The stark reality of being self-employed means, unless you can make really good money, and for just starting out it’s not that easy, buying the full boat won’t be available. Better start with one that will give you coverage for accidents, doctor visits and in general, the basics. You can always add to it as you grow.

Dental insurance plans as well as most vision plans aren’t that much different than those of corporate plans although I did find the vision plans to be better through a company.  At least it was cheaper when the company paid for most of it. But that’s always the case.As for the Dental insurance policies, I have yet to find one that was much different than the rest.

There really isn’t that much coverage to them. They tend to be more like a kind of group discount for the services. Some offer the basic check ups and cleaning as part of the policy but not much more than that. When you need more than the usual dental work is when you get into the plan’s “special rate” charts.There are many dentist out there that offer check ups, cleanings and some dental work for very low prices.

Before dumping load of cash into a dental policy, check out the dentist in your area and find out how accommodating and cost effective going solo will be.Bottom line is always the same; get coverage and shop for the best buy. Insurance companies want your business just like any other business so make them work for it. Tell the agent what you’ve found in the way of coverage and prices and see if they can do better.

In today’s economy it pays to not only take the time to research but to get the companies that want you to buy from them to work for your business.After all, you work hard for your money. So should they.

Earthquake Insurance - The Rock and Roll Reality

If you live in Southern California, Los Angeles area or if you just watch TV you either experienced or heard about the latest 5.4 level earthquake that hit Chino Hills and surrounding areas.

Living with quakers and shakers in California is a fairly normal occurrence for tremors of a minor nature. But when the larger ones strike, it’s always a shock.

Since the Northridge Earthquake of 1994 earthquake insurance has been highly desired but not as easily attained. Shortly after the big one struck in ‘94, insurance companies have been reluctant to carry coverage for home owners even if they had had it before.

Insurance companies, in order not to offer earthquake insurance which is mandatory under California law, decided to forgo writing “all” home owner coverage in the state.

The State government finally stepped in and developed smaller policies that could be sold by any insurer to comply with the mandatory offer law.  The limitations of the policy are such that it will only cover structural damage along with a 15% deductible.

Personal property losses and “loss of use” have restrictions so it’s important to ”read the fine print”.

Aside from the challenge of finding a carrier that will give you earthquake insurance the real trick comes with choosing the company and policy that will fit your needs and protect your biggest asset, your home.

Earthquake Insurance is necessary even if you don’t think the Big One will happen in your lifetime. Even smaller quakes cause a lot of damage and you can’t expect that FEMA, the SBA, private charities or family and friends will be able to bail you out.

Remember Katrina? FEMA is still digging it’s way out of that one.

The next step, just as you would for any other type of insurance coverage, like your car, health, home or rental property, check out the solvency of the company. Once that has been established go over the features and prices of the policy offered.

Before signing what looks like a good policy, determine the amount of equity you have in your home, something particularly of interest in this down market. Equity alone isn’t enough as the age and construction style and foundation soundness needs to be assessed and figured into what kind of coverage fits your home.

Having earthquake insurance shouldn’t be the end game to protecting your house.  It’s good idea to take proper precautions in and around your home.

Securing appliances like water heaters, window air conditioners and any other items that could easily fall and cause damage can save you money and heartache.

Your local hardware store carries all manner of safety equipment that can help secure your home and give you a fighting chance against the next time the earth moves.

Pay As You Go Car Insurance

Written by Andrew Torchon

Recent rises in cost for car insurance has prompted State officials to consider a plan to have automobile owners be allowed an new kind of policy - Pay as you go.

Insurance companies have alligned with strange bedfellows environmentalist to propose a mileage - based insurance plan that would charge Californian motorists purely calculated on the actual distance they drive. The “pay as you drive” policy has already been in effect in 34 other states as well as the countries of Japan, Canada and throughout Europe.

Citing the optional plans ability to reduce private transportation costs, protect the environment and reduce traffic jams, the initiative is not without it’s opponets.

Despite large insurance companies like GMAC Insurance Group pointing to the policy as a reason to having lowered it’s premiums by 13% and as much as 54%,  many advocates for privacy contend the Big Brother like tracking requirements could give way for the insurance companies to start eyeing more than just your mileage.  There is also fear that higher mileage drives would suffer increased rates regardless of their safety record.

It is a chilling to think an insurance company could require your car of have a GPS device that keeps an accounting of all your miles but could also spy on your other driving habits such as excessive speed, eratic driving and who knows, maybe even forcing you to take a breathalizer test before getting behind the wheel. Not neccissarily a bad idea when you think about it as a preventative safety technique but definately forboding for those dreading the encrouchment of our government’s ever increasing attempts to invade our privacy.

Proponets for the plan point out further justifications such as a motorists who’s policy is based upon the distance they drive would make the effort to drive less. This in turn would equate to less vehicles on the road, (decreasing congestion and accidents), less fuel consumption thereby reducing exhaust fumes and lowering pollution, making Green Peace smile.

Combine this with the current rising costs of gasoline prices, the habits of American drivers could change the way we travel the highways. 

Happy motoring.

How to Choose the Right Car Insurance

Written by Andrew Torchon 

Choosing the correct insurance for your automobile can be a  duanting task but it doesn’t have to be.  Here are a few tips to ease the process.

1. Assess what you require.

It’s important to understand what you need first and then check the many companies that will offer exactly what you’re looking for.  No matter what Uncle Bob thinks only you know for sure what you need. If you’ve got a brand new Camery or a Mercedes Benz that’s a classic or just a nice Ford Focus that’s just a few years old and still in good condition then it makes sense to have full conprehensive coverage.

But if you don’t care about damage because you’re looking to get another vehcle soon or it’s just not worth repairing, then getting basic liability insurance could be the answer. In either scenario or anything in between, there are various ways to custom fit your insurance plan and this is what needs to be decided upon in your quest for the right policy.

2. Do the research.

There are numerous insurance companies to review. State Farm, AllState, Esurance, Geiko, AAA and more. All are required to carry the basic liability so the challenge comes in decerning which of the many insurance carriers out there will match your particular specifications.

The Internet is a great place to look up information and get quotes. Be warned though that once you submit for a quote, for some reason, you will get bombarded will agents and brokers calling and emailing you about their plans and policies. Be certain that when you ask for a quote it will only be submitted to the one company. Unless you want a little attention.

3. Check them out - they check you out.

When you ask for a quote the insurance agent will ask you all sorts of questions. It’s only fair that you, as the consumer, check them out as well. Ask them about their financial status, something especially important in this era of economic instability. Also inquire about their rating as a company.  Triple A ratings are the top for the industry. You’d rather eat at a five star resturant than a one star, wouldn’t you?

4. Claims filing.

This is exceedingly important and if you’ve ever been in an accident you’d know that one of the most frustrating things to go through is the claim filing procees. Ask how moany forms are required, can you do it on line and are agents available around the clock to help. Find out the time frame in which claims are processed and how fast they pay on claims.

One word of caution. Don’t let the ease of claim filing act as a indicator of quality or efficientcy. If something is too easy it may be an indication of a fast shuffle.

5. Beware of agents pressure.

Never be bullied or conjoured into taking a policy. A good agent or broker takes time to explain the details of what you’re buying and they don’t need to rush someone into the sale.

A fast talker is most likely trying to hide some inadequacey of your insurance policy. Slow down and make the right choice. If the agent can’t wait a day or two for you to make up your mind, move on. Get what you want and not something you’ll regret later.

6. Office location.

Find out where all their offices are, especially if you travel a lot. Having your insurance agent close by can make all the difference in the world when you’ve been in an accident. Make sure you have the agent’s name, phone number, policy number and office hours in your house and in your car.  If your agent will give you his cell phone or a toll free number you can use round the clock and you can call in emergencies all the better.

7.  Know your State.

If you are in a No-Fault state and are getting a policy outside your state make sure the agent knows. If your agent is in your State they better know this already.

8. Discounts.

Inquire about what discounts are available to you. Your age, the age of dependants you are covering, driving distance, driving record and so on all play a part in what kind of money you will save or spend. Multiple car coverage can also provide desired discount as well.

9.  Ask questions.

Where ever you go for your insurance policy don’t be afraid to ask questions. There are no dumb questions if it’s something that you don’t know. Remember; it’s your money paying for the policy, get what you want and make sure it’s everything you need.

A final note - What your policy covers is important but how hard the company will fight on your behalf in case of an accident is equally important. Find people who have the same coverage you want and ask what their experience has been like. The more information you can gather the better prepared you’ll be in picking out the right car insurance coverage taylor made for your budget.