INSURANCE REVIEW

BY BY ALAN PLAFKER, PRESIDENT & CEO
MEMBER BROKERAGE SERVICE LLC
A MELROSE CREDIT UNION SERVICE ORGANIZATION





Should I Report My Accident to the Insurance Company?

There’s nothing fun about being in an auto accident. Whether it’s just a fender bender with no injuries or a more serious accident. Dealing with police reports, insurance companies and repair shops can seem like a huge inconvenience.

Most insurance policies state you must notify the company of all accidents in a timely manner. The wording may be different from policy to policy, but the idea is the same. You need to let the company know if you anticipate the need to negotiate a settlement. Prompt notice generally means within seven days.

While the other driver may agree to pay for the damage to your car on the day of the accident, he or she will see the repair bill later then decide it’s too high. Time will have passed and your insurance company will have more difficulty putting together the facts of the accident if you file the claim.

Also, you’ll have no way of knowing whether the other driver will change his or her mind and report the accident to their insurance company. They might claim injuries that weren’t apparent at the scene of the accident. This means that your insurance company may end up paying out a hefty settlement, or you could be dragged into a lawsuit.

Some policies actually can deny all claims because you didn’t notify the company in a timely fashion leaving you to pay it yourself. So make sure that your company has your version of what happened and check your policy. If the damages paid by your insurance company are below a certain amount, the accident might not be considered chargeable and you may avoid a premium hike.

When you are reporting any injury or property damage, make sure you have all the necessary information when calling your agent. This includes your policy number, the date of the accident and insurance information of the other party. You should also have the make and model of the cars involved and the police reports that were filed.

You pay insurance premiums to protect you from loss. Contact your broker or Insurance Carrier immediately if you find yourself in this situation. It’s best to let them take care of any accident claims.

Insurance tips for first-time home buyers

With the housing market currently tilted in the buyers’ favor, many people are choosing to make the leap and buy their first home. It’s a big investment and an intimidating process, and after sorting out everything with banks, builders, realtors and previous owners, insurance policies often don’t get the attention they deserve. However, talking things over with your insurance agent and acquiring a little knowledge can go a long way in calming your nerves and securing your future.

Standard policies usually include protections for personal possessions, property damage, and liability protection for bodily injury to family members or guests, and additional living expenses if your home becomes uninhabitable due to a loss. A standard policy is not one-size-fits-all, however. Take an inventory of your home—your possessions, your furnishings and the materials that were used to construct your home. If there are any items that are particularly valuable make sure your policy reflects that. Saving pictures or a video of your home inventory in a safe place also is a good idea so you can provide evidence on any future claims.

Consider the area where you’ll be living. Is it prone to severe weather? Earthquakes? Are there any trees nearby that could damage the house if they fell? Are you in an area with a risk of flooding? You can gauge your flood risk at www.floodsmart.gov. If so, remember that flood coverage is not part of standard homeowner policies; it must be purchased separately.

Think of how much you want to spend on your deductible, then weigh that against the limit, or maximum amount the insurer will pay you if a loss occurs. It’s a balancing act, and only you can decide the levels that are right for your situation.

Most of all, remember, your insurance agency is here to help. It’s our job to clarify complex situations, keep you informed and make sure you’re satisfied with your coverage. When you find your dream home let us help you protect it.

Gap Insurance

Some topics are nearly guaranteed to spark conflict, even among the best of friends or the closest of families: religion, politics, favored sports teams. Add to that list the eternal(ish) debate over which is smarter, buying or leasing a car.

Some analysts suggest that a lease saves the savvy shopper thousands of dollars. Others claim that those who buy a car, and maintain it for eight years … 10 years … or even longer, save the most in the end.

Setting aside full cash purchases, from an insurance perspective, it doesn’t really matter. Your leasing agency—just like your bank—will require you to carry an auto insurance policy that includes both collision and comprehensive coverage as well as an acceptable deductible. However, there is a risk more common with leased vehicles, the gap.

If your insured vehicle is damaged in an accident and is determined to be a total loss, the insurance company will pay an amount equal to the actual cash value of the vehicle. However, the lease balance can be higher—sometimes thousands of dollars higher—than the insured value because the most significant depreciation occurs the moment you drive the vehicle off the lot and during the first few years. And this difference represents the gap which typically becomes your responsibility to pay. This is what gap insurance is designed to cover.

Of course, creditors and lessors have the option to not hold you responsible for the gap. But often, you will have to either assume responsibility for the gap or pay an additional charge to waive it limited to the insurance expense incurred by the lessor in New York. Working with us, your independent insurance agent, we may very well be able to find affordable gap insurance, quite possibly for less than coverage through the lessor. This option is not available in New York.

And while the gap risk is more common with leased vehicles, gap coverage isn’t just for leases. If the vehicle is purchased with a minimal down payment, or no down payment, the same gap may occur when the value is less than the loan balance. If you’re car shopping, drop by our office or give us a call. We can help you figure out your best course of action.

For more information, talk to your financial professional, legal advisor, or the author of this article.

Your Professional Insurance Agent …
We want you to know about the insurance you’re buying.

Alan Plafker, CPIA is President of Member Brokerage Service LLC, a Melrose Credit Union Service Organization. He is a Certified Professional Insurance Agent and licensed Insurance Broker. He serves as First Vice President on the Board of Directors the PIANY (Professional Insurance Agents Association of NY), serves on the Board of CIBGNY (Council of Insurance Brokers of Greater NY), and serves as Treasurer for the New York Independent Livery Driver Benefit Fund Board of Directors. His Agency insures thousands of polices for TLC Insurance as well as many policies for all types of insurance. You can reach him in his Briarwood, Queens office at (718) 523-1300 Ext. 1082, or visit the website at: www.MemberBrokerage.com