INSURANCE TOPICS UPDATE
BY ALAN PLAFKER, PRESIDENT & CEO
MEMBER BROKERAGE SERVICE LLC
A MELROSE CREDIT UNION SERVICE ORGANIZATION
Other drivers and your car
Is your personal car covered if someone else is driving? The following information is for Personal Autos and does NOT apply to commercial or TLC Insurance.
The comprehensive and collision sections of your auto insurance policy are attached to your car, not to you. Most insurance policies with comprehensive coverage will cover your vehicle if another person is driving it.
In addition, an auto insurance policy’s liability coverage follows the driver of the vehicle, not the car. Therefore, if you loan your car to a friend who has his or her own auto insurance policy, that person is protected under his or her own policy.
Before you offer to help a friend in need why not give your agency a call? It will review your auto policy to make sure you have all the insurance coverages you need to make sure you and your car and your friend have the needed protection.
Some other things to consider before you hand over the keys:
- Is the person you are lending the car to a licensed driver in good standing with his or her own auto insurance policy? Is the driver a newly licensed individual in your household? Any new drivers in your home need to be added to your policy before they get behind the wheel of the car.
- Remember, if you have a question about your auto insurance policy—call your agent. He or she will answer your questions, give you peace of mind and allow you to go about your day with the knowledge that you will be covered should something happen to your vehicle.
Coverage limits for teens and parents
It’s always an anxious time when your children are learning to drive. In addition to worrying about their safety, there are also financial implications to consider. Anticipating higher insurance rates, many parents look for ways to cut costs when obtaining coverage for their children.
Some people think they may be able to save a few bucks by allotting much lower limits to children driving under their policy. While doing so may lower your premiums it is a dangerous gamble to make. It’s widely known that teens in their first few years behind the wheel are more at risk for serious accidents than all other drivers. Should the unthinkable occur, legal, medical and repair costs could easily exceed those low limits and leave you responsible for covering some enormous bills on your own. It’s usually best to apply the same limits across the board for all drivers on an auto insurance policy. Extend the same protection to your children that you have for yourself.
Adding a teen driver to your policy will affect your premium, but there are a number of other ways we can help you stretch your insurance dollar when adding a child to your auto policy such as discounts for multiple cars, assigning the most at-risk driver to a low value vehicle, earning good grades, defensive driving courses and more. You don’t have to skimp on coverage. Contact your agent for the strategy that best fits your situation.
Technology while driving: New dangers, novel solutions
Recently, many auto manufacturers (undoubtedly in yet another step toward one of the many dystopian, machine ruled futures predicted by science fiction) have begun incorporating technologies which remove some control from human drivers and gives it to the cars themselves. Increased potential for robot Armageddon aside, according to Highway Loss Data Institute data, these technologies—such as electronic stability control, forward collision avoidance systems, adaptive headlights and others—are associated with reduced number and severity of crashes.
- Electronic stability control uses computer controlled braking to minimize the risk of rollovers and other crashes that tend to occur during sudden stops.
- Forward collision warning systems notify drivers when their vehicles are closing too quickly on traffic ahead, i.e., when they are about to crash. Some of these systems even trigger autonomous braking if the driver doesn't respond in time.
- Adaptive headlights take into account vehicle speed, steering wheel position and other factors to aim light where the vehicle actually is going, rather than simply straight ahead, to help drivers better see around turns in the dark.
HLDI found significant reductions “in claims under property damage liability insurance which covers damage caused by the insured vehicle to another vehicle, and collision insurance, which covers damage to the insured vehicle” as well as falling “injury claims of all types, both for injuries to occupants of the insured vehicles and to other road users” with adaptive headlights specifically.
Two technologies make a right?
We are used to technologies making for added distractions in our driving experiences. Satellite radio, video players, cell phones, GPS and more all take our eyes and our focus off the road if only for a moment. The U.S. Department of Transportation’s National Highway Traffic Safety Administration estimates that in 2010 more than 3,000 people were killed and 416,000 others injured in the U.S. in accidents attributed to distracted driving. Texting while driving is one of our leading distractions. Even though many states, including New York, have laws against it, drivers still text away.
Perhaps, technology can solve this problem too. One service, tXtBlocker (www.txtblocker.com), uses velocity and geographic algorithms to selectively disable texting and other functions whenever a user is driving. In this awkward time before machines achieve total domination, this could be a good way for parents, employers and those of us who struggle against the urge to text and drive to prevent the dangerous habit. Give your agency a call for other hints and tips for safer driving.
Insurance and the divorcing couple
Divorce is not a happy event in anyone’s life and our agency wishes none of our clients ever had to endure it. But, it happens. And if it does, both parties have much to consider including their insurance. If you and your spouse are separating or discussing divorce, insurance may be the last thing on your mind. It may be helpful to you to call your agency and think about the following:
Your home—In most cases, at least one party in a divorce will move out of the home. If the other party remains, the current homeowners or rental policy can be maintained. However, the departing party must be changed to an “additional insured” on a homeowners policy and removed from a renters policy.
Cars—Vehicles are required to be insured in the name of the person to whom they are titled. So, as these possessions are separated, each owner should have his or her own insurance. A co-owner of a vehicle who does not live in the same household must be listed on a policy as an “additional insured.”
It’s important, too, that your auto policy identifies the permanent or legal address for any teenaged children of driving age,
and items that were scheduled, such as separately insured electronics, jewelry and other valuables will have to show the legal address of the policyholder or the children's guardian as well.
Other policies—If, as a couple, you have an umbrella policy, you should review and update it so your new situation is reflected and necessary changes can be made. Scheduled (floater) policies should be reviewed and all other items and insurable property should be attributed to the appropriate spouse’s policy.
Any life change—happy or sad—can be stressful. We encourage you to contact your agency early in the process. They can help with the details.
Are your collectibles at risk?
If you believe the movie industry’s interpretation of a typical burglary you’d think that only cash and possibly silver are targets for thieves looking to get rich. This couldn’t be further from the truth. Anything from art collections to moon rocks have been targeted by thieves.
You may have spent years and a lot of money on your collectibles. Have you thought about insurance? What happens if something happens to your collection? Anything from a natural disaster or something simple as an item being dropped is possible. Will your current insurance cover your collection?
Unfortunately the answer is not always what you’d expect. Yes, if you have homeowners insurance your collection will most likely be, at least partially, covered, but it could be grouped in with other personal property. Ask yourself, “Do I collect anything that is unusual, of extraordinary value, or special interest?” If the answer is yes, give us a call. We will determine if a special endorsement or separate insurance policy should be written for your collection. Doing an inventory of these items also is recommended. Have the items appraised, keep any sales receipts and take photos and/or videos of your collectibles. This will help in determining the type of policy you need. Store the inventory in a safe place off premises, such as a safety deposit box, and update the inventory each time you add to the collection.
After you’ve gotten the insurance you need to cover these items review the value of your collection on a regular basis, and adjust your coverage as needed. Three to five years is what is normally recommended.
Give your agency a call and get started on making sure you have the right protection for your collectibles.
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
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