Why would I ever need car insurance if I don’t own a vehicle?

, ,

Did you know that vehicle ownership is actually declining, especially for people who live in urban areas?  Many people now prefer to use a car-sharing service or just rent or borrow a car.

The problem that arises is what to do for insurance in these instances where you don’t own a car, but use one a regular basis.

Some insurance companies offer an insurance policy now called a “nonowner” policy.  This auto insurance policy will provide liability coverage to protect you and your assets in the event of a claim.

The vehicle doesn’t provide comprehensive or collision coverage because you don’t actually own the vehicle – that coverage would be provided by the owner of the car.   One of the great features of this type of policy is that it will cover you for any type of vehicle that drive during the policy period.

Additionally, if you regularly rent a vehicle, this policy will be much cheaper than any policy you purchase directly from rental car company.

When should you consider a nonowner car insurance policy?

You rent cars often. If you rent cars for more than 40 to 50 days a year, then a nonowner policy will be much cheaper for you in the long run.  Keep mind this only provides liability coverage, though.

You belong to a car-sharing service. Car-sharing services are becoming much more popular, especially in urban areas.    And while the service will usually provide some insurance, you should still consider carrying your own policy in the event you are named individually in the lawsuit for an at-fault accident.

You borrow other people’s cars often.  When you borrow a vehicle, the owner’s auto insurance policy does cover you; however, there are instances where the person may have let their insurance lapse or they don’t carry vehicles limits high enough to adequately protect you in the event of a claim.  A nonowner insurance policy would eliminate all of those concerns.

You have a problematic driving record.  Some states require individuals carry an auto insurance policy even if they don’t own a car, but have had major driving violations like a DUI or DWI..

Usual cost of nonowner car insurance

The cost of nonowner car insurance is much cheaper than a standard auto insurance policy.   A nonowner policy assumes that you will be driving much less than someone who owns a vehicle; and, because you don’t have to carry comprehensive and collision coverage, there is a decrease in the premiums there as well.

Most nonowner insurance policies will start at $200 to $250 for a six month period.

If you live in the Denver metro area and are interested in a nonowner insurance quotes, please give our office a call at your earliest convenience.

/by

5 Tips to Save Arvada Residents on Car Insurance with Teen Discounts

, ,

Did you know that for Arvada and Denver metro residents adding a teenage driver to your auto insurance policy can cause your premiums to jump anywhere from 50 to 100 percent?

Teenage drivers have a disproportionately high amount of traffic accidents and tickets.  In fact, auto accidents are the leading cause of death for Americans ages 15 to 19.

Thankfully, there are teenage driver discounts available to help you save on your premiums.  This post is dedicated to top 5 premium discounts available to the parents of teenage drivers.

Discount #1: Good Student Discount
Most insurance companies will provide discounts for your student good grades.  The requirements vary, but basically if your child is able to achieve inclusion on the dean’s list or honor roll you may qualify for premium discounts anywhere from 15 to 35 percent.

Discount #2: Defensive Driving Course
Knowing that teenage drivers are at a much higher risk to be involved in an accident, many insurance companies are now either offering their own defensive driving classes or coupons that give you admission into a local class.   These classes have proven to improve teens’ driving, and they will also qualify you for an additional 5 to 15 percent discount on your premiums.

Discount #3: Distant Student Discount
If you have a child who has moved away from home to go to school, then you may be eligible for another discount on your premiums.   Some insurance companies will decrease your auto insurance premiums if your child has moved a certain distance away from home (usually 100 miles) and is attending school without his or her own vehicle.

While the discount is nice, we recommending working with your agent to review the details of this discount.   Some insurance companies will actually remove and exclude your child from the policy, which can create a serious risk if they temporarily come home and use one of the vehicles in the house.

Discount #4: Driving an Older Vehicle
Buying your child a used vehicle will typically result in lower premiums than new vehicle.   In evaluating a vehicle for your child, it’s also important to pay attention to the safety features provided by the vehicle.   While the older vehicle have cost less to insure, a slightly newer vehicle may come with safety features that will do a better job of protecting your child in the event of an accident.

Discount #5: Take Advantage of Technology
One of the ways that insurance companies are helping keep teen drivers safe is by providing electronic devices that actually monitor their driving habits.   For some companies it is a device that is installed on the dashboard while for others it is simply installed into the power outlet in the vehicle.

The device then monitors the drivers habits and creates a report that families can monitor.  The report will typically show how many miles the car is driven, how fast it’s driven, and how often the brakes are applied hard.

For drivers that drive safely with the monitoring device, they can qualify up to an additional 30 percent discount in their premiums.

If you would like to find out more about how these discounts can help save money on your teen drivers please feel free to give our office a call.

/by

How Does Insurance Respond to Personal Items Stolen From a Vehicle?

, ,

One of the questions we often receive is in regards to how auto insurance policies respond to personal items that are stolen from your car.  We want to spend this post providing some insight into this question.

Please keep in mind that every insurance policy is different and the information below may or may not address how your policy would specifically respond. 

What If My Laptop or Other Personal Items are Stolen from My Car?

Auto insurance does a good job of protecting, repairing, or replacing your vehicle if there is a claim.   It does a very poor job, though, of providing any type of coverage for personal items inside the vehicle.   In fact, most auto policies actually exclude coverage for personal items.

So then where do you get coverage? Your homeowners or renters policy will typically pick up the claim for stolen or damaged personal items located in your vehicle.  Keep in mind, though, the claim will be subject to the policy deductible, which will typically be either $500 or $1,000.

Our best recommendation is to avoid leaving items in your vehicle as best you can.   If you do have to leave items in your car, be sure to keep them out of plain view. Thieves will typically target those items that are easiest for them to get to.

Are My CDs Covered by Insurance if They’re Stolen from My Vehicle?

While CDs are quickly going the way of cassette tapes and being replaced by iPods or other portable electronic devices, this is still a common question we receive.

Unfortunately, the answer is your auto insurance most likely does NOT provide any coverage for CDs if they are stolen from the vehicle.   Some companies, though, will now allow you to purchase an endorsement on your policy that will provide limited coverage for the CDs.

Your best chance of finding coverage for this type of claim is to submit a claim through your homeowners or renters policy.   Many policies will provide $1,000 in coverage for “electronic apparatus, while in or upon a motor vehicle.”  However, before you rest easy thinking you are protected in the event of a claim, many insurance companies have interpreted “electronic apparatus” to not include CDs and will deny the claim.

Due to the ambiguity in regards to coverage for your CDs, we have a couple of suggestions:

  1. Check with your agent to see how your auto and homeowners policies will respond if your CDs are stolen.  It is so much better to know ahead of time how the policy will likely respond rather than waiting for the actual claim.
  2. Ask about the possibility of purchasing a coverage extension through your auto insurance company.
  3. Keep a digital copy stored on your home computer or an external storage device as a backup.
/by

Insurance Discounts for Going Green: Home

, ,
Last week we provided some discounts for auto owners with eco-friendly cars.  This week, we are going to provide the insurance discounts available to homeowners who have taken green initiatives within their home.

Homes

Insurers are helping to promote sustainable building practices by offering green homeowners and commercial property policies, including:
  • LEED Certification. For homeowners who have met the stringent efficiency and sustainability standards like the LEED Certification program will qualify for premium discounts of up to 10 percent on their homeowners insurance premiums.
  • Eco-Friendly Materials. Some homeowners insurance polices are offering endorsement to rebuild your home after a loss with more eco-friendly materials including replacing items like appliances with Energy-Star devices.
  • Solar Power.  For homeowners who generate their own geothermal, solar or wind power and sell any surplus energy back to the local power grid, there are now policies that cover both the income lost when there is a power outage caused by a covered peril and the extra expense to the homeowner of temporarily buying electricity from another source. Policies generally cover the cost of getting back online, such as utility charges for inspection and reconnection.

If you would like to find out more about the other homeowners insurance discounts available, please feel free to contact our office.

/by

Video: Questions Every Arvada and Denver Resident Should Ask About Insurance Before Buying a Home

, ,
Read more
/by

Tips for Keeping New Years Resolution

, ,

It can be daunting when your list of New Year’s Resolutions is as long as your holiday shopping list. In addition to the post-holiday slump, not being able to keep your resolutions by February, March or even late January may increase your anxiety. When your holiday decorations are packed up and stored away, the frustration of an unused gym membership or other reminders of failed resolutions can make the later winter months feel hopeless.
However, it is important to remember that the New Year isn’t meant to serve as a catalyst for sweeping character changes. It is a time for people to reflect on their past year’s behavior and promise to make positive lifestyle changes. “Setting small, attainable goals throughout the year, instead of a singular, overwhelming goal on January 1 can help you reach whatever it is you strive for,” says psychologist Lynn Bufka, PhD. “Remember, it is not the extent of the change that matters, but rather the act of recognizing that lifestyle change is important and working toward it, one step at a time.”
By making your resolutions realistic, there is a greater chance that you will keep them throughout the year, incorporating healthy behavior into your everyday life. APA offers these tips when thinking about a News Year’s resolution:

Start small 

Make resolutions that you think you can keep. If, for example, your aim is to exercise more frequently, schedule three or four days a week at the gym instead of seven. If you would like to eat healthier, try replacing dessert with something else you enjoy, like fruit or yogurt, instead of seeing your diet as a form of punishment.

Change one behavior at a time

Unhealthy behaviors develop over the course of time. Thus, replacing unhealthy behaviors with healthy ones requires time. Don’t get overwhelmed and think that you have to reassess everything in your life. Instead, work toward changing one thing at a time.

Talk about it

Share your experiences with family and friends. Consider joining a support group to reach your goals, such as a workout class at your gym or a group of coworkers quitting smoking. Having someone to share your struggles and successes with makes your journey to a healthier lifestyle that much easier and less intimidating.

Don’t beat yourself up

Perfection is unattainable. Remember that minor missteps when reaching your goals are completely normal and OK. Don’t give up completely because you ate a brownie and broke your diet, or skipped the gym for a week because you were busy. Everyone has ups and downs; resolve to recover from your mistakes and get back on track.

Ask for support

Accepting help from those who care about you and will listen strengthens your resilience and ability to manage stress caused by your resolution. If you feel overwhelmed or unable to meet your goals on your own, consider seeking professional help. Psychologists are uniquely trained to understand the connection between the mind and body. They can offer strategies as to how to adjust your goals so that they are attainable, as well as help you change unhealthy behaviors and address emotional issues.

/by

How to Prevent Winter Car Breakdowns

, ,

Breaking down is never any driver’s idea of fun, and winter weather raises the stakes. Dropping temperatures, early nightfall, and low visibility can make stopping on the side of the road especially dangerous during colder months. While nothing can replace safe driving habits and a well-stocked emergency kit, you can avoid some worst-case winter scenarios by following these easy car maintenance tips.
The Problem: Car Overheating
As surprising as it seems, overheating is a real problem in the winter. Motor oil runs thicker in cold temperatures, making it harder for it to circulate and keep your car running smoothly—and prevent it from overheating.
Prevent It: A “multiviscosity” motor oil will be better at adapting to all weather conditions. Ask your mechanic or call your car manufacturer’s customer service line to find out if you should do a winter oil change. They may recommend switching to thinner oil that’s rated for colder temperatures.
The Problem: Dead Battery
It’s harder for car batteries to produce a charge in winter–meaning it might not be able to produce enough energy to start your car when you turn the key.
Prevent It: Check your battery’s voltage with a voltmeter or multimeter before it gets too cold. (Or ask your mechanic to take a look when you’re getting your car winterized.) Roughly 12.40–12.75 volts is enough to ensure reliable startups, according to Leanse. If you live in a really chilly place, consider investing in a battery rated for cold temperatures. Look for a high CCA (cold cranking amps) count—it’s a measure of how many amps the battery can generate in low temperatures.
The Problem: Squealing Noise When You Start The Car
You left your vehicle out overnight. Your engine won’t turn over, you hear loud squealing, warning lights come on or steam starts pouring from under the hood shortly after you turn it on. Any one of these things may mean that your radiator may have frozen and cracked, leading to costly repairs.
Prevent It: Park indoors if you can. This will help prevent fluids in your engine from freezing and expanding. Also be sure to check your car’s coolant concentration before winter—it’s called antifreeze for a reason. Add it to your mechanic’s pre-winter checklist to make sure the proportions are correct and keep it from freezing. A 50/50 mix of antifreeze and water should be sufficient according to the National Highway Traffic Safety Administration.
The Problem: Bald Or Under-Inflated Tires
Your tires are your contact with the road. So it’s important to keep those maintained for driving in winter, especially when roads are slick and icy. Treads help channel snow and water away from the contact patch to help your car grip the road, and proper tire pressure helps your vehicle dig into loose surfaces (like a snowy road). Without either, your car may have trouble staying on the road or coming to a stop when you hit the brakes.
Prevent It: Check your tires before winter weather hits, and continue doing so regularly after it gets cold. It’s important that they stay properly inflated, as the air pressure can drop 2 PSI for every 10 degrees the outdoor air temperatures decreases. Use a gas station air pump to check your tires at every other fill-up during the winter. (The recommended PSI is typically printed on a sticker on the inside of the driver’s-side door.) It’s also crucial to make sure the tread isn’t worn down. To do so, try this easy trick: Take a penny and stick it into the center of the tread with Lincoln’s head pointed in. If you can see his hair, the tread depth is too low and your tires need to be replaced. Spring for some dedicated winter tires if you live in a place with severe weather.

/by

Christmas Tree and Fire Safety

, ,
Did you know that Christmas trees alone result in $130 million dollars in property damage annually? More importantly, these fires present real risk towards family and friends. When showcasing a live tree in your home, the combination of tree dryness, electrical malfunction with lights and poorly located heating sources can make for a deadly combination.
But if your holiday is just not complete without a live tree, follow these safety precautions to keep threats at bay:
  • Fresh trees are less likely to catch fire, so look for a tree with vibrant green needles that are hard to pluck and don’t break easily from its branches. The tree shouldn’t be shedding its needles readily.
  • Always place your tree away from heat sources like fireplaces, radiators, candles, heat vents or lights and keep the tree base filled with water to avoid a dry out
  • Make sure all your indoor and outdoor Christmas lights have been tested in a lab by the UL or ETL/ITSNA for safety and throw out any damaged lights.
  • Any lights you use outdoors must be labeled suitable for exterior placement and be sure to plug into a ground-fault circuit interrupter protected receptacle.
  • Keep all your holiday candles away from your Christmas tree, surrounding furniture and décor.
  • Bedtime means lights off; don’t forget to turn your Christmas tree light switch each night
  • When your tree begins to drop its needles, it’s time to say goodbye to your evergreen foliage until next year.
/by

Winter Car Features

, ,
With nearly 70 percent of the nation’s roads in snowy regions, the majority of Americans have had a “white-knuckle” driving experience in their past. Winter roads claim the lives of 1,300 people every year and injure 116,800, according to the U.S. Department of Transportation.
Fortunately, new features including forward collision alerts and lane departure warnings, are protecting Americans on slick roads. The following five features have been instrumental in protecting families on the road during the winter season.

1. Forward collision warning and auto-braking

Vehicles can sense hazards in the road, warn the driver and brake the car to prevent a crash. If a driver is following someone who slams on the brakes, for example, a combination of sensors, laser beams and cameras detect the problem and alert the driver. Assistive technology automatically applies the brakes to prevent a crash. The driver resumes control as soon as he or she applies pressure to the brake.

2. Lane departure warning system

Keeping drivers in their respective lanes on slippery roads is essential to highway safety. If a car starts to drift into another lane, the driver is alerted to the hazard by a buzzer, warning light or vibration.

3. Adaptive headlights

Visibility can be an issue on winter roads. Traditional headlights shine straight ahead, but adaptive headlights react to the steering wheel. If a driver turns the wheel to the right, the headlights follow to increase visibility.
Insurance companies have noticed a 10 percent drop in the number of property damage liability claims in cars that have adaptive headlights, according to a study conducted by the Highway Loss Data Institute.

4. LED taillights

When snow is falling, spotting taillights ahead can be a trying task. Halogen light bulbs were the standard, but now more manufacturers are moving to LED bulbs. LED bulbs outshine halogen bulbs, which gives winter drivers an edge when visibility is low.

5. Traction control

In slippery conditions, tires can lose traction and spin. The traction control feature helps tires grip such slippery roads. In wet conditions, tires can lose traction and spin. Traction control uses sensors to measure rotational speed in tires and triggers the engine to adjust the level of power the vehicle needs to regain control. If needed, the sensors can pump the brakes to keep the driver from losing control.
/by

Avoiding Pot Hole Damage

, ,

After winter or large thunderstorms, we will often find numerous new potholes. And if you’ve hit one before, you know that dreaded feeling; the heavy thud, praying the flat-tire light doesn’t come on, listening for the telling grinding of some loose part in your car. In fact, did you know that pothole damage accounts for nearly 500,000 insurance claims every year?
Here are a few tips to help avoid them:

  • Leave more space between you and the driver ahead of you. This is just general good driving practice, but it comes in handy avoiding potholes too. After all, the more space between you and the other guy, the more likely you are to notice a pothole and calmly dodge it.
  • Slow down. Ratchet your speed back a little bit to improve your reaction time. Also, hitting a pothole at lower speeds typically doesn’t cause as much, or as serious damage as hitting one at higher speeds.
  • Watch out for water. After a rainstorm or snow, potholes can fill with water. That makes them harder to see, and harder to judge how deep they are. That makes them even more mysterious and dangerous! So when in doubt, avoid them.

That’s why it’s important to stay alert, slow down, and keep an eye out, to avoid some costly damage and some serious stress.

/by