REPOST: You Can Save Hundreds On Car Insurance. But Is It A Good Idea?

Shopping for cheaper traditional types of car insurance with the sole focus on cost instead of appropriate coverage could drive consumers to the wrong type of policies and limit their options for better coverage. Read the article below to learn how you could take advantage of online auto insurance sites while getting the coverage you need without putting your credit score on the line.

It seems the auto insurance industry is on the cusp of a transformation.

Tracking devices are beginning to come along for the ride, sending insurers information about every turn and brake of your drive. A startup called Metromile offers pay-as-you-drive car insurance (available so far in four states) to those who drive less than 10,000 miles a year. But these newfangled ways to insure are still nascent, since, according to a 2014 Deloitte report, people are wary of privacy issues and the potential impact on pricing. 

So the vast majority of people are still shopping for car insurance the old-fashioned way — and it’s as confusing as ever. The problem? The industry doesn’t have an MLS like for real estate or an ITA or Sabre like for flights, where all policies from every carrier can be compared in one place. Unlike shopping for a home or airline ticket, in order to get an actual auto insurance quote and not just an estimate, you need to give up a lot of data and access to your credit score, which the company doesn’t do until you’re close to buying because it costs money. 

Still, businesses are trying to simplify the process. In the last year or so, a few new services — websites The Zebra and CompareNow, plus an iOS app calledGo — have launched to make it easier and faster for drivers to shop for cheaper traditional types of car insurance.

The Zebra offers side-by-side comparison of more than 1,800 products from more than 200 companies across all 50 states, representing 96% of the market. That’s significantly more than competitors like 14-year-old Insurance.com, which has 17 carriers (though none of the biggest ones like State Farm). But The Zebra serves up estimates, not actual rates. CompareNow offers actual rates, not estimates, but they only have 31 companies (including eight of the big 20), and in some markets, they only offer one carrier. Go is an iPhone app that can show you potentially cheaper rates within 30 seconds and also uses the motion co-processor in the iPhone 6 to come up with new offers based on your driving habits, but its quotes are much less accurate.

The biggest problem of all? These services have consumers focus on cost instead of appropriate coverage, which could lead consumers to policies that aren’t right for them.

“There are so many nuances to insurance, and people guess at the coverage levels they need and don’t realize what the repercussions are from the choices they’re making,” says Sarah Smith, the founder/broker/advisor of Options Insurance in Twin Cities, Minnesota. 

The disadvantages of these new sites underscore the fact that the smartest way to search for insurance isn’t going to be one-stop shop. Online, “people go for the cheapest option, for the lowest liability coverage, which is really dumb because you wind up exposing yourself to lawsuits,” says Liz Weston, Bankrate contributing editor and author of Your Credit Score. “On the other side of that, working with a human being is not without its problems too. Even the so-called independent insurance agents work with a definite set of companies so you’re not getting the whole universe of possible options.”

So, even if you use a service like The Zebra, CompareNow or Go, check out more than one site and also talk to a couple agents, especially those who represent more than just one company. Here’s how you can use these new services to your advantage while obtaining appropriate coverage.

The Zebra

Image Source: Forbes.com

As you input information such as zip code, birthdate, gender and miles driven on The Zebra, you can see how the latest data has influenced your quotes. At the end, you choose a prepackaged coverage level: State Minimum, Basic, Darn Good and Winning. The results turn up a couple dozen policies, at which point the you can go directly to the insurer or call one of The Zebra’s licensed agents and purchase; 80% of shoppers choose one of the prepackaged options. The site, which launched at the end of 2013, claims that the average user saves $614 a year through the service, and some have saved as much as $1,200.

Adam Lyons, The Zebra’s CEO, said, “At the end of the day, there wasn’t a good way to compare insurance, and certainly not every company in one place. Even if you go to multiple insurance companies websites, they won’t give you an apples-to-apples comparison.” Users don’t pay anything extra for the service; revenue comes from partnerships with insurance companies. Though the site serves up estimates, Lyons says that as long as the consumer doesn’t enter incorrect information about things like their credit score or driving history, the quote is 99% accurate.

CompareNow

Image Source: Forbes.com

CompareNow, owned by the Admiral Group, which runs auto insurance comparison sites in the UK, Spain and France, prides itself on offering up accurate rates, making their experience similar to that of buying an airline ticket on Kayak. You enter all your information, and then select the carrier you want, and then click through to their site to purchase it. “Whenever you see a rate on our site, it’s an accurate rate. How do we know it’s accurate? Because it came from the insurance company,” says CEO Andrew Rose.

They don’t offer multiple companies in every state, though — while they have 15 carriers in, say, California, they only have one in markets like New York or Florida. Other states where they have multiple options include Texas, Ohio and Illinois.

The site offers four prepackaged types of coverage — state minimum, gold, silver and bronze — as well as a custom option, and about 75% of customers take a prepackaged option. CompareNow said that the savings their customer had was probably the same or more than what other companies claim but Rose said he finds such metrics to be misleading anyway since the way most companies phrase it is “of those who switched and saved.” Actually, he says, “the vast majority of people won’t save money. They won’t switch for small dollars. We can save people hundreds of dollars but I hate using that metric because it’s false for most people.”

Go

Image Source: Forbes.com

With Go, which launched in September, you enter the year and type of car, zip and current premium, then hit “Get Your Quote.” A handful of quotes showing you the average premium for your location and your car — without coverage levels factored in — pop up with an exhortation to call and request a specific program. (The company declined to tell me how many insurers the app has, though it says it has “most major insurers” and listed State Farm, Allstate and Liberty Mutual.) Over the course of the year, the app will send you notifications on how to save money. For instance, if you request student discounts, it will tell you, when the new semester begins, what new student rates are available. And, as the motion coprocessor collects data about your driving habits, it may recommend new rates. Go, which declined to disclose the number of customers it has, says the average user saves $342 a year.

Since the app immediately funnels you to a few different options without going into coverage, it’s questionable whether customers are really getting the best deals, as they may call the company offering the cheapest option, but find out from the representative that the rate is higher for the coverage they are seeking. There’s no way to get an apples-to-apples comparison of the policies offered by insurers for the coverage sought.
When asked how the app accounts for coverage, cofounder and CEO Kevin Pomplum said, “That was one of the tradeoffs we had to think about in terms of our product.” Their dilemma was to either require people fill out a lengthy form that went into details like coverage, or ask for little info and deliver averages.

Inadequate Coverage?

Smith, the insurance agent, says she’s seen focus on price adversely affect people’s choices: “They don’t realize that insurance protects your other assets. If you get in an automobile accident, and you’re under-insured because you bought the cheapest thing, but you caused a humdinger of an accident, they can come after your 401(k) or an inheritance or the equity in your house, just because you wanted to save a few bucks on your coverage and someone didn’t explain what the repercussions were or how that coverage might protect other things or work with your other insurance.”

Some common mistakes she sees are customers requesting liability only (she asks them, “Is your car really worth $0?”) or putting roadside assistance coverage on their auto insurance because it’s cheap. But Smith recommends not doing the latter because “if you cost the insurance company money by asking for a tow, that will cost you money too, and that might affect your premium.” (On The Zebra, all three policies above the state minimum coverage offer $50-$75 worth of towing coverage, as do silver and gold on CompareNow.)

Smith also noted that The Zebra’s packages all had a $250 deductible, which is too low. “Any claim impacts your premiums. I promise,” she said, recommending a $1,000 deductible. Plus, these services don’t take into account that shoppers could save by bundling their coverage with their homeowner’s or renter’s insurance. Some but not all insurers do also offer loyalty discounts to longtime customers, though a study by the Office of Public Insurance Counsel in Texas found that the longer customers stayed with their insurance company, the higher their rates.

How To Buy Insurance

In the end, coverage should be tailored to the individual situation, taking into account not just your personal/family situation, which could affect the type of coverage you’d want, but also whether you could bundle more than one type of insurance together. So, start your search online by first learning about the different types of coverage — collision vs. comprehensive, uninsured, underinsured, etc. — to get a sense of what you need, and then go to comparison sites like The Zebra, CompareNow and Insurance.com. (Go is more limited in the range of options provided.) Finally, talk with an agent or two, describing your personal situation to see what policy and coverage levels are right for you.

“An experienced insurance agent will be your better bet if you have a more complicated situation, if you need multiple types of insurance, like homeowner’s and hurricane or earthquake or flood, to walk you through what you need and make sure your coverage is right and help you update it over time,” says Weston.

Finally, when winnowing your choices, find out how well and how quickly the company processes claims. You can inquire with the state insurance commissioner to find out the “justified complaint ratio” and see if you can get a bead on which companies to avoid.

After you’ve made your choice, don’t let inertia take hold. Comparison shop for new rates every year because companies constantly change their policies and rates.

“A company might lower rates to get more of the market and then realize they have too much exposure, so they raise their rates to shed some folks,” says Weston. “That’s one of the things that make it hard to shop for insurance. Not only are the companies so different, but the policies are changing all the time.”

Freeway Insurance is known worldwide as a trusted car insurance broker providing consumers unlimited possibilities for their choice of insurance coverage– from the most basic to premium plans. As an auto insurance expert, the company concentrates on what’s best for your situation and needs regardless of where you live in the United States. Visit this website to consult one of the company’s expert advisors about the wide range of options for your insurance needs.

REPOST: Indiegogo is testing an insurance fee that could give backers peace of mind

Crowdfunding website Indiegogo has introduced a new insurance option for its project backers. For a $15 additional insurance fee, backers are guaranteed to receive the items they have supported or take their money back if the product doesn’t arrive within three months. Mashable has the full story below:

Image Source: mashable.com

Crowdfunding websites don’t always have the best reputation. There’s no real guarantee that backers will ever receive the items they’ve supported, and we’ve seen this time and time again with failed, fully-funded projects across various platforms.

It’s widely believed that Indiegogo is the less reliable rival to Kickstarter, but now, the site is testing out an insurance option on a specific project to give backers peace of mind when putting money into it.

Indiegogo confirmed to Mashable that a stress-management wearable called Olive is the first project on the site to offer product insurance. If you spend an additional $15 for insurance, a backer is guaranteed his or her money back if the product doesn’t arrive within three months of the estimated delivery date.

The optional insurance, which costs $15, was first spotted by TechCrunch.

“Indiegogo regularly develops and tests new features to meet the needs of both contributors and campaign owners,” a company spokesman said in a statement to Mashable. “This pilot test is currently limited to this individual campaign.”

The Olive device, which monitors heart rate, temperature and suggests stress management exercises, has already met its $100,000 backing goal, with nearly $180,000 of funding.

Image Source: mashable.com

Even though Indiegogo has a sometimes-questionable track record, critics have lashed out against it for continuing to host projects that appear to be fraudulent. Indiegogo has more relaxed rules that allow flexible funding, for example, so crowdfunding campaigns can keep money without meeting their goals.

Indiegogo declined to elaborate beyond its statement that it was testing insurance fees out on the single project, so it’s unclear if this will be expanded beyond Olive any time soon.

Freeway Insurance offers a wide range of insurance options that are suited to clients’ needs and budget. Visit its official website for more information.

REPOST: Do I Need Rental Car Insurance?

Getting car insurance for owned vehicles make obvious sense, but what about rented vehicles? The Insurance Information Institute discusses the ups and downs of buying insurance for rented cars.

Image source: iii.org

Properly insuring a rental car can be confusing, frustrating and downright daunting. Unfortunately, many consumers do not even think about car rental insurance until they get to the counter, which can result in costly mistakes—either wasting money by purchasing unnecessary coverage or having dangerous gaps in coverage.

Before renting a car, the I.I.I. suggests that you make two phone calls—one to your insurance professional and another to the credit card company you will be using to pay for the rental car.

Insurance Company

Find out how much coverage you currently have on your own car. In most cases, whatever coverage and deductibles you have on your own car would apply when you rent a car, providing you are using the car for recreation and not for business.

If you have dropped either comprehensive or collision on your own car as a way to reduce costs, you will not be covered if your rental car is stolen or damaged in an accident.

Check to see whether your insurance company pays for administrative fees, loss of use or towing charges. Some companies may provide an insurance rider to cover some of these costs, which would make it less expensive than purchasing coverage through the rental car company. Keep in mind, however, that in most states diminished value is not covered by insurers.

Credit Card Company

Insurance benefits offered by credit card companies differ by both the company and/or the bank that issues the card, as well as by the level of credit card used. For instance, a platinum card may offer more insurance coverage than a gold card.

Credit cards usually cover only damage to or loss of the rented vehicle, not for other cars, personal belongings or the property of others. There may be no personal liability coverage for bodily injury or death claims. Some credit card companies will provide coverage for towing, but many may not provide for diminished value or administrative fees. Some credit card companies have changed their policies, too, so you may not have as much coverage as you thought.

To know exactly what type of insurance you have, call the toll-free number on the back of the card you will be using to rent the car. If you are depending on a credit card for insurance protection, ask the credit card company or bank to send you their coverage information in writing. In most cases, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company.

If you have more than one credit card, consider calling each one to see which offers the best insurance protection.

At the Rental Car Counter

Since insurance is state regulated, the cost and coverage will vary from state to state. Consumers, however, can generally choose from the following coverages:

Loss Damage Waiver (LDW)

Also referred to as a collision damage waiver outside the U.S., an LDW is not technically an insurance product. LDWs do, however, relieve or “waive” renters of financial responsibility if their rental car is damaged or stolen. In most cases, waivers also provide coverage for “loss of use,” in the event the rental car company charges the renter for the time a damaged car can not be used because it is being fixed. It may also cover towing and administrative fees.

Waivers, however, may become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated. If you already have comprehensive and collision coverage on your own car, check with your personal auto insurer to make sure you are not duplicating coverage you already have. Should you decide it is necessary, this coverage generally costs between $9 and $19 a day.

Liability Insurance

By law, rental companies must provide the state required amount of liability insurance. Generally, these amounts are low and do not provide much protection. If you have adequate amounts of liability protection on your own car, you may consider forgoing additional liability protection. If you want the supplemental insurance, it will cost between $7 and $14 a day.

An umbrella liability policy, however, may be more cost-effective. Umbrella liability insurance is so named because it acts like an umbrella, sitting on top of your auto and homeowners (or renters) liability policies to provide extra protection including accidents while driving your own car or one that you rent. These policies, usually sold in increments of a million dollars, cost as little as $200 to $300 annually for a million dollars worth of coverage and another $50 to $100 for each additional million.

Those who do not own their own car and are frequent car renters, can also consider purchasing a non-owner liability policy. This not only provides liability protection when you rent a car, but also when you borrow someone else’s car.

Personal Accident Insurance

Personal Accident Insurance offers coverage to you and your passengers for medical and ambulance bills for injuries caused in a car crash. If you have adequate health insurance or are covered by personal injury protection under your own car insurance, you may not need this additional insurance. It usually costs about $1 to $5 a day.
Personal Effects Coverage

Personal Effects Coverage provides insurance protection for the theft of items in your car. If you have a homeowners or renters insurance policy that includes off-premises theft coverage, you are generally covered for theft of your belongings away from home, minus the deductible. If you purchase this coverage through the rental car company, it generally costs between $1 and $4 a day.

If you frequently travel with expensive items such as jewelry, cameras, musical equipment or sports equipment, it may be more cost-effective to purchase a personal articles floater under your homeowners or renters insurance policy. With such a floater, your valuable items are protected at home as well as while traveling anywhere in the world and the coverage is broader.

Other Things to Consider

States have minimum age requirements for renting a car and most major rental car companies refuse to rent a car to someone who is under 21 and in some cases under 25. In addition, some rental car companies now investigate your driving record and/or credit history so check with the rental car company before picking up the car.

If you are planning to rent a car abroad, contact both your insurance agent and travel agent to find out what you need to do to be properly insured. Those driving a rental car from the U.S. into Mexico may find it progressively more difficult to rent a car as U.S. rental car companies are increasingly concerned about the rising crime rates in that country. The minimum required insurance coverage to drive in Mexico is civil liability insurance which covers you in case you cause injury or damage. Your American liability insurance is not valid in Mexico for bodily injury, though some American insurance policies will cover you for physical damage—check with your agent or insurance company representative. You can also buy Mexican car insurance in several American border towns; there are generally several storefronts selling Mexican car insurance near the border.

Note: If you’re renting a car abroad, you may need an international drivers license.

Visit the Freeway Insurance website for more information on miscellaneous insurance options.

REPOST: More saying ‘I do’ to wedding insurance

A lot could go wrong on a wedding day, and for many couples seeking to tie the knot without a hitch, wedding insurance seems like a logical next step. Michael Melia of the Associated Press writes.

Shannon and Justin Peach married in New Orleans, so Shannon’s mom got Hartford-based Travelers Insurance just in case. There was no hurricane, but they used the policy to claim the deposit money they could not get back from the limo driver who failed to show. The bride took a cab to the ceremony. Image source: rgj.com

With the cost of the average American wedding reaching about $26,000, insurers have been selling a growing number of policies to protect against losses from extreme weather, illness and, in one firm’s case, even a sudden change of heart.

Cheryl Winter spent $500 for Travelers Cos. Inc. to cover her daughter’s $50,000 destination wedding last October in New Orleans, where her biggest concern was a potential hurricane. The weather cooperated, but the limousine never showed up. Her daughter took a taxi cab to the church, and they used the insurance policy to claim the deposit money they couldn’t get back from the limo driver.

“No one wants to be walking in the French Quarter in a long gown and high heels,” said Winter, who lives in the Houston area.

Firm finds way to cultivate couples

The insurance is offered by a small number of U.S. companies. Insurers declined to provide data on the number of customers beyond saying they are growing steadily. It can cover losses from issues ranging from bankrupt wedding halls to cancellations forced by unexpected military deployments. Travelers says issues with vendors account for about a quarter of the claims.

For Travelers, an insurance giant with annual revenue of $26 billion, the policies will not make or break the bottom line. But the wedding insurance it began selling in 2007 is also a way to connect with a couple who might later think of the company for home insurance and other life milestones.

“It could be the beginning of a relationship with a young couple,” said Ed Charlebois, a Travelers vice president for personal insurance.

Wedsafe, backed by Aon, also offers wedding insurance, which differs little from the specialty insurance that firms may offer for other kinds of events and celebrations.

Cheryl Winter’s photo shows her daughter, Shannon, riding in a taxi to her wedding in New Orleans, after her limousine failed to arrive. Cheryl Winter spent $500 for Hartford-based Travelers Insurance to cover Shannon’s destination wedding, where her biggest concern was a potential hurricane. They used the insurance policy to claim the deposit money. Image source: rgj.com

Fraud troubles change-of-heart policy

For parents concerned about a relationship souring before the exchange of vows, Fireman’s Fund Insurance Co. offers change-of-heart insurance.

It’s been available since 2007, but the program administrator said the fraud rate soared in the early years as policies were bought for couples who were known to be fighting. That coverage now applies only if the bride or groom calls off the wedding more than nine months beforehand.

“Coverage does not exist once you hit the altar,” said administrator Rob Nuccio of R.V. Nuccio & Associates. “The only ones who were buying it were the ones who knew they would have a claim.”

Weddings aren’t the only thing that need to be insured.  From watercraft to homes and rented apartments, Freeway Insurance has it covered.  Visit the company’s website for more updates.

REPOST: 5 Ways to Save Money on Car Insurance

NerdWallet CEO Tim Chen acknowledges that car insurance is a necessity, but believes car owners should not pay too much for it. Read his advice on how to save money on car insurance in the The Huffington Post article below.

Car insurance — no one likes paying for it, but when you need it, you’ll be glad you bought it. You shouldn’t have to pay an arm and a leg just to protect your car and your finances in case of an accident, though.

Image Source: ecarinsurance.net

Saving money on car insurance is all about knowing the right moves. These five tips can help you start saving today:

1 – Compare Quotes

One of the worst mistakes you can make when it comes to car insurance is not comparison shopping. Most Americans are overpaying on auto insurance to the tune of $368 per year, mostly because they’re not shopping around, according to a recent NerdWallet study.

Car insurance companies measure risk in different ways and there are few industry standards when it comes to what poses “risk.” For example, moving just a few miles from your current location could affect the cost of your policy.

This means that it’s critical to comparison shop for car insurance, and doing it just once isn’t enough. Make it a habit to check car insurance rates once every year or two. It’s also important to comparison shop every time there’s a change in your marital status, location or traffic violations. These factors could affect how much you pay, and the only way to know if you’re getting the best deal is to run a fresh search on the rates you qualify for.

2 – Find Good Discounts

There are lots of auto insurance discounts out there, but you have to know what you’re looking for — many insurance companies don’t advertise all the deals they offer.

Image Source: www.carinsurancecomparison.com

For example, if you have a high school or college student on your insurance policy, check whether your auto insurer gives a discount for good grades. Other common discounts are offered to members of the military, those with good driving records, those who have taken a defensive driving class, and those who have cars with certain safety features.

Again, it’s important to specifically ask your insurance company about these deals, because they often won’t ask if your circumstances entitle you to one.

3 – Bundle Your Coverage

One of the easiest ways to get a discount on your car insurance is to bundle your vehicle coverage with your homeowner’s or renter’s insurance. Nearly every major insurance company offers a premium discount to customers who buy multiple policies.

Image Source: www.jaxlitigation.com

One of the main reasons that insurance companies offer this discount is to discourage customers from shopping around. Don’t fall into this trap! Get the deal from your current insurer, but don’t neglect to compare rates every year.

4 – Commit To Driving Less

One of the most frequently overlooked car insurance discounts out there is the low-mileage discount; car insurance rates are calculated based on your chances of getting into an accident after all. What’s considered low mileage varies with each provider, but it usually falls between 7,500 to 15,000 miles a year.

You can reduce the miles you drive each year by biking and walking, or taking public transit, which will likely reduce your car insurance rates, too.

5 – Achieve and Maintain Good Credit

Car insurers look at a lot of information when deciding the cost of your premium, and many drivers forget or don’t realize that credit is a factor. Achieving and maintaining good credit can help you get lower insurance rates.

If your credit could use a boost, focus on getting current with your bills and paying down your debts. Not only will these changes improve the interest rates you’ll get on loans, you’ll also likely see a decrease in your car insurance premiums.

The bottom line: Saving money on car insurance isn’t as hard as it might seem if you keep these tips in mind. Comparison shopping and asking about discounts are most effective, but other steps also can help you save money.

Freeway Insurance offers a broad range of auto insurance options to help car owners find the best plan that suits their needs and budget. Visit this website to take advantage of affordable car insurance plans.

Honda recalls more than 300,000 minivans due to brake issues

Auto and motorcycle manufacturer Honda recently announced that it would be recalling certain 2007 and 2008 models of the Odyssey minivan due to a problem which may result in the vehicle’s brakes going off unexpectedly.

Image Source: www.2007hondaodyssey.com

A combination of problems with the Vehicle Stability Assist components of the vehicle, along with those of software “unique to 2007-2008” models of the Odyssey make it possible for the VSA “to apply the brakes unexpectedly,” according to a recall document, as well as a notice from the National Highway Traffic Safety Administration (NHTSA), which estimated 344,187 vehicles to be affected by the issue. These problems may cause the vehicle to suddenly put on the brakes without switching the brake lights on, risking crashes from behind.

Image Source: www.automobilemag.com

The NHTSA began investigations into the issue back in June, following a series of complaints alleging times when the vehicles braked unexpectedly. Some of the complaints recounted that vehicles applied the brakes even as the accelerator was being used, dropping vehicle speed by as much as 30mph over a few seconds.

Honda said that prior to the NHTSA investigation, it had received two complaints of unexpected braking. It, however, was unable to recreate the event during vehicle testing.

Image Source: www.royalhonda.blogspot.com

Honda eventually discovered that the VSA sensors were mistakenly detecting a loss of control in the vehicle, causing the system to apply the brakes. In a press release, Honda says that the solution to the braking issue is the installation of new VSA sensors, which it will do for free. However, they say that the required parts won’t be available until the spring of 2014.

Freeway Insurance Services is one of the biggest auto insurance brokers in the world. Visit the official website for the latest news on automobile safety.

A timeline of insurance

Image source: icezen.com

No one needs a full basket of all kinds of insurance coverage at a given time.

As people age, they would need more kinds of insurance to cover for their growing security needs. New forms of insurance become necessary and old forms lose value for different life stages.

The youth will not need anything other than medical insurance, paid for by their parents or legal guardians. Upon becoming teenagers, they can opt to seek discounted vehicle insurance for their first vehicles as soon as they learn how to drive. This would be the only form of insurance they would need for much of their young lives until they finish high school or college, upon which they would begin working and need disability insurance for themselves and renters insurance for apartment possessions. Motorists would also need auto insurance.

Image source: homeownersinsuranceaxis.com

People would not need homeowners insurance until they finance their own homes. Life insurance is also usually postponed until marriage, or when plans to have children are laid out. Adults who assume the guardianship of under-aged relatives such as siblings would also do well with life insurance.

When adults settle into marriage, family life, and homeownership, specific insurance coverage for disasters like wildfires and floods can also be sought as protection against unexpected and life-changing events not usually covered by home insurance.

Image source: gainsuranceblog.com

Freeway Insurance offers affordable auto, renters, and homeowners’ coverage. Visit this website for more information.

REPOST: Good news: Homeowners insurance covers a “sharknado”

The popularity of the TV movie “Sharknado” – a disaster film about a water sprout that transports out of the ocean, and deposits them in residential LA, has some homeowners wondering if today’s insurance policies would cover a “sharknado attack.” ConsumerReports.org sought clarification from insurance experts and came away with positive news, which is relayed in the report below.

Image source: consumerreports.org

A sharknado is not a specifically named peril on a standard homeowners insurance policy. But would your insurer pay up anyway if, as in the instant cult classic Syfy TV movie, a giant tornado blew in from the ocean and dumped thousands of man-eating sharks on your neighborhood?

Or, to put it a bit more bluntly, if–in spite of being blown out of its habitat and short of breath–a great white aimed its massive jaws at your left bicep and tore it off, would you get reimbursed?

We asked folks at the Insurance Information Institute, an industry group, for their take on the issue. The considered opinion of several experts, including their chief economist, was yes–for the most part.

“A tornado is a wind event,” says Mike Barry, vice president of media relations. Wind events, including hurricanes, tornadoes, cyclones and other such calamities, are covered under a standard policy. But a falling shark?

“It would be covered, yes, as a falling object,” Barry confirms. In case you were wondering, damage from an errant asteroid would be covered by your homeowners insurance under the same principle.

And if your car insurance included comprehensive coverage, your car or truck would be protected against damage from a sharknado. (Barry notes that comprehensive coverage protects in the event of “contact with animals, such as birds or deer;” but why quibble over details like fur or feathers?)

As for the arm that got munched by that ferocious flying fish, you’d have to file a claim under your health insurance policy. If, however, you owned the shark and it bit someone else, you would be covered by liability insurance through your homeowners policy. From an insurance perspective, it’s not so different from a bite by a really big, finned dog.

What to do afterward

Of course, in the aftermath of a sharknado, there would be so much more to consider. You wouldn’t want all that shark meat go to waste, so you’d need to check out Consumer Reports Ratings of chainsaws and kitchen knives, not to mention freezers. And what better way to celebrate your survival than with a magnificent slab of marinated mako cooked on one of our top-rated grills, accompanied by a cold glass of a best-in-class craft beer?

Of course, if you just want to sit back and watch the kooky carnage, we recommend checking out the rebroadcast (Thursday on Syfy at 7 pm Eastern) on a top-rated big-screen TV. (Note to the sequel’s producers: Make the next Sharknado in 3-D!)

Homeowners looking for comprehensive insurance policies can visit Freewayinsurance.com for expert advice. They can also check out this Facebook page for explanations of and case studies on home insurance coverage.

Managing the tinderbox: Taking action against unforeseen acts of nature

 

Image source: turbotax.intuit.com

In some circumstances, insurance providers sometimes give an incentive for people to reduce their own risks through discounts for certain preventive actions taken, like driving safely. And while the unforeseen will continue to make purchasing some form of insurance a necessity despite all precautions taken, people can often save a lot of money (and a lot of headaches) from taking certain preventive measures to help prevent and control the damages caused by disasters.

Image source: money.msn.com

In dry areas such as the scrublands near the American west coast, wildfires are a rare but constant threat, making insurance coverage for such acts of nature necessary. The same is true for many disasters that commonly take place in certain regions, such as wind and storm damage from areas near hurricane basins and water damage near floodplains. In these cases, homeowners taking precautionary measures would go a long way in reducing damage to their properties.

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Homeowners and the like would be wise to have general coverage for unforeseeable but likely events. For instance flash floods may be rare in deserts, but desert residents near areas that have rivers that swell during erstwhile rains would benefit from protecting their homes from possible water damage if at all possible.

Unforeseen circumstances beyond one’s immediate control such as can still take a financial toll despite any precautions on part of a homeowner. Shelter nets provided by insurance providers like Freeway Insurance Services can help cover part of the damages incurred to homes. Visit this website for more details.

When business grows, insurance coverage should, too

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The good news is in: America’s economy is finally recovering from the five-year slump that plagued all its industries. Healthcare is reaching more citizens, real estate is once again a reliable investment, and businesses that may have had to close down are slowly but surely regaining their place in the market.

Of course, the trauma of the economic crisis has taught business owners a thing or two about insuring their trade against unforeseen factors. While most are securing their business through insurance, it’s important to note that the terms of insurance remain the same regardless of the state the business is in. That means, if a business is expected to grow, the terms of its insurance should be adjusted (or should be made flexible from the onset) to keep up with the size of the business.

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Protect products on and off the shelf

Owners of businesses that produce perishable goods or products with a specific lifespan sometimes feel that finding a reliable storage space is enough to ensure the longevity of their products. As an additional precaution, they should also insure their stored inventory. If any damage is done to the warehouse or the products, the business is insured against losing future revenue.

Prevent theft, tangible or otherwise

The information age has created products and services which cannot necessarily be touched. Many businesses operate online and conduct most of their transactions on the web. While payment services like Paypal and similar companies have gone to great lengths to ensure privacy, companies that engage in e-commerce should still take precautions against getting hacked. If a business does get hacked and consumer data is compromise, insurance payouts can help cover the legal fees involved in the investigation and pursuit of the culprits.

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If you’re unsure about the kind of insurance needed to protect your business, Freeway Insurance’s agents can help you find the perfect plan. Read more about the company’s services by clicking “Like” on this Facebook page.