Car Insurance Feed

My Car Was Broken Into - Who Covers My Property?

Shutterstock_476952994A couple of weeks ago, I went to leave for a doctor's appointment and noticed that the contents of my console were spread out on the passenger's seat and the back door wasn't fully closed. At first, I didn't think a thing of it. It's not uncommon for my husband to need to go into my car to look for something. When I sent him a text, I learned that it wasn't him.

Although it was disconcerting to know my car had been broken into, nothing had been stolen. Fortunately, I had the right coverage had items been taken, but that wasn't the case when I had my golf clubs stolen from a friend's car. 

We had been golfing earlier in the day and when we stopped to grab a bite to eat, my friend's car was stolen - along with its contents. Although the car was later recovered, the contents were not. My clubs were gone forever.

He contacted his auto insurance carrier and we learned pretty quickly that my clubs were not covered. Even if this had been my car that this happened in, auto insurance does not cover your personal property in the car. That is the job of your homeowners or renters policy. 

It's easy for renters to dismiss the need for coverage unless their complex demands proof of coverage, but this is just one instance where this coverage is very important. Let's say you were over a friend's house for the night and you brought your computer or you move in with your significant other, but aren't yet married. You guessed it. Should something happen to your personal property, you would need to have renters insurance (or homeowners if you own the home) to replace this property. 

Do you have questions about auto, home or renters? Send us a message! 


Understanding Insurance Underwriting

Shutterstock_223155742When being presented with an insurance offer, you’re likely to encounter one of three scenarios:

  1. The offer doesn’t require an application and states that you cannot be turned down for coverage.
  2. An offer with a series of around 3-5 short questions, typically requiring a “yes” or “no” answer.
  3. An offer that includes a full application.

The first scenario is what’s called “guarantee issue.” If the product is individually underwritten, you may pay higher rates due to the increased risk to the insurance company. In a group plan (such as through an association), the rates are normally unchanged. In a plan such as dental or vision, it’s very common for the plan to be guarantee issue at all times. For life or disability insurance, these offers are usually only offered at very infrequent intervals – maybe only once every other year. These offers can be to add onto your existing coverage or to start a new policy. It can be a quick and simple way to add to your insurance portfolio with minimal effort.

The second scenario, with several “yes” or “no” questions is “simplified issue.” These questions are often referred to in the insurance world as “knockout questions” because the insurance company may consider a “yes” answer to any of the questions as disqualification for coverage. This isn’t always the case though. Certain “yes” answers may be okay or it may trigger additional underwriting activities.

Lastly, when you receive a full application, this is called “fully underwritten.” In some cases, the application information will be enough for the insurance company to approve or deny your coverage. More often than not though, they will have a paramed appointment set up with you where the company will come to the location of your choice and collect blood and/or urine samples. For very large policies, you may also have to go through financial underwriting to prove that the policy isn’t unreasonable in comparison to your assets. For instance, if you make $30,000 annually, the company may not approve a $2 million policy. It’s important to note that the fully underwritten process can take a bit of time to complete; thirty to ninety days is not completely unheard of.

We hope that this blog helps you to understand the different types of insurance offers you may receive. Of course, if you have additional questions, please feel free to comment, send a message or call us.


Grasping Insurance Basics

Home and auto_138490958Making an informed insurance purchasing decision is difficult for most consumers. One of the main problems in understanding this process is the insurance policy itself. Insurance terminology can be confusing to many people because of the inherent complexity of these products. While shopping for insurance, it is important for you to know some basic insurance terms. Understanding the following terms will help you become a smarter consumer of insurance products.

Property risks

People who own property are exposed to the risk of having their property stolen or damaged from various causes. Property coverage is provided for your home under the homeowners policy, and property coverage is provided for your car under the physical damage section of the personal auto policy.

Continue reading "Grasping Insurance Basics" »


Five of the Funniest Reasons to Get Good Car Insurance

Car accident

Happy Friday! Here are five more hilarious reasons you need good car insurance. These are actual quotes from insurance claims.

  • "I didn't think the speed limit applied after midnight."
  • "I was on the way to the doctor with rear end trouble when my universal joint gave way causing me to have an accident."
  • "On approach to the traffic lights the car in front suddenly broke."
  • "The accident was caused by me waving to the man I hit last week."
  • "Windshield broke. Cause unknown. Probably Voodoo."

    So, now that you know you're sharing the road with these folks, you probably want to check out USI Affinity's Auto Insurance site.