Uninsured-Underinsured Motorist Bodily Injury and Property Damage

The unfortunate truth is that sometimes accidents happen, but when they do is all insurance the same?

In a word, no. You have no doubt been exposed to lots of commercials talking about “cut-rate” insurance, but what exactly does that mean?

All states set the limit for what the minimum liability coverage they will allow their residents to carry. For example CO has set the limit at 25/50/15 as of the writing of this blog in September of 2011. What that means is that each driver is required to carry at least:

$25,000 of bodily injury per person
$50,000 of bodily injury per accident
$15,000 of property damage per accident.

Anyone that has bought a car lately can understand that $15,000 does not go a long way in today’s market.

So what does this all mean in a practical sense? Say that you drove a 2010 Subaru WRX that has a Kelly blue book of $22,000, and while at a red light you are rear ended and the car is totaled but no injuries are luckily sustained, what would happen? Well that depends on the limits that the driver that hit you is carrying. Let’s say they had the minimum limits of $15,000. That leaves you $7,000 short of getting another car comparable to the WRX.

Well if you have uninsured-underinsured coverage with your policy then you will be getting a new car in no time. If you do not have this coverage then you are stuck with going after the individual that hit you for the additional loss that you sustain due to the accident. If after months of court you win, then hopefully they can pay the difference, or else your 2010 WRX may turn into something a little less sporty then you may have had in mind.

What if there were injuries suffered? When a simple trip to the hospital can cost $1,000’s for routine patch jobs, do you think $25,000 would be enough to cover you in a serious accident with serious injuries?

At DCInsurers we can help you through the insurance maze and turn their jargon into English and practical real life examples. For more information give us a call today @ 303-693-9343.

Worker Compensation Discounts

Did you know you can actually control the cost of your workers compensation policy? The more control you have, the more discounts you can take advantage of. Before we start talking deductibles, scheduled ratings, or anything else lets talk about cost containment.

At Diversified Commercial Insurers we see cost containment as a building block for all lines of insurance, but your immediate impact will be your bottom line. This is a state program that we help you navigate through that can save you up to 12.5% off of your annual premium. There are six steps to the process as listed below:

Formal declaration of a safety program

Appointment of a safety committee or safety coordinator

Clearly defined safety rules

Safety training

Use of designated medical providers

Written policies for claims management
This is a comprehensive program that DCI has created a simple way to help you apply for the designation from the State of Colorado. We have helped our client base become more competitive in the marketplace by driving down their workers compensation claims, call us or email us to find out how we can help you do the same.

Must Know Boat Insurance Information!

Featured In This Post:

• Surprising secrets about what is and what is NOT covered in a standard Homeowner’s Policy for your boat!
• Clear up the common confusion about the different kinds of “watercraft” insurance…most owners don’t know the answer!
• How to save money on boat insurance…
• A special kind of insurance you may need to get…depending on what you do with your boat…
• Insurance jargon demystified! What are you really getting? Find out here…
hey are called pleasure boats or pleasure crafts, but, let’s face it, sometimes they’re a “pain.” They are an expensive habit, to say the least –and potential danger comes with the pleasure. They are, after your house(s) and maybe your car(s), probably your most valued assets. You can choose to own and operate a boat, yacht or Jet Ski without insurance (although some marinas and yacht clubs won’t let you dock your craft unless you have coverage). That wouldn’t be a very smart choice, however.

☛ Note. If you have a homeowner’s insurance policy, you may have some coverage for your watercraft, but it is very, very minimal. A typical homeowners policy will pay as much as $1,000 to repair damage to your boat, but –guess what? –That damage has to occur while the boat is at your home. This is not exactly the kind of damage coverage you need. In addition, there may be some liability coverage. Some, but hardly enough.

You can gamble and not buy insurance for your watercraft, but it is a big gamble. You’re risking not only losing or severely damaging the boat in an accident without compensation, but possibly your other assets if your boat causes damage and/or injuries to other boats and/or boaters.

Lots of Options…How to Choose

Perhaps more than any kind of insurance, it really pays to shop around for coverage for your watercraft. Depending on the type of craft you have, how fast it moves, where you operate it, etc., you could find that many policies are prohibitively expensive, or don’t provide the coverage you need.

First, you need to know that there are three types of “boats.”

• Anything less than 16 feet long is usually called “personal watercraft” by insurers. This includes Jet Skis, Waverunners, Tigersharks, Wet Bikes and Sea Dog “cycle” style models, as well as Jazz and Rage “mini boats.”
• “Boats” are 16 feet to 25 feet, 11 inches.
• Anything at least 26 feet long is classified as a “yacht.”
You will find that insurers have varying appetites for these types of watercraft. For this insurance, smaller is often not better. In fact, personal watercraft tends to be more accident-prone than most kinds of boats and yachts.

Some insurers won’t provide coverage for your personal watercraft at all or won’t unless it is part of a larger policy. For some owners of personal watercraft, an insurer that specializes in this type of risk will be the best bet. Your policy should include coverage for injuries to you and your passengers, the craft itself, liability (for damage and injuries to other crafts and people) and theft.

☛ Note. If you use your watercraft for water-skiing, you need to get coverage for this exposure as well. (It usually needs to be added to a standard policy.) You can also get coverage for the trailer(s) you use to transport the watercraft.

Insurance for Powerboats, Sailboats

In the insurance world, “boats” are usually smaller powerboats and sailboats. Standard policies for boats cover damage to the craft, usually on what is called an “all-risk” basis. In this case, all-risk includes damage caused by fire, lightning, theft, vandalism and windstorms.

The coverage is usually available for the boat itself, outboard motor(s), the boat’s trailer and personal property on the craft that is part of the normal operation of the vessel. Some insurers offer separate coverage for fishing equipment, cell phones and computers that are aboard the boat.

The standard boat policy also provides liability coverage, which is usually offered in increments of $100,000 to as much as $1 million. Therefore, it is similar to auto insurance liability in terms of what is available.

Most standard policies also cover medical expenses incurred by you, your family and any other passengers on the boat. Some policies also provide coverage for injuries caused by uninsured boaters or by those boaters who don’t have enough insurance. If this sounds like uninsured motorist coverage in an auto insurance policy, it basically serves the same purpose.

☛ Tip. If you’re shopping for boat insurance, it’s wise to consider only those policies that offer this coverage. Discuss this with your agent.

Insurance for Yachts

If your watercraft is 26 feet or longer, you will need to buy yacht insurance, which provides basically the same coverage as boat insurance, but the terms are different. Under a boat policy, coverage for damage to the craft is called “physical damage.”

Under a yacht policy, the term is “hull.” Liability coverage under a yacht policy carries the name “property and indemnity,” which insurance people often abbreviate to P&I. As with boat liability coverage, P&I is available in increments of $100,000. Depending on the size of your craft, you can buy P&I limits from $2 million to as much as $50 million.

☛ Note. Like boat insurance, you should seek a yacht policy that offers coverage for medical

payments (for you and your passengers) and uninsured boaters. The cost of your boat or yacht policy is based on a variety of factors: horsepower; how fast it moves (it can cost as much as 50% more to insure a speedboat than it does a sailboat of similar size); where it is to be used; age of the craft and experience of the vessel’s operator.

☛ Tip. Insurers often offer premium discounts of 5% to 20% to those boat/yacht owners who have taken an approved boating safety course. (In some states, such courses are required to operate a boat or yacht.) Premium discounts are available, from some insurers, for newer vessels and protective devices (depth finders, ship-to-shore radios, burglar alarms). You can also save money on the policy by electing to take a higher deductible.

Like boating itself, watercraft insurance is not cheap. As such, it truly pays to shop around. There are a lot of different policies and coverage options available. Some policies might be significantly cheaper than others, but they don’t offer the coverages you need.
• Tip. This is a complex area of insurance with lots of options. Talk to your agent. Let him or her assess the many options out there and find the coverage that best suits your needs and best protects your assets, particularly that pleasure craft you love so much.

Be a smart consumer…but don’t try to be your “own agent.” Protection for you and your family requires constantly vigilance….and a partnership between you and your professional agent. For the latest information on how to save money AND get the best protection for yourself and the people you care most about call Sentena & Associates at (303) 693-9343.

7 SIN’S CAR INSURANCE BUYERS MAKE

So you’re shopping around for auto insurance. What do you need to know? Well,
there are lots of ways – at least 7– that you can save money. Many of these money saving
ideas may apply to you.
1. You Insurer Your Home With A Different Agent – Do you have a homeowners or
renters insurance policy? If so, is it with the same insurance company that provides
your auto insurance? If the answer is no, you’re paying too much – for both policies.
Almost every insurance company that sells auto insurance wants its policyholders to
also buy homeowners or renters insurance from that company.
These insurers offer so-called multi-policy discounts. Usually, these discounts are at
least 10% and some insurers apply the discounts to both the auto and the
homeowners/renters policy.
* Tip. Talk to your agent about multi-policy discounts.

2. Your Driving Record Has Improved – It’s no secret that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as “good drivers” and are eligible for discounted premiums? Some good drivers pay a lot more than others, however. Many auto insurers are actually a collection of several insurance companies in which each caters to a certain type of driver. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies. These middle people pay less than the worst drivers, but more than the best. The thing is, many of these middle people have driving records that are just as good as those who are insured by the companies that offer the lowest rates. Yet these middle people are paying more. Why? The usual reason is that they don’t know any better. No one told them which insurance company in the group had the best prices. And, probably, no one told them there was even a group of insurance companies. If you have a spotless driving record, there’s no reason you shouldn’t be paying the lowest price a group of insurance companies has to offer.
* Tip. Make sure you’re getting the best discount for your current driving record. Talk to your agent. And remember, be a
safe driver. It will save you money.

3. High-Profile, High-Cost – The type of car you drive is a major factor in what you payfor insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you’re paying more than the average car owner for insurance.

* Note. To get detailed information on your vehicle(s) – or a vehicle you’re thinking of buying – write to the Insurance Institute for Highway Safety at 1005 North Glebe Rd., Arlington, VA 22201 and ask for the “Highway Loss Data Chart.”

4. Your Deductible Is Too Low: The deductible is the amount you pay before insurance kicks in if you have a claim. For example, if you have a $250 deductible and you have an accident in which your car sustains $1,000 in damage, you pay the first $250 and your insurer pays the balance, $750. The lower the deductible you choose, the more you pay. If you have assets, you can probably afford to absorb at least $250 and probably $500 if you have a claim.

* Tip. If it’s been years since you’ve had an accident, you may be better off raising your deductible and paying less each year for insurance.

5. You’ve Got Coverages You Don’t Need – Let’s say you have an older car, one not worth very much. There’s really little point in having collision and comprehensive coverages. You don’t have much to protect. Remember, too, that you have to subtract your deductible from any potential payout you might get.

* Tip. As a general rule, any car worth less than $1,000 shouldn’t have collision andcomprehensive coverage. Between the deductible and the extra expense of these coverages, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books that have values of vehicles going back many, many years.

6. Are You Getting The Discounts You Deserve – Auto insurance companies offer several discounts for a variety of reasons. The car has automatic seat beats, air bags, anti-lock brakes, anti-theft devices, etc. The driver is a good student, which is especially valuable if you have teenage children who will be on your policy.

* Tip. Make sure you are taking advantage of all the discounts available to you!7. Credit Where Is (Or Is Not) Due – Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted
premiums from several auto insurance companies.

* Fact. Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance. In some cases, with some companies, you could save money by shifting your business to an insurer that uses credit as a rating factor – even if you have a so-so or poor driving record. There is another side to this coin. If you have a poor credit history, you could save money by moving your auto insurance to a company that does not use credit as a rating factor. Most insurers do not look at your credit report at your renewal if your credit has improved since you purchased the policy you could be eligible for the cheaper rate.

* Tip. Regardless of your credit status, you should talk to your agent to make sure you have the best situation given your credit record, good or bad. Whatever your driving record or coverage needs, you should shop around, or let an experienced insurance professional shop around, for the best deal for you. There are literally thousands and thousands of coverage options from hundreds and hundreds of insurance companies. In addition, not only should you try to get the best deal you can, you also need to make sure you have all the coverage you want/need. Using an Independent Insurance Agent is usually your best bet to get the most value for your auto insurance dollar.

At Sentena & Associates, we take a personal interest in our customers. We like to share information that comes to help you protect yourself and your family from financial loss. If you have any questions, regarding this information or your insurance coverage, please contact us at 303-693-9343 or email info@dci-ins.com.