Auto Liability coverage

Yes, it is worth the cost!

   We all know it is illegal to drive without Liability insurance. (At least I hope you know) But why is it so important that the states require it? Is the other coverage important, even though it isn't required by law?
Does it really protect me? Yes. Yes it does. But there are many levels of protection and this is where you have some decisions to make.

 Liability Coverage

This pays for any damage you inflict, on other drivers in an accident. I never liked that word "inflict"? It insinuates you found the guy, sped up to 100 mph and rammed his car. Let me put it in a more fair sounding way. If you are found to be at fault, Liability will pay for the damage done to the other drivers car and body, or bodies if he has passengers. There is a state minimum, but other than that, you will get to pick the amount. The choices usually fall to $30/60, $50/100, $100/300, $250/$500 and so forth. These are in the thousands (so $30/60 is actually $30,000/60,000)

Bodily Injury Liability 

This pays for the cost of any injuries, including death, of a person as a result of an accident you cause. It would cover medical bills, loss of income, pain and suffering. If you end up in a lawsuit, it is important you have enough liability coverage to handle any monetary judgement that is handed down. If you do not have enough insurance coverage, you are still responsible for the remaining damages amount. Bodily Injury is only for the "victims" of the accident. It will not cover your own medical bills. Again you can choose the amount of coverage you wish to have. So think of the worst case scenario and pick the amount of coverage you want.

Property Damage Liability

This pays for the damage you and your vehicle do to another person's property. It usually used for the other car in the accident, but it also covers fencing, plants, trees and houses. It is not required in most states, but it is worth the cost. If you hit a Mercedes or someone's home, can you cover the cost of repairing or replacing?
Again you can choose the amount of coverage you wish to have. So think of the worst case scenario (like hitting that Mercedes) and pick the amount of coverage you want.

Coverages Other than Liability

Liability is a very important coverage, but it is not the only one.
Uninsured/Under-insured Coverage: This will cover the costs associated if you are hit by someone with no insurance or not enough insurance. This is not required by law, but it is a coverage I will always talk to my customers about. I have a friend who was hit by a drunk driver one night. The other driver had no insurance, nor was he a US citizen so there was no way they could go after him for damages. My friend had $50,000 in hospital bills (2 surgeries) and missed 10 weeks of work. If he didn't have Uninsured Motorist coverage, he would have had to cover those costs himself. That's a scary thought!
Collision Coverage: This covers your car if you hit anything. This is one that many people opt to reject, especially if they have older cars. It can be expensive and you will have a deductible. You need to decide if it will save you enough money in premium to cover the cost of repairs if you are in an at fault accident. Also keep in mind, if you are paying off your car, or if you have a lease, the company you are financing through will most likely require this coverage.
Comprehensive Coverage: This is also known as "other than collision" coverage. It covers your car if something hits it. This could be a tree falling on it, flooding, theft, a deer hit you. Yes, you did not hit the deer, it jumped in front of your car.
None of these coverages are mandatory, but the expense of the coverage can be far outweighed by the expense of the repairs. We call it "self insuring" and most people cannot afford to self insure. But other than the Liability, you get to decide if you want a coverage or not.
There are other bells and whistles coverage like rental, towing, stereos and rims. These coverages are meant to make your life a little easier, not as much protect you. It is always good to have coverage, but it may not be necessary to have every piece of coverage. Insurance is in place to protect you, but you have to make the decision as to how much is worth the cost.

Any questions? Please give us a call at Brockman Premier Insurance
local: 214-592-0859
toll free: 1-877-987-8683

Insurance Pricing

What affects your insurance policy pricing?

   The majority of Homeowners out there are seeing increases in their home insurance policies. I know here in Texas, home insurance prices have been on the rise for several years. We talk with so many frustrated people. Many of our leads/customers are people just looking to save some money anywhere they can. I know how frustrating it can be as a customer to get that renewal and see a price increase, knowing you didn't file a claim this year. why did your price go up? As Independent agents, our agency can offer several options. We cannot change insurance pricing. What we can do is explain what affects the pricing. You must keep in mind carriers do have the right to minimize the risk they are willing to take. If you have a loss, the carrier will be the one paying out the money to get you back in your home as good as new. And while we assume our carrier is there to protect us (isn't that what insurance is for?), they are also in this business to earn a living. So it makes good business sense that they minimize their risk. And that is what the pricing comes down to. How much the customer will need to pay to offset the carrier's potential risk of paying out a claim?
Dwelling Value
I cannot tell you how many times I have had someone ask me why their dwelling amount is so much higher than what they paid for the home. The best way I can explain this is the Dwelling amount is how much it would cost to completely rebuild your home from the ground up in case of a total loss. That is what your insurance is for. The make you whole again in the case of a loss. And you need to be protected against the risk of a total loss. 
Credit
No one likes to talk about it, but there are very few Insurance Carriers who do not price their customers based on their credit score. Whether you pay your bills on time is a big factor in assessing risk. If you have been reported to a credit collector, the risk you will not pay your insurance is greater. It doesn't matter the reason. Your credit history will follow you around for up to 10 years. 
Age, Marital status, Education
Many carriers will price their customers based on age, marital status and their education level. Younger customers are generally a riskier bet. They don't have much history, they are most likely not as well established. Married people are often considered a safer risk than single people. We all know that is not necessarily the case, but most studies will show it is. Education can be a factor, but most carriers do not weigh this on pricing.
Zip Code
This is mainly to assess related risk history in the same area. Homes on the coast are riskier than homes further inland. Homes in certain zip codes are more likely to have theft risk or vandalism, than homes in other zip codes.This is generally based on the history of the zip code and has little to do with the inhabitants.
Protection Class
Your PC is based on the ability to fight a fire if your home should burn. How close is the first responding fire station? How close is the nearest fire hydrant? A PC of 1 is the best, while a 10 is a higher risk and usually more expensive to insure. If the carrier will even in sure it. Many will not insure a PC of 9 or 10. And if it is a high value home (Over $750,000), many carriers require the first responding fire department be within 5 miles of the home.  
Age and Condition of the home, when it was purchased
There are carriers who specialize in newer homes and there are carriers who specialize in older homes. The condition of the home, specifically the roof, the plumbing and the electrical can greatly affect the pricing. If you have and older home that has not been updated, you are limited in the carriers who will write your policy. Being a new home owner can get you a discount with most carriers but the discount will diminish after the first few years. But being a home owner with a long, stable history can lower your pricing for the life of the policy.

There are many other factors that go into your home insurance policy pricing. If you have questions about your policy- it's coverage and/or pricing- I urge you to call your agent. Agents are here to support you. We may not always give you the answer you like (yes your rates will go up sometimes!) But hopefully, we can answer your questions and help you understand why you are paying the price you are paying. 

If your agent can't answer your questions, why don't you give us a try?
For information on our agency, please visit our website at www.wekeepuinsured.com
Or contact me at nancy@brockmanpremier.com   
We would love to answer any questions you have and help keep you insured!

Nancy Brockman, Owner
Brockman Premier Insurance