Feb/120
Blanket Insurance For Businesses
Blanket Insurance is an insurance policy under which more than one property can be insured in more than one location. When you purchase a blanket insurance policy, you need not to specify the items covered under the insurance, as everything under a property is covered. Blanket insurance is not used to insure just property, but also things like the health of employees, theft in a particular establishment etc.
How to Get Blanket Insurance:
There are some basic requirements that you have to fulfill before you ca opt for Blanket Insurance.
1) List the Items
You need to draw up a Statement of Values stating the value and name of the items that are going to be covered by the Blanket Insurance. The SOV states the name of the item and its location.
2) Coinsurance
If you have insured property at various locations, one major problem arises at the time of payment for any accident or damage to the property. The limit of the property under Blanket Insurance needs to be looked into. If the value of the damaged property is more than what is offered under the terms of blanket insurance, then you will suffer a loss. You must remember that insurance companies keep in mind the cumulative value of the properties and items you are insuring, not the value of one single item.
What You Must Know Before You Opt for Blanket Insurance:
1) Agreed Value
Agreed value is the value that both insurer and the insurance company agree on while drawing up a blanket insurance plan. You must be very careful while stating an agreed value, as you cannot invoke the coinsurance penalty and get the insurance limit changes at the time of payment.
2) Varying Rules
Before opting for a blanket insurance cover, you must remember that different insurance companies have different rules regarding blanket insurance. Since insurance must be done on many items and properties, all under a single limit, many companies are reluctant to do it.
3) If your property is located in many different regions, then getting a blanket insurance cover becomes difficult. In fact, you may need to use many different blanket insurance covers for properties in different states and countries.
4) Blanket Highest Rate
The highest blanket rate is calculated based on the highest value item under the items covered by Blanket Insurance. This type of Blanket Insurance can be expensive.
5) Blanket Average rating
The individual values of the items covered under blanket insurance are added, and then divided by the insurance limit. The resulting amount is called Blanket Average Limit. This is cheaper than Blanket Highest Rate premium.
Many people blindly sign for blanket insurance covers, thinking it will protect all their property against any kind of loss. Before signing, you must read the fine print, and keep the above points in mind. If you find it difficult to choose a Blanket Insurance cover for your business, you can consult a small business consultant or an insurance agent.
Dec/110
Insurance Fraud – Spotting Insurance Scams
The majority of people who commit insurance fraud don’t think they’re hurting anybody directly. In fact, they think they’re hurting major corporations who have enough money that they don’t care anyway. This is not the case. In the United States, insurance scams cost an estimated $875 per person annually. It adds up to approx. $80 billion per year, and with the rapid growth of technology, it’s getting harder and harder to catch.
There are different types of insurance fraud.
One of the leading forms of insurance fraud is in our health care system. Health care fraud results in over $30 billion per year in the United States. There are two kinds of health insurance fraud: member fraud and provider fraud. An example of member fraud is when you deceive your insurance company by purposely not declaring something, where an example of provider fraud is if you were to bill for a service that was never rendered.
One fast-gorwing form of insurance fraud is automobile insurance fraud. Staged rear-end car accidents are a common form of this type of fraud. This is when a scam driver will stop suddenly in front of a car deliberately so they other car rear-ends them. Another popular scam is when there’s already an accident, you add damage purposely in the hopes to collect more money. Often times, this works, which is why it’s important to take photographs of the damage.
Another form of insurance fraud is when the beneficiary tries to collect the benefits while the insured is still alive. This is called life insurance fraud. The best thing you can do in this scenario is to know your insurance broker. When you go in to pay your premium on the insurance, don’t pay in cash. make sure you understand your policy, and if you don’t, bring it to someone who does.
And last but not least, I want to talk about fire insurance fraud. This form of fraud is very common because it’s hard to prove. If you lose your house to a fire, who’s stopping you from declaring stuff you didn’t have in the first place? There is no real way to prevent this kind of fraud. This will haunt you in your taxes and that’s about it. The best thing you can do is report it if you hear of anyone making false claims.
As I mentioned previously, the best thing you can do if you’re a victim of fraud or if you hear of any sort of fraud taking place, is to report it. You can report fraud to the National Fraud Information Center at 1-800-876-7060. I hope this article has opened everyone’s eyes a little bit to how this serious crime is affecting each and every one of us.
Dec/110
Insurance – Understanding Car Insurance
Buying car insurance can be a very big expense on the household budget, especially if you have teenage drivers in the family. Add in the fact that every state has different liability requirements and things can get quite confusing pretty quick. It’s good to know what is required and what everything in a car insurance policy means. So let’s take a quick look at what an auto insurance policy really is.
Liability
This is what protects you in the event you cause an accident and hurt someone else, or damage property. Every state has there own liability requirements. Be sure to check what your individual state requires. Let’s take an example of a policy with a liability limit of 100,000/300,000. The first 100,000 is the limit that the policy will pay for any one persons medical expenses. The next figure, 300,000, is the limit the policy will pay for all medical expenses for anyone in the accident.
It is important to note that liability coverage will not pay for any injuries or damage to your own vehicle.
Property Damage
This is the total amount that your insurance policy will pay for property that you damage if it is determined that you caused the damage. Generally, most policies have $100,000 as a property damage limit. You can increase that if you wish to. With the price of cars and property these days, it may be a good idea to increase that limit up to $250,000.
Comprehensive
This insurance coverage pays for damages done to your car. This includes theft, storm damage, fire and vandalism. This coverage will have a deductible attached. The rate for this insurance coverage goes down as the deductible goes up. This coverage will also be required on any loan you may have on the vehicle.
Collision
Collision coverage will pay you for damages down to your own vehicle in the event an accident is deemed to be your fault. If your vehicle is totaled out in an accident the insurance company will pay you the actual cash value of your vehicle. This could be less in some cases than what your vehicle is worth. Collision coverage is also required by finance companies on any loan against your vehicle.
Uninsured / Underinsured Motorist
Uninsured and underinsured motorist coverage will pay you in the event of an accident that is not your fault and the other party has either no insurance coverage, or not enough insurance. No matter what the law states, there will always be those who refuse to carry insurance. That makes having this insurance coverage vitally important.
Optional Coverages
There are many different optional auto insurance coverages that you can purchase on your auto policy. Some of these include emergency road service and rental car coverage. Both of these services can be a big help to you in the event of a claim.
By understanding the various auto insurance coverages you’ll be able to determine what exactly you need for your particular situation. In the long run this will help save you money and give you peace of mind.
Nov/110
Do You Need a Multiple Drivers Car Insurance Policy?
Everyone needs to have car insurance not just because its required by law, but because is the best way to protect your financial assets in case that you get in to an accident. But there are different types of insurance and multiple drivers car insurance is for those that have more than one car that want to insure.
One of the main advantages of getting a multiple car insurance policy is that you save more money than if you get an independent insurance policy for each car.
But lets take a step back, if what you want is multiple drivers in one insurance policy it can be easily done too, it should not cost much more since everyone will be using the same vehicle. For instance you can put your sons as drivers in your insurance policy.
Now, if you have multiple vehicles and multiple drivers you can put them on the same policy and save money. But here is how it works, if you have more vehicles than drivers you will save more money than if you have more drivers.
Is important to also keep in mind that the insurance company weight many factors of the drivers personal record and vehicle details to make a quote. For instance they want to know your age, gender, driving record, credit history, vehicle model, make year, vehicle mileage and other things.
Also young people under 25 pay higher rates than older people, because they statistically cause more accidents.
There are ways to save money on your auto insurance, you can reduce your mileage, take a driving course, use a cheap vehicle, have a good credit score, increase your deductibles to lower your premium, etc.
You should ask your insurance agent for special discounts available, for instance some companies provide discounts for not driving at night, taking a defensive driving course, having good grades, etc.
Now, all you have to do is compare rates online from the leading auto insurance companies and choose the one that best fits your needs and budget.
Nov/110
Minimum Car Insurance Requirements
Any vehicle that is driven on the road must be covered by auto insurance. Car insurance contains a number of protections for the driver and his or her passengers. Depending on your state, it may include coverage for your injury costs if you are hurt in an accident, and also coverage to pay for the other party’s injuries and damages if you are found to be at fault. These are all important protections that may seem unnecessary most of the time, but if you have an accident the proper coverage can save you much personal, financial, and legal grief.
What is the Minimum Coverage?
The minimum insurance that you must carry on your vehicle depends upon the state in which your vehicle is registered. Each state has its own insurance laws, which determine the mandatory minimums for insurance coverage. As an example, the minimum coverage requirement for Illinois is outlined below:
Bodily Injury Liability: This portion of coverage is used to pay for injury costs of the other party, if you are involved in an accident and are deemed to be at fault. Liability coverage protects you from being sued for injury costs. The minimum coverage required is $20,000 per person or up to $40,000 for an accident. Property Damage Liability: This type of coverage pays for damage to the other party’s vehicle if you are found to be at fault in an accident. The minimum amount of insurance that you must carry is $15,000. Uninsured Motorist Bodily Injury: This coverage is used to pay for your injury costs if you are hurt by an uninsured motorist. Since an uninsured motorist has no liability coverage to pay for your injuries, your own insurance company will pay for your injuries under this coverage. The minimum that you must carry is $20,000 per person and $40,000 for an accident. These minimum insurance limits are designed to protect you as a driver or passenger when you are involved in an accident. While these coverages are important, you may opt to purchase additional coverage to protect yourself and your vehicle under other scenarios. For example, collision coverage is an optional insurance that you may elect to have to cover your vehicle damages if you are in an accident that cannot be deemed the other party’s fault. Likewise, comprehensive coverage protects your vehicle in non-collision accidents, paying for damage caused by floods, fires, vandalism, and more.
For More Information
To learn more about car insurance minimums and other coverage options that are available to you, please visit the website of the Chicago car insurance experts of Insure on the Spot today.