Ohio Teen Driver Changes

Effective July 1, 2015 there have been some changes to the laws for drivers under the age of 18 in the state of Ohio that all teens and parents of teens should be aware of.  The changes are as follows:

-No driving between midnight and 6 a.m., unless a parent or guardian accompanies the youthful driver. Those with valid documentation from work, school or church allowing for travel for activities between these hours are exempt.
-No driving with more than one non-family member in the car
-All passengers must wear safety belts at all times
-Prohibits the use of mobile communication while driving

For more details about this change check out this article from the Ohio Insurance Institute. 

Why "Spending 15 Minutes or Less" Can Hurt You

Buying insurance is one of the most important decisions you’ll make. Who you buy it from can be the difference between devastation and recovery when disaster strikes.

We are grateful that you chose to buy through an independent insurance agent.

Today’s TV and media ads bombard you with the message that purchasing insurance is as simple as grocery shopping. In truth, it’s not. You can’t pick a product off the shelf and be on your way.

Finding the right coverage requires due diligence on your part and ours, something you can’t get from a 15-minute phone call, a celebrity or even a talking lizard.

 

Why do people prefer independent agents?

Consumers feel the difference. Almost 60 percent of consumers who purchased insurance through a direct channel 10 or more years ago reported switching back to an independent agent because they wanted more value, according to a 2013 study conducted by InsightExpress, an independent marketing research firm.

Consumers switched back to an independent agent because they wanted one point of contact to handle their insurance questions and needs. They wanted guidance from an experienced insurance professional, the study said.

That’s what we do. Independent insurance agents represent multiple insurance companies. We are familiar with underwriting styles and have researched the nuances of numerous policies.

 

Risk management is key

We also provide advice on the ins and outs of risk management, meaning we explain coverage options and how having or not having that coverage could impact your entire situation.

Our philosophy is to look at the big picture. We believe your insurance program is there to protect all of your assets. What you choose for one type of coverage, such as auto insurance, can have an impact on all of your assets.

Some competitors will lure you with a lower rate on a single type of insurance, but less coverage. You may think you got a deal, but you could get burned later.

When our clients ask for a quote, we don’t just do the comparison shopping and run the numbers – we strive to find the best coverage and rates for your particular needs.

 

How things go wrong

Independent agents offer a complete package, whereas some competitors are interested in only one piece. For example, they might sell auto insurance and tell you that insurance shouldn’t be “bundled.” Looking at it piecemeal instead of as an entire solution is where we’ve seen clients get hurt.

Imagine you purchased lesser coverage through a company that said they’ll take 15 minutes to save you money on auto insurance. When you signed up, the representative didn’t ask about the value of your home or tell you that your level of coverage should involve looking at the value of your assets. Later, you cause a major car accident. Your auto insurer writes a check that doesn’t cover the victim's expenses, and with that, the insurer’s obligation to you is over. But this doesn’t cover a hurt passenger’s expenses, so he sues you for $1 million. If your home is your biggest asset, you face losing it and your savings.

 

When you work with an independent agent

In that scenario, we could have helped and suggested umbrella coverage. But with a telephone or online quote, this may not have been an option. Our agency is here for you throughout the life of your policy. We answer questions, handle issues and adjust your coverage as needed. To file a claim, you call us, not an 800 number. We advise you and walk you through the process. Personal attention is part of the package.

Our competitors are at a disadvantage because they sell for a single insurance company and are limited to the options offered by their employer. Bottom line, our competitors represent their insurance company. As independent insurance agents, we represent you. 

Insurance Tips Before and After A Disaster

“If only I knew.” Four words spoken after disasters by people who’ve learned they don’t have the insurance coverage they thought they had. In our agency, we never want you to be in that situation, so here are some tips to help.

Advice you need before a disaster

You might have purchased your insurance a long time ago. Do you remember the coverage choices you made and your deductibles, endorsements and exclusions? These details can make or break a family after a disaster, so take a few minutes to call us to see if your coverage fits your current needs. Be sure to report life changes and significant purchases or home improvements.

Do you know how much coverage you have if your home or possessions are damaged by rain, hail, lightning or tornadoes? If your roof was damaged in a storm, would it be repaired or replaced? How soon after a storm do you need to report a loss? Are you aware that most renters and homeowners policies don’t cover floods or earthquakes? Do you have loss-of-use coverage in case you have to vacate your home temporarily? If a tree falls on your car, do you have the right auto coverage?

If you don’t know the answers, it’s important to call us to learn what your policy specifies.  Another helpful tip is to create a home inventory every few years. It sounds like a headache, but anyone who has filed a claim will vouch for its value, and technology has made the process quick and easy. Videotape or photograph your possessions room by room. Get close-ups of valuable items, and keep receipts. Create an inventory by downloading an app or using a website like knowyourstuff.org, recommended by the Ohio Committee for Severe Weather Awareness (OCSWA). Store this inventory on the web or somewhere outside your home to keep it protected.

Insurance tips for after a disaster

Inspect your property and vehicles. Make a list of what is damaged and how. Take photos for documentation. And report your loss in a timely manner. Also take steps to protect possessions from further damage after the disaster.

If you need to move out of your residence temporarily, provide us with a phone number where we can call you. Find out the monetary limit your loss-of-use insurance covers before you choose a hotel. When you file a claim, back it up with written estimates and your home inventory information.  Prepare now, and your family will be grateful if there ever is a disaster.

Rental Car Insurance: Buy or Not Buy

During the summer our agency receives a lot of phone calls from clients who are sitting at the airport getting ready to sign up for a rental car. The rental car employee has just asked them if they wish to purchase the “extra” insurance from the rental car company, and they are not certain if their personal auto insurance protects them on rental cars or not. So they pull out the cell phone and call Fey Insurance Services. Our answer is always this, “It is not a black or white answer.

Unfortunately it is a gray answer so we recommend you purchase at least the “Collision Damage Waiver”. Normally the client is somewhat confused on what the “gray” answer is but the beach is calling and they want to get on their way. So, I thought with this blog article I would hit on two reasons why it is a “gray” answer when it comes to purchasing insurance from the rental car company on a rental car.

The first reason is contract language. Two contracts would be involved if you did not purchase rental car insurance from the rental car company. The contracts would be the one between you and the rental car company (the one you sign in order to rent the car) and the contract between you and your personal auto insurance company. Each of these contracts can be different depending on which rental car company you are using, which state you are in and which personal auto insurance company you have. Because of this there are all kinds of possible gaps in insurance coverage. An example gap is “loss of use”. A number of rental car companies will charge you for the loss of use of the car while it is in the repair shop after you caused an accident that damaged the vehicle. This means that if it takes a week for the car to be repaired they will charge you a week of rental. Some insurance companies do pay this extra cost and some don’t. Gaps like this can be avoided by just spending the extra money on “Collision Damage Waiver”.

A second reason we feel it is a gray topic and you should just purchase the extra coverage is that often times you drop off a car after your trip and no one from the rental car company is present to help you check for damages to the car. We have had a couple of cases where our clients received a letter from the rental car company seeking money for a ding or scratch. They swear they never caused any damage to the car. Unfortunately, when they turned the car in there was no one to sign off that the car was returned undamaged. So, when another vacationer in an unfamiliar car at an unfamiliar airport (who is late for their flight) pulls in next to you to drop off their rental car, and they bump into the car you had just dropped off twenty minutes ago, you have no way of proving you where no longer responsible for the vehicle when the damage occurred.

So we recommend you play it safe next time you rent a car and purchase at least the “Collision Damage Waiver”.

Auto Liability Basics

Auto insurance liability limits come in a few different forms as well as in many different levels. The two main forms of auto insurance liability are “Split Limits” and “Combined Single Limit”. One main thing to first understand about auto insurance liability limits is that these limits are what’s used by the insurance company to pay out on your behalf the damages that you cause to someone’s body and or property. Auto insurance liability limits are not used to pay money toward your injuries or property damage. Those coverages are auto insurance medical payments coverage, comprehensive coverage, collision coverage and uninsured/underinsured motorist coverage. We will not be addressing those items in this blog post.

Split Limits have three different ceilings or maxes that the insurance policy will pay out. Those three different maxes are “bodily injury per person”, “bodily injury per accident” and “property damage”. Often you will see insurance policies with split limits of $250,000 bodily injury per person and $500,000 bodily injury per accident and $100,000 in property damage. What this means is that if you cause an auto accident the most that one individual will get for their bodily injuries is $250,000 from your insurance policy. If there are multiple people in the other party’s vehicle then the most the policy will pay out is $500,000 in bodily injury to all involved. Accidents that you cause will usually result in property damage to others and $100,000 is the max that the above example limits will pay for someone else vehicle or property.

 

Combined Single Limit still covers bodily injury and property damage but there is only one lumped together limit for the policy. For example if you have a $500,000 combined single limit policy than the most the other party will receive for their bodily injuries (no matter how many people are in the vehicle) and property damage that you cause is $500,000. There is not a per person limit sublimit nor a property damage sublimit.

There are many different levels of auto insurance liability limits you can have. Each state has a minimum which means you at least have to have the amount they require in order to legally operate a vehicle. This limit is usually very low and in order to best protect your assets and help restore people that you cause injury and damage to we recommend much higher limits of insurance. Obviously the higher the limits of insurance you purchase the more money the insurance policy will cost but extra money you spend could be the difference in protecting your assets after a large claim or have the possibility of losing some of your assets.

Snow Emergencies Overview

With all the snow and ice today I though it would be good to have a refresher on what snow level emergencies meant. 

Find emergency classification details and Ohio law pertaining to snow emergencies online at: http://www.weathersafety.ohio.gov/SnowEmergencyClassifications.aspxSnow emergency levels and enforcement

LEVEL 1: Roadways are hazardous with blowing and drifting snow. Roads may also be icy. Drive cautiously.
LEVEL 2: Roadways are hazardous with blowing and drifting snow. Only those who feel it is necessary to drive should be out on the roads. Contact your employer to see if you should report to work.
LEVEL 3: Roadways are closed to non-emergency personnel. No one should be driving during these conditions unless it’s absolutely necessary to travel or a personal emergency exists. Employees should contact their employer to see if they should report to work. During a Level 3 emergency, drivers may be subject to arrest and/or fines.

When a Level 2 or 3 is issued, motorists are advised to seek public transportation. In a Level 3 emergency, conditions are not safe and driving is limited to emergency personnel and personal emergencies. One purpose for issuing a Level 3 snow emergency is to enable snow removal equipment to adequately clear roadways without the obstacle of motorists. Citations could be issued for reckless or unnecessary driving during a Level 3 emergency.

Rental Car Coverage

The Holiday Season brings on a lot of travel.  People are either taking advantage of time off to go on vacation or they are traveling to see loved ones in other areas of the country.  Either way they often rent a vehicle during the Holiday Season so we thought it would be a good idea to post our thoughts on whether to buy or not buy rental car insurance.  

The first question we get from customers asking about rental cars is "does my insurance cover a rental car that I rent?"  Our answer is always a "gray" answer because it just depends on the coverage they selected on their personal insurance policy, what state they will be traveling in and what rental car company they are using.  Because of this "gray" response we always recommend at least take out Collision Damage Waiver from rental car companies.  Here are four reasons why this is always a safe option:

1.  Chance of claims is higher when traveling:  In our opinion the chance of a claim when you are driving around an unfamiliar city are much higher then when you are around your hometown.  You are not often sure of where you are going so you may spend more time looking at road signsor GPS devices instead of focusing on other vehicles.  

 

2. Claims paid out by your own policy can cause your rates to increase:  As mentioned in item 1, the chance of a claim is higher when in unfamiliar areas and if you were to have a claim and did not buy the Collision Damage Waiver than the payment of the claim would come from your personal auto policy.  This could cause your rates to increase.  If, however, you had purchased the Collision Damage Waiver from the rental car company the damages to the rental car would be paid by the rental car company and not your personal auto policy.  This would help preserve your claims history.

3.  Your auto insurance deductible would apply:  If you have a claim and need to go under your own insurance, often your auto policy deductible would apply.  If, however you take out the Collision Damage Waiver there would be no deductible.

 

4.  Dealing with out of state accidents is difficult:  If you were to cause an accident while on vacation you would have to work with the rental car company on getting their car fixed by your insurance company (again, assuming you didn't purchase the Collision Damage Waiver).  You also run the risk of them automatically charging the damages to your credit card which some rental car contracts let them do.  If you did have the Collision Damage Waiver, however, you would just simply turn the car over to the rental car company and they would then deal with all the repairs and not bother you with getting payment for the damages.

It is because of these four points that in Fey Insurance Service's opinion it is always good to purchase the Collision Damage Waiver from the rental car companies.  If anything it gives you peace of mind during your Holiday travels.