No Insurance = Lose Your Car

I just read an article on KSL.com (read it here) that talks about a new state law regarding auto insurance. If you are caught driving your car without insurance the police may impound your car. I don't know all of the logistics as to how they will determine if you have insurance or not and that will probably be a challenge for them, but I really like the idea.

I like the idea for a few reasons. First, I was involved in an accident 2 years ago with a person that had no insurance. At the time I was driving a 1988 Acura that wasn't worth much more than $300, it was a piece of junk but I loved it. I was on 5600 West in Salt Lake City turning into the Wal-Mart when someone ran a light and hit me. It didn't make sense to file a claim since my car was worth less than my deductible would have been. Luckily the person that hit me agreed to pay for the damages out of his own pocket but if he wasn't feeling so generous I would have been stuck paying the bill. I am not the only person to have had this problem. The last numbers I saw show that 14% of the drivers on the road do not have auto insurance. That means 1 out of every 7 people on the road, and you are one of those 7, have no auto insurance. So look at the 3 cars in front of you and the 3 cars behind you, one of them has no car insurance.

Hopefully this law will encourage them to go and buy insurance. Another reason that I like this law is because in time it should lower the cost of insurance for all of us. As you may or may not be aware you pay for uninsured motorist coverage on your insurance policy. In the state of Utah that is an optional coverage, but I don't think any insurance agent would recommend going without it. This coverage protects you in the event that you are hit by someone with no insurance. If the amount of uninsured drivers drops than the risk of being in an accident with one would also drop, that should mean that the rates for this coverage will also drop. You don't pay much for uninsured motorist coverage, but every little bit counts. I will write about ways to lower your insurance premium next week, maybe that will help some of that 14% find a policy they can afford. Have a great weekend, and drive safely.

More Rental Car FAQ's

I am back in Utah and happy to be home. It is kind of neat to fly over the valley just as the sun is setting. The lights are all on dotting the streets, yet there is still just enough sunlight to see the roads, buildings and parks so that you can recognize where you're at. I like to try and find the Y on the hill in Provo, and Thanksgiving Point in Lehi and the gym we used to work out at in Salt Lake. My daughter slept for the whole flight home which was a blessing because she was running all over the plane on the way there. We all loved Sea World and the Zoo, and we all got a little sun burned from being out all day. I will post pictures tomorrow, I left the camera at my house. I wanted to add just one more thing about renting cars and getting insurance for them.

One point that I didn't mention in my last post was that if you cause any damage to a rental car they are going to charge you up front for the repairs. Basically if you cause $5,000 of damage then they are going to charge your credit card $5,000 (remember you gave them your card before they gave you the keys.) It will then be your responsibility to call your insurance company, file a claim and go through that process with them. They will work out all of the details with the rental company and send you a check for the amount that they would have given to the rental company (which may be less than you were charged.) This is just one more thing to consider when renting a car. As always please check with your insurance agent before making any decisions about insurance. Check back later this week for new posts and Drive Safely!

Memorial Day Weekend

I just found out that my wife planned a trip to San Diego so we're taking our kids to Sea World and the Zoo. I wanted to post one more blog before leaving for the weekend and cover a few questions you may have this weekend. I also want to take a moment to express my gratitude for the men and women serving our country, and all those who served in the past. Thank you, we appreciate your service and sacrifice.

It looks like I am not the only one jumping on an airplane and heading out of town this weekend. I have already recieved a number of calls from my insurance clients asking me if they need to buy insurance from the car rental company when using a rental. I can't speak for all insurance companies or policies, but in general most will be very similar. You should always check with your agent, but if you carry comprehensive and collision coverages on your policy (sometimes referred to as "full coverage") than you probably don't need to get the insurance from the car rental company.

The one reason you might want to buy coverage from the rental company is because most insuracne policies will pay for the value of the car only. This means if you total the car or it is stolen, your insurance company will pay what the car is worth, not necessarily what the rental company thinks it is worth. Here's an example: You rent a 2007 Dodge Charger and someone steals it from the parking lot of your hotel. Your insurance company will see what that car is worth in that particular market, let's say $14,750, and write you a check for that amount (They use many sources to get that value such as the blue book, local classifieds and car lots.) So now that you have your check you just give that to the rental company and your done right? No, I'm afraid it's never that easy. Most rental companies have a clause that stipulates they get a new car or the value of a new car if you total theirs. That means you owe them $17,751(according to edmunds.com) but you only have a check for $14,750, that's a difference of $3,001 that you owe.

As I said before you want to speak with your agent before making any decisions, but hopefully this will help you understand the process and the reasoning behind the advice your agent gives you. Lastly, I want to remind everyone to please drive safely as there will be 2 to 3 times more traffic on the roads this weekend than normal. Everyone from Provo to Salt Lake City will be heading out.

Everyone on the road is going to be in a hurry to get to their holiday destination. Drivers will be stressed out, impatient, and to top it all off gas prices just rose an average of 4 cents a gallon across the nation this morning, so people may not be too happy. Just remember that you will get to your destination even if you need to go a little slower. Also remember that the highway patrol will be out looking for speeders and road rage more than normal because of the increase in traffic. Keep your family safe and your insurance premium low. Drive Carefully!

Making a Home Inventory List

Start Your Inventory

Many people suffer losses and then get stuck trying to remember everything they owned. Could you remember all of your possessions if they were destroyed by a flood or fire? Keeping a current home inventory will help you get reimbursed from the insurance company much faster. When you can prove what you have lost it makes it much easier for the insurance company to settle your claim.Start by making a list of your belongings, keeping track of serial numbers, makes and models. If you have original receipts or appraisals you will want to save those with your list. I have found that it is easiest to classify things by categories, shoes, jackets, electronics, etc… Call your insurance agent for more info, visit the link in the sidebar on the right, they are a local Utah insurance agency that is very helpful.

Here are few tips to get you started:

- Don't get overwhelmed

If you are a new homeowner, starting an inventory list should be pretty easy. If you’ve been living in the same house for a while though this might be a little more work. Think of it this way though; it is better to have a small list than nothing at all. Get your list started with your most recent purchases. Then, maybe the following weekend go through your house and get all of your most expensive belongings on the list. The following week you can add all of your favorite things. If you take an approach like this it is much easier.

- A Picture’s worth a thousand words

In addition to your list, you should take pictures of rooms and important (sentimental and expensive) items. On the back of the pictures, describe what is in the picture and try to include the brand and price.

- Videotape it

Walk through your home and videotape your belongings. As you do, tell the camera about the stuff. If you don’t have a camera try to borrow one from a friend or relative.

- Use a computer

Use your computer to manage your list. You can buy personal finance software packages that have a homeowners room-by-room inventory program. Or, to save money you can create a spreadsheet on excel. It doesn’t matter how nice the list looks as long as it has the important info your insurance company will need.

- What to do with the list

Once you have your list you will want to make sure it is kept in a safe place. The shoebox in the top of your closet is not a safe place. Remember if your home is flooded or burns to the ground that shoebox is going with it. The best thing to do is give a copy of your list to a friend or relative that lives far away from your house. So if you live in Salt Lake, send it to someone in Provo. Imagine if a natural disaster like Katrina happened and your list was stored at your neighbor’s house. It’s probably going to be destroyed.

Utah Homeowners Insurance Basics

Home Insurance 101

Homeowners insurance provides financial protection against disasters. A normal policy will insure your home as well as your personal belongings. Some Utah home insurance policies will even cover your belongings anywhere in the world. So if you are on vacation in Paris, and your camera is stolen you can call your insurance agent back home in Provo, Utah or Salt Lake City and file a claim. Check with your local agent because many times your belongings do not have the same coverage limits when traveling.

Homeowners insurance covers both damage to your property and your liability (legal responsibility) for any injuries and property damage you or members of your family cause to other people. What this means is if your kids hit a baseball through the neighbors window your insurance may cover the replacement cost.

Damage caused by most disasters is covered although there are a few exceptions. The biggest ones you need to worry about are damage caused by floods and earthquakes. The federal government backs all flood policies and you must buy one separately. See the link for the local insurance agency in the bar to the right they offer these policies. Many people have called their insurance company when their air conditioner stops working, or when their furnace breaks. Your insurance policy will not cover maintenance issues like these.

Utah Auto Insurance

Car Insurance 101

This will give you a basic idea about your auto insurance policy and what the different words mean. Most auto insurance policies will have the same coverages so whether you live in Provo, Salt Lake, or St. George this should help you out.

1. Bodily Injury

This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued. Definitely consider buying more than the state minimum to protect assets such as your home and savings.

2. Personal Injury Protection (PIP)

This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.

3. Property Damage

This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.

4. Collision

This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $100 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you'll also be reimbursed for the deductible.

5. Comprehensive

This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.Comprehensive insurance is usually sold with a $100 to $1,000 deductible.Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.

6. Uninsured and Underinsured Motorist Coverage

This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.For more info call your local agent, or visit the site in our links section, they are a great agency.