Thursday, September 23, 2010
Stop Paying Too Much for Your Auto Insurance
Stop Paying Too Much for Car Insurance: 5 Common Mistakes You Can Easily Avoid
Reviewing your car insurance policy probably isn't at the top of your to-do list. But how about saving money? Take a look at these 5 common mistakes most drivers make when insuring their vehicles—you might be surprised at how easy they are to avoid and how much money you could save every month.
Mistake #1: Keeping Your Car Insurance Deductible Too Low
Simply put, the lower your deductible, the higher your auto insurance rates. Consider raising your deductible from $250 to $500 or even $1,000. The cost of an accident will be that much more expensive, but you could save up to 40% on the comprehensive and collision portion of your policy.
Mistake #2: Not Combining Your Car and Home or Renters Policy with the Same Insurer
With a multi-line insurance policy, you purchase both your auto and homeowners or renters insurance from the same carrier. According to the Insurance Information Institute, a multi-line policy can save you up to 15% on both premiums.
Mistake #3: Not Taking Advantage of Discounts
Most insurance companies provide discounts for a variety of things, including:
•Having a good driving record
•Being a long-time customer (loyalty discount)
•Driving a vehicle with specific safety features (e.g. Vehicle Stability Control (VSC))
•Driving a vehicle with specific security features (e.g. audible alarm, Lojack)
•Driving a low number of miles per year
It's up to you to make sure you're getting all the discounts you're eligible for, so make sure you ask your company or agent.
Mistake #4: Paying Your Car Insurance Premium in Installments
Extra "convenience" fees are often applied to payments when you split your premium into installments (e.g. monthly, quarterly, etc.). A monthly fee of even $7 can add up to almost $100 a year! So if you can afford it, pay your premium in one lump sum.
Mistake #5: Not Shopping Around for Car Insurance Once a Year
If you don't shop around for coverage at least once a year, you simply won't know if you're getting a good deal. According to an independent study, drivers who compare rates and switch carriers at Diversified Insurance Services save an average of $301* on a six-month policy.
Compare Your Personal / Commerical Auto Insurance For Free & Find Out How Much You Can $ave With Jason Shroot By Calling Today At 714-988-3325.
Mistake #1: Keeping Your Car Insurance Deductible Too Low
Simply put, the lower your deductible, the higher your auto insurance rates. Consider raising your deductible from $250 to $500 or even $1,000. The cost of an accident will be that much more expensive, but you could save up to 40% on the comprehensive and collision portion of your policy.
Mistake #2: Not Combining Your Car and Home or Renters Policy with the Same Insurer
With a multi-line insurance policy, you purchase both your auto and homeowners or renters insurance from the same carrier. According to the Insurance Information Institute, a multi-line policy can save you up to 15% on both premiums.
Mistake #3: Not Taking Advantage of Discounts
Most insurance companies provide discounts for a variety of things, including:
•Having a good driving record
•Being a long-time customer (loyalty discount)
•Driving a vehicle with specific safety features (e.g. Vehicle Stability Control (VSC))
•Driving a vehicle with specific security features (e.g. audible alarm, Lojack)
•Driving a low number of miles per year
It's up to you to make sure you're getting all the discounts you're eligible for, so make sure you ask your company or agent.
Mistake #4: Paying Your Car Insurance Premium in Installments
Mistake #5: Not Shopping Around for Car Insurance Once a Year
If you don't shop around for coverage at least once a year, you simply won't know if you're getting a good deal. According to an independent study, drivers who compare rates and switch carriers at Diversified Insurance Services save an average of $301* on a six-month policy.
Compare Your Personal / Commerical Auto Insurance For Free & Find Out How Much You Can $ave With Jason Shroot By Calling Today At 714-988-3325.
Wednesday, September 22, 2010
Classifying a Business Properly
The Importance of Correctly Classifying a Business
Print Classifying a business correctly is an important step in providing coverage for a risk because proper classification supports the rating structure and allows an insurance carrier to charge a rate that is commensurate with business exposures. If a business is not classified correctly, then a consumer will not be treated fairly.
For instance, when a business is classed incorrectly, the insurance carrier may use rates that are not commensurate with exposures, losses may be reported incorrectly which will skew the rating structure, or the policyholder may unnecessarily under pay or over pay their premium. Additionally, classification errors usually get caught at time of a premium audit which can lead to an unwelcomed surprise for the policyholder.
Some reasons why classifying a business can be challenging are outlined below.
Limited Number of Classifications
There are thousands of different businesses, but only a limited number of classification codes. Workers' compensation has approximately 700 and general liability has about 1,200. This means that a single classification code typically describes more than one specific business type.
For example, the classification of "STORE: RETAIL NOC" is a kind of generic store classification that can probably be applied to about 30 different kinds of store operations ranging from cigar stores to computer stores. Also, there are classifications that are very specific and only apply to one type of business and nothing else such as "ARCHITECTS & ENGINEERS – CONSULTING" which is restricted to businesses that only perform that particular type of work.
Unique Differences between Workers' Compensation and General Liability Classifications
Workers' Compensation
The first Workers' Compensation Rule for Classification Procedures states that we should assign the ONE basic classification that best describes the business of the employer within a state. With some exceptions, Workers' Compensation basic classifications include all of the various types of labor found in that business. The one exception as mentioned above is standard exceptions such as clerical office employees, outside salespersons, drivers, etc. Standard exceptions are named as such as they are standard for most businesses and exceptions to all the Rules that apply to BASIC classifications.
General Liability
There is no such thing as a basic class for general liability A rule does not exist stating that you have to find the one classification that best describes the business. Also, there is no rule about the classification within a state. Adding a classification is much easier with general liability than it is with workers' compensation. The rules for general liability state that you assign classifications based on the policyholder's business operations, or enterprises. Instead, you simply choose the classification(s) which best describes the operation or operations. More than one classification assignment may be necessary because one business may have multiple business operations or enterprises. A business may only have one legal entity, but may have several classifications based on their exposures to the general public.
What does this mean? A business may have only one classification for workers' compensation, but have several classifications for general liability.
Classifying a business correctly does take lost of insurance experience and knowledge. To ensure you have a commerical insurance policy that is properly set up please contact Jason Shroot @ 714-998-3325 or jason@diversifiedinsurancequtoes.com
Print Classifying a business correctly is an important step in providing coverage for a risk because proper classification supports the rating structure and allows an insurance carrier to charge a rate that is commensurate with business exposures. If a business is not classified correctly, then a consumer will not be treated fairly.
For instance, when a business is classed incorrectly, the insurance carrier may use rates that are not commensurate with exposures, losses may be reported incorrectly which will skew the rating structure, or the policyholder may unnecessarily under pay or over pay their premium. Additionally, classification errors usually get caught at time of a premium audit which can lead to an unwelcomed surprise for the policyholder.
Some reasons why classifying a business can be challenging are outlined below.
Limited Number of Classifications
There are thousands of different businesses, but only a limited number of classification codes. Workers' compensation has approximately 700 and general liability has about 1,200. This means that a single classification code typically describes more than one specific business type.
For example, the classification of "STORE: RETAIL NOC" is a kind of generic store classification that can probably be applied to about 30 different kinds of store operations ranging from cigar stores to computer stores. Also, there are classifications that are very specific and only apply to one type of business and nothing else such as "ARCHITECTS & ENGINEERS – CONSULTING" which is restricted to businesses that only perform that particular type of work.
Unique Differences between Workers' Compensation and General Liability Classifications
Workers' Compensation
The first Workers' Compensation Rule for Classification Procedures states that we should assign the ONE basic classification that best describes the business of the employer within a state. With some exceptions, Workers' Compensation basic classifications include all of the various types of labor found in that business. The one exception as mentioned above is standard exceptions such as clerical office employees, outside salespersons, drivers, etc. Standard exceptions are named as such as they are standard for most businesses and exceptions to all the Rules that apply to BASIC classifications.
General Liability
There is no such thing as a basic class for general liability A rule does not exist stating that you have to find the one classification that best describes the business. Also, there is no rule about the classification within a state. Adding a classification is much easier with general liability than it is with workers' compensation. The rules for general liability state that you assign classifications based on the policyholder's business operations, or enterprises. Instead, you simply choose the classification(s) which best describes the operation or operations. More than one classification assignment may be necessary because one business may have multiple business operations or enterprises. A business may only have one legal entity, but may have several classifications based on their exposures to the general public.
What does this mean? A business may have only one classification for workers' compensation, but have several classifications for general liability.
Classifying a business correctly does take lost of insurance experience and knowledge. To ensure you have a commerical insurance policy that is properly set up please contact Jason Shroot @ 714-998-3325 or jason@diversifiedinsurancequtoes.com
Tuesday, September 21, 2010
Flood Insurance Program Set To Expire September 30
Flood Insurance Program Set To Expire September 30
As the Atlantic hurricane season peaks, the National Flood Insurance Program is scheduled to expire again on Sept. 30 -- unless Congress reauthorizes the program.
The program has operated under a series of short-term extensions and has lapsed four times this year alone. During program lapses, new policies cannot be written, which delays thousands of real estate transactions daily.
Standard home insurance does not cover flooding. Homebuyers in flood-prone areas must purchase flood insurance from the national program for mortgage deals to be closed.
"Lawmakers need to make flood insurance a top priority when Congress returns next week," said David Sampson, president and CEO of the property Casualty Insurers Association of America, in a press release.
Insurance trade groups are calling on Congress to reform the program, now $18 billion in the red, and grant a long-term extension. The House of Representatives passed the Flood Insurance Reform and Priorities Act of 2010, which extends the program for five years, but the bill's future is uncertain in the Senate.
Please Remember To Purchase Your FLOOD INSURANCE Prior to the Sept 30th Deadline.
Please Call Jason Shroot @ 714-988-3325 For More Information & A Free Quote
As the Atlantic hurricane season peaks, the National Flood Insurance Program is scheduled to expire again on Sept. 30 -- unless Congress reauthorizes the program.
The program has operated under a series of short-term extensions and has lapsed four times this year alone. During program lapses, new policies cannot be written, which delays thousands of real estate transactions daily.
Standard home insurance does not cover flooding. Homebuyers in flood-prone areas must purchase flood insurance from the national program for mortgage deals to be closed.
"Lawmakers need to make flood insurance a top priority when Congress returns next week," said David Sampson, president and CEO of the property Casualty Insurers Association of America, in a press release.
Insurance trade groups are calling on Congress to reform the program, now $18 billion in the red, and grant a long-term extension. The House of Representatives passed the Flood Insurance Reform and Priorities Act of 2010, which extends the program for five years, but the bill's future is uncertain in the Senate.
Please Remember To Purchase Your FLOOD INSURANCE Prior to the Sept 30th Deadline.
Please Call Jason Shroot @ 714-988-3325 For More Information & A Free Quote
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