Insurance Tips

Personal or Commercial Car Insurance: Which Is Right For You?

If, like many Americans, your family car is also used for purposes that could be considered commercial use, you may want to steer yourself into a chair and look over your insurance policy.
You’ll need to consider buying a commercial policy or making sure that your existing personal auto policy covers the vehicle for business use. Whether or not you need a commercial policy depends on how you use your vehicle and what company you have it insured with. Every company has different guidelines and may surcharge for business-use coverage on a personal auto policy.

If you’re not sure whether business use is covered on your personal policy, it’s important to call your insurance company or agent. The Progressive Group of Insurance Companies has put together these four questions you may want to ask:

1. How do companies determine commercial use? One definition could include “engaging in transporting goods for compensation or a fee,” which includes pizza or newspaper delivery, catering, door-to-door consulting services, landscaping or snowplowing services, logging business, day care/church van services or farm-to-market delivery. People who do these kinds of work should consider purchasing a commercial vehicle policy.
2. Do you need more liability coverage than a personal auto policy provides? Generally, a commercial auto policy offers higher limits of liability, but less or no coverage in areas that are typically not associated with commercial auto risks.
3. Do you need special coverage for situations encountered while conducting business? Commercial auto policies usually offer these coverages, and they’re normally not available with personal auto policies. These include hired and nonowned auto coverage and coverage for towing a trailer for business use.
4. Do you need to list any employees as drivers? Commercial auto policies allow you to list anyone that you employ. You don’t have that option with a personal auto policy. In general, you’ll need commercial auto coverage if the vehicle you use is owned by a corporate partnership or driven by employees, or if it’s used to haul tools or equipment weighing more than 500 pounds, make deliveries or heavy enough to require state or federal filings.

For more information about commercial auto insurance, contact us.

Commercial Insurance 101

If you own a business, it’s important to match the insurance you carry to the company you keep. Doing so can save you time and money down the road.

“Anyone who owns a business with a commercial automobile needs to have coverage that is appropriate for the industry and the size of the business,” says Brett Stalnaker of The Progressive Group of Insurance Companies. “An independent agent who specializes in commercial auto coverage can provide business owners with the kind of advice they need to make the right choice.”

Here are some tips to help you find commercial auto insurance:

• Get objective advice. There are different types of insurance agents. A captive agent represents only one insurance company. Independent agents represent a number of different insurance companies. Independent agencies like Elliott Insurance tend to be more flexible, because they can offer coverage options from various insurance companies, increasing your odds of getting the combination of coverage types, rates and service that fit your business needs.
• Seek referrals. These can come from professional organizations or other contacts such as other business owners. Chances are other business owners in your industry can recommend an insurance company that they’ve worked with.

One size doesn’t fit all when it comes to business-related insurance. A business that you start in the dining room or garage with just one vehicle can grow to the point where several vehicles are added and you move to commercial property. As your business evolves, your protection needs will most likely change, too. Be sure to check in with your insurance agent periodically to reassess your commercial auto policy.

To learn more or to start your search for commercial auto insurance, contact us.

Safety First for Children and Your Home
By Dick Elliott

As the days grow shorter, it’s time to think again about safety to prevent accidents.  With the onset of Standard Time the mornings are brighter, but the evenings get dark much earlier.  We need to be reminded that youngsters and pets often are unaware that they cannot be seen very readily.  Consequently, extra awareness on the part of drivers is called for.  With darker days, it is prudent to turn on car lights when driving in order to see and be seen.  If in doubt, turn your headlights on.

On the home front, candles seem to be used much more frequently.  A good thought is to never allow them to be used in a room that is not always occupied.  Major house fires have occurred, particularly in children’s rooms, with what seemed to be innocent burning of candles.  The youngster leaves the room, the candle burns down, and a catastrophe results.  No one wins with house fires, so prevention is the watchword here.  Another reminder is to check smoke detectors, and if battery operated, replace the batteries.  Have a happy, safe, holiday season.

What kind of car should I get for my teenager?
By Dick Elliott

High school student parking lots reveal all manner of vehicles, from small “rice rockets” to hulking SUVs.  Assuming your teen truly needs his/her own wheels, what should you get? 

First of all, remember that it is not biblical that a teenager must have a car upon reaching driving age.  However, there often are legitimate reasons for a car to be regularly supplied to a teen. 

A vehicle with a lift kit should never be considered for safety reasons due to a higher center of gravity, making it more subject to roll.  Also, if such a vehicle should impact another of regular height, it may cause great bodily harm to the occupants of the other vehicle.

An ideal vehicle might be a newer one with six airbags, if affordable, and sufficient power to safely pass and merge.  High performance vehicles in the hands of teens are a recipe for disaster.  If you have questions as to whether a vehicle is suitable for a teen, call our office.

Prevent Homeowners Insurance Claims While on Vacation
By Dick Elliott

Many folks seem to think that a homeowners insurance claim can’t happen to them.  This attitude is prevalent in many good neighborhoods with newer homes, but no one is immune. It pays to prepare before you leave town to protect your home from burglary and other costly homeowners insurance claims.

Severe water damage often occurs when homeowners are away from for a few days.  A pipe or a hose to the dishwasher, washer or refrigerator splits, and the homeowner returns to water everywhere.  This is easily prevented by turning off the main water valve to the home and opening several faucets to relieve the pressure in the system.

Leaving lights on timers can keep burglars at bay, as can motion lights.  Monitored burglar alarms are also recommended.  The cost of the alarm system (as well as the monitoring charges of $20 - $30 per month) is well worth the investment.  The signs or stickers provided by the alarm company may also be a deterrent.

Let trusted neighbors know that you will be gone for a few days.  They can keep an eye out for unfamiliar vehicles or persons on your premises.  Follow these simple tips to help ensure a happy ending to your next vacation!

What are “inside limits” of coverage on my homeowners policy?
By Dick Elliott

Many folks erroneously think that their homeowners insurance policy covers almost everything until a problem occurs.  I have often stated that surprises are great at birthdays and Christmas but not as respects insurance claims.

Homeowners policies have special limits on certain types of property, such as money, securities, watercraft and trailers; theft of jewelry, watches, furs, firearms, and silverware; business personal property; and other miscellaneous items.  Some limits may be increased for an additional premium. 

Another option is to consider a “personal articles floater” attached to the policy.  This may require that the covered property be appraised and specifically described on the policy.  It would be prudent to periodically update the values to correspond with current pricing.

Periodically review your policy.  If you have a question, contact our office.

Should we split our auto insurance coverage between two or more companies?
By Dick Elliott

Recently we discovered that one of our clients had two autos insured with us and two with another insurance company and agent.  We discovered this when we discussed the possibility of writing a homeowners policy for this family. 

Although I didn’t press the issue as to their rationale for splitting their protection between two insurance companies, we soon found that by combining all of their vehicles on one policy we saved them over $1000 annually on their auto insurance. 

They were further protected by having all of their personal autos on one auto insurance policy.  Many insurance companies provide limited automatic coverage for newly acquired vehicles even though not yet reported to the agent.  This is to protect the client should he/she purchase a vehicle and drive it home before contacting the insurance provider.  This may also apply to those insuring commercial vehicles. 

One of the few rational reasons for splitting insurance coverage between two or more companies is a poor driving record on the part of one or more drivers and a subsequent need for high-risk insurance to accommodate.  For more information, contact our office or get a free online auto insurance quote.

Will Our Toys be Covered?
By Dick Elliott

Many of us in the Yakima area have hobbies and playthings which help us to enjoy the great outdoors. These “toys” may or may not be covered automatically by insurance.  One common error is to believe that your homeowners insurance policy will cover pretty much everything but your automobiles.  Although very inclusive, homeowners insurance is not a catchall.

Golf cars are generally not covered unless scheduled on the home or auto insurance policy.  ATVs are generally not covered on either unless used for the upkeep of the premises, and that may be a little hard to prove if it is totaled in the bottom of a ravine.  Power lawnmowers and snow throwers are generally covered on the homeowners policy because, although powered, they are used on the premises.  Motorcycles must have specific insurance coverage for liability and physical damage.

Homeowners policies have special limits of coverage for certain items, such as watercraft, trailers, jewelry, firearms and business personal property.  If in doubt about the your coverage, contact your insurance agent to be sure.

Teenage Drivers
By Dick Elliott

I have often said that if we could fast forward teen drivers from 16 to 25 as respects their driving, the world would be a much better place to live. To date, that seems to be nothing more than wishful thinking.

That being the case, what can be done to make teenage drivers less of a hazard to themselves and those around them and to keep their parents’ insurance premiums as low as possible? First of all, let’s dispel the myth that it is axiomatic that all teen drivers will get tickets or get into accidents in their younger years. It doesn’t have to happen! It has been my experience that those parents who have such a view will find that their youngsters will fulfill their parents’ thoughts. That can make car insurance for teenagers expensive and even hard to obtain.

Parents must spend a great deal of time with their beginning drivers in the family car, practicing, practicing, practicing. Reliance on traffic safety education to do it all is a recipe for failure.

Remember that your driving habits will transfer to your children. Also remember that the Good Student Discount will save hundreds of dollars per year. For straight answers to questions about auto insurance for teenage drivers, please feel free to call us. You can also contact us via email or get an online auto insurance quote.

The Mystery of Insurance Scoring
By Dick Elliott

One of the most perplexing and maddening chores of those of us in the insurance business is attempting to explain insurance scoring to clients and then trying to correlate an individual’s insurance score to his or her own insurance loss record.

Let’s start from the top. Over a period of years, studies have shown quite a positive correlation between high insurance scores, loosely based upon credit scores, and lower incidents of property and casualty claims.  The result is that most of the property and casualty insurance industry uses some form of scoring in the rating procedure. Therefore, the higher the score, the lower the premium paid for auto and home insurance.

Of course, not everyone with a lower score turns out to be a higher risk, and the converse is also true. To make matters more confusing, different companies interpret scores in different ways, so a score in one company may result in a higher or lower premium than that in another. In any event, it makes sense to maintain an excellent credit rating, as it will no doubt have an impact on your insurance premiums.

Higher Deductibles Make Good Sense
By Dick Elliott

Property and casualty insurance is intended to respond to situations which are of a nature not easily taken care of by the insured client. It is not intended as a “maintenance” contract. All too often, clients ask for low liability limits as well as low deductibles for physical damage to the auto or home. This can be a shortsighted request.

We generally recommend higher liability limits and higher deductibles. The reason for this is that the client can probably find an extra $500 or so to cover the physical damage deductible, but the extra $50,000 or $100,000 or more to cover a serious liability issue may be a bit harder to come up with. The story here: Cover the small stuff yourself and let the insurance company sweat the bigger issues.
$500 to $1000 deductibles make sense these days for autos, depending on the requirements of the lender, and $1000 deductible should almost be the norm on property policies. Also consider an umbrella liability policy, which puts $1,000,000 or more in excess of your underlying auto and home policy liability limits. Call our office if you have questions about these suggestions.

Ensure Happy Holiday Shopping
by Dick Elliott

With the advent of the holiday season, serious shopping for gifts ensues. Unfortunately, sometimes carelessness on the part of the shoppers plays into the hands of ever more watchful thieves.

My history with the insurance industry goes back far enough that I distinctly remember $0 deductible homeowner policies, with folks not being very concerned about prevention. "No big deal, I have insurance."

Now the minimum deductible is more like $500, with many at $1000 or higher. The policyholder picks up the tab on small claims and considers the property policy as more of a catastrophic backup.

All of this leads us to the discussion of theft prevention.

• Personal property which may be of interest to thieves should not be visible from the exterior of a parked car.
• Place packages and other valuables in a locked trunk, if possible, or at the least covered behind the rear seat of a station wagon or SUV.
• Phones, cameras and the like, if left in the vehicle, should be kept in a glove compartment or console where they do not attract attention.
• Always lock the vehicle, even it left unattended for a short time.

Elliott Insurance — The Insurance Makeover Headquarters for Yakima and Central Washington