How can I save money on my Car Insurance?

Affordable personal auto insurance in today's economy can be a moving target. Here are 5 areas you can control to help you maintain the costs of your auto insurance without sacrificing critical coverage protection for you and your loved ones.

• Driving Record - The most obvious tip, but it can not be overstated. Your driving history is the biggest factor that insurance companies will look at when evaluating you for coverage. So drive defensively and consider taking a Defensive Drive Course. The course is a great refresher for good driving habits and rules of the rode. The cost of the course will often be recouped in the savings on your insurance in the 1st year and it is good for 3 years.
• Manage your Credit - The auto insurance companies have established a link between an individuals credit history and their likelihood of having an accident. Using what is referred to as your insurance credit score, they have modeling programs that can predict for them if your likely of having an accident. Managing your credit will help you to keep your rates low.
• Vehicle Type - You car is a significant factor in the cost of your insurance. Cost, age, body type, engine performance, weight, etc.; all factor in to what your premiums will be. Generally, the newer and more expensive a vehicle, the higher the cost. When you are considering a new vehicle, contact your independent insurance agent and have them give you a quote for your insurance if you were to buy the vehicle. The cost of your insurance should be part of your purchase decision.
• Premium Payment - Pay on time, another obvious statement that can't be said enough. Insurance companies are less and less tolerant of poor pay customers as they add significant costs to the servicing of the policy. A poor pay history can make you ineligible for preferred pricing. Also, pay in less installments; the less frequently you make payments (i.e. quarterly vs. monthly) the less installment fees you pay. These fees can range from as little as $1.00 to as high as $15.00! Several companies are now even offering a Paid in Full discount!
• Target Coverage - Make sure you are paying for the coverage you need. It often makes sense on your collision coverage to assume risk (i.e. higher deductibles) of loss to your vehicle or remove it all together if the vehicle is older; and use those savings to maintain higher limits in other areas (i.e. liability, no-fault, uninsured motorist, etc). You may want to consider removing the comprehensive coverage as well, though if wish to keep glass coverage you will need to keep this coverage in place.
• Fraud - About 10% of your insurance premium is the result of fraud. Insurance companies, regulators and law enforcement personnel are in a constant battle combating fraud. You can help; ask your state legislators to make the fight against insurance fraud one of their priorities. Report insurance fraud to your insurance agent, insurance company or local police when you see or suspect it. Speak out against insurance fraud to your friends, family, and business associates. After all, it's not just the big insurance companies that pay. All those costs eventually filter down to you.

Finally, a significantly important way you can help save money on your auto insurance is by working with an Independent Insurance Agent. An independent agent will advise you in the areas named above and as well as the right coverage for you. Then, with their freedom to go to multiple carriers, they can price out your customized coverage to make sure you are maximizing the discounts and credits you deserve.

"The art of living easily as to money is to pitch your scale of living one degree below your means."

Sir Henry Taylor

"Lights, Camera, Claim Settled!"

The aftermath of a fire or natural disaster is not the time you want to be trying to remember all the treasures and possessions you have accumulated over a lifetime. Now is the time you should be preparing for the possibility of a catastrophic property loss and a Home Inventory is the best place to start.

I know what your going to say, the thought of going through your whole house, cataloging each and every item does seem daunting, but there is perhaps an easier way - Video. Today's video cameras are so much more compact and versatile than even the models from just a few years ago. The ability to store the data digitally on discs or portable hard drives give you the flexibility to make multiple copies for safe keeping at a relatively small cost.

When doing the video inventory of your home make sure you do the following:

1. Go through every room in your home. Do no forget the garage, attic and basement.
2. As you pass items of significant value or personal significance, provide a verbal description including there value and date purchase if possible.
3. Make sure you show the labels for appliance and electronics, and be sure you can read the serial and model numbers on the video.
4. Be sure to included carpeting, artwork, toys, furniture, jewelry, guns, etc.
5. Open closets, cabinets and drawers so as to get coverage of the contents inside.
6. Go back through the video and make a written inventory to go with the video.
7. Store the video and inventory in a safe deposit box and send a copy to someone you trust.
8. REMEMBER TO UPDATE THE VIDEO AT LEAST ANNUALLY. Just add the new stuff, don't shoot the whole thing all over again.

In addition to the video you should not forget important documents. These you should photo copy; keeping the copy in your home and the originals in the same safe deposit box as the video. Some documents to consider would be:

• Personal - Birth certificates, will, passports, medical files, drivers license.
• Financial - Bank account info, stocks, financial instruments, life insurance policies, credit cards, tax returns
• Home - Title, deed, abstract, insurance policy, exterior photos, loan paperwork.

Any documents you have that will be difficult if not impossible to replace should be copied and stored securely off premises.

A little time spent now can save you a whole lot of anguish later and get you that much faster to a claim resolution. Now when the insurance claims adjuster says we will need an inventory, you can hand them the video with written summary. So what are you waiting for....LIGHTS! CAMERA! ACTION!

"Employee or Independent Contractor; Do I need Workers' Compensation Insurance?"

A very common question we get here in our agency is "Do I need Workers' Compensation Insurance for this person I occasionally hire to do work for me?" More often then not our answer is yes, because of the guidelines set by New York State.

There are 5 key factors to determining if an Employer-Employee relationship exists and thus Workers' Compensation is warranted.

1) CONTROL How much are you directing the actions of the individual in question? If you are telling the person how to do the work you have contracted them to do and are expecting them to be there doing it at specific times then likely they will be considered an employee. If however, they are operating completely on there own and on there own schedule, simply meeting the agreed to deadline, then they are more likely an independent contractor.

2) MATERIALS Are you providing all the tools and equipment they are using for the job? If yes, that is indicative on an Employer-Employee relationship.

3) PAYMENT Are you paying on a typical payroll schedule, such as daily or weekly (even monthly)? Most independent contractors are usually paid when the whole task is completed, or with a deposit and final payment. If you are paying on a schedule it may be considered an Employer-Employee relationship.

4) SIMILAR WORK Is the work or task similar to the work performed by the hiring business? If yes, this a marker of an Employer-Employee relationship. A person hired to frame a room by a carpenter is more likely to be considered an employee then say an lawyer hiring a electrician to put in a light fixture.

5) TERMINATION Do you retain full rights to hire and fire the person performing the work? A true independent contractor retains some control over how and when the work is performed.


These main factors will be taken in to consideration after an accident by workers' compensation law judge. Based on their findings a determination will be.

More often then not, the judge tends to rule that Workers' Compensation coverage was needed because an Employer-Employee relationship existed; hence our advice is typically that insurance be put in place. After all, it is far cheaper in the long run to purchase the coverage and get credit back from an audit, then to not have it and go through the legal and regulatory costs!

For more information about NYS guideline you can refer to the following link: http://www.wcb.state.ny.us/content/main/Employers/Coverage_wc/emp_empDefinition.jsp

Your Cell Phone is for more than calling in the claim!

The rapidly expanding capabilities of cell phones in today’s world are mind boggling to say the least. Calling, texting, email, pictures, video and web browsing are all just the tip of the iceberg. As the saying goes “We’ve only just begun”; with an “App” for everything from picking out wine to purchasing stocks the utilization of these handheld marvels of technology seems limitless.

One area they can be very helpful for right now is the claim process. Using just the features that are already built in to most phones today you can acquire, retain and forward key information related to a claim in real time. This will allow you to see a faster and more accurate settlement process with the insurance carrier or other party.

These devices can be helpful for virtually any type of claim, however I will use a typical auto accident as my example. Most auto accidents are of the “fender bender” variety, meaning 2 cars and no injuries. Regardless of who is at fault, you can use your phone to:

* Call the police so the accident can be reported.
* Take pictures of the accident scene, including positions of the vehicles and damage.
* Record information on the other driver such as name, contact, insurance and vehicle information.
* Gather information on witnesses, passenger and other parties(i.e. police officer) involved.
* Record information about accident itself including, time, date, weather conditions, road information, traffic conditions, etc.
* A record of events can be written while events are fresh in the mind, statements can even be recorded!

All of this critical yet often forgotten or lost information can be easy stored and transmitted to your agent for organization and processing. They in turn can get this to your own insurance carrier in a more timely fashion. This will help your agent to stay on top of the claim for you, speed up the work of the adjuster and get you to a satisfactory conclusion much faster.

If you in fact are the negligent party, it can help you to defend yourself and limit your exposure. With accurate information you can better aid your insurance company in defending you and limiting the potential for faulty or exaggerated claims by the other party. This is especially true if unfortunately it is more then a dented fender and people have been injured.

As illustrated, the benefit of a portable communication device at the time of a loss is in the gathering and retaining of information. Information is the key to any situation, the more you have the better off you are. Losses are more easily handled with accurate and pertinent information. These magical objects can make a world of difference and save you time.

Oh but please remember, it is better if they aide you AFTER the claim and not be the CAUSE OF a loss. Please do not use them while you are driving. :-)

Don't Forget to "Renovate" your Homeowners Coverage

Given the current economic times, flat or decreased housing sales & tight credit, many homeowners are putting money back into there homes in the form of remodeling projects. These can be anything from just general maintenance jobs to full blown additions. Usually forgotten in this process is the Homeowners Insurance Policy (HO) and that can be a very costly error.



Often people will spend thousands of dollars on major modifications to their home and not even consider if or how their insurance may be affected. If the modification includes any kind of structural modification or addition, there could be serious impacts to their coverage. This oversight could lead to serious complications later on down the road should some type of major loss occur and valuation questions start coming in to play.



Most HO policies are written on a Replacement Cost (RC) basis. As part of the conditions of the RC coverage it is incumbent upon the insured to maintain an accurate RC insured value; else they could be in violations of the terms of the contract and loss settlement penalties could be applied. For example, let’s say you have an insurance policy on your home with an accurate RC limit of $200,000 and a $500 deductible. In the spring you put on a $75,000 addition but fail to report the addition to your insurance company. The following fall, there is a major fire and the ensuing damage results in a $100,000 loss. When the insurance company adjusts the loss they note the addition and inform you they are going to apply a co-insurance penalty to the loss.



Co-insurance is the minimum amount of insurance on a % basis of the actual replacement cost value of the home you are required to carry in order to maintain the RC settlement option. This % can vary by insurance company and policy, but typically as it relates to HO insurance policies it is 100%. If you do not maintain the proper limit, the insurance carrier can apply the co-insurance penalty which as a factor determined by dividing the amount of insurance carried by the amount of insurance required. The factor is then applied to the amount of the loss to determine the actual settlement amount less your deductible.



In our example we will use a 100% co-insurance requirement. Therefore to determine the co-insurance factor we will take the amount of insurance carried - $200,000 and divide it be the amount required - $275,000. The resulting factor is .72 or 72% (200/275 = .72). We then multiply that against the amount of the loss, in this case $100,000, and subtract the $500 deductible; the result is a settlement amount of $71,500 (100,000 * .72 = 72,000 - $500 = $71,500). A $28,000 mistake that could have been avoided.



Besides the valuation pitfalls, there are many other reasons to contact your independent insurance agent regarding any planned renovations before you get started. Depending on the extent of the renovations and your insurance company, you may eligible for credits or a change in rating tier based on the specific company underwriting guidelines. You may need to add a specific rider to your policy or change coverage all together to allow for the unique exposures (i.e. Theft of Building Materials) related to building renovations. Your agent can assist you with the process of hiring a contractor, especially with regard to evaluating the contractors insurance as it relates to your specific project.



So before you pick up your hammer, pick up the phone and call you independent insurance agent. Spending a little time now can you save you immensely down the road!

A good time to Take Stock!

In my role as a business insurance advisor, I am often asked when insurance coverage should be reviewed. Most people assume the best time is at renewal and this tends to be the time most do. However, the renewal is often the time we are the most price sensitive, for obvious reasons and thus we tend to be blinded to the coverage needs by the potential costs. Also, the renewal date itself creates an arbitrary deadline that all parties involved (insured, agent & insurance carrier) feel they have to meet and have all decisions about coverage made. This is another barrier to a good evaluation of exposures and coverage, creating an atmosphere for potential costly mistakes by everyone involved.

A better time to evaluate your insurance coverage is at some point in the middle of the coverage period; when you can make a careful, fully informed assessment of your coverage needs. This should be a time when the insurance decision maker with the assistance of the insurance agent/risk manager can take the time to make a sound risk management analysis of their operations. I understand this is often easier said then done, but there is usually some point in the year that this can happen if planned for properly. The initial review can be somewhat involved, but if it done right the process can become fairly streamlined for subsequent years. Based on the complexity of the business, a complete risk management audit every 3 to 5 years is fairly adequate. In the intervening years one only need to review changes and trends in operations in order to make the necessary adaptations to the overall insurance program. The establishment of review protocols can assist this process greatly

The analysis concept itself is fairly straight forward; current and new exposures are assessed against established coverage to see if and where any gaps may be. Various alternative solutions can be investigated and discussed and applicable coverage can be adapted to meet the realized situation. This may involve simply amending policies that are already in place or seeking out new coverage through additional policies as needed. What’s more, in this manner premium dollars can be truly evaluated from a sense of priority as opposed to a sense of urgency often brought on by an impending renewal date. This also provides the additional bonus of knowing when it does come time to actually renew coverage and you decide to test the insurance market you can make an evaluation of competative alternatives strictly on price.

The bottom line is to get a risk management review process into your overall business planning and management activities. Making it part of your normal operations and moving it to a time when it can be given the attention it deserves will move you a long way along the road to a sound and secure business.

What's the Big ID!

No matter where you look, listen or watch today, someone is warning you about Identity Theft. It is one of the fastest growing crimes, made even worse by today’s economic conditions. The Federal Trade Commission (FTC) estimates that over nine million people have their identities stolen every year.

ID theft can have serious consequences. Possible fall out to victims include denied loans, arrest for crime you did not commit, loss of job opportunities, lost time and money spent repairing the damage.

Here are 5 tips on how to protect yourself from this crime:

1) Know you own Credit Situation – Be sure of your own information so you can spot fraudulent behavior quickly. You can obtain your free credit report from all three (TransUnion, Experian and Equifax) of the major credit agencies buy going to http://www.annualcreditreport.com/ or calling 877-322-8228. You can verify all the information and make any corrections needed. Then stay on top of your situation by reviewing all financial account and billing statements very closely. Report suspicious activity immediately.
2) Protect your "Hard copy" information – Destroy all documents with personal information, including pre-approved offers, before discarding. Put all mail in US Postal collection boxes; do not leave mail in you mailbox overnight.
3) Protect you "Electronic" information – Utilize anti-virus software and firewalls. Do not us personal information for electronic ids or passwords (i.e. birth date, social security numbers, phone numbers, etc). Do not respond to spam or unsolicited emails. Be sure websites are trusted and secure before entering personal and financial data.
4) Subscribe to some type of credit monitoring service - Make sure you are checking your credit situation and receiving updates regularly.
5) Carry Identity-theft insurance. The coverage provides reimbursement for expenses resulting from the crime, such as phone bills, lost wages, notary and certified mailing costs and attorney fees. It is inexpensive and may be endorsed to your homeowners’ or renters’ insurance policies.

Do not take your identity or credit situation for granted. This is definitely a situation where a little prevention can go a long way.

Have a safe and Happy 4th of July! Please do not forget what this holiday is about and the people fighting for it!