The Dangers of Being Underinsured

The process of getting insurance is relatively straightforward and easy. But before you apply for your insurance policies, you must decide how much insurance to buy. The amount you choose can mean the difference between being adequately reimbursed after an insurable incident or not having enough insurance to make you whole.

Defining Underinsured

When you’re underinsured it means that you have too little insurance coverage. This can occur when the limits on your insurance policies are less than the value of the property you're insuring. It can also occur when you don't have sufficient insurance coverage for the risks you face. For example, if you live in a flood zone and have only home insurance then you are underinsured because home insurance won’t reimburse you for losses caused by a flood.

Financial Consequences of Being Underinsured

When your insurance coverage is not sufficient to make you whole after an insurable incident you must take money out of your savings in order to replace the lost assets, repair your home or car, or pay liabilities. If you don't have the money in savings, you may need to liquidate certain investments or dip into a retirement fund, resulting in penalties and tax consequences. If you have no means to pay for replacements and repairs yourself then you may simply have to adjust to life without the items that you lost and lacked sufficient insurance protection for.

Being underinsured sets you back in your financial progress, can put many of your financial goals completely out of reach and forces a complete change in spending priorities that you may not be able to afford.

Avoiding Being Underinsured

It’s not difficult to determine what kind of insurance policies you need and how much coverage to buy for each asset. An insurance agent is a great resource for both determining necessary lines of insurance coverage and proper amounts. On your own, you can think about all the property your family owns and all the risks that could create a loss of that property. Then, research various insurance policies to find out which covers each risk. Finally, determine whether the insurance policies in question pay claims based on actual value, replacement value or another reimbursement formula (such as rebuilding expenses, as with Miami home insurance).

We would love to work with you and review all of your insurance policies to make sure that you are not underinsured. Give us a call at Allstar Direct Insurance & Financial and make your appointment today.

Factors in Motorcycle Insurance Premiums

While many of the factors that go into determining motorcycle insurance premiums are similar to those that go into regular auto insurance premiums, there are some important differences that motorcycle owners should be aware of. First, let's look at the factors that are similar for both traditional auto and motorcycle owners and then we'll discuss those that are different.

Factors That Are Similar

• Age, gender, marital status: Just as with auto insurance, older drivers will generally have lower premiums than younger drivers as married couples will have lower premiums than single individuals. Additionally, women may experience lower rates than men.
• Driving record: A motor vehicle report (MVR) is generally pulled for all drivers looking for auto insurance coverage regardless of the type of vehicle they drive. This report will show underwriters what kind of driving history you have and will help them determine how high risk you are.
• Lines of coverage, limits and deductibles: The structure of your insurance policy, designed through selecting certain lines coverage, limits and deductibles, will be a big driver in determining your motorcycle insurance premiums as it would be for any other vehicle. The more coverage provided through the policy the more expensive premiums will be.

Motorcycle – Specific Factors

• Your motorcycle: There is a wide range of bikes that a rider can choose. This selection will directly correlate to the premiums the biker is charged. Bikes with many custom parts and those built for speed may be subject to a higher premium.
• Location: Motorcycles are inherently more risky to drive then traditional vehicles and the location where you live can be more or less risky for you as a motorcycle driver. That means it is a factor in determining your rates.
• Motorcycle storage: Depending on your location, your motorcycle may not be appropriate for year-round riding. If this is the case, then the location where you store the motorcycle can affect your insurance premiums as will the partial use.
• Your motorcycle operation experience: Driving a motorcycle is different than a car or truck. Your motorcycle driving experience will, therefore, affect your insurance premiums. This can also be a good thing since riders who take courses in motorcycle operation can receive discounts.

If you're ready to start shopping for motorcycle insurance rates either before or after buying your bike, give us a call at Allstar Direct Insurance or stop by.

Insurance for Your Limo Service

If you own a limousine service, then you owe it to yourself and your clients to have the right commercial auto insurance for your company. Insurance not only protects your vehicle against damages during an accident, theft, or other catastrophe but it also protects you and your customers from liabilities.

Insurance Protects You and Your Clients

When an individual rents a limo for transportation to and from an event, they expect a certain level of service and protection. No consumer would jump into a limo chauffeured by a drunk driver and few consumers would jump into a limo that they knew was not insured because if one of their guests is injured either during an accident or a general mishap inside the limo, and the limo service is not insured, then the injured party may sue the individual who secured the limo. It's possible that after being sued the consumer may then decide to sue your limo company, which could eat up all of your assets and leave you without a business.

Insurance Attracts Customers

More consumers are becoming savvy in looking for limo services that have insurance coverage. The U.S. Department of Transportation has a Federal Motor Carrier Safety Administration website which can show consumers whether or not a particular limo service is insured. If a consumer uses this site to help narrow down his or her choice of limo companies, you could be out a client immediately if they don't see your company listed as insured. By carrying insurance not only do you protect your company assets, but you are more likely to snag that discerning and careful client.

Types of Insurance

There are many different types of insurance coverage that a limo service should consider including physical damage insurance, liability insurance, and insurance to protect the drivers. As with any insurance policy, you can adjust the policy limits and deductibles in order to create the most valuable policy along with the most affordable premium.

If you need insurance for your new limo service or want to compare rates for an existing Miami Auto Insurance policy, give us a call at Allstar Direct Insurance & Financial Services. We work with many of the top auto insurance carriers and can help you secure commercial limousine insurance that protects you, customers, and your business assets.

Florida’s Auto Insurance Reform

Residents of many states are required to purchase personal injury protection (PIP) in their auto insurance policies. This coverage provides payment for medical expenses, lost wages, and other damages to the insured, passengers in the insured vehicle, and pedestrians after an accident. Some states have noticed a high incidence of fraud in the PIP claims filed by its residents. Florida is one of those states or, at least, it was before a new bill passed in March of 2012. This measure changes how PIP benefits can be used, and introduces penalties, time limits, and a new task force charged with finding the fraud in new PIP clams.

Changes Beginning July 2012

• Medical clinics that provide treatment reimbursed under PIP will be helps to more intense licensing standards.
• The long form accident report will be required in more PIP claims and a statewide anti-fraud task force will be introduced. The long form may make filing PIP claims more arduous for the average insurance customer, but it will help deter and expose fraud.
• Providers caught defrauding the Florida insurance system will be met with more penalties.

Changes Beginning January 1, 2013

• Injured individuals will have a 14 day limit to get their initial treatment after the accident.
• The severity of the injury will partially determined the benefits received. Additionally, certain medical professionals, such as physical therapists and chiropractors, will have a treatment cost limit of $2500.

The law also requires insurance companies to reduce personal injury protection premiums by at least 10% unless they file for an exemption and are approved.

It is hoped that these changes will reduce overall PIP expenses and fraud while also reducing driver insurance premiums. But the reduction to drivers’ premiums could be more substantial than just the 10 percent that insurers are required to reduce rates, because with fewer fraudulent claims, overall insurer expenses will fall and hopefully that savings will be passed on to consumers.

Don’t wait until the new regulations kick in. Give us a call at Allstar Direct Insurance & Financial Services today to see how we can reduce your Miami Auto Insurance premiums now. Then, any future reductions will just be the icing on the cake.

Why Timely Home Repairs Matter

At one time or another, every home owner must do repairs to their property—and that’s a good thing. Because home repairs make living at home more pleasant and efficient while also keeping the structure safe for you and your family.

Home repairs can also have an effect on your home insurance premiums because they may result in the prevention of your home’s further deterioration and they may even result in your home being brought into current code guidelines. Since codes often change to accommodate new materials that are able to better withstand weather and environmental damage, this can make your home less risky to insurers which will result in lower insurance premiums. But saving money on insurance isn’t just about the repair itself; it’s also about the timeliness of the repairs that you do.

The Domino Effect

The little things that happen around your home may seem small at first, but eventually, when left unrepaired, they can turn into much larger problems. For example, a small leak in your roof, left unfixed, can create mold, mildew and rot that weakens your home's structure. With a weakened structure, you may find your house is unable to stand up to wind, hurricane or storm damage. Then, when you have damage--if it is covered by your policy--you will not only have to come up with the money to pay the deductible for the damage but you will also have to deal with the inconvenience and expense of being displaced while repairs are done and you may be facing higher insurance premiums at renewal since you are now a higher risk.

Instead, if you had fixed the leak when you first noticed it, you could have made your home stronger at minimal expense, made certain that your family was not exposed to quickly proliferating mold spores (the removal or remediation of which is generally not covered by home insurance) and that your home was better able to withstand storms and inclement weather.

Timely home repairs can save you money now in preventing extreme damage to your home, and they save you money later by helping to keep home insurance expenses low. When you are ready to get insurance for your home and you are curious about all the ways that you can help get a low premium quote, give us a call at Allstar Direct Insurance & Financial Services. We can figure out what discount you may be qualified for now and help you maintain a lower Miami Home Insurance premium through the years.

The Value of Decreasing Premiums

Life insurance policies offer many different options for both premiums and benefits. One can choose a premium and death benefit that is level and remains the same over the term of the policy; one can choose a premium that increases with a death benefit that remains level; one can even choose a policy with a premium that decreases while the death benefit stays level.

This last option—a decreasing premium policy—presents a great way to plan because:

It banks on your money today—not tomorrow. You never know what life is going to throw your way and you never know how your finances are going to be affected. Choosing a decreasing premium term life insurance policy allows you to find a premium that you know you can afford now while ensuring a lesser financial burden with your future dollars, all without sacrificing your death benefit. This will allow you to better accommodate unexpected financial difficulties in the future.

You can easily continue coverage. The decreasing premium makes it much easier to ensure that you're able to pay your premiums through the entire term of the policy. Instead of lapsing your policy and trying to qualify for new, and increasingly expensive coverage every time your finances go through a shift that affects your budget, you’ll be able to simply continue with current coverage levels while automatically experiencing a reduction in premiums.

It enables you the freedom of adding more protection later. The term policy that you take out today may not offer enough death benefit protection for your heirs in a decade. When you choose a decreasing premium term insurance policy, you ready your future budget for the addition of new insurance protection as your family grows, your debt changes and the future needs of your children are considered.

To find out how decreasing premium term life insurance policy fits into your budget, give us a call at Allstar Direct Insurance & Financial Services. Together we can decide whether decreasing premiums, increasing premiums or level premiums are the best choice for you and your Miami Life Insurance policy.

Understanding Your Policy’s Declaration Page

Insurance policies are made up of many pages that explain, in detail, what your policy covers, what is excluded from coverage, how your premiums break down, and the meaning of various insurance terms. This can seem like a cumbersome document if you just want to absorb the details of your policy at a glance, which is why your policy also includes the very convenient declaration page or set of pages.

What is the Declaration Page?

As its name implies, the declaration page (or dec page) declares what your policy covers in a simplified format. It lays out the basic information including your policy number, the address of the covered property, and the basics of the coverage limits and deductibles.

Reading Your Declaration Page

A home insurance policy is likely to have a 2-3 page declaration with the following information:

• The first page outlines the major categories of coverage provided. It will also disclose your mortgager and all your insured locations. Finally, it will break down the premium costs for each major section of coverage.
• The second page spells out any special endorsements your policy carries. This can include endorsements for computer coverage, jewelry coverage, endorsements for certain home business activities and more.
• The second page will also likely explain whether your personal property is covered as actual cash value or replacement costs and it spells out some of the surcharges and assessments on the policy, including any donations made to state catastrophe funds.
• The third page generally carries certain disclosures. These disclosures could discuss many different topics such as deductibles, suggestions for specialized insurance additions that are not covered by your policy including flood insurance and law and ordinance coverage, and information about inflation guard options.

Your declarations pages are a very handy way to glance and get information about your policy, but they are not built to offer the same complex information as the actual policy pages. If you have questions about what your policy does and doesn’t cover, feel free to give us a call. Not only can the agents at Allstar Direct Insurance help you better understand your Miami Home Insurance policy, we can also help you determine whether your coverage is sufficient.