Tag: vehicle coverage

Auto Liability Insurance: How Much is Enough?

Posted on by butlervetinsurance

Do you know what the three numbers that are usually written like this xx/yy/zz on your Auto Liability insurance?

The first number refers to the maximum amount of Bodily Injury Liability (BI) for an individual injured in an auto accident; the second is BI per coverage per accident; while the third covers Property Damage Liability (PD) per vehicle. For example a policy with 30/60/15 Liability coverage would pay up to $30,000 in BI per individual, $60,000 worth of BI per vehicle, and $15,000 in PD per vehicle.

Every state requires drivers to carry a minimum amount of Liability coverage under their Auto policy. Limits by state vary from 10/20/10 in Florida to 80/100/25 in Maine. These numbers have remained fairly stable for a number of years.

However, because a car accident can cost far more than the Liability minimums that most states require, people usually carry more coverage. The Insurance Information Institute recommends that you have at least $100,000 of BI protection per person and $300,000 per accident (known as 100/300).

If you hold the minimum coverage required by your state and you’re involved in an accident in another state that requires higher minimum coverage, the chances are that your policy limits will increase automatically to meet the other state’s minimum requirements.

We’d be happy to make sure that this feature applies under your Auto insurance– and to discuss the most cost-effective ways of protect yourself and your family from liability for accidents behind the wheel (such as increasing your Liability coverage or choosing higher deductibles).

For a complimentary review of your policy, just give us a call. 877-994-6787

Should You Drop Collision Coverage On Your Old Car?

Posted on by butlervetinsurance

Do you find yourself asking if it’s a wise investment to continue buying collision insurance for that old car? The answer depends on your individual situation.

First, what’s the true worth of the car? Any repair or replacement costs following a collision will be based on the value of the vehicle at the time of the claim. Also consider your deductible amount. For example, if your car is now worth $2,000 and your deductible for collision claims is $500, insurance will pay no more than $1,500 for your loss.

Once you’ve estimated the maximum that your policy is likely to pay for a collision, ask yourself whether the value of the car would create a significant financial hardship if it were totaled in an accident without insurance. Is the cost of collision coverage reasonable, considering the maximum you can receive at the time of a claim? Don’t forget peace of mind — if dropping collision will make you lose sleep at night over a possible loss, it’s better to keep your coverage and get some rest.

If you’re considering whether it’s still worth insuring your older car for collision, call our personal auto representatives. We’ll be happy to review your current coverage, give you the book value of your vehicle, and estimate the changes in cost of your insurance if you make any changes. Let us help you make the best decision. (877)994-6787

Are Your Safe Driving Skills Up To Par?

Posted on by butlervetinsurance

As if we didn’t already have enough distractions, on-board GPS systems, portable DVD players, iPods, and Smartphones have created more driving distractions than ever before. And, it’s certainly not atypical for a vehicle simultaneously to have ringing phones, cartoons blaring from the backseat, a GPS incessantly yelping orders out, and fast-food fries flying around like ninja weapons.

Even though elements like the above have been proven to make it nearly impossible for a driver to devote their full attention to the road at all times, many drivers still think they’re perfectly safe drivers. Here’s a simple yes-or-no quiz:

  1. So long as I’m not watching, it’s okay for passengers to watch a movie on the vehicle’s in-dash video screen.
    No. Not only do most front seat, in-dash video screens generally have a feature that prevents it from showing entertainment or business video when the car is moving, but it would also be completely unsafe to do so since it would inevitably catch the driver’s peripheral vision and distract them. Furthermore, many state laws regulate the placement and use of on-board video screens.
  2. Have there been any criminal cases alleging electronic devices were the causative factor in vehicle accidents?
    Yes. One example would be a 2004 case that took place in Alaska. The driver was allegedly watching something on his DVD player when he struck another vehicle and killed two people. Although the driver claimed he was only adjusting his CD player, he was charged with second-degree murder on the premise that he engaged in conduct showing an indifference to human life.
  3. In-dash monitors for rear-view camera and navigation purposes can be installed in the front seat.
    Yes and no. If the device has the feature that prevents it from showing entertainment and business video, then it can be installed and used in the vehicle’s front seat.
  4. Is it okay to drive as you eat or drink?
    No. Although driving as you drink coffee or eat a granola bar usually isn’t as distracting as watching a movie or text messaging is, it’s still an unsafe driving practice. The bottom line is that doing and thinking about anything aside from driving can distract you from the road and lead you to look away, remove your hands from the steering wheel, or become mentally preoccupied.
  5. Does driver distraction cause very many accidents?
    Yes. More than 6 million crashes, 3 million crash-related injuries, and 42,000 crash-related deaths occur each year in the U.S., of which driver distraction accounts for 1.2 million to 1.8 million, or roughly 20%-30%.
  6. Do federal laws govern the use of mobile devices like a GPS unit in moving vehicles?
    No. In some states, there are state laws that prohibit the use of hand-held cell phones in moving vehicles, but there aren’t any federal laws regulating the use of mobile devices in moving vehicles.
  7. Can the National Highway Traffic Safety Administration (NHTSA) regulate cell phone usage in moving vehicles?
    No. Cell phone laws are enacted at the state or local levels. However, the NHTSA is able to regulate the use of motor vehicle equipment and devices.
  8. Are lawmakers concerned with vehicle crashes related to driver distraction?
    Yes. During the past decade, several states have already passed or presented legislation related to driver distraction and vehicle crashes, and the number of states looking into such laws grows every day.
  9. Do any states totally ban hand-held cell phone use while driving?
    Yes. Nine states, including California, Connecticut, Washington, New York, New Jersey, and Utah, prohibit all drivers from using hand-held cell phones while driving. Additionally, 30 states and the District of Columbia ban novice drivers from using both hands-free and hand-held cell phones.
  10. Can your employer be held liable if you’re using a cell phone and crash into someone or something?
    Yes. Your employer can be held liable in a court of law. Under respondent superior, an employer can be held liable in civil court for employee acts committed within the course of employment.

How many did you answer correctly? Maybe you’ve learned a few new facts, or maybe you gained a new respect for what you already knew. Either way, it’s time to put down the food, turn off that cell phone, and start keeping your mind and body focused on the road ahead of you.

Policy Deductible Increases: The Safer Way To SAVE Premium Dollars

Posted on by butlervetinsurance

Money is still tight for many Americans, meaning most are still looking to save when and where they can. Some people have even turned to their insurance policies as a place to cut costs. Insurance can be expensive, but consumers need to ask themselves where and how they can really save money in this area without jeopardizing the protection offered by their policy coverages.

Two typical places that many insured individuals think they can cut the cost of their premiums are from reducing the dwelling/liability limits on their Homeowners policy and reducing the liability limits on their Auto insurance policy.

In reality, cutting the liability limits on these policies leaves you highly vulnerable to risk and will NOT ultimately save you any money over the long run. Although you might save a few dollars now with such tactics, it really isn’t worth it when you stop to think about just how much you could lose if you were sued after someone was injured in your home.

If you want to decrease your premiums, a much more prudent way to do it is by increasing the deductibles in your auto and/or home policies. A deductible increase from $250 to $500 could save you up to 15% on your Homeowners insurance premiums. You can save 30% or more on your premiums by raising the physical damage deductible on your Auto insurance policy to $500 or $1,000 dollars.

Some consumers get nervous about not having the $500 to cover their newly raised deductible should they need to file a claim. Since the situation doesn’t involve thousands of dollars in difference, it’s likely to be just as difficult for most people to come up with $500 as it would be $250. The only difference will be that the extra premium savings can be saved and set aside to cover the higher deductible from any future claims. In most cases, the additional $250 could be saved in less than 24 months.

If you’re nervous about taking the larger leap to a $1,000 deductible, then you can always take a slow and steady approach. You might increase your deductible to $500 first. You can open a savings account for the premium dollars you’ll save each month from having a slightly higher deductible. Although it might take some time, you can eventually raise your deductible to $1,000 when you have saved $500 to $750 dollars in the account.

Don’t be caught under insured… Unlike lowering limits, deductible raises can save you money without placing you at a greater financial risk.

If you would like to speak with one of our knowledgeable protection coaches about ways you can SAVE on your insurance program, CALL 877-994-6787 TODAY!

The Car Insurance Doctor Tips: Special Equipment & Non-Factory Items on Your Vehicle…

Posted on by butlervetinsurance

Is everything in/on your vehicle covered by your auto insurance policy… your custom tires and rims, your GPS???

The Car Insurance Doctor brings you helpful information about what items are covered and what items are NOT covered by your auto insurance policy.

>>>>>>>>> http://www.youtube.com/watch?v=ckjkqNoygnc (Video Link)

If you have any questions or are unsure about your insurance coverage, call the doctor and our staff today for the right answers to your questions.

Here are 4 Easy Ways To Reach Us:

1. Call 877-994-6787 or 951-600-5751
2. Fax 951-677-6265 
3. Email – [email protected]  
4. Visit – agency.thebutlerweb.com

Do You Have Rental Car Coverage On Your Auto Insurance Policy?

Posted on by butlervetinsurance

When your car is stolen or gets damaged in an accident, the repair or recovery cost is only part of the story. Going without your car while it’s being repaired can be a significant hardship. Without another vehicle available, your only recourse might be to rent one. The good news is that you might be able to buy insurance that will pay some of the cost of a rental; in fact, your policy might already include it.

The standard Personal Auto Policy OFFERS  a coverage called “Rental Car Benefit”. You must agree to and buy the coverage for it to benefit you when you need it.

In speaking to a group of local business people yesterday, we asked how many people in the room were dependent on their vehicle daily. EVERY PERSON raised their hand.

If you have purchased Collision coverage on your car and that car is damaged in a collision, this coverage will pay for “temporary rental car expenses.” The same applies if you have purchased Comprehensive coverage. If the car is damaged by something other than a collision, the policy will cover these expenses. The policy pays up to the limit per day you purchase, $30, $40, $50, up to a maximum of dollar amount, normally 30 days times your daily limit. This coverage may also apply to a vehicle to which you do not ordinarily have access, such as a friend’s car or a rented pickup truck.

Time limitations apply. If your owned or borrowed car is stolen, coverage begins a specified number of hours after the theft and ends when you are able to use the vehicle again or when the insurance company pays you for the loss. If the cause of loss is something other than theft, the insurance pays the expenses incurred more than 24 hours after you lose use of the vehicle. Finally, the insurance stops paying at the end of the period of time reasonably required to repair or replace the vehicle.

Some examples will illustrate how this works.

  • >>> John has both Comprehensive and Collision coverage on his sedan. On Tuesday at 10:00 a.m., a frayed wire in the engine catches fire, resulting in major damage to the car. The car is in the shop for 15 days, so he rents a replacement for $35 per day. His insurance will pay $30 per day, starting with the expenses he incurs after 10:00 a.m. Wednesday. If 15 days is a reasonable time for these repairs, the company will pay for days two through 15.
  • >>> John gets his sedan back. A month later, it breaks down. This time, he borrows his neighbor’s car. While he is driving this car, a deer runs in front of him; the ensuing collision badly damages the car. Because he has Comprehensive coverage, which applies to collisions with animals, his insurance again will pay $30 a day for him to rent a replacement while the shop fixes his car.
  • >>> He gets both cars back and returns his neighbor’s car. A week later, he walks out of a store to find an empty space where his car should have been. He reports the theft to the police and his insurance company. The company will pay $30 per day, starting 48 hours after he discovered the car missing. It takes 35 days for him to find a replacement car; his insurance pays $900 (the maximum) for his rental costs.
  • >>> Concerned about how much his insurance premiums will go up, he drops the Collision coverage on the replacement car. A month later, a bee stings him while he’s driving and he plows into a highway sign. This time, the company will not cover his rental costs because he had not purchased Collision coverage.

Not all Auto insurance policies are the same. Some might pay more than $30 per day for rental costs, but they will pay only if the insured vehicle is stolen. Others cover theft only and pay less than $30.

Check with one of our licensed insurance protection coaches often to find out what coverage you have and need. Call 877-994-6787 or 951-600-5751, we’re here to ensure that you have exactly the coverage you need.

Insurance Follows The Vehicle First?

Posted on by butlervetinsurance

In the last 23 years I’ve heard over and over again from customers and consumers the following phrase “I’m covered driving any vehicle”.

In some cases this is true and some cases it’s not, but here is the reality. In most states, and definitely in California, insurance follows the vehicle first and here’s what I mean. A registered owner of a vehicle is fully responsible for protecting their own assets and anything that happens with the vehicle in which they own. They are responsible for paying any damages that result from the operation of that vehicle, whether you’re driving it or you allow somebody else to drive it. It’s solely your responsibility to make sure that other people(general public) are protected in the event of injury or property damage involving any vehicle you own. Now, if you have assets it’s also your responsibility to make sure that you have proper insurance limits to fully protect any assets that you may have to lose. In today’s society, attorneys do not stop after your insurance policy limits are exhausted. If there are damages to substantiate that another person needs more money as a result of a claim against you, they don’t hesitate to go after personal assets and future earnings. Again, it’s our responsibility as consumers to properly protect anybody that maybe damaged by the operation of your vehicle.

Now, are you covered driving somebody else’s vehicle? Secondarily speaking from a liability standpoint (remember insurance follows the vehicle first), most car insurance policies follow a driver while they are operating another vehicle for personal use only. So, what is personal use? Well, in its simplest form personal use is non-business use. In other words, you’re not using a vehicle for any business purpose. So, what is business use? That would include things like delivering pizza, delivering documents for an employer, picking up construction materials and transporting them from site A to site B, and similar matters. The best thing you can ever do to properly protect yourself and others is to keep in constant contact with your insurance provider.

If we can ever answer any questions about any insurance matter, please don’t hesitate to contact one of our protection coaches. It’s a free call: 877-994-6787. Rest easy at night and live in peace.

Mike Stromsoe, on behalf of the Stromsoe Insurance Agency Total Protection Team.