Is It Smart To Only Carry the State Minimum Insurance?

Most states require vehicle owners to carry a minimum amount of Tampa car insurance. Failure to have this insurance is a crime in these states with hefty penalties and possible jail sentences for failure to comply. Also, an owner can't register their vehicle without showing proof of insurance.

The good news is that most reputable insurers have put together packages tailored to the owner's home states, and these packages can be very affordable. 

However, is it smart to only carry the minimum amount of insurance required by the state? Does the minimum legal amount give car owners a false sense of security when what they need is realistic coverage?

Quick Survey of State Minimums:

Kansas requires Bodily Injury Liability of $25,000 per person with $50,000 for the accident; Property Damage of $10,000; Uninsured Motorist Bodily Injury $25,000 and Personal Injury of $4,500.

Washington requires Bodily Injury Liability of $25,000 per person with $50,000 for the accident; Property Damage of $10,000.

Arizona requires Bodily Injury Liability of $15,000 per person with $30,000 for the accident; Property Damage of $10,000.

Florida requires Property Damage of $10,000 and Personal Injury Protection of $10,000.

New York requires Bodily Injury Liability of $25,000 per person with $50,000 for the accident; Property Damage of $10,000; Uninsured Motorist Bodily Injury $25,000 and Personal Injury of $50,000.

Quick Survey of Car Accident Costs:

The Centers for Disease Control and Prevention (CDC) estimate in 2010, 32,885 people died and over 2 million people were injured in auto accidents in the United States. Medical costs and lost productivity exceeded $99 billion.  The CDC further estimates that only half of this was paid by private insurers.  The other half? Some was paid by government programs and some by charities. However, about 25% was paid by those involved in the accident. That means about $25 billion in medical bills comes out of pocket.

If an owner carries the state minimum of $10,000 personal injury in Florida and injures someone, they can be held legally liable for the balance of the medical bills. An airlift to a trauma center can be $25,000 by itself. 

And, if the owner is at fault, they can also be held responsible for car repairs. As vehicles become more sophisticated, the repairs become more expensive. When the American Automobile Association (AAA) figured vehicle repair costs into the equation, the CDC number jumped to $163 billion per year. With most states requiring only $10,000 in property damage coverage, a significant amount of repair and replacement risk is being carried by an owner who opts for minimum coverage.

Risk of Assets:

The final consideration is at the heart of insurance - protection of assets. If a car owner causes an injury accident and the insurance limits do not cover the damages, they may find themselves in court. Research into jury verdicts has found that damage awards for auto accident cases involving serious back injuries range from $50,000 to over $400,000. Award on the low end of the scale could wipe out the owner's retirement account or cause loss of their home. Even lower-income owners with no tangible assets can find their wages garnished to pay off a jury award.
 
Depending on the state minimum insurance amounts, whether as a vehicle owner or an accident victim seeking compensation, it may be a recipe for disaster. Only an experienced insurance agent can help a vehicle owner balance the factors of risk aversion and asset protection against cost. Call Adcock-Adcock Property & Casualty Agency, Inc. at 813-933-6691 to make an appointment to review your state's minimum requirements and tailor a plan that offers real protection in case of an accident.

A Total Headache: What to Do When a Car is Deemed a Full Loss

After the initial shock of being involved in a serious automobile accident has subsided, you must deal with your insurance provider regarding the repair of your vehicle.  No problem; that's what insurance is for, right? Another shock may be in store for you when the adjuster declares the vehicle a total loss, especially if the reimbursement payout offered to you is substantially less than what you feel entitled to receive.
The term "totaled" can mean different things, depending on a car's retail value.  A vehicle is considered a total loss if it will cost ¾ of its retail value to make the necessary repairs to restore it back to its condition before the accident. If the car is an older model, it may not take much damage at all for it to be totaled. A newer model must sustain severe damage—most likely from a front-end collision or rollover—in order to reach such a conclusion.
It doesn't happen often, but sometimes the payment offered is not enough to obtain a replacement that is suitable. You can take steps in order to make sure that your best interests are served.

• You should know the value of your vehicle, including any dealer-added options or aftermarket accessories. Any receipts for accessories will be helpful. Several online sites offer help in making this determination, including the industry standard, Kelly Blue Book. Be sure to take the vehicle's condition and mileage into account.

• Because vehicle ownership has additional costs, you need to add these to the replacement value calculation. Sales tax and motor vehicle registration and title fees are examples.

• You need to carefully review the paperwork regarding payout before agreeing to the amount. Does it meet the results of your personal research? If not, give your research and documentation to the adjuster for reconsideration.

• If you do not find the payout reimbursement satisfactory, it's time to involve your state insurance commission to see how totaled vehicle settlements are addressed. These agencies also have advocates who assist customers in reaching a satisfactory result. Your other option is to hire an independent appraiser and see how much money they say should be offered to you.

It may be possible for you to keep your totaled car. Your insurance agency could be convinced to deduct a salvage value from the payout, and you could use the remaining amount to repair your vehicle. This will require a salvage title, which will make your car illegal to be driven until it is repaired and passes inspection. If you need help in navigating the claims process for automobile accidents, consider calling us at 813-933-6691. Information is available to help in making the best financial decision. Call Adcock-Adcock Insurance today for all of your Tampa auto insurance needs.

Is Your Learner’s Permitted Teen Covered?

Teenagers can't be expected to get behind the wheel of a car on the day of their driver’s test and ace the exam without having had any practice beforehand. A learner's permit allows an unlicensed teen to practice driving in real-world conditions as long as they have an adult present. This gives them valuable, firsthand experience in driving, helping them pass their test and become better drivers in general.

Generally, notifying your Tampa auto insurance company that your teenage son or daughter has received his or her learner's permit is sufficient to ensure that they’re covered under your policy. Because the teen is not yet a licensed driver and cannot drive alone, many insurance companies will not officially add them to the policy while they have a learner's permit--but some may. Either way, contact your insurer or agent to find out how your insurance company handles this situation.

If your teen drives another adult’s car with their permission, he or she is likely covered under that individual’s insurance policy. Before any other adult allows your teen to drive their vehicle, have a discussion with them about how you and/ or your teen will handle expenses for any claims that occur while the teen is driving. Also, find out the deductible on their policy so that you know what to expect should there be an accident. If their deductible is too high, you may not want your teen to drive their vehicle after all.

Lastly, it's always a good idea to raise your limits and consider lowering your deductible before your learner’s permitted teen gets behind the wheel. As an inexperienced driver, your teen is a big risk and adjusting your policy so that you have minimal financial exposure is a good idea. If other family members plan to take your teen driving in their vehicles, you may want to discuss this with them as well.

If you have a teenager getting ready to venture out into the world of vehicle operation, stop by or give us a call at 813-933-6691. We can discuss with you the many changes you might consider making in your insurance policy and help limit your risk exposure so that you can focus on training your teen to be the best driver possible.

Auto Insurance on the Move

If you’re getting ready to move, whether for personal or professional reasons, you need to consider how this change of location will affect your auto insurance policy. Here are five questions to ask yourself and your agent in order to better understand the true effect your move will have on your policy.

1. Are you moving out of state? If your move is not taking you across state lines then it may not change much more than just the address on your policy. However, if you are moving to another state you may need to get an entirely new auto insurance policy. Insurance is not regulated on a federal level, but on a state level. That means that each individual state has its own requirements for auto insurance policy conditions, limits, deductibles and more. Give your agent a call before you move and share with them the details of your relocation in order to determine how it will affect your auto insurance policy.
2. What new risks are you facing? The area you move to may have completely different risks of accidents, theft and vandalism then the area you currently live in. For example, if you currently park in a monitored garage but will be moving to an area with unmonitored, outdoor parking only, then your insurance premiums may change. In addition, you may wish to increase your limits in order to ensure complete protection, decrease your deductible so that you reduce the amount of self-insuring you must do, and add additional coverage options such as comprehensive so the theft or vandalism of your car is covered. Talk to your insurance agent about the various changes in risk that your move will bring and the ways that you can compensate for them.
3. How much will the move change your driving habits? If you are moving closer to your place of employment then you will drive your car less. In addition, if you are moving to a location with a strong public transportation system, you may substantially reduce the amount of miles that you put on your car each year. Both of these situations can help you reduce your overall auto insurance premium as it can reduce your risk of accident. Let your insurance agent know how your move will affect your daily driving needs in order to determine how it may affect your auto insurance rates.
4. Will you be changing banks? If your auto insurance policy’s premium is automated and your move will require you to change financial institutions, then you’re at risk for the possible collapse of your policy should you forget to change automatic payment information after your move. If your automatic payments are set up through your auto insurance company, there is an ACH (Automated Clearing House) form that your insurance agent can give you to update information. If you scheduled automated payments through your bank, make sure to give your new bank the information to take over that transaction.
5. Can you keep your agent? When moving to another location within your same state, even if that location as far away from your current agent’s office, chances are good that you will be able to stay with the same agency. Insurance agents are licensed by individual states so as long as you don't leave the confines of your current state of residence, no change in insurance agent should be necessary unless you’re unhappy with the service you’re receiving. If you move to another state, however, you should find out if your agent is licensed to sell insurance within that state too. If he or she isn't and no one in the agency office is, then you may wish to ask that agent for a referral. Otherwise, you can look online for an agency in your new state. When looking online, try to find an agent whose website makes you feel both comfortable and confident with their knowledge level and their willingness to educate their customers.

If you have questions about how your move will affect your Tampa auto insurance policy, give us a call at 866-933-6691. We can help you determine whether a change in policies will be necessary or whether you can simply adjust the limits, deductibles and coverages in your current policy.

Adjustments That You Should Consider for Your Auto Insurance Policy

An auto insurance policy should not be a static line of coverage. After all, your life changes; medical and liability expenses that can accompany an accident change too.
Considering changes to your life happen in the blink of an eye, you should make an effort annually to adjust your auto policy to ensure that it is as effective and accurate as you need it to be.

Annual Adjustments to Your Auto Policy You Should Consider

Average annual miles driven: Your insurance carrier requires an average of how many miles you drive per year in order to assess the risk you pose to them. Every year, make sure you report any major changes to them.

Take advantage of applicable discounts: You may receive discounts when you add anti-theft measures to your car, such as security alarms and wheel locking devices. You may also receive additional discounts for taking defensive driving classes. Prior to your annual renewal, consider which of these discounts you may qualify for and discuss them with your agent.

Add uninsured motorist rider: Without uninsured or underinsured motorist coverage, you could be stuck with some major bills after an accident with an uninsured or underinsured motorist. If you don’t already have uninsured or underinsured motorist, then you need to consider adding it to your policy.

Adjust your limits: You know that you set limits for your risk exposure with your agent when you initially purchased your policy; but, when was the last time you reviewed your risk exposure with your agent? With the rising cost of medical care, as well as possible changes in your driving habits, you may need to increase your limits to help reduce your exposure. As you’re also aware, cars and other personal property are only getting more expensive; another important reason to keep a tight rein on your limits.

Change your deductibles: Your ability to support your deductible may change from year to year. In lean years, you may have fewer savings to commit to a deductible, and as you pay off debt you might find you have more disposable income to put toward that responsibility. Keeping your deductible at an accurate level for your budget will help to control your risk exposure and your premium.

The next time your auto policy is coming up for renewal, remember these tips and update your policy so that it works with your current life and not the one you had when you originally took out the policy. Call us today at 866-933-6691 for more information about which auto insurance policy is right for you or get a free Tampa auto insurance quote.

JG