Insurance comes in a wide array of choices for a variety of consumer and business needs. Even the best-educated consumer who spends time researching insurance issues will come across a topic he or she doesn’t understand.

Let’s take a look at what consumers say when asked: “What’s one thing you don’t understand about insurance?” Here are three common questions that Trusted Choice^® insurance agents and brokers hear:

Q: Why do I need insurance?

Insurance is for the uncertainties of life. Accidents and catastrophes happen. What can’t be predicted is when they will occur, and whom they will affect. Most people understand they’ll get sick at some point in their lives, but they can’t predict the severity and extent of the illness nor the cost of the treatment.

Catastrophes strike: In 2005, there were 24 weather-related or other disasters causing a total of $61 billion of insured losses. Hurricane Katrina alone caused $41 billion in damage from 1.75 million insurance claims.

Even the safest drivers face the risk of an accident, and even the safest homes can catch fire. In 2006, about 5 percent of insured homes had a claim, according to the Insurance Services Office. About 94 percent of these homeowners insurance claims were for property damage, including theft.

Lawsuits are another uncertainty that businesses and homeowners face. They’re costly: In the 56-year period from 1950-2006, the costs of the tort lawsuit system in the U.S. increased an average of 9.2% each year, reported Tillinghast-Towers Perrin. While most lawsuits are settled before they reach the courtroom, Jury Verdict Research data show that the median plaintiff award in personal injury cases was $45,000 in 2005, compared with $32,000 in 2002. Insurance provides two benefits to those who are sued: It pays for the cost of defending the lawsuit and pays for any liability payments for which the insured is found responsible.

Q: How do you define what insurance is … or does?

Insurance is simply a vehicle for transferring risk from one party to another. You need insurance if you have financial risk (and everyone does) and you want to reduce that risk. To do so, you pay someone else (e.g., the insurance company) to assume much of the risk for you, in return for a payment known as a “premium.”

Because American consumers hold a tremendous amount of wealth in property—ranging from homes and cars to collections of baseball cards and Christmas ornaments—they have a basic need to protect themselves from losing that value.

Insurance is designed to “make people whole” after their property or assets are damaged or stolen, or if they are responsible for harm caused to another party. An insurance policy is a contract under which an insurance company agrees to pay a certain amount of money to the policyholder if certain events happen (and their property is damaged or they cause harm to someone else or someone else’s property).

Q: Is life insurance an investment or purely insurance?

A: Life insurance for centuries has been first and foremost insurance: it provides a death benefit to the family or business partners of an insured person.

Beginning about 30 years ago, the attractive returns in stock investments led insurance companies to bring investment elements into life insurance policies. For example, agents and companies offered consumers the choice of placing life insurance premiums into mutual funds, stocks, and bonds within the life insurance contract—known as “variable” life insurance. The term “variable” implies that the investment returns on these premiums vary with market performance.

With these types of life insurance policies, the insurance carrier takes the policyholder’s premium dollars and places them in the investment account(s) chosen by the policyholder. These types of life insurance policies are subject to state insurance regulation and federal and state securities regulations.

While investment-oriented life insurance has grown popular over the past generation, traditional life insurance (both permanent and term) continues to be purchased in large amounts. Americans purchased $3 trillion of new life insurance coverage in 2006, according to the American Council of Life Insurers.

If you’re not sure whether a life insurance policy includes investment elements, you can check the disclosure information on a life insurance application or policy, which must discuss whether securities are part of the life insurance contract.

What are your particular questions about insurance? Contact us. We are a Trusted Choice^® insurance professional.

http://www.ambergins.com/inside/contactus.htm

The insurance you carry on your vehicle does not cover vehicle breakdown due to  equipment failure, and even your warrantee may have exclusions if you do not maintain your vehicle correctly,  so it is important that you take care of your vehicle…especially if you don’t want to be stranded somewhere. Below are the main things you should pay attention to, and you can look in your owner’s manual for other maintenance items and timelines, and some you could do yourself. Other things you may need to have a qualified mechanic with the expertise and equipment to do the job correctly for you.

Change the oil and oil filter regularly.

The owner’s manual for your car will specify exactly how often you should do this, but a good rule of thumb is to change them every 3,000 to 4,000 miles. If you change the oil and filter yourself, be sure to dispose of the used oil properly. 

Check all the fluids.

This includes brake, power steering, transmission, transaxle, windshield washer and antifreeze fluids. Your owner’s manual will tell you how to check these. If you don’t feel comfortable doing this, have a mechanic do it.

Check the air pressure level in your tires at least once a month.

Your owner’s manual should specify the ideal air pressure for your particular tire. If not, check on the outside of the tire. It is always listed on the sidewall. 

Make sure all your lights work.

Check you headlights, turn signals, brake lights and taillights.

Replace the windshield wiper blades periodically.

If your wiper blades are cracked or torn, or if they begin to streak, it’s time to replace them.

Inspect the engine belts.

They should not look dry or frayed. Some belts are easy to change, but some you may need a mechanic.

Check the air filter.

The filter should be clean, not clogged or damaged. This will also help with fuel economy.

Spring will soon be in the air, and it’s about that time to start thinking about cruising down those open roads on your motorcycle either by yourself or in a club on an outing

 We want to make sure that before you hit the road, sit down with your independent insurance agent and make sure your insurance policy is up to speed so that you, your passenger, and your bike are protected.

 Here are a few tips that will help you:

 1. Make sure your insurance policy is still active. If you don’t drive your bike that much, you may have let your coverage lapse. It takes a few seconds to check this. Look at your policy ID. It should have your expiration date on it. Also, some companies have a winter layaway period when some of your coverages may be restricted. Check with your independent agent about this to see if you have any type of limited coverage.

2. Update your policy. Let your insurance company know about any changes like additional riders, a new address or customized parts. A quick call to your independent agent can secure coverage that meets your needs.

3. Cover customized parts. Parts such as chrome plating, a new paint job, saddlebags or special rims usually increase the value of your bike. If you’ve added custom parts or equipment, make sure they’re protected.

4. If you don’t need it, drop it. If you own an older bike, check its value. Don’t pay for coverage that you don’t need. Consider dropping collision coverage if the premium equals 10 percent of the bike’s market value. Understand, however, that you won’t be covered if your bike overturns or collides with another object.

5. Shop around. Prices can vary from company to company, so shop around. Another tip: If you purchase comprehensive and collision coverage, consider raising your deductibles. This can lower the cost of your physical damage coverage.

You can always contact us at:
http://www.ambergins.com/inside/contactus.htm

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