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 With Warm Weather, Now Is the Time to Review Insurance Needs and Savings Options Warm weather brings more leisure driving – whether locally or to a vacation spot. In planning your increased seasonal driving, you may be preparing your vehicle with mechanical check-ups, but are you preparing for the increased risks with an adequate insurance inspection? You certainly check tread and air pressure, fluids, belts and hoses. In checking your insurance policy, some of the key concerns include the limits on comprehensive, collision and liability coverage. Are they sufficient to handle current legal judgments in your area? Many people keep the same limits year after year despite the fact that typical accident-related legal settlements may have increased over the same period. Depending on the carrier and policy terms, you might be able to obtain up to four or even five times the coverage for less than twice the cost. For instance, many policies can be adjusted to boost typical bodily injury coverage from $50,000/$100,000 to $250,000/$500,000 for a modest additional premium. Your insurance professional can help you assess the coverage limits that fit current legal judgments. Recreational Vehicles Pose Special Coverage Challenges Warm weather recreational vehicles such as dirt bikes, ATVs, jet skis, boats, etc. generally must be towed or secured in the bed of a pickup truck. To avoid unexpected liability issues, the transport and operation of these vehicles should be carefully reviewed with your insurance professional. A brief review can help ensure that the risks are properly addressed with existing policies or require additional endorsements, increased limits, new policy terms, or whatever is required for adequate coverage. Operation of powered vehicles that are infrequently used could increase the possibility of an at-fault accident due to improper use – and even a lawsuit from a bystander injured by your vehicle. If you own such vehicles, an umbrella policy may be an affordable extra measure of protection – particularly if you have a home of above average value, savings, equity holdings, etc. that could be at risk in a lawsuit. Tune-Up Your Savings Options, Too If you currently have several vehicles in your household, it’s usually a good idea to consolidate all vehicles on one policy. You’ll generally get a discount for insuring multiple vehicles on a single policy; and it’s easier to manage and pay for one policy. Some consumers believe that “shopping around” for separate auto and home policies will yield greatest savings. Yet it’s likely that you’ll save more by combining auto and home policies through a single carrier. Another way to potentially save on auto insurance is to consider a certified advanced driver training class approved by your insurer. Successful completion may yield a discount on your auto policy good for several years after the course. While you may want to increase limits on one hand, you also might consider increasing deductibles. Be sure to explore with your insurance agent the impact of different deductible amounts on your premium. Even modest changes in deductibles can result in 10-20 percent savings. Summer or winter, safe driving is cost-saving driving. Besides the obvious relationship between speeding and increased gas consumption, there’s a clear relationship between risky behavior such as speeding or violating other traffic laws and the incidence of accidents. At-fault accidents not only may produce higher premiums, but if repeated often enough can result in non-renewal of your policy. In consulting with your insurance professional, check on the applicability of other cost-saving options such as anti-theft and safety devices, fewer annual miles driven, etc. that may not be reflected in your current policy. As a MACPA-endorsed partner, Paul Goebel Group (PGG) provides members with affordable insurance services and products tailored to fit member needs through professional consultations and policy reviews. PGG represents leading Michigan carriers such as Citizens Insurance Company of America and its Connections® Auto and Connections® Home products. LC 11-154
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| PO Box 5068 Troy, MI 48007-5068 Phone: 248.267.3700 Fax: 248.267.3737 E-mail: macpa@michcpa.org | |
