Hey!!! Why Is My Neighbor’s Insurance Policy Less Than Mine?

Have you ever been out washing the car, mowing the lawn or shoveling the snow and stopped to chat with your neighbor?  One conversation leads to another and you end up chatting about your insurance rates, only to discover you are paying more than your neighbor?  If the chore you were performing didn’t make you hot, you were now!

But before you pick up the phone or bang out an email to your insurance agent consider the following factors insurance companies use to determine the premium you pay.

• How is your credit rating?  Insurance companies use an insurance score to predict the likelihood of a client filing a claim and how expensive the claims might be.  Generally, consumers with a good insurance score file fewer claims and the losses are lower.  Credit scores run by financial institutions differ from an insurance score.  Financial institutions will look at your income, insurance companies do not!
• Are your coverages broader than your neighbor’s coverages?
• Some homeowner insurance factors:
  • Do you have the same type of alarm system as your neighbor?
  • Is your neighbor’s home the same square footage as yours?
  • Do you have an Italian marble island in your kitchen compared to the standard countertop in your neighbor’s kitchen?
• Some auto insurance factors:
  • How’s your driving record?  If you have any speeding tickets or infractions and your neighbors record is clean, that will make a big difference.
  • Have you taken a defensive driving class?  Has your neighbor taken one? A defensive driving class saves you 10% on your vehicle liability, personal injury protection and collision sections of your auto insurance premiums.
  • The number of miles you drive to work is a factor as well.
  • The type of vehicle you drive is a consideration.  Some vehicles are more likely to be stolen than others.
  • Do you have youthful operators or more vehicles than your neighbor?
• Some business insurance factors:
  • How long have you been in business or working in your industry?
  • Do you have employees that seem to repeatedly get hurt on the job?
  • Does your commercial building have sprinkler and/or alarm systems?
  • Does your business have a risk management safety program in place?

So while you might feel angry at first, the best thing to do is call your agent and review any discounts that might be available to you.  Discuss the “extras” your home or auto might have and how that affects your insurance premium with your agent.

The NSA Group is a Trusted Choice/Independent Agent which means we are also capable of quoting multiple insurance companies to make sure you are getting the best fit for your needs and your budget. Contact us if we can be of help with any insurance matter.

Jewelry Protection

Have some new jewelry in the house?  Protect it!

Ah, Valentine’s Day is near, and love is in the air. Well, love and a few other things, such as chocolates, romantic dinners, candy hearts that say “Be Mine” – and, of course, jewelry.

It’s exciting to receive jewelry from a loved one — or to give it as a gift. Not to mention romantic. But if you’re lucky enough to have some new jewelry in your home this Valentine’s Day, you should take a few minutes to think about something you probably don’t find exciting or romantic: insurance.

Don’t know where to turn? Don’t worry. At The NSA Insurance Group, we think it is exciting to help our customers protect what’s most important to them — so we’re ready to help and can answer all of your questions.

Things to consider when insuring jewelry:

You may need to purchase additional coverage. Your homeowners policy covers valuable items such as jewelry only up to set amounts. If the cost of replacing your jewelry exceeds that limit, you will want to purchase scheduled personal property coverage. You can check your policy or give us a call at  631-722-3500.

You might want to reconsider your deductible amounts. As always, this impacts your policy premium. It’s a good idea to take a look at your deductibles whenever you make a change to your policy.

Do you need an appraisal? You may need to have an independent appraisal if the insurance company requires it or if you don’t know the value of your jewelry. Each item should be listed with a description and value on paper.

What kind of coverage is offered? You’ll want to determine if items are covered no matter where they are, whether they’re in your home, or on an international trip, and if the policy offers full replacement cost. You also should ask if you will be required to replace your jewelry if lost or stolen, or if you can simply keep the cash settlement.

Pictures can be helpful. Lost or stolen pieces of jewelry sometimes can be recreated if the jeweler has a good photograph to work from.

Is the value of your jewelry mainly sentimental? Is an item irreplaceable? If the answer to either of these questions is “yes,” you might consider foregoing insurance. But please, talk to us at 631-722-3500 before making that decision. That’s what we’re here for.

Of course, it’s important to store your jewelry securely when it’s not in use; a safe in your home or a safe-deposit box is best. We want your jewelry to be replaced if it’s lost or stolen, but we’d rather your sentimental and valuable pieces stay with you and your family for years to come.

Here’s hoping your Valentine’s Day is full of fun and romance. And if there’s no jewelry involved, well, there’s always next year!

Contact Us!

For further questions and assistance, please contact The NSA Insurance Group at 631-722-3500 or info@nsainsure.com.

Content provided by Safeco Insurance

Why Should You Buy Uninsured Motorist Coverage?

Has your insurance agent recommended Uninsured/Underinsured Motorist coverage to you?  Have you thought to yourself “Why should I buy coverage because someone else isn’t properly insured?” or “I have medical insurance, if I need it?”  Well guess what?  This coverage is there for your protection not theirs.

First, let’s start with the definitions of UM (uninsured motorist) or UIM (underinsured motorist) coverages.

• Uninsured Motorist (UM) coverage:  “Coverage for bodily injury (BI) and, in some states, property damage (PD) incurred by an insured when an accident is caused by a motorist who is not insured. This coverage allows an insured to collect from his or her insurer as if it provided liability coverage for the negligent third party.” ¹
• Underinsured Motorist (UIM) coverage: “Coverage for bodily injury (BI) and, in some states, property damage (PD) incurred by an insured when an accident is caused by a motorist who is not sufficiently insured.” ²

Now let’s demonstrate with a hypothetical automobile accident.

You are driving along on a beautiful day, when you are hit by a vehicle NOT COVERED by insurance. (You may think this is uncommon, but according to the Insurance Research Council (IRC), 1 in 7 U.S. drivers do not carry auto insurance coverage and are therefore uninsured.)

Back to our claim story; you are hit by an uninsured motorist. Unfortunately, you have serious injuries and that require a hospital stay and surgery.  Because the other driver is not covered by insurance, your auto policy will be where we begin to pay your bills.

1. If you live in a “no-fault state” (and in New York we do) your personal injury protection (PIP) will be the first coverage to provide help for paying medical expenses (whether you have personal health insurance or not), loss of income, and funeral expenses.
2. If your medicals bills exhaust your PIP coverage, the next policy to take over would be your health insurance policy.  Considering the rising cost of health insurance today, many people have chosen not to carry health insurance and in some cases health insurance policies have a life time limit of coverage.  UM coverage is an affordable solution in these cases.
3. Now let’s assume this accident has left you unable to work and you don’t carry any disability insurance.  Your medical bills may be taken care of but what about your everyday expenses?  Your medical policy won’t cover those expenses, but you are unable to work and collect a pay check.  This is where Uninsured/Underinsured Motorist coverage comes in.

UM and UIM protect YOU and your assets from the very real possibility you are involved in an auto accident with someone who doesn’t carry auto insurance or who doesn’t carry adequate insurance!  For additional information please contact one of the NSA Group offices  or your insurance agent.

Additional information:

• Trusted Choice, http://www.trustedchoice.com/Content/Articles/UM-Coverage.aspx
• Epinions, http://www.epinions.com/content_1223336068?sb=1

¹ IRMI. “Uninsured Motorists (UM) Coverage.” – Insurance Glossary. N.p., n.d. Web. 18 July 2012. <http://www.irmi.com/online/insurance-glossary/terms/u/uninsured-motorists-um-coverage.aspx&gt;.

² IRMI. “Underinsured Motorists (UIM) Coverage.” – Insurance Glossary. N.p., n.d. Web. 18 July 2012. <http://www.irmi.com/online/insurance-glossary/terms/u/underinsured-motorists-uim-coverage.aspx&gt;.