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3 Uses for Life Insurance Benefits

Tue, 22 Oct 2019 21:59:53 GMT

When most people think of life insurance, they think of benefits paid out at death to help cover the cost of funeral expenses. Considering a traditional funeral and burial can cost between $7,000 and $10,000 in some cases, life insurance is a great investment if you want to reduce your loved one's financial burden.

Funeral expenses may be a main reason to secure life insurance, but it is not the only reason you will want to leave money for your loved one after your death. With this guide, you will learn a few other ways your loved ones can use your life insurance benefits.

1. Estate Taxes

Your loved ones may need to pay different taxes after your passing. Unfortunately, they may not have the funds to cover these expenses, but a sufficient death benefit amount will help.

If your property and assets are valued over $11.4 million and will be transferred to your beneficiary after your death, a federal estate tax will be imposed. While in Florida, estate taxes are only imposed on a federal level, other states may also impose a state-level estate tax after a certain threshold, so if you have property in another state, that property may be subject to state taxes.

Most inheritances are not subject to federal and state estate taxes since they are below the minimum threshold. However, if you believe your estate will be valued over the set amount, your heir will need to pay federal estate taxes, which will be costly.

Make sure your death benefit will be enough to cover not only your funeral expenses but also any estate taxes your beneficiary may be obligated to pay after your passing.

2. Charitable Donation

The life insurance can also be given to a charity of your choosing. For example, if a charity or organization is important to you or your family, the death benefits from your life insurance policy can be donated.

To ensure the benefits are donated to your specific charity or organization, such as a cancer society, church, or even school, you can designate them as the beneficiary.

Consider naming multiple beneficiaries and designating percentages to each. For example, the entire death benefit can be divided in half. This will ensure half of the death benefits are paid to the charity and the other half is paid to another beneficiary, such as your spouse or child.

Make sure the charity is a 501(c)(3) organization, so the money donated will be a tax-deductible contribution.

Another option is to ask your beneficiary to donate a certain amount of the life insurance proceeds to a specific charity, organization, church, or school. You can make this request legal by adding it to your last will and testament.

3. College Expenses

College tuition is expensive and seems to increase each and every year. On average, one year at a public college in your state can cost $14,210 . Therefore, if you have one or more children, college tuition can be quite overwhelming.

If you fear you will pass away before your children enroll in college, remember that the death benefits can be used to cover their tuition needs. Be sure to calculate the average cost of tuition per year for each of your children and factor in inflation to determine how much life insurance you will actually need.

You can also use a whole life (or permanent) insurance policy to help fund your child's tuition while you are still alive because this policy accumulates cash value over time.

Life insurance is not just to help pay for funeral costs — it can be beneficial in a variety of ways. For more information on life insurance, contact Harr & Associates Insurance, Inc., today.

Does Your Business Need Liquor Liability Insurance?

Thu, 03 Oct 2019 21:51:50 GMT

So you want to get an alcohol license. That's sure to be a boost in your revenue — but it could also increase your risk. Alcohol can lead to alcohol-related damages and injuries, and that's something that needs to be covered by insurance. Do you have the insurance you need to protect your business?

Does Your Current Insurance Policy Cover Alcohol?

Many business policies have a limited amount of alcohol insurance, such as host liquor liability insurance. But this host liquor liability insurance isn't intended to cover your consumer alcohol license, it's intended to cover business functions.

If you had a company Christmas party and someone drank too much and became injured, your liquor host insurance would cover it. But if you served alcohol to a consumer, it likely wouldn't be covered. 

Do You Need Liquor Liability Insurance?

If you're going to sell alcohol as a business (or manufacture or bottle it), then you will need liquor liability insurance. Liquor liability insurance is a special, add-on insurance that is meant to mitigate the risks inherent to having an alcohol-related business. When a business serves alcohol, its liability generally increases.

Liquor insurance helps you keep these costs down, whether the costs are from property damage, injuries and medical care, or even lawsuits and legal damages.

What Does Liquor Liability Insurance Cover?

Every liquor liability policy is a little different, but most will cover the following:

Fights that break out in your establishment. "Assault and battery" coverage will cover you for injuries that occur due to these fights, and property damage (such as someone breaking a watch during a fight). 
Legal costs associated with claims. Claims can be levied against your business even if they're false, and those claims could be quite expensive. An insurance policy will pay for the charges associated with them.
Employee misconduct. What if your employees drink, even though they're not supposed to, and get injured or injure someone else? A liquor liability policy may cover employee misconduct, including an employee over-serving alcohol when they've been directed not to.

You will want to look for a policy that covers most of these items, insofar as they're applicable to your business.

How Much Does Liquor Liability Insurance Cost?

The cost of your liquor liability insurance often depends on where your business is located. If your business is located in an area that sees many alcohol-related claims, your insurance will be higher. On the other hand, your liquor liability insurance may go down in price if you're in business for a long time without any incidents.

You can usually expect to pay between  $250 and $2,500  a year. That's a large difference, but that's because there are different types of licenses. You can get a license for a small amount of beer and wine sales, which is quite different than a license to have a full bar. Each license type involves different amounts of insurance coverage, hence the difference in cost.

Some insurance companies offer discounts if you and your employees go through responsible alcoholic beverage training. You can ask your insurance agent whether such discounts are available for you. 

How Do You Get Liquor Liability Insurance?

Now for the good news: it isn't difficult to get liquor liability insurance. Most business insurance companies can underwrite a policy. If you're a relatively new business that plans a large amount of liquor sales, however, be prepared to see a hefty price tag attached. Keep in mind, however, that the cost of not having insurance can much higher in the long run.

Before you make any decisions about liquor licensing, you should talk to an insurance company. Contact Harr & Associates Insurance, Inc., for a consultation today. 

5 Key Factors That Affect Life Insurance Premiums

Thu, 22 Aug 2019 16:13:40 GMT

From peace of mind for yourself to ensuring your loved ones have the financial means to handle your final expenses, the importance of life insurance should be easy to see. Unfortunately, many people struggle with the cost of premiums even though they realize life insurance is so important.

Understanding how the price of premiums is factored can be helpful. This guide will explain the key factors that determine the cost of your life insurance premiums.

1. Age

Age is one of the most dominant factors underwriters consider when pricing a life insurance premium. A younger individual will pay less for the same type of life insurance than an older individual.

The theory to why younger people pay less for insurance stems from the belief that younger people will live longer, so the insurer will be less likely to have to pay out a death benefit for a younger person.

Because age is such an important factor, experts believe it is best to purchase life insurance when you are younger.

2. Policy Type

The type of life insurance you purchase is also a factor when determining premium costs. Term and whole life policies are the most common. There are not only differences in the benefits of these policies but also the costs.

As the name suggests, term life insurance insures you for a specific term. Once the term ends, you will either need to renew for a new term or convert it to a whole life policy.

Whole life policies have a lot of benefits including fixed premiums that will never increase even though you age each year. Whole life policies also accumulate cash value over time. This cash value can be used for a variety of expenses. Unfortunately, because of the benefits, whole life policies will be more expensive.

3. Health

No matter your age or what policy type you choose, your underlying health can also affect the premium rates. Certain medical conditions are red flags for insurers and underwriters because they feel they increase your risk of death, making you less appealing and more risky to insure.

Here are a few common medical conditions that can lead to higher life insurance premiums:

High blood pressure
Type 2 diabetes
Sleep apnea
Heart disease
Asthma
Cancer
Obesity
Organ transplants
High cholesterol
Mental health disorders

If you are living with or there is a family history of one or more of the above medical conditions, you will most likely pay higher premiums for your life insurance. However, having this life insurance will be even more important because your health and your life are at risk.

4. Occupation and Hobbies

Most people are surprised to learn certain occupations and hobbies can make them riskier to insure.

Roofers, tree specialist, utility workers, and pilots will pay higher life insurance premiums because they work at high heights, which can be dangerous and life-threatening.

Professionals who work in emergency services, such as policeman, paramedics, and firefighters will also pay higher life insurance premiums because of the dangers associated with their jobs.

Underground or underwater workers, such as divers, drillers, and miners, also have hazardous jobs, which can lead to higher life insurance premiums.

Your premiums will be higher if you have dangerous hobbies, as well. Skydiving, bungee jumping, mountain climbing, scuba diving, race-car driving, and flying are hobbies insurance companies consider risky.

5. Death Benefit

Finally, the death benefit amount is a key factor in determining the rates of your life insurance policy. The higher the death benefit, the higher your insurance premiums will be.

Many people make the mistake of choosing the lowest death benefit possible to ensure their monthly premiums are not too high. Unfortunately, focusing on the premium amount instead of the death benefit amount could mean you are not leaving your loved ones enough to cover the cost of your funeral, burial, or cremation and your other final expenses.

For assistance purchasing life insurance, contact Harr & Associates Insurance, Inc. , today.

Beginning a Family? Consider These 3 Kinds of Insurance

Tue, 13 Aug 2019 23:14:39 GMT

Having your first child is a momentous event that brings many changes. Just as there are changes to your home life, schedule, and finances, there are also changes to your overall risk exposure. As a result, your insurance needs change. If you're beginning a family, make sure you consider these three key insurance coverages.

1. Life Insurance

Life insurance should be your first consideration, for this ensures the financial well-being of your loved ones in the event that you pass away unexpectedly. Regardless of whether you already have a life policy, you should review your coverage needs in light of your family's new addition.

If you don't yet have life insurance, now is the time to purchase a policy. Most people purchase enough coverage to replace their income and cover major childrearing expenses, such as college tuition. Make sure to get coverage for at least as long as you'll be financially responsible for your new child.

If you already have life insurance, now is a good time to reevaluate your coverage needs. You may find that your policy still provides enough protection, or you might want to increase protection. If you want more coverage, the easiest way to procure additional protection is usually by purchasing another policy.

Additionally, don't assume you can forgo life insurance if you aren't working outside the home. Stay-at-home parents provide economic value to their families. Calculate how much childcare, food prep, and cleaning would cost in the event of your passing, and look for a policy that could cover those expenses.

2. Auto Insurance

While many people believe that auto insurance simply helps with paying for damages to your car or others’ after an accident, this coverage also helps your family, especially if you heavily rely on one car for transportation.

First, without auto insurance in the first place, you would have to pay for any damage or injuries in case of an auto accident or other incident. While an auto insurance policy often includes an upfront deducible, the insurance often covers most, if not all, of the rest of expenses incurred. Having that protection helps protect your family’s budget.

Additionally, if a car accident totals your car, then the right coverage can provide the means for a new car of equal value as your previous car. That way, you won’t have to worry about spending a lot of money on a new car. That protects both your budget and provides you with a means of transportation.

However, make sure you have the right amount of coverage for your family’s needs. While most states only require a minimum of liability coverage, additional protection might include collision or comprehensive coverage, as well as roadside assistance, towing, accident forgiveness, or rental reimbursement. All of these are able to protect your budget as well as help your family when in tough driving situations.

3. Mortgage Protection Insurance

Mortgage protection insurance is appropriate if you own your house and have an outstanding mortgage against it.

Mortgage protection insurance works much like a life insurance policy, except it's designed specifically for your mortgage. In the event that you pass away during the policy's coverage period, mortgage protection insurance pays off the remainder of your mortgage. The coverage period lasts until your mortgage is paid in full, and some policies also cover long-term disability.

Without other financial resources, this can become one of the most important insurance coverages you have if you pass away or become disabled. Not only does it provide financially for your family, but paying off your home mortgage has great emotional value too. The action ensures that your new family can stay in the home they love and cherish.

For help finding mortgage protection insurance and these other coverages, contact the experienced team at Harr & Associates Insurance, Inc.

3 Considerations for Choosing the Right Small Business Insurance

Thu, 01 Aug 2019 07:15:58 GMT

Many small businesses start in homes, garages, basements, and sheds. As the business grows, it takes on more risks and requires greater protection. You should consider business insurance a necessity from the very start. However, not all small businesses have the same risks or need the same type of protection. Here are some considerations on where to start with insuring your small business.

1. Understand What You Have to Lose

A lot of math and equations can govern a professional risk assessment. You don't have to crunch too many numbers at first. Instead, just consider what you have to lose. All business comes with risks. Your small business will have risk factors you need to note. A good way to start assessing your risk is to look at the different types of risk associated with any business:

Operational risks
Financial risks
Marketing risks
Economic risks
Legal risks

Many other types of risks exist as well. Identifying the risks associated with your small business operation will give you a better understanding of what type of insurance you need to consider. As your business grows, you can consider a more robust, professional risk assessment to fine-tune your insurance options further.

2. Consider What You Need to Cover

Once you know your risks, you can start to think about what specific things you need insurance coverage for. In almost all cases, you will need property insurance and liability insurance. You may also need other types of insurance, but property and liability are two good places to start.

Property Insurance

Your small business includes physical items. These items, or assets, are integral to the running of your business.

Ask yourself what would happen if you lost the use of any structure or piece of equipment. Would your business suffer? If yes, then you should consider insuring those pieces of property your business relies on. One stolen or damaged asset can cost you and your small business everything.

Liability Insurance

By conducting any sort of business, you create liability. You need to protect your business and yourself from liability claims.

Do you know what happens if someone says your product brought them harm, or if someone trips and falls where you conduct business? You or your business will often have to pay for whatever kind of legal process arises from these types of situations.

One lawsuit from one person can end a business. For these and more reasons, you need liability protection.

3. Research the Different Types of Business Insurance

Various types of business insurance exist. Depending on the nature of your small business, you may need specific types of coverage not included in traditional business insurance packages. Since you now know your risks and what you need to cover, you can start looking at what these packages have to offer.

The typical business owner's policy (BOP) will include some property, liability, and other types of coverage. These policies aren't the same across all insurance companies, but a BOP is great for a new small business as it covers the basics.

Your business may need other types of coverage, such as cyber liability or workers’ compensation if you have employees. If you use a vehicle with your small business, then you need to consider that for insurance. Basic automobile insurance isn't suitable for business operations. If you have a home-based business, you shouldn't assume your homeowners insurance will cover anything with your business operations.

All these things are further considerations for insuring your small business. At Harr & Associates Insurance, Inc, we have coverage options for every type of business and can customize your plan to fit your specific business needs. Contact us today to learn more or to get a quote for your small business insurance .

Your Auto Insurance Deductible

Thu, 06 Jun 2019 08:50:17 GMT

Lowering your auto insurance rates is a delicate balance between choosing the correct coverage and selecting a deductible that works for your budget. If you're not sure whether you should buy a new policy or keep things as is, take a look at what you need to know about changing your deductible.

What Is a Deductible?

Whether you're new to buying auto insurance or just aren't sure what the terms mean, understanding the jargon is a first step to getting a policy that fits your needs. If you don't know what the agent is talking about — especially with coverage, deductibles, and payments — ask before agreeing to anything.

The deductible is the money or percentage you pay yourself for repairs once you’ve filed a claim. In most cases, the policy will require a specific dollar amount per claim. This means if you pay your $500 deductible for one at-fault accident, you'll still likely have to pay it the next time you file a claim.

When Do You Pay a Deductible?

Again, the deductible is a by-claim cost. If you remain accident-free, you won't have to ever worry about your deductible. That doesn't mean you should rely on your safe driving as a reason for raising your deductible.

Along with paying the deductible after an accident, you may need to pay it following damage from vandalism or a natural disaster. The specific costs that qualify as deductible expenses depend on the policy. Talk to your insurance agent about costs you're responsible for versus what the policies cover.

Is a Low or High Deductible Better?

Different deductible options come with different pros and cons. A lower deductible means you'll pay less following an accident or another type of damage. While this may sound like the perfect option, it may come at a price. Low deductibles often equal higher coverage rates. If you don't need to use the coverage, you'll pay more over time.

A higher deductible has the opposite effect. Instead of raising your rates, it will likely lower it. If you remain accident- or incident-free, you'll pay less over time. But if you do need to use your coverage, you could pay much more for repairs.

You have no way to know how much you'll need to, or not need to, use your insurance. This makes choosing a deductible challenging for some drivers. If you're not sure which way to go, consider a middle-of-the-road approach. Split the difference and choose a medium deductible that's not too high but not so low that it makes your overall rate skyrocket.

What Else Should Drivers Consider When Choosing a Deductible?

You want to lower your premium rates and have already maxed out any available discounts. Should you go ahead and raise your deductible? Before changing your deductible, consider the other factors that go into your payments. These might include:

Savings. If you have a sizable savings or emergency fund, you may already have the money available to pay for damages your policy won't cover. This may allow you to raise your deductible and pay lower premiums.
The actual costs. An already-low premium may not get much lower by changing your deductible. A minimal per-month or per-year change in your premium probably won't equal out with a deductible change.
Vehicle value. Is your car brand-new or ready for the scrap yard? An older or low-value vehicle may not warrant a repair — making a low deductible unnecessary.

Your insurance agent can discuss what impacts your coverage and your deductible the most. Depending on the policy, the agent may help you to find other potential considerations that will influence your decision.

Do you need a new insurance agent? Contact Harr & Associates Insurance, Inc. , for more information.

Warm-Weather Driving Risks You Need to Know About

Thu, 16 May 2019 09:17:58 GMT

Winter isn't the only time of the year that comes with driving hazards. What do you need to know about navigating the nation's roadways when the season changes? As the weather warms, take a look at the top risks that drivers often face during the spring and summer months.

Engine Overheating

When the mercury rises, so does your engine's risk of overheating. Even though your car's coolant keeps the engine in check most of the year, the higher outdoor air temperatures make it harder to stop this unwanted engine issue from happening.

While you can't stop the temperature from rising, you can make sure your car has enough coolant — especially if you drive often or you drive a long distance on an extremely hot day. If your coolant runs low before it should or your car is constantly empty, have a mechanic check for a leak or blockage.

Along with obvious coolant-related issues (such as a leak), other mechanical problems can cause engine overheating. Loss of engine lubrication can also result in overheating. Check the oil level often to reduce the likelihood of this scenario. Without an adequate amount of oil, the friction from the engine's moving parts can cause overheating.

If your best maintenance efforts fail and your engine still overheats, move the car off the road and to a safe space while you wait for a tow truck or mechanic.

Increased Traffic

Between spring break and summer vacations, road trips rule in the warmer months. The more cars are on the roads, the more the chances of an accident go up. If you're headed out on a spring or summer road trip:

Get a checkup first. Again, low coolant or oil can cause your car to overheat. Along with making sure you have plenty of these fluids, have a mechanic check your brakes, lights, and everything else you need for safe driving.
Drive defensively. Stay alert and drive smart. With more cars on the road, you need to pay constant attention not only to where you go but to everyone else's driving too.
Bring safety items. As if breaking down isn't tough enough on its own, add in a steady stream of traffic nearby and you have a recipe for danger. Bring road flares and other safety items to reduce risks and keep you safe.

Whether you travel near or far, expect delays — especially as you near major spring and summer holidays. While feeling frustrated when driving in traffic is normal, leave your road rage at home. Letting the anger get the best of you can lead to an unsafe situation or an accident.

Teen Drivers

Without school to occupy their days, teens are out and about — driving on the same roadways that you try to navigate. Unlike seasoned adult drivers, teens are more likely to underestimate potentially dangerous situations. This can lead to poor decision-making and a higher likelihood of engaging in accident-causing behaviors.

Even though you can't avoid all teen drivers, you can reduce some of the risks by staying alert. Watch for new drivers, yielding to them or slowing down. If you have a teen driver in your family, discuss safe driving practices, enroll your teen in a driver's education class, and strictly enforce rules (such as a car curfew).

Outdoor Activities

From biking to the park to strolling around the neighborhood, people are out of their homes. Bicyclists can quickly dart out in front of a car, distracted pedestrians can wander into an intersection, and other outdoor activity enthusiasts (such as skateboarders) can get in the way of traffic. Along with looking out for other cars, check your surroundings for other people.

Do you need to add extra protection to your auto insurance policy? Contact Harr & Associates Insurance, Inc. , for more information.

First-Time Life Insurance Buyer? What You Need to Know

Mon, 15 Apr 2019 14:14:25 GMT

What do you need to know about buying life insurance? If this is your first time picking this type of product, take a look at the top tips to make the process easier.

Pick a Policy You Can Afford

This means that you need to choose coverage you can afford right now. Cost is a major reason for not purchasing a policy. Even though you will need to pay for this type of insurance, the idea that it's excessively (or prohibitively) expensive is a myth. According to LIMRA's 2018 Insurance Barometer, 44 percent of millennials believe that life insurance costs five times more than it actually does.

Before you decide to skip coverage entirely due to cost, talk to your insurance agent. They may be able to help you find policies that meet your financial needs right now. If your financial situation changes, you can always reevaluate the coverage later on.

Choose Beneficiaries Wisely

If this is your first time investigating life insurance policies, you may not have given much thought to the specifics. This includes who you'll name as a beneficiary or beneficiaries. In the event of the unthinkable, your life insurance policy can replace your family income contribution, supporting a spouse or children.

But what happens if you aren't married or you don't have children? You have the option of naming anyone of your choosing as the beneficiary. This could include a parent, niece, nephew, sibling, other relative, unmarried partner, or friend. You can also designate the insurance payout as a charitable gift or name your estate as the beneficiary.

Naming your estate as the beneficiary of your life insurance policy means that you need to clearly outline, in a will, your money distribution wishes. Whoever benefits from the policy, whether through the coverage or the estate, will receive the payout. Choose wisely, picking someone who has your best interests in mind.

Determine Coverage Amount

How much coverage do you really need? While you don't need an exact, down-to-the-penny figure, buying your first life insurance policy does require a ballpark figure. Some insurance pros believe in the multiply-by-10 method. Take your annual income (what it is right now and not what you project it will become in the future) and multiply it by 10. The total is the dollar amount of coverage you'll need.

If you feel that this method doesn't give you a high enough number or that your dependents will have added expenses (such as college), add an extra $100,000 to the total. You can also calculate your financial contributions and financial obligations and then subtract any savings or assets you have. To calculate financial obligations, include all debts you'll have to pay, along with potential funeral costs.

While you may be tempted to save money right now by purchasing a less expensive policy, this strategy won't work if you have financial dependents or high debt.

Select a Qualified Agent

Buying life insurance isn't always easy. Understanding industry jargon is challenging for anyone — especially someone who is buying a policy for the first time. The more experience you have choosing insurance coverage, the more you'll learn about the process. But right now you need an expert to guide you.

Work with a licensed agent who is willing and able to give you the advice and information you need. Instead of plugging in a few numbers online and getting an instant quote from a website, opt for an actual agent. While insurance sites are quick and convenient, they won't walk you through your options or answer all your questions.

Do you need help choosing your first life insurance policy? Contact Harr & Associates Insurance, Inc. , for more information.

How to Avoid Road Hazards

Tue, 05 Mar 2019 13:26:53 GMT

Road hazards are often unavoidable — and expensive. But with some simple strategies, you can reduce the risks. Before you get behind the wheel, take a look at how you can prevent damage and protect your car with these tips for avoiding road hazards.

Leave Space

It's not always easy to see what's on the road ahead of you. Fog, rain, sleet, darkness, and other cars can all obstruct your view. Leaving space between you and the vehicle ahead of you reduces road hazard risks, giving you time to brake if needed.

The National Highway Traffic Safety Administration (NHTSA) recommends that you put three to four seconds' worth of distance between yourself and the vehicle in front of you. This not only gives you time to spot potential hazards but also allows braking space if the vehicle in front of you runs into a problem.

Use Headlights

The darkness of night increases the risk of running into a road hazard. If you can't see the problem in front of you, avoiding it is almost impossible. Always use your headlights from dusk through dawn and when it is raining.

Replace burnt-out headlight bulbs immediately and make repairs to these lights as needed. One headlight is not strong enough to adequately reduce the risks of road hazards. Replace headlights in pairs to create an even lighting field.

Along with making sure your headlights work well, routinely clean their exterior. Dirty or muddy headlight covers interfere with the headlight’s effectiveness and can reduce visibility.

Use High Beams

Sometimes headlights aren't enough. When you're in a poorly lit area, high beams can help you to spot potential road hazards. Even though high beams are an important part of reducing road hazard risks, drivers don't always use them when needed.

The Insurance Institute for Highway Safety (IIHS) and the University of Michigan Transportation Research Institute performed a study in which, of the 3,200 vehicles they observed (in poor or nonexistent lighting), only 18 percent used their high beams.

When the researchers surveyed drivers about rural road high beam use, 80 percent did report to using these sharp lights on the roads. But that still leaves 20 percent of drivers who aren't driving safely. Whether you're on a rural road, in the suburbs, or are anywhere else that has dim or no lighting, turn on your high beams until another car approaches.

Don't Make Phone Calls

Distracted driving was responsible for 3,450 auto-related fatalities in 2016, according to NHTSA. This statistic includes distractions from a variety of sources, including cell phone use.

NHTSA notes that nearly 481,000 drivers in the United States use cell phones on the road during daylight hours. Using a cell phone for either calling or texting pulls your attention from the road, making it difficult to spot anything from a pothole to an animal crossing in front of you.

While hands-free calling can reduce some of the risks, talking on the phone is still a distraction. If you have to make a call or answer a text, email, or any other message, pull over to a safe space, turn the car off, and then use your phone.

Review Insurance

While auto insurance won't help you to avoid a road hazard incident, it can make this type of incident easier to manage. Don't assume that your policy covers every type of accident or auto damage. Talk to your agent about what your policy does and doesn't cover. Some types of car damage, such as a blown tire, may fall outside of your coverage.

Do you need a new auto insurance policy? Contact Harr & Associates Insurance, Inc. , for more information.

Factors That Determine Whether a Car Is Insurance-Friendly

Mon, 04 Feb 2019 21:46:00 GMT

The type of car you drive is one of the things that determines your auto insurance rates. Here are some of the specific factors that make some cars attract higher or lower premiums than others.

Safety Record

Some cars are historically safer than others, and the safer cars attract low auto insurance rates. Various agencies, such as the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS), also review and rate cars based on the car's safety parameters.

Cars that have safe histories and high safety ratings attract low auto insurance rates, and the converse is true. If a car has a poor safety record or rating, the car's owners tend to make numerous accident-related claims, which increase coverage costs and hence premiums.

Type of Driver

Some drivers tend to be safer than others. For example, married adults (particularly those with families) tend to drive safer than young, unmarried drivers. At the same time, the safer drivers tend to prefer cars that unsafe drivers shun.

For example, married adults may flock towards minivans while young and single drivers opt for speedier cars. Insurance companies analyze these ownership trends and reward those who own the safer cars with low auto insurance rates. On the other hand, cars that attract riskier drivers end up with high insurance rates.

Purchase Cost

If you have comprehensive insurance and total a $100,000 car, the insurance company has to write a $100,000 check to compensate you for the car. If you total or lose a $25,000 car, that is the figure that will appear on your compensation check. Since the expensive car has the potential to cost the carrier more money, the carrier has no option but to raise its premiums.

Repair Cost

Some cars have expensive parts or require specialist mechanics, which raises the cars' repair costs. On the other hand, some cars have parts that you can find in any scrap yard and don't require specialists to fix. If two cars cost the same to purchase but one is more expensive to repair than the other, then the expensive-to-repair car will attract higher rates.

Engine Size or Horsepower

The engine size or horsepower of a car determines how powerful a car is. Other factors constant, a powerful car is faster than a less powerful car. The more powerful the car, the more damage it can cause, and the more heavy-footed drivers are likely to choose the car. Auto insurers know all these, which is why cars with big engines attract high coverage rates.

Claims History

The claims history of a make and model of a car indicates how likely a car is to trigger a claim. If model X has 100 claims within a year and model Y has 60 claims over the same period, then a model X owner is more likely to file a claim than the owner of a model Y. As such, the model X will attract higher rates than model Y.

Theft Rates

Statistics show that thieves don't target cars at the same rate; some cars attract more thieves than other cars. Cars that have numerous buyers, cars that are easy to steal, and cars that criminals can strip for parts are some of the ones that thieves target. Whatever the reason a car attracts more thieves than other cars, the thief-magnet car will attract higher premiums.

Where does your car fall if you consider the above factors? The good news is that your car is not the only thing that determines your auto insurance rates; many other factors come into play. Harr & Associates Insurance, Inc., can help you understand and manage these factors. Contact us today so we can help you buy the right coverage for your car at a reasonable rate.

When Should You Increase Your Auto Insurance Coverage?

Thu, 17 Jan 2019 10:11:44 GMT

Don't treat your auto coverage limit like a static factor. Just like auto insurance rates fluctuate with changes in circumstances, your auto insurance limit should also change with your circumstances. Know when to buy or decrease your coverage limits to ensure necessary and maximum protection. If you're unsure about your coverage, check out these life circumstances that definitely call for more auto insurance.

If You Modify Your Car

Standard auto insurance doesn't cover modified cars; many auto insurance carriers specify car modifications that their standard coverage excludes. Most carriers will not cover any modification that structurally alters the chassis, body, or frame of the car. Many carriers also don't cover modifications that cost thousands of dollars or increase the risk of an accident.

If you have modified your car, contact your carrier if you are not sure whether your coverage still applies. You may have to buy supplemental coverage for your car if the carrier confirms that your policy doesn't cover the modification.

If You Use Your Car for a Side Business

You also need to buy additional auto insurance if you start to use your personal car for business purposes. A standard personal auto insurance coverage only applies when you use your business for activities that don't earn you income. The only exception is your work commute, which is covered under personal auto insurance.

However, you need additional coverage if you use your car to deliver pizza, sell things door-to-door, or for livery. Ask your carrier if you need to buy an endorsement or commercial auto insurance coverage to maintain your protection at all times.

If Your Teenager Gets a License

The disproportionate number of accidents that teenagers cause is often due to their inexperience and affinity to risks. The risk that a member of your household will cause an accident increases when your teenager acquires their driving license.

Therefore, increase your liability coverage when your teenager starts to drive or when a teenager with a driving license joins your household. The increased coverage will protect you from the accidents your teenager might cause until they become an experienced and safe driver.

If You Increase Your Assets

You should also increase your liability coverage if your asset base increases. The liability coverage comes to your rescue if someone holds you liable for their auto accident. If an accident victim sues you for damages beyond your liability coverage limit, then they can come after your personal assets to bridge the gap.

If you don't have substantial assets, then you don't have to worry about liability lawsuits because you can't lose what you don't have. If you have gathered substantial assets, however, increase your liability coverage to shield those assets from lawsuits.

If You Lose Health Insurance

Auto insurance also pays for some of your medical bills in case you sustain injuries in an auto accident. Medical Payments (MedPay)coverage and Personal Injury Protection (PIP) are the portions of your car insurance coverage that pay your medical bills in case of an accident.

You can make do with minimal MedPay or PIP limits if you have a good health insurance plan. However, increase your MedPay or PIP limits if your health insurance is not that great or if you lose your health insurance. You will need the increased coverage to meet the shortfall your lack of health insurance creates in case of an accident.

Talk to Harr &Associates Insurance, Inc. if you want to increase or decrease your coverage. We can help you evaluate your circumstances, advise you on the suitable coverage,and help you buy the coverage at a reasonable cost. Contact us today for all your car insurance needs.

Will Your Home Insurance Pay for the Removal of a Dangerous Tree?

Fri, 30 Nov 2018 16:20:17 GMT

Mature trees block wind, create a sense of privacy, and cool your home by providing shade. Unfortunately, they're also risk factors for damage to your home, any outbuildings on the property, your vehicles, and more. When you're concerned about the condition of specific tree, you may wish your home insurance would cover the cost of removing it.

Tree removal terms vary by policy, but almost all home insurance providers share similar limitations on this particular process. Find out what you need to know about dealing with a dangerous tree, whether it's still standing or has already fallen.

Before the Tree Falls

Many homeowners are surprised to learn that their insurance companies are not willing to pay for pre-emptive removal of diseased and dead trees. This is considered normal maintenance of the property, so cutting down these trees remains your responsibility as the owner. Even if removal would save money in the long run, insurance companies won't approve tree removal ahead of a collapse.

Once you know a tree is a danger to your property or a neighbor's home, you may become legally liable for paying for damages if you choose not to remove it. Don't rely on your insurance company alone when you need to complete some routine tree removal and landscape maintenance around the home.

After a Fall

Most homeowner's insurance policies cover both tree removal and repairs for damage after a tree falls. Yet there are still restrictions on coverage depending on where the tree falls and what kind of damage it does. Most policies pay for all damage caused by a tree, even when it doesn't entirely fall but rather scratches or dents something instead.

On Covered Structures

Read your policy documents carefully to find out where a tree must fall to qualify for insurance coverage. Some policies stipulate that removal and repair is only offered when a limb or entire tree falls onto a covered structure. When this is the case, sheds and other outbuildings may or may not get excluded from the insurance policy.

A covered structure policy won't reimburse you for costs related to cutting up and hauling away a tree that falls safely onto the lawn and causes no damage. If your policy is worded to cover tree removal from all covered surfaces instead, you may find your insurance company is happy to pay for removal of trees falling on your lawn, patio, and other exterior surfaces.

On a Neighbor's Property

In most cases, you are not responsible for paying for a tree that falls on your property and damages a neighbor's home. Unless you were cutting down the tree yourself or knew it was a liability and failed to act, the neighbor's insurance company is responsible for the claim instead.

Your insurance policy may pay if you were somehow responsible for the tree falling, but you will also see a premium increase as a result. Trees that fall naturally, without warning, or due to storm damage are all the neighbor's responsibility to deal with.

Onto Landscaping Features

Homeowner's insurance policies that include coverage for certain outdoor surfaces also tend to pay for damage to flower beds, shrubs, other trees, and similar landscaping features. Just keep in mind that the deductible may already cover more than the value of replacement shrubs or trees. Not all insurance policies cover the labor of installation, so assess the damage before making a claim.

Protect your home with an affordable homeowner's insurance policy from Harr & Associates Insurance, Inc . Talk to one of our team members to take out extra damage coverage so you're never left paying for repairs or removal after a storm brings a whole tree down.