INSURANCE TIPS

New update added Feb. 5th

Some states have Tort Options when buying auto insurance. Make sure you KNOW what you are signing for because LIMITED TORT means just that....you have limited your rights to sue others if you are involved in an automobile accident. This means whether you are the driver, passenger, or a pedestrian. I also know that in Pennsylvania, by signing for LIMITED TORT, that affects EVERYONE in the household, not just the person who signed the papers.

Here in Pennsylvania, FIRST PARTY BENEFITS for $5,000 medical coverage is mandatory when the car owner gets a license plate for their vehicle. ADDITIONAL BENEFITS are optional and for those of you who don't already know this, normally the cost of $5,000 ACCIDENTAL DEATH BENEFIT is the same as $1,500 FUNERAL BENEFIT. I always try to tell our customers this because so many of them from the days of No-Fault only have the funeral benefit option on their policy. Getting so much more coverage buying the Death benefit is much wiser. Especially when each of these are usually only $2-4 for each vehicle per year.

Do you understand what UNINSURED MOTORISTS COVERAGE is? In some states, it is optional to buy it. In plain english, let's say you are in an accident that isn't your fault and the responsible person doesn't have auto insurance. If you are entitled to anything for your pain and suffering (which is referred to as a non-economical loss), you can seek some recovery from your own policy IF you have this coverage. What alot of people DON'T realize is that this coverage even applies when you are struck by a hit & run driver.

There is a mis-conception regarding the meaning of NO-FAULT insurance. It has absolutely NOTHING to do with damage to anybody's vehicle that is involved in the accident. In plain language, NO-FAULT just means that no matter whose fault the accident is, people that are hurt must have their medical bills paid by their own auto insurance company. The concept of NO-FAULT was developed with the hope that frivolous lawsuits would be avoided if the person hurt had to go to their own insurance company for benefits. But please remember, when damage is done to your vehicle and the accident IS the other person's fault, you still go to THEIR company to turn your estimate in for damages.

I'd like to explain a little regarding use of your deductible in certain accidents that may not be your fault. Alot of insureds don't realize that using your deductible is what gives the insurance company the right to legally try to collect the full amount of damage from the responsible party that caused the accident in the first place. Your own company pays you for your damage subtracting the amount of your deductible, and then goes after the responsible person to get the money back. That is called "SUBROGATION." Once the company receives the total amount of your damages from the other party, they reimburse you your deductible. If they can only get half of your money back, you still receive half of your deductible. I don't know about other states, but in Pennsylvania, if the company can get at least 60% of your money back, your rates ARE NOT ALLOWED to be increased for that one accident.



Standard homeowners policies have a settlement clause that penalizes customers for being underinsured. Usually the requirement is to insure your house for AT LEAST 80% of its rebuilding value. Here's an example to help you understand how your claim could be settled:

Let's say it would cost $100,000 to rebuild your house today. That means you should buy a policy for at least $80,000 on your home to avoid being penalized. But you only have a $40,000 policy (BAD MISTAKE). That means you only have half of what is required. So if you have a claim for a covered loss such as $5,000 to repair your roof from wind damage, the company is only obligated to pay you HALF because you only have HALF of what the policy requires to not be penalized.

So PLEASE review your policy limit to prevent this from happening to you!

I think every insurance company out there will give you a small discount if you have a smoke detector. Even though its usually only a 2% discount, why not take advantage of getting something you are entitled to. If you have one, call and tell them. Also ask them if you get any other discounts for having a small fire extinguisher, or deadbolt locks on your door(s).

If you have any questions concerning insurance, I will be glad to try and answer them. Just click this link to e-mail me:

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CONSUMER TIPS

Apparently Pennsylvania is trying to have a law passed for new computer purchases, known as THE COMPUTER LEMON LAW. I strongly encourage people to write to their local State Representative asking him to support this new bill that is presently in the House. Many of us consumers are taken advantage of needlessly, and now with so many households having at least one, sometimes even two computers, I believe there is a real need for this law. So many people seem to give up without enough of a fight to protect themselves as it is, so at least a law like this would offer more hope to those of us in need of that extra protection. If you want to read a little more about this, here are some links that might interest you:

Click here to tell Pennsylvania's House of Representatives that
you support the nation's first "Computer Lemon Law"

I'd like to suggest that you order yourself the "CONSUMER'S RESOURCE HANDBOOK". They are luckily still free, but even if they were a couple bucks I would still get one. I get a new one every five years or so and it has helped me tremendously. It gives names, addresses, phone numbers, etc. of Corporate Contacts e.g. Goodyear Tire, Hallmark Cards, Clorox Co., Kelloggs, etc. You name it, it's probably in there. Also all your Automobile Manufacturers, PLUS all the same information for your State & Local Governments, Federal Agencies, Better Business Bureaus, etc. It even gives you tips on your rights if you place an order and then change your mind, what steps to take when trying to resolve various problems e.g. your long distance phone service, door-to-door sales, the lemon law, etc. Here are the addresses to obtain one:

CRH
Consumer Information Center
Pueblo, CO 81109

Or order from the website at: http://www.pueblo.gsa.gov.

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Something else concerns me that I hope will help at least one person out there that reads this. It seems alot of places are now advertising the sale of a low budget computer system after mail-in rebates and certain vouchers that end up being "FREE" as long as you commit to an internet or online service provider. Normally a 36-month subscription is required. The one thing you may not find out until it is too late is that there is no local access number provided to you. Therefore, in this example, you would be locked into a 3 year subscription but would have to dial into a toll number in order to have access to the internet. So PLEASE, make sure you check into that aspect of it BEFORE the purchase.

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