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If I let someone borrow my car, who’s auto insurance policy will pay if there is an accident?

Have you ever borrowed someone’s car? How about a pickup truck to move or haul something to the landfill? Or have you ever loaned your car to a friend or family member?

I am sure we have all at one time or another have either borrowed a vehicle or let someone borrow your vehicle.  So the question is, if the person borrowing the car gets in an accident, whose auto insurance policy is going to be responsible to pay for the claim?

The simple answer is that the auto insurance follows the vehicle.

So, if you borrow your uncle’s car, it will be your uncle’s auto insurance that would be the primarily responsible to pay should you be involved in an accident while driving your uncle’s car. (This example also assumes that you and your uncle are NOT residing in the same household.)

 

Will your auto insurance ever pay if you are in an accident while borrowing your uncle’s car?  Yes, your auto insurance policy can also pay out for the following reasons:

• Personal Injury Protection (PIP) – If you are injured in the accident, the PIP coverage on your auto policy can pay up to your limits for this coverage
• Medical Payments Coverage (Med Pay)  – If you are injured in the accident, the Med Pay insurance coverage on your auto policy can pay up to your limits for this coverage
• Liability Insurance Coverage – Your car insurance policy can pay if there are Bodily Injury or Property Damage claims that are in excess of the auto insurance limits that are on your uncle’s policy.

For an example, let’s use the following coverage for you and your uncle’s auto insurance policies:

Uncle’s  Policy                      Your Policy

Bodily Injury per Person       $30,000                                   $250,000

Bodily Injury per Accident     $60,000                                   $500,000

Property Damage                  $15,000                                   $100,000

Personal Injury Protection   $2,500                                     $10,000

Medical Payments                 $0                                            $10,000

 

In this case, your uncle has the Maryland State Minimum auto insurance coverage and you elected to have higher protection levels.  So while driving your uncle’s car, you cause an accident that causes the following injury and damage amounts:

• Bodily Injury to other driver –               $70,000
• Property Damage to Other Vehicle – $40,000
• Injuries to you –                                     $25,000

So in this example, based on the coverage listed above, your uncle’s auto insurance policy will pay out $30,000 of bodily injury, $15,000 property damage and $2,500 in PIP coverage.  Your car insurance policy will pay out $40,000 bodily injury, $25,000 in Property Damage, $10,000 in PIP and $10,000 in Med Pay.  So you can see in this example that your car insurance policy acted as an excess policy to your uncle’s car insurance policy.

If you caused an accident that were within the limits of your uncle’s auto insurance policy, then his policy would pay the claim and your policy would not be used at all.

If you should have any questions about what happens with a borrowed car, please do not hesitate to give our office a call our one of our personal insurance team members will be happy to talk to you.

The advice given in this blog is in general terms.  To determine the coverage for your specific policy, please refer to your auto insurance policy or call you insurance agent to discuss.  There are certain situations where the coverage would not react as described, such as (but not limited to) borrowing a car from a family member who is in the same household, borrowing a car to be used in a business pursuit, etc.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Are you a Maryland Title Agent?  Do You have your bond?

Maryland Title Agents are being required as of their 2016 renewal to provide a title agent bond. The Maryland Insurance Administration (MIA) is requiring title agents, regardless if they have employees,to purchase a fidelity bond or policy. For about 15 years, the MIA has been allowing waivers, but under the new commission, they realized that the waiver is not in the statute and can no longer be allowed. I have been advised that the Maryland Land Title Association’s legislative committee hopes to get this revised, but in the meantime, in order to conduct business as a title agent in Maryland you must get a fidelity bond upon your upcoming license renewal.

A Maryland Title Agent is required by the Insurance Commissioner of State of Maryland to have a bond for a $150,000 coverage limit. The purpose of the bond is to ensure that people that are exercising control over trust money do not spend or use this trust money for any way other than authorized to do so. A misuse of the money by the one entrusted with it, would result in a claim.

A fidelity bond is similar to crime insurance, which provides first party coverage. Its primary coverage is for employee theft. This will pay for loss or damage to money, securities and other property directly from theft or forgery by an employee. On the crime policy we can also offer fraudulently induced transfer coverage that would not be coverage available on a fidelity bond.

A Title agent bond is a form of insurance that title agents must buy so that they can operate their business. The surety bond ensures legal operations by the title agent and will reimburse victims of title agency fraud. Before you can purchase a bond from an agency, the business and owners must have a credit check by the bonding company and must have the application approved. Depending on the financial status of both the business and the owners will impact the price of the bond. Under a bond, the person who committed the crime will be sought after for restitution for the crime and charges will need to brought against that person before the bond will make a payment.

Regardless of whether there is a specific requirement to carry the bond or not, it always best for peace of mind and to protect yourself from employees stealing money, including escrow and operating funds is to have a title agent bond.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Have you heard of Pay As You Drive Auto Insurance?

Benefits Of Pay-As-You-Drive Insurance

Pay as you drive auto insurance may also be referred to as usage based auto

insurance.  It is based on a driver’s vehicle, the distance driven, the time spent driving and the driver’s behavior. When compared with traditional auto insurance, this type of coverage is much different. Traditional auto insurers attempt to reward the drivers they classify as safe, and their assessment is based on past documentation and the individual’s record. The new method uses current behavior instead of past patterns. With the traditional method, drivers must wait longer to establish themselves as safe or reckless drivers. However, the new method does not require as much time for drivers’ habits to catch up with them and affect their car insurance rates.

Many transportation and environmental groups approve the new usage-based car insurance coverage. They claim it makes people more aware of what they are doing. For most people, this means they will drive more responsibly. It also encourages people to use their cars only when they need them. For example, driving a few blocks to the grocery store instead of walking would look less tempting with usage-based coverage

How Usage Based Insurance Coverage Works

The simplest form of usage based auto insurance assesses costs based on the amount of miles driven. When, where and how a person drives may also be factored in with several usage based car insurance models. Auto insurance premium amounts are based on how much a person drives, and coverage is based on the vehicle’s odometer. To track how many minutes a car is in use, a vehicle-independent module is used to transmit data using RF technology or cellphone features. The time of day, speeds, distance, driving actions (ex.  take off speeds and hard braking) and time traveled are also sent regularly. Formulas can be basic enough to include only the amount of miles driven. Alternately, they may be much more complex and include a wide array of features. With advanced features, the device is able to determine if a person should pay a higher car insurance premium for speeding, using a cellphone while driving or driving for a long period of time without a break.

Another type of system in existence is telematic usage. This system uses a device that immediately relays information as it happens, which keeps a constant feedback loop for drivers. When drivers increase their risks, their auto insurance premiums change immediately. Although some drivers may think this sounds intimidating, it is actually a helpful way to enforce good driving behavior and make the road safer. The following are benefits of usage-based insurance:

• People are more socially and environmentally responsible
• Actual risk for each driver is assessed on a more concise and up to date basis
• Customers enjoy more choices between types of car insurance
• Responsible drivers can save more money without having to wait to clear old records
• High risk drivers pay more, so they are less inclined to spend more time on the road
• For responsible young people, rates are ot based on group averages of peers
• With telematic coverage, continuous tracking may help people who are stranded or hurt

To learn more about this type of car insurance and to find out what options are available, discuss questions with an agent.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Driving Safety for Teens

Pick up a paper or tune in to the local news almost any day of the week and you’ll read or hear about an auto accident involving teens.  As a parent of a new driver, these scare the death out of me.

Car accidents are the number one cause of deaths among 14 to 18 year olds. Tragically, half of all teen drivers involved in a car crash lose their lives.

Sadly, in my job, I’m only too familiar with those statistics and I know of several people who have suffered the loss of a son or daughter through auto accidents.

But a survey shows that only 25 percent of parents or relatives have had a serious talk with the teens in their families about the key elements of safe driving.

Next week, National Teen Driver Safety Week aims to highlight to young drivers in North America how they can be safer drivers, a good time to make your family members aware.

At the time of writing, I’m not sure what the main planks of this year’s campaign will be, but in 2014 it focused on 5 key elements of safer driving, which are still critical for teens today:

• NO cell phones while driving
• NO extra passengers
• NO speeding
• NO driving or riding without a seat belt

The fact is that no state or province has laws strong enough to fully protect teen drivers, so having household rules can play an important role in increasing their safety.

As the U.S. National Safety Council says: “There is no substitute for a parent’s guidance as teens learn to drive. Be the coach your teen needs.” You or they, or teens in other families you know, can even sign up for weekly lessons and tips at: https://driveithome.org/digital-driving-coach/

It’s equally critical to make sure young people are adequately insured against the risks they face on the roads. Even the safest driver faces danger every time they pull out of the driveway.

Valuable guidance on which are the safest cars for them to drive is provided by the Insurance Institute for Highway Safety (IIHS). Check out this report: https://tinyurl.com/IIHS-list

If I can be of any further help with auto insurance needs for you or your family — or indeed other types of insurance — please get in touch, sooner rather than later. We have driving contracts for the teen and the parent to sign. I did this with my daughter, we spelled out curfews and driving privileges and what happens if she gets a ticket or involved in an accident. My daughter, Allie, was not excited about this exercise but when it was complete we both had a better understanding of what each of us expected.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

A Day in the Life of an Auto Dealer

It is a brisk fall morning, the sun is not up; I head to meet a client that was taking me on a field trip to the auto auction. His first question to me was, “Why do you want to do this?” My response was, we insure a ton of used car dealers both wholesale and retail and I want to be able to understand their challenges and struggles so that I can help them make better decisions for their business.

We drove over 2 hours in bumper to bumper traffic up 695 to 83 to the largest auto auction at Manheim PA. I was in Aww of the number of vehicles and dealers already there. The auto dealers all were hoping to score a great deal by the end of the day. As we walked in the building at 9:00 the auction was in full bustle, all of the dealers are using kiosks to get their auction id badge for the day and register. The cars are already lined up into the auction lines and bidding has begun. The free apples to get your day started were a nice little wake me up. Many of the dealers had been on the road for hours before the auction. Some of the dealers fly in and Manheim arranges to provide them transportation to and from their hotel.
As we walk out on the auction floor, the hustle and bustle overwhelms you. There are 33 lines of cars that are 5 to 6 deep in each line. What seemed liked, thousands of dealers all searching for the best deal of the day. Some dealers were very specific in their requirements, looking for a specific make, model or color. Others were just looking for a deal and others were looking for anything they thought would sell at their lot. Some dealers buy from certain wholesalers and follow their lines; other dealers are running back and forth from one side to the other looking for whatever spot their eye.

The technology that is involved in the deal making process is amazing. They use their phones to scan the serial number and then it gives them the CARFAX report and the value that the car is reselling for. In 30 seconds, a dealer can have all the information that they need on an account in their hands. Dealers are on the phone asking someone else for advice; other dealers are on the internet bidding on cars in real time. The car keeps moving up the line, dealers are opening doors, popping hoods, opening hatches to get the best look of the overall vehicle. Checking out the interior, the color, the condition of the body for rust and other dents is done by the dealer in the 2 ½ minutes it takes from the time the car got in line till the bidding process begins.

I quickly learned when in the bidding line, don’t scratch your nose, nod your head or raise your hand unless you want to buy that car. I made sure that I did not make any sudden movements as the bidding started. Certainly, I did not want to be responsible for buying a car, even though my husband would not mind if I would have brought him home a Dodge Charger. Sometimes, the vehicle was pulled out of the garage and the bidding was still going on. Also, you need to make sure that you are not bidding against the auction, they will sometimes go up just to make you think someone else is bidding, so you need to be careful and watch the monitor.

At the end of our day, the dealer walked away with 5 nice cars, he separated the buy sheets and put them in a yellow envelope for a transporter he hired to take them back to his lot. Some people brought trailers to carry the cars, other had employees or friends with them to drive the cars back. Others hired transporters or towing companies to bring vehicles.

Watching the events unfold during the day, I realized a few things. One the dealership is like an assembly line there are thousands of moving parts that all work together. Secondly, watch where you walk, you will be run over. Third, I am glad to be women, the only place with a public bathroom that did not have a line in the ladies room.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Cyber Security – Protect Your Data

More than 100 million personal data records could fall into the hands of hackers this year (Based on 2014 figured from IDTheftCenter.org)  It’s an alarming number, and if 2014 is anything to go by, 80,000 of those records will have been stolen from businesses.

What’s really worrying is that, looking down the running list of compromised records (at IDTheftCenter.org) , many of them come from organizations like yours and mine, not the big names we always read in the headlines.

The hard truth is that none of us is totally safe from data breaches either from outside hackers or inside jobs such as careless, disgruntled or disloyal employees. Even a lost or stolen laptop could result in a devastating loss.

But there’s a lot you can do to secure those records.

An article on Forbes.com summarizes these nicely:

• Always storing data in encrypted format
• Using multiple levels of password protection and changing passwords frequently
• Running background checks on employees who handle customer data
• Using security software and firewalls on servers and workstations
• Implementing a standard security health check on your network
• Having a disaster plan in place in case a breach occurs
• Having your attorney update your terms and conditions to hold you harmless in the event of a breach (although that still won’t stop anyone suing you and you losing that suit).

If you are interested in checking your business IT security health, software security firm AVG has a free, 17-step health-check that you’ll find at https://tinyurl.com/AVG-check-1

If the worst happens, you should always have a powerful backstop in the form of Cyber Liability Insurance / Data Breach Insurance. This can either be part of (or an endorsement to) your Business Owners Insurance Policy or a separate policy.

It can cover not just the lawsuits you might face as a result of an incident but also the costs of rectifying the breach, business interruption and even making good on the inevitable damage to your reputation you would suffer.

Even when you have data breach insurance, it’s always a good idea to keep your insurance coverage under review. Technology is a swiftly-moving force that can change the risks and costs associated with security almost overnight.

Why not schedule a meeting with one of our trusted agents in the next few weeks so we can ensure you’re adequately protected?

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

Check Out These 4 Key Rules to Food Safety

Food poisoning sends more than 100,000 Americans and Canadians to hospital emergency rooms every year. As if that wasn’t bad enough, it can have long term health consequences for some victims.

And, of course, it can hit your pocket if a guest happens to have suffered their poisoning as a result of your cooking and decides to make you pay for it!

September is actually Food Safety Month, so I thought I’d take the opportunity to run through a few basics about food hygiene that should help keep you, your family and guests out of trouble (and out of the emergency room).

In fact, there are just four simple rules that govern most food preparation and storage activities:

1. Clean: Wash surfaces often; wash hands for 20 seconds with soap and running water; wash surfaces and utensils after every use; wash fruits and vegetables but not meat or eggs. Bagged produce marked “pre-washed” doesn’t need a further washing.
2. Separate: To avoid cross-contamination use separate cutting boards and plates for produce and for  meats/seafood/eggs; keep meat, poultry, seafood and eggs separate from all other foods at the supermarket and in the fridge
3. Cook: Use a thermometer to cook foods to the correct temperature (check here for a chart of minimum temperatures: https://tinyurl.com/foodsafe-temps); keep food hot, at 140F, after cooking; microwave food thoroughly to 165F or higher to kill harmful bacteria.
4. Chill: Refrigerate perishable food within two hours (one hour if the surrounding temperature is about 90F); never thaw or marinate foods on the counter; know when to throw out leftovers and other refrigerated and frozen foods (see this storage chart: https://tinyurl.com/foodsafe-storage)

 

I hope you find these basic tips useful. And if you’d like to know more about Food Safety Month, visit foodsafetymonth.com.

Another useful site for more tips and information on what to do in an emergency can be found at foodsafety.gov

And, if the worst happens, are you protected against potential medical and compensation costs if a guest falls victim? Answer: Mostly yes if you have comprehensive homeowners Insurance or renters insurance.

But why not check in with me when you have a moment so we can quickly review your insurance coverage or answer any other insurance questions you have?

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111

The commercial insurance market can often be a difficult place for contractors. The insurance industry goes through market cycles; companies that are eager to insure contractors today may have no desire to do so when their losses mount and the market tightens. Because of this uncertainty, larger contractors often consider alternative markets for financing their risks of loss. One alternative is a captive insurance company, which is created and owned by one or more non-insurance companies to insure the owners’ loss exposures. Other options include self-insurance (paying losses out of pocket) and insurance options such as dividend plans, large deductible plans, retrospective rating plans, risk retention groups and purchasing groups.

According to Business Insurance magazine, there were more than 5,200 captive insurance companies operating in 2008, falling into several types. Single parent captives are owned by one company. Group and association captives are owned by multiple entities. For example, groups of contractors could form captives to insure themselves and others. Businesses that cannot afford the capital requirements of a captive can “rent” one from an insurance company or reinsurer, allowing them to share in the risks and the profits. Captives often use what is called a “fronting” mechanism, where an insurance company or reinsurer issues and administers the policies and handles the claims, and the insured businesses pay for the losses. Captives may insure the risks of their major owners only, or they may also insure other organizations.

Large companies may choose to self-insure; groups of companies in particular industries may band together to self-insure the risks of the group. For example, in some states groups of contractors have formed trusts to self-insure for workers’ compensation losses. Companies may also choose to partially self-insure by purchasing a large deductible program (one with a deductible of $100,000 or greater per occurrence) for workers’ compensation. Retrospective rating plans, while still insurance policies, are closer to self-insurance in that the final premium includes the amount of the business’ losses during the policy term, subject to a minimum and maximum. Dividend plans are types of insurance policies that typically offer the business the chance of receiving a portion of the premium back via a dividend should losses fall below a specified level. Risk retention groups are groups of businesses in the same industry that have created an insurance company for liability coverage. Purchasing groups are groups in the same industry who band together to buy liability insurance from one insurance company.

Each alternative has advantages and disadvantages. Captives may offer tax advantages, they cut out the portion of the premium spent on insurance company overhead and profit, and they give the owners control over risk management. However, they must meet large capital requirements to comply with state laws, and fronting arrangements still require insurance company involvement. Self-insurance, large deductible and retrospective plans reduce premium costs, give businesses some control over their loss costs, and provide incentives for safe operations, but they can also be a drain on cash flow and their ultimate costs may be hard to predict. Contractors that can predict their future losses with reasonable accuracy may find these plans advantageous.

Since all of these options require contractors to finance at least some losses themselves, they should have access to significant financial resources before using any of them. Also, the options can be complex; a contractor should consult with a professional insurance agent to investigate each option’s implications for the business. Traditional contractors insurance is no longer the only financial protection option available to contractors, but it would be unwise to jump into an alternative without learning the facts.

Huff Insurance is a full service Independent Insurance Agent We have been dedicated to Protecting Lifestyles™ since 1960. We offer a full array of Personal Insurance, Commercial Insurance and Life Insurance & Health Insurance products. Call us at 410-647-111