What are the top auto insurance myths?

Auto insurance can be a tricky topic to navigate. With so many myths and misunderstandings circulating, it’s important to prioritize accurate information over hearsay. To help you make sense of auto insurance, here are the top 5 auto insurance myths that you should know about:

Myth #1 – The color of your car can affect your auto insurance rates

Wrong.  Companies do not set insurance rates based on the color of your car.  The old myth that red cars cost more to insure is just that, a myth.  It was probably started back when the red sports cars were popular.  Therefore, those cars were more to insure because of the types of cars, not just because they were red.

Myth #2 – Your credit history will not affect your rates

Your credit history can and will affect your auto insurance rates with most companies in Maryland and most other states.  The insurance companies have statistics which show that drivers with lower credit scores are involved in more accidents.

Myth #3 – If you let someone drive your car, their auto insurance will cover them

The coverage for car insurance usually follows the car being driven.  Therefore, if yoy loan your car to your friend, it will be your auto insurance that will provide the primary coverage  for any claims that may happen.  Your friends auto insurance may kick in after your policy limits are exhausted.  This would be determined by the coverage selected and the actual policy terms and conditions.

Myth #4 – Your personal auto insurance policy will cover business use of your vehicle

Many people wrongly assume that there will be coverage on on a personal auto insurance policy if you use the car for business purposes. But this is unfortunately not the case if you only have personal insurance coverage and haven’t stated it will be used for business purposes. It’s important to make sure that your insurer knows what kind of use the car will get in order to get the right kind of coverage.  This ensures that you are protected against any unfortunate incidents. Being clear and honest about how you intend to use your car can save you money and worry in the long run.

In recent years, this has become an even bigger issue with the increased popularity of home based businesses, rideshare apps (like Uber and Lyft), food delivery apps (like Doordash, Uber Eats, Grubhub).  If you participate in any of these, it is imperative that you talk to your insurance agent.  You do want to find out that you are not covered AFTER you have an accident.

Myth #5 – Your auto insurance company can cancel your insurance at any time for any reason

Insurance is a heavily regulated industry.  There are state regulations that prohibit insurance companies from cancelling our insurance in the middle of a policy term unless they have an approved reason.  One reason can be for non payment of premium.  But even then, they have to give notice that meets specific requirements before cancelling.  Fraud or misrepresentation can be other reasons for a mid term cancellation of a car insurance policy.

There are reasons that your policy may be cancelled.  But the insurance company cannot just do it at any time for any reason.  And these reasons must be filed and approved by the state insurance commissioner’s office.

Contact Huff Insurance – 410-647-1111

Now that we’ve busted some of the top auto insurance myths, you should feel more confident when shopping for a policy. The bottom line is that you need to make sure you have the coverage that fits your needs. If you have any questions about what kind of coverage is right for you, give us a call or contact us and we’d be happy to help.

Is a subcontractor agreement important?

A subcontractor agreement is an essential part of any business relationship between a business owner and their subcontractors. By having a well-crafted agreement in place, it can help to protect both parties from misunderstandings, legal disputes, and costly financial losses.

For business owners, having a subcontractor agreement enables them to clearly define the terms of the subcontractor’s services and responsibilities.

These terms can include:

• The scope of the work that needs to be completed
• Payment Terms
• Deadlines for Completion
• Insurance Requirements, such as general liability insurance, workers comp insurance, professional liability insurance, bonds, etc.
• Restrictions on using certain equipment or materials
• Hold harmless agreement
• Adding you as additional insured on their insurance policy
• Requiring a certificate of insurance to be provided to you

Additionally, the agreement should address contingency plans in case of delays or disruptions due to unforeseen events outside of the subcontractor’s control.

The Hold Harmless Clause: Your Legal Shield

Incorporating a hold harmless agreement in your favor within the subcontractor agreement is akin to erecting a shield against possible legal battles. This clause ensures that you, the business owner, are protected from liabilities arising from the subcontractor’s actions, negligence, or failure to adhere to regulations. It’s a clear declaration that the subcontractor will “hold harmless” or indemnify you against losses or damages, making it a cornerstone of risk management in any project.

Additional Insured Status: A Layer of Protection

The requirement for subcontractors to add you as an additional insured on their policy is another layer of armor for your business. This status extends certain protections of the subcontractor’s insurance policy to you, offering a safety net in the event of claims related to the subcontractor’s work. It means that if a claim is filed that relates to the subcontractor’s scope of work, their insurance could cover you as well, thereby mitigating your exposure to risk.

The Certificate of Insurance: Proof of Security

Requesting a certificate of insurance from your subcontractor is not just a formality; it’s a necessity. This document serves as proof that the subcontractor has the required insurance coverage in place, including the aforementioned additional insured endorsement. It reassures you that in the event of a mishap, there’s a policy backing the subcontractor that aligns with the terms of your agreement. This certificate is your tangible evidence of compliance with the insurance requirements you’ve laid out, ensuring that insurance coverage is not just promised but proven.

Subcontractor agreements are also beneficial in protecting against potential liability risks

If a business owner doesn’t have an agreement in place specifying what each party is responsible for when it comes to safety regulations or other aspects related to their workmanship, they could be held liable if something goes wrong. This could lead to hefty fines or even lawsuits if a serious injury were to occur on-site due to negligence or improper procedures not being followed by the subcontractor.

In addition to providing protection from liability risks, having a clear and detailed subcontractor agreement can ensure that both parties understand their respective rights and obligations under the contract. It helps eliminate confusion over who’s responsible for what aspects of the project. And it makes sure that expectations are met throughout its duration. A clear understanding of roles can also help track progress more effectively throughout the project by giving everyone involved specific tasks with which they can measure success or failure against set standards.

A well crafted subcontractor agreement is an invaluable tool for business owners

With these elements integrated into your subcontractor agreement, you’re not just setting the stage for a successful project; you’re also building a fortress of legal and financial protection around it. The hold harmless clause, additional insured requirement, and certificate of insurance are not mere formalities—they are your safeguards in the unpredictable terrain of business projects.

Consult with a Legal Professional

Before finalizing your subcontractor agreement, it’s paramount to consult with legal experts. A licensed attorney can tailor the hold harmless clause to suit your specific needs, ensuring it’s enforceable and robust.

Legal Disclaimer

Neither I nor anyonw at Huff Insurance are attorneys.  Please note that the content provided in this blog post, including but not limited to guidelines on subcontractor agreements, hold harmless clauses, insurance requirements, and any legal recommendations, is for informational purposes only. It is not intended as legal advice. Laws and regulations concerning contracts and insurance can vary widely from one jurisdiction to another and are subject to change. Therefore, we strongly advise consulting with a licensed attorney or legal professional in your area to ensure that any agreement or legal document you prepare complies with current laws and is appropriate for your specific situation. This blog does not establish an attorney-client relationship, and Huff Insurance cannot be held liable for any actions taken based on the information provided herein.

Wonder why your Maryland auto insurance ID card is only good for 6 months?

You look at your auto insurance policy and it is a one year policy term.  Then you look at your auto insurance ID card and see that it is only good for six months.  Then you think, what the F*%^*.

We receive calls all of the time regarding the auto insurance ID cards.  There is a simple answer to why the ID cards are only good for 6 months.  In Maryland, auto insurance ID cards are only issued for 6 months due to specific laws passed by the General Assembly.  These laws allowed for the regulations that are established by the state’s Motor Vehicle Administration (MVA).

Before you get mad at your legislators, they did have some reasoning behind passing the law.

These regulations require all drivers in Maryland to have current, valid proof of auto insurance. And the 6-month cycle keeps drivers accountable and up-to-date on their policy coverages.

Prior to this law being passed, the auto insurance ID cards were issued for the actual term of the car insurance policy.  So, if you had a one year policy, your ID cards would be issued for one year.  The fear was that since the ID card was showing a one year term, someone could let their policy cancel early and still had an ID card that shows the policy is in force for the entire year.  This could still happen with the six month ID card, but it lessens the time that someone could be carrying an invalid ID card.

Will you get updated ID cards every six months?

Yes.  your insurance company will send you updated ID cards every six months as long as your policy is in force.  So don’t worry, before your current cards expire, you should get new ones in the mail.  If you do not have them a week or so before they expire, give your agent or company a call.  They should be able to email you a copy of the new ID card.

Do you have to have your auto insurance ID card in your vehicle at all times?

Yes.  You do have to be able to produce your insurance ID card when requested by a law enforcement officer.  If you fail to present your proof of insurance, you are subject to a citation and a fine for failing to provide proof of insurance.  You then will have to pay the fine AND provide proof of insurance  prevent further court actions.

We have a solution if you are a client of Huff Insurance.  You can sign up for our client portal and download our mobile app to your phone.  This will give you 24/7 access to your auto insurance ID card on your phone. Digital ID cards are acceptable in most states.  You can get the details by visiting our Portal Page on our website.

Not a client of Huff Insurance?  WHY NOT?  Just kidding (well, sort of…).  You should talk to your agent or insurance company.  They may have a mobile app as well for you to use.

Hope this helps answer that frustrating question regarding the auto insurance ID cards.

Happy driving!  Stay safe and stay between the lines!

 

 

 

The Maryland Condominium Act and Maryland Homoeowners Association Act

HB107 was passed during the 2022 Maryland legislative session.  This bill is a response to the tragic collapse of the Champlain Tower South condominium in Surfside, Florida.

Under the Maryland Condominium Act and Maryland Homeowners Association Act, the associations are required to go through a reserve study at least once every five years.

Associates Affected By HB107:

• All Cooperative Housing Associations
• All Residential Condominium Associations
• Any HOA which has responsibility to maintain and repair common area elements with a total value of $10,000 or more

Timelines for the study:

• If an affected association has had a reserve study conducted after October 1, 2018, they must have another one starting within 5 years of their last review date
• If the affected association has NOT had a reserve study on or after October 1, 2018, they MUST have one done no later than October 1, 2023
• If the study shows a reserve fund deficiency, the reserves must be fully funded within 3 years of the completion of the study

Who can conduct the reserve study?

A person is deemed qualified to conduct the reserve study if they meet one of the following requirements:

• Have prepared, or participated in, at least 30 reserve studies within the past 3 calendar years
• Licensed by the State Board of Architects or the State Board for Professional Engineers
• Holds a designation as a Reserve Specialist by the Community Association Institute or as a Professional Reserve Analyst by the Association of Professional Reserve Analysts

If you need to find a professional to conduct your reserve study, visit on of these sites:

• Community Association Institute
• Association of Professional Reserve Analysts

****Please note that we are not affiliated with these sites nor do we have personal knowledge regarding any of their members.  Please take the time to properly research any vendor you may choose

When you hire a vendor for the study, please make sure you get a certificate of insurance.  In addition to their general liability insurance, make sure they have professional liability insurance (E&O insurance).  You are asking them for their professional opinion, so professional liability insurance is a must have in my opinion.

Although this law may seem a bit tough on associations, it is meant to protect them and their residences.  Without the reserve requirements, association residences could face huge assessments if there were a shortage in funds.  It is speculated that a reserve fund deficit was the reason why the needed repairs were not done to the structure of the Champlain Tower South condominium in Surfside, Florida.

So this may be a short term struggle for some associations, but it the legislatures saw it as a necessary step to protect the associations and their residences.

Essential Advice for a Safer Journey During the Winter Months

As the winter months come, so do the potential dangers of winter driving. Snow, ice, wind, and low visibility can all make the roads treacherous. Knowing how to stay safe while driving during winter is essential for anyone wanting to avoid accidents.

Winter driving can be dangerous, but with the right safety tips, travelers can make it home safely. Here are some essential safety tips for winter driving.  These tips will help you to avoid accidents and stay safe on the road this season.

Before You Hit the Road:

Make sure your vehicle is in good condition

Check all fluid levels, tires, brakes and lights to ensure that you are ready for the colder temperatures and increased hazards of winter roads. Pay special attention to tire pressure since cold weather causes tires to lose pressure more quickly than during warmer months.

Plan your route ahead of time

Even if you’re just going a short distance, plan your route.  You’ll know where all of the services are located including hospitals, gas stations, and auto repair shops as well as rest stops along the way.  Just in case you need a break or become stranded in bad weather.

Carry an emergency kit

Your emergency kit should have supplies like:

• flares or reflectors
• extra blankets
• warm clothes and boots
• food and water
• jumper cables
• a shovel
• sand/salt/cat litter for traction if needed
• cell phone charger and mobile phone in case of emergencies so you can call for help quickly if needed

During Your Drive:

Turn on headlights– day or night

When visibility is low due to fog or snow storms. This will make it easier for other drivers to see your vehicle on the road and avoid collisions with other vehicles or animals crossing paths unexpectedly due to poor visibility conditions.

Be aware of black ice

Black ice is difficult to see because it looks just like regular pavement – as well as freezing rain which makes roads slippery even after they appear dry following rainfall earlier in the day/night. When temperatures hover around freezing point, take extra care while driving over bridges or overpasses.  These tend to freeze first due to their elevated height above ground level.  Cold air settles at lower heights first before working its way up from ground level upwards throughout the night/day.

Don’t tailgate

Leave plenty of room between you and other vehicles.  If someone does skid out ahead of you then there is enough time for them recover without any further danger posed by your vehicle being too close behind them . This also applies when driving on any type of roadway whether winter-specific hazardous conditions exist or not.

Also remember that stopping distances increase drastically in icy conditions.  Meaning more time needs to be allowed between vehicles when traveling at speed due to decreased grip available on slippery surfaces.  So maintain greater distances between vehicles than usual during wintery conditions, especially if visibility is reduced due to fog/snow storms etcetera.

Keep snow cleared off your car completely before driving 

Don’t be “that driver” who clears off a piece of the windshield and heads down the road with a foot of snow piled up over the rest of their car.  Or worse, clean the ice off of your windshied, but leave sheets of ice on your hood or roof top.  These ice sheets then become ice missiles for other cars as you are driving down the road.  You should never be in so much of a hurry that you endanger yourself and other drivers around you.  If you do, we hope you have high auto insurance limits plus an umbrella insurance policy.  You may find yourself needing them.

Take the time to properly clean your vehicle.  This includes clearing off windows completely so that vision isn’t impaired, obscuring your view while turning corners etcetera.  Plus remove any built-up snow from around mirrors & door openings (as blocking these areas prevents simple duties such as using indicators correctly).  Also make sure your license plates aren’t covered up by compacted snow buildup either – otherwise you may get pulled over by the police.

Finally don’t rely on cruise control when driving in snowy conditions 

Cruise control may seem convenient during trips through snowy terrain since it allows drivers keep consistent speeds.  However, it should be avoided.  Because accelerating too quickly (or slowing down too suddenly) can cause wheels spinning.  This can potentially lead into skidding situations, which could ultimately result into being stuck nowhere fast unless! So turn off cruise control until reaching safer roads again please!

With these helpful tips in mind every driver should be able reduce risks associated with winter travel significantly while enjoying a great journey throughout colder months ahead!

What are your top personal resolutions for 2023?

As the new year is upon us, it’s time to start thinking about your personal resolutions for 2023.

Personal resolutions are a great way to challenge yourself and make positive changes in your life.  Whether that be improving your finances, staying connected with friends and family, or getting physically active.

There ae so many possibilities available to you this coming year.  Now is the perfect opportunity to set personal goals and begin working towards achieving them!

Here are some of the top personal resolutions you should consider for 2023:

Financial Fitness Personal Resolutions:

Taking control of your finances is a great way to start off the New Year. Setting realistic financial goals can help you make the most of your hard-earned money.  It can also ensure that you are on track to reach your financial objectives.

Here are five financial resolutions that you should consider making this year:

Set a budget:

Creating and sticking to a budget will help keep you in check of how much money is coming in and going out. Make sure to factor in all necessary expenses like rent, utilities, food, transportation costs, as well as entertainment. Once you have created a budget, review it regularly and make adjustments when needed—this will help prevent overspending and ensure that you’re staying within your means.

Pay off debt:

Paying off debt is a big personal resolution for most people.  If possible, make a plan to pay off any outstanding debts such as credit cards or student loans. Prioritize paying down those with higher interest rates first.  And consolidate any remaining balances into one loan with a lower interest rate if possible. This will lower the amount of overall interest paid over time and free up more cash flow for other areas like saving or investing.

Save more:

Making saving part of your monthly routine can help build up an emergency fund as well as provide funds for long-term goals such as buying a home or retirement. Automate transfers from your checking account into savings accounts each month to help ensure that regular deposits are being made—even small amounts can add up!

Invest wisely:

Researching different investment opportunities such as stocks, bonds, mutual funds etc., can be helpful when planning for retirement or other future goals. When evaluating which investments may be right for you always consider risk tolerance & expected return rate before committing funds so that your portfolio is diversified appropriately.

Protect yourself financially:

Protecting yourself from potential fraudsters or identity thieves is essential when it comes to online banking & transactions. Ensure secure passwords are used on all accounts and take advantage of two-factor authentication whenever available. It is also important to stay informed about changing laws & regulations related to protecting personal data; this could include anything from data breaches or scams targeting consumers so remain vigilant when it comes to safeguarding personal information!

Having the proper personal insurance plan in place can also forvide a great layer of financial protection.  This includes having the following type of insurance with the right limits:

• Identity theft insurance
• Home insurance or renters insurance
• Auto Insurance
• Umbrella Insurance
• Etc.

Physical Fitness Personal Resolutions:

Making physical fitness a priority in 2023 is a great way to start the New Year off on the right foot. Not only will it help one stay in shape, but also improve overall health and wellbeing. Here are five physical fitness personal resolutions that you should consider making this year:

Set achievable goals:

Establish realistic goals when it comes to physical fitness. Start by setting shorter-term goals that are easy to achieve such as signing up for a 5k or starting a running routine. Once those have been achieved, work your way up to more challenging longer-term goals such as completing an endurance race or taking on a new exercise regimen. Setting achievable goals will help keep you motivated as progress can be easily tracked!

Mix it up:

It’s important to mix up your workouts so that your body stays challenged and doesn’t become too accustomed to one particular exercise routine. Try different activities such as yoga, weightlifting, swimming, cycling etc., and make sure to schedule in rest days—this will help reduce the risk of injury & promote recovery between workouts.

Eat healthy:

Eating nutritious meals isn’t just beneficial for physical health, but mental health too! Make sure to include foods rich in essential vitamins & minerals into every meal—think leafy greens, lean proteins & complex carbohydrates like sweet potatoes & quinoa. Also try adding healthier snacks like nuts, seeds & fruits into your diet so you get all the nutrients needed throughout the day.

Take breaks:

Working out is important but so is taking time off from stringent exercise routines. This will give your body time to rest and recover which is essential for improving performance and avoiding burnout. Find something else that relaxes you such as walking around the park or going for hikes in nature; this will provide an opportunity to explore new places while giving your body some much needed R&R!

Stay consistent with your personal resolutions:

Consistency is key when it comes to any kind of physical activity — make sure that you stick with whatever workout plan has been set so progress can be seen over time. Track results from each session so progress can be measured and use other forms of motivation such as music or videos if needed most!

 

Why is it important to have New Year’s resolutions for business owners?

The start of the New Year is a great opportunity for business owners to reflect on their accomplishments from the previous year and set goals for the year ahead. It’s also an ideal time to make New Year’s resolutions that can help you reach your professional objectives. Having a plan or set of resolutions will provide you with focus, direction and motivation to stay on track throughout the year.

5 New Year’s resolutions for business owners

1. Invest in professional development:

Business owners should focus on investing in their own professional development. By taking courses, attending seminars, and reading related material,  you can continually sharpen your skills and stay up to date on the latest industry trends. Doing this helps you stay competitive, identify new opportunities, and better serve your customers.

2. Improve operations:

Efficient operations are key to running a successful business. Business owners should strive to streamline processes, reduce costs, and increase profitability by implementing new technologies and processes that enable you to work smarter instead of harder. Deploying enterprise resource planning software or other tools tailored to your company’s needs is an effective way to do this.

Investing in technology can be a game changer in the improvement of your operations and efficiency.  But please make sure you are getting the most out of any existing technologies before investing in new technologies. Sometimes we are too quick to buy the newest and greatest technology.  I have found myself buying a new technology only to find out that one of my other systems that I already had could achieve the same results as the new technology.

3. Develop a comprehensive marketing strategy:

Developing a comprehensive marketing strategy is an essential part of growing any business. By targeting the right audience with the right message through various channels (online, social, print, radio), you can maximize the effectiveness of your market presence and get maximum returns for your marketing dollars. It’s also important to develop a plan for measuring success so that you can track progress over time and adjust your strategies as needed.

Marketing objectives to consider for 2023:

• Website redesign: If your website has not been updated in the past 4 years, it may be time to update.  Website standards are changing quickly, so a website that is 4 years old, may already be out dated.  If your website is not up to the current standards, it could hurt your visibility on Google and other search engines.  Have your site assessed to make sure it is performing up to today’s standards. SEO is very important in today’s marketing, so keeping your website site fresh is vital to it’s success.
• Social Media Strategy: If you have a social media presence, having a set strategy for 2023 can be a key to your success.  If you have not done so already, take the time to put together a social media content calendar.  This will ensure that you are posting about relevant items throughout the year.  Trying to “wing it” may seem like it works at first, but you probably will find yourself not posting on a consistent basis by winging it.
• Networking: Make it a priority to get out and meet people this year.  Set a goal to go to one more networking or community event each month.  People do busines with people they like and trust and there is no better way to do this than meeting people face to face.

4. Build relationships with customers: 

Customer relations are critical in any type of business – small or large – as customer loyalty is often heavily influenced by how well businesses interact with them. To make sure customers come back again and again, you must focus on providing excellent customer service as well as incentives, like discounts or loyalty programs that reward them for repeat purchases or referrals. Additionally, staying in touch with customers via email newsletters or social media campaigns can further build relationships between you and your clients over time.

Ways to deepen client relationships:

I like to say there are 3 C’s to a successful relationship marketing plan.  They are Consistent Comprehensible Communication.

• Send a monthly newsletter: Being consistent with sending out a monthly newsletter is a key to the success of the strategy.  So pick a day of the month to send out your newsletter, like the first or second Tuesday of each month.  You can send out the newsletter electronically via email or in a paper form via the regular mail.  Either way is fine, but be consistent. Make the newsletter easy to read and don’t make it all about selling your product or service. If it becomes too salesy, people will unsubscribe from the email campaign or just throw away your paper newsletter as they receive it.
• Send out a birthday message: Birthdays are important to most people.  So send out a birthday message.  This can also be done via email or regular mail.  Also, for you larger clients, pick up the phone and give them a call on their birthday.  That extra personal touch can go a long way.
• Send hand written cards: If you find out that something significant has happened to one of your clients, send them a hand written note or card.  You would be surprised how impactful a hand written note can be to people these days.  There are many reasons to send a hand written note, such as: Having a baby, Buying a house, Taking the dream vacation, get well, sympathy, etc.  So find a reason to send out a hand written card to your clients.  The results will surprise you.
• Holiday Cards: Don’t just think about the main holidays to send cards, like Christmas.  Send them a thank you card for Thanksgiving, or a we love our clients card for Valentines day.  Sometimes the off cycle holiday cards get more attention because you are not one of a hundred cards that they receive.  You may be one of one or one of five….
• A Sincere Thank You: Reach out to your clients out of the blue just to say thank you.  You can send a note and/or pick up the phone.  But a simple thank you will go a long way.

5. Create a budget & stick to it:

This may be one of the most important of the New Year’s Resolutions for Business Owners.   Whether it is creating an income statement, forecasting future expenses, or detailing current expenditures from month-to-month-business owners need to budget accordingly in order to keep their finances under control during the year ahead. With proper budgeting strategies like tracking expenses regularly using accounting software, you make sure all potential expenses have been accounted for when making decisions about finances throughout the year ahead

Knowing your financings is crucial to your business success.  Having a budget will help you succeed.  Part of your budget should also include putting money aside during the good times so you can survive the bad times or slower times.

I have seen too many businesses flourish during  the good timed and go out of business as soon as things start to slow down.  Design your budget so you can ride out the slower times and really kill it during the great times.

In Conclusion, New Year’s Resolutions for Business Owners Can Be A Key To Success

As we enter into 2023, now is a great time for business owners to assess where they are at and determine what changes need to be made this upcoming year. From launching a new website or social media campaign, committing more resources towards marketing activities or developing new strategies for customer engagement – there are many avenues by which businesses can explore improved performance with wide-reaching impacts on success metrics such as customer reach, revenue generation and market share growth over the long term.

 

How does an excluded driver affect your auto insurance?

Understanding the terms of your auto insurance policy can be confusing. One term that you may come across is “excluded driver.” But what does it mean to have an excluded driver on your auto insurance?

Let’s dive into this definition and explore how an excluded driveraffects auto insurance coverage and rates.

What is an Excluded Driver?

An excluded driver is someone who has been removed from a car insurance policy. An excluded driver is not covered by the policy, meaning they are responsible for all costs related to any accident they cause, regardless of who was at fault.

The policyholder must sign an exclusion form naming each individual they want to exclude from their insurance policy.  In doing so, these individuals will not be able to receive any coverage under the auto insurance policy, even if they are driving the car with permission from the policyholder.

Why we recommend that you do not exclude?

We do not recommend excluding drivers from your auto insurance.  This is especially true if the driver resides in your home.  Because things happen and we do not want you to not be protected.

Let us say that you exclude your, 18-year-old son who lives with you, because he has his own car and insurance. He needs to get to work and your car is blocking him, and it is only 2 blocks away. So he jumps in your car.   Even if he is just moving your car out of the way, or if his trip is just a few blocks, if he is excluded and driving at the time of the accident there is no coverage.

What if you are both out and you are in your car, and you had a little too much to drink.  So your excluded driver feels it is better that he drives.   Although it is a great decison to not drive while intoxicated, there will be no coverage if the excluded driver is involved in an accident while driving your vehicle.

Why would you have an excluded driver?

There are a few different reasons why you may choose to have an excluded driver on your auto insurance policy.

The most common reason I hear for wanting to exclude a driver is to save money.  If someone in your household has had multiple traffic violations or their license has been suspended. Having that person listed as an excluded driver allows them to still live in the household but prevents them from driving any of the vehicles covered by the auto insurance policy. This may help reduce your car insurance premiums since that individual would no longer be rated on your policy

Over the years I have had a few excluded drivers that were involved in an accident.  And the insured  figured it would be ok, because the distance was short, or they forgot, or they needed to drive that day because their car was in the shop and there was no other option.

When you exclude, there is no excuse.  There is no reason that there will be coverage if they are involved in an accident.  You could be having a medical emergency, or a vehicle could be in the repair shop.

What does this mean for you?

You own the vehicle involved in the crash.  So the cost to repair or replace the vehicle is 100% your responsibility.  And just because your insurance company is not providing coverage, does not mean that you still can not be sued and held responsible for the damages or injuries to those that were hurt in the crash.

So, what to do?

It is best that everyone be insured and listed as drivers on each other’s policies if there in the same household.

This way there is no reason that the claim is not paid because of a driver exclusion.

If there are regular drivers of your vehicle that are not in the household, they should also be listed as drivers.  Thic can include such as boy/girlfriend, neighbors, or a caretaker etc.

The option to exclude is one that should be taken seriously.  And make sure that the driver knows that they are excluded.  Then explain what that means for them and for you if they drive your car.

Sill have questions on excluded drivers?

Give us a call at 410-647-1111 and we will be happy to talk it over with you.

PIP Coverage – To Waive or Not To Waive?

What is PIP coverage and what does it cover?

Insurance consumers should be aware of PIP coverage, which stands for Personal Injury Protection Insurance.  This coverage is found on an auto insurance policy.

This type of insurance provides financial assistance when an individual is injured in an auto-related accident and needs medical care. The coverage can pay for necessary medical costs, lost wage associated with car accident.  I

In addition to covering medical expenses and lost wages, Personal Injury Protection also covers funeral costs and essential services expenses.

These essential needs expenses would be items that you would not be paying for if it were not for the injury from the auto accident.  These can include (but not limited to):

• costs to hire someone to clean your house
• transportation to and from doctors
• additional childcare expense

How much does PIP cost?

Insurance consumers who are looking to add PIP coverage to their car insurance policy may find the cost varies depending on several factors.

These factors can include where they live, how much coverage they want to purchase, and driving history.

Generally, Personal Injury Protection on the auto policy can cost anywhere from $50 up to several hundred extra dollars per year.  Though this figure is can vary greatly depending on the particular auto insurance company.

Should you waive PIP coverage?

Insurance consumers should carefully consider if Personal Injury Protection (PIP) coverage is necessary for their situation.

In some cases, waiving PIP can save consumers money on their insurance premiums.  However, this type of policy provides a financial backstop in the event of an accident.

PIP also offers coverage regardless of fault.  And it covers not only while you are operating the vehicle, but also when you are entering or exiting the vehicle.  So if you slip while exiting the vehicle, or slam your finger in the car door, your PIP coverage could kick in and pay for your associated expenses up to the coverage limits on the policy.

Insurance consumers should think carefully before waiving PIP coverage.  It is a critical form of protection that could help during a difficult time.

What are the risks of waiving PIP?

Insurance consumers need to consider the potential risks of waiving PIP coverage when selecting an auto insurance plan.

In Maryland, PIP typically cannot be fully waived, so it is called a “limited PIP option”.  When you waive or limit PIP in MD, you are waiving it for yourself and any other household member ages 16 or older.

Household members under the age of 16 and non household members still would receive the full PIP benefits under the policy.  So when the limited PIP option is selexted, you will still have to pay a premium for the PIP coverage.

In Pennsylvania, you can waive the PIP insurance altogether for your policy.  So that means that no one would be eligible to collevt PIP benefits under your policy.

When this coverage is waived or limited, the consumer is responsible for any uncovered expenses resulting from a car accident.

Insurance consumers must weigh the pros and cons carefully before making a decision about whether or not to waive PIP coverage and understand the risks involved.

We Recommend Not Waiving Personal Injury Protection Coverage

PIP is a valuable no fault coverage on an auto insurance policy.  This means that it does not matter if you are at fault for the accident.  If there is an injury involving any accident, PIP can be used to pay for covered expenses as a result.

In our opinion, the value of the coverage out weighs the cost savings of waiving or limiting the coverage.  For that reason, we never recommend waiving or selecting the limited PIP option on an auto insurance policy.

Contact Us Today

If you have any question on your PIP insurance, or any other type of insurance, please reach out to us at 410-647-1111.  One of our experienced agents will be happy to talk to you about your options.

 

How To Avoid a Scary Homeowners Insurance Claim This Halloween

Trick-or-treaters aren’t the only spooky thing homeowners may see on Halloween. You also need to watch out for the possibility of scary homeowners insurance claims.

Here are 13 precautions to make your home safe and hazard-free before little ghosts, witches, princesses and super heroes come calling.

1. Create a safe path. Clear your walk, steps, porch and lawn of any tripping hazards (electric cords, hoses, potted plants, etc.). Move everything to a place where no one can accidentally stumble on them.
2. Repair hazards. Fix wobbly or broken porch railings that could cause severe injuries if any trick-or-treater or guest leans on them a little too hard.
3. Survey your property. Take some exterior photos of your property before trick-or-treaters start to arrive. In the event of an accident or vandalism, they can come in handy.
4. Secure pets. The things that make Halloween fun for people – spooky noises and music, trick-or-treaters, and unusual lights and decorations – can make the holiday nerve-wracking for pets, which in turn can lead to aggressive or destructive behavior. Keep pets in a safe location away from the commotion.
5. Turn on the lights. Keep your sidewalks and pathways well lit so everyone can see clearly where they are stepping.
6. Avoid homemade treats. Many parents won’t let their kids eat non-prepackaged candy. Plus, labels that have allergy warnings help prevent life-threatening reactions. Stick with the fun-size candies you can buy in bulk.
7. Prevent electrical shock or fire. Use safe, intact electrical cords and decorations, and don’t overload outlets or circuits. Never fasten electrical wires or cords in a way that could damage the cord’s insulation or create tripping hazards.
8. Decorate safely. Don’t hang heavy decorations overhead. These items could fall and strike a trick-or-treater or party guest, resulting in serious injuries. And avoid pop-up decorations that could startle visitors and cause an unfortunate accident.
9. Host responsibly. If you host a grown-up Halloween party where you’re serving alcohol, monitor consumption and ensure your guests have designated drivers. And never serve alcohol to anyone under 21.
10. Avoid fire hazards. Use LEDs instead of real candles in jack o’lanterns and paper luminarias. Real candles can create a dangerous fire hazard, especially with lots of children around.
11. Take precautions in wet or cold weather. Use friction tape on steps. If your area is near or below freezing on Halloween, use salt or sand on slippery sidewalks and walkways as needed.
12. Move vehicles. Reduce risks to little pedestrians by clearing parked cars from the curb for better visibility. And, instead of risking accidental dents or scratches, park your car in the garage, if you can.
13. Discourage vandalism. Activate motion lights to illuminate the whole house and help scare away late evening vandals or mischief-makers.

Opening your home to trick-or-treaters and Halloween party guests can expose you to homeowners claims and lawsuits. Talk to your insurance professional to make sure your home insurance policy is current and that you have adequate protection. Once you’ve done your best to create a safe environment, you can enjoy the spookiest day of the year.