Term of The Week
Conditional Reserves
This item represents the aggregate of various reserves which, for technical reasons, are treated by companies as liabilities. Such reserves, which are similar to free resources or surplus, include unauthorized reinsurance, excess of statutory loss reserves over statement reserves, dividends to policyholders undeclared and other similar reserves established voluntarily or in compliance with statutory regulations.
reference: ambest.com
Larry's Tip of The Week
When buying car insurance
It is important not to get overwhelmed. It is necessary to understand the basic concepts that apply to auto insurance before you go out and shop. You should also realize that insurance companies have different price structures that relate to the kinds of people they would prefer to insure. Most insurance companies prefer to insure people that are married, educated, and who have not made a claim, or had any speeding tickets in the last three years. The best rates are given to such individuals. If someone came to me for a quote, and they had a horrible driving record, I would probably insure them, but at an inflated rate. Some companies have their niche in the market of high-risk drivers. They charge higher rates, but will insure anyone; the good, the bad, and the ugly. The following are five things NOT to do when buying auto insurance.
Don’t Purchase the First Quote
Always shop around! It may be unpleasant to give out all of your information over the phone to a variety of people, but as long as you stick with reputable companies, your information should be safe. Also, if you have a clean driving record, and decent credit, you should not have to provide your social security number to get a rate quote. However, if you have bad credit and a sketchy driving record, the rate will be greatly affected.
Don’t Over-Insure Your “Beater”
If you have a car that is old and rusty, and not worth much money, do not carry full coverage insurance. You can go with liability only insurance, which will protect you for bodily injury liability to others. So, if you hit someone, you will still be protected against lawsuits, but you will not have a collision deductible. However, if you drive a newer car, carry a high collision deductible and a lower comprehensive deductible.
Don’t Get Scammed by Your Current Carrier If you are a loyal customer, and have been with the same company for many years, demand an annual policy review. If you do not know who your current agent is, call your local office and ask to speak to one of the senior representatives. That way they can take ownership of your insurance account, provide you with a free review, and advise you on any discounts that might be available to you now that were not available back when you purchased the plan.
Don’t File Small Claims
If you have a minor accident that does not do too much damage to your vehicle, shop around at some body shops to see what it would cost to repair the damage. If the repair estimate is lower than your current collision deductible, then pay for the damage out of your own pocket and do not file a claim. This way your premiums will not go up, and you will have unaffected rates if you switch carriers.
Don’t Carry Auto Insurance and Home Insurance with Different Companies Many people do not know this, but many insurance companies offer multiple-line discounts for home and auto insurance. If you have homeowner’s and auto insurance, make sure that they are with the same company and that the multiple-line discount is being applied. Also, when you shop around, make sure you get quotes for auto and home insurance at the same time.
By Robert Greenlee, autotips.com