Uninsured Motorist Coverage on your Auto Insurance

You are responsible and when it comes to making a decision as to how much auto insurance to buy you tend to think about how much coverage you should get in the event you cause an accident. However, very few people make conscious decisions based on what happens to them if someone hits them and they are hurt.  Even less likely do people think about what happens if the person that hits them has very little insurance or none at all. In fact, California auto liability insurance requirements are quite low:

Minimum liability insurance requirements for private passenger vehicles (California Insurance Code §11580.1b)

• $15,000 for injury/death to one person.
• $30,000 for injury/death to more than one person.
• $5,000 for damage to property.

If someone has the minimum liability insurance, there is not much for you to receive.  This is where your uninsured/underinsured portion of your auto policy kicks in.  If your uninsured/underinsured policy is greater than the persons that injured you, you can tap into it. HOWEVER, you cannot double dip – collect on the liability insurance of the person who hits you as well as your uninsured/underinsured policy- unless your insurance company ofers a conversion rider.  Note that conversion riders tend to be expensive to obtain and not usually offered.

Case Study:  My friend’s dad was hit on the feeway and severely insured, spending 4 weeks in the hospital. The person that hit him had $100,000 in coverage and he had $100,000 in uninsured/underinsured coverage.  Not bad, however, his losses as a result of the accident far exceed this amount.  He will only be able to recover $100,000 because he can’t double dip into both policies.  However, if the guy that hit him had only $50,000 of coverage he could then get another $50,000 from his policy.  Uninsured/underinsured motorist coverage is really not that expensive to add or increase on your policy.  Be smart and weigh the cost v. the value of having this important coverage available when you need it.

10 THINGS PEOPLE DON’T KNOW ABOUT TEEN DRIVING

Most people know drinking and driving is a primary cause of teen crashes and teen deaths. But many people don’t know:

1. Sixteen-year-olds are three times more likely to die in a car crash than other drivers.
2. Simple driver error is a factor in two-thirds of fatal teen crashes.
3. Two-thirds of teen occupants killed in crashes are not wearing seat belts.
4. In 2005, 12% of high school males reported driving after drinking.
5. Two or more teen passengers make fatal teen crash risk five times more likely.
6. Two-thirds of teens who die in car crashes are passengers of teen drivers.
7. Speeding is a factor in 40% of all teen fatalities.
8. Being awake for 18 hours equals a blood alcohol concentration (BAC) level of 0.08, which is legally drink.
9. Inexperience combined with distractions is lethal**
10. The distractions proven to kill teens: teen passengers and cell phones**

Source: The Children’s Hospital of Philadelphia www.chop.edu/youngdrivers

To have Rhonda Shader come make a meaningful presentation to your teen group about driving distractions and the consequences of distracted driving and dangerous driving please contact us.

Contacting Rhonda

State Farm Insurance Agency
1105 W. Orangethorpe Avenue
Fullerton, CA 92833
714.992.2188 Office
714.870.0545 Fax

Email: Rhonda@rhondashader.com

www.rhondashader.com

 

The Disability Difference

Congrats to my valued policyholder, a local attorney who saw the value in getting a Disability Income policy as part of his risk management portfolio. Now, if he was to get hurt and become disabled he will be getting a check for the amount he qualified for each month he is disabled. Different from health or long term care insurance, this policy provides cash in your pocket to pay bills and live on when you can’t work. The amount you can get depends on how much you make at your current employment. Many large companies provide this type of coverage as part of a benefit package, but for those that are self-employed or work for a smaller employer, these types of policies are sold by insurance agents.  Let me know if you have any questions.

Learn more about Rhonda Shader

Contacting Rhonda

State Farm Insurance Agency
1105 W. Orangethorpe Avenue
Fullerton, CA 92833
714.992.2188 Office
714.870.0545 Fax

Email: Rhonda@rhondashader.com

www.rhondashader.com

 

Frustration v. Devastation

Ok so you get into a “fender bender” “dang!” it’s your fault! Now you have to pay your deductible ($500-$1000 for most people) and you get a ding on your record so your insurance rates will go up a bit for a few years.  Now answer this question…Frustration? or Devastation?  Ok the accident is worse this time, and someone (we won’t name names) dies in the accident. Frustration ? or Devastation? Remember the movie The Titanic?  The unsinkable ship?! Remember when they saw the ice berg and they started to sound the alarms. They then felt great relief when they were able to turn the large vessel enough to miss hitting it.  What they didn’t realize is that the bottom of the ice berg was bigger than the top and they of course hit the ice berg ultimately sinking the ship. Being in this business I see a lot of people worrying about their home and autos.  What I don’t see is a lot of people worrying about their life, and the devastation that losing a life can cause to many. We can’t insure 100%, but we can use the budget we have for insurance to insure first against devastation and then maybe against some frustration. My challenge to you today is to keep this in perspective.

Learn more about Rhonda Shader

Contacting Rhonda

State Farm Insurance Agency
1105 W. Orangethorpe Avenue
Fullerton, CA 92833
714.992.2188 Office
714.870.0545 Fax

Email: Rhonda@rhondashader.com

www.rhondashader.com

What’s the deal with long term care?

My client Shari who is only 51 called me and said I need some long term care insurance. Shari is a little young to be concerned about this. I asked Shari when we met why she was considering this already. She explained that for many years she had to take care of her mother. She didn’t mind, but she said it sure would have been nice to have some help. She wants to make sure she has something to help her care taker, whoever that may end up being. With government help only available to the most poverty stricken, and medicare only providing 100 days of nursing care, Long Term Care has become a must for anyone with assets. Like many health related insurance, the younger you get it the cheaper it is. Long Term Care pays a medical provider directly when you are not able to do one of the 5 basic daily living activities: Going to the bathroom on your own, showering on your own, moving around, dressing yourself, feeding yourself. It is vital to plan for long term care as you approach retirement. This can be done through your own cash reserves or through an insurance policy.

Learn more about Rhonda Shader

Contacting Rhonda

State Farm Insurance Company
1105 W. Orangethorpe Avenue
Fullerton, CA 92833
714.992.2188 Office
714.870.0545 Fax

Email: Rhonda@rhondashader.com

www.rhondashader.com

Should I go to traffic school?

Yes, yes and yes. This is true especially for younger drivers (9 years or less). Your premiums will increase more than the cost of traffic school. I had a young driver come to me recently who had a very bad 2010 in terms of driving record…2 tickets and an accident. He felt he didn’t have the money for traffic school so he decided to take the hit on DMV points.  Bad, short term decision. Now he has 3 points on his record and he can’t even be insured by a standard company. He now has to go to high risk companies for the next 3 years until these fall off the DMV record, and it will cost him hundreds of dollars a year. If he had gone to traffic school his one available time in the last 18 months, it would have saved him hundreds of dollars over the next 3 years. Those that have been driving longer may be able to absorb one point (which is one moving violation or one property damage only accident) in a 3 year period for very little increase. In which case the extra money and time of traffic school may not be worth it to you. But we have all probably experienced those times when bad things seem to happen over and over. If this happens to you, on the second violation you definitely want to go to traffic school.  It doesn’t matter how long you have been driving or how long you have been insured by the same company, when you get multiple tickets/accidents, you become a bigger risk to the company and they need to charge for it.  Always call and talk to your agent about your situation and make an informed decision, but don’t underestimate the “GIFT” of traffic school to dismiss a mistake you made.

So how do I choose?

It can actually be rather simple. You just have to keep two things in mind:

Your Budget. What can you afford?

• Term premiums are lower at first, but generally increase over time.
• Permanent premiums are generally level for life.

If you have a limited budget now, but expect your income to go up over time, you might want to consider a term policy. (Remember, you can convert most term policies later.) Otherwise, you may save over the long run with a permanent policy.

Your Expenses. What kind of expenses do you need to cover– short or long term?

• Short-term expenses can include student or vehicle loans.
• Long-term can include a mortgage, ensuring a comfortable retirement for your spouse, or final expenses.

If you only need temporary protection, consider a term policy. But if you’re planning far ahead, you may want to consider a permanent life policy.

Learn more about Rhonda Shader

Contacting Rhonda

State Farm Insurance Company
1105 W. Orangethorpe Avenue
Fullerton, CA 92833
714.992.2188 Office
714.870.0545 Fax

Toll Free: 888-275-2615

Email: Rhonda@rhondashader.com

www.rhondashader.com

Universal Life

What it gives…

• Premiums and coverage are flexible
• Premiums (less expenses) go into an account which earns a guaranteed minimum interest rate.
• Any growth in your account value is tax-deferred.
• You can make withdrawals or take loans from your policy’s cash value.

Learn more about Rhonda Shader

Contacting Rhonda

State Farm Insurance Company
1105 W. Orangethorpe Avenue
Fullerton, CA 92833
714.992.2188 Office
714.870.0545 Fax

Toll Free: 888-275-2615

Email: Rhonda@rhondashader.com

www.rhondashader.com

Whole Life

What it gives…

• Lifetime coverage (as long as you pay the premiums).
• Policy can develop cash values that are tax deferred.
• The sooner you state, the lower the premium.
• Premiums are the same every year.
• May pay dividends (although not guaranteed).
• You can take loans from your policy.

Learn more about Rhonda Shader

Contacting Rhonda

State Farm Insurance Company
1105 W. Orangethorpe Avenue
Fullerton, CA 92833
714.992.2188 Office
714.870.0545 Fax

Toll Free: 888-275-2615

Email: Rhonda@rhondashader.com

www.rhondashader.com

Term Life

What it gives

• Premiums on most term policies stay the same for the policy term.
• Initially less expensive, temporary coverage for your choice of time periods.
• You can convert to a permanent policy, no matter what your state of health is.
• Coverage on most term policies may be continued beyond the original term for an additional premium.

Learn more about Rhonda Shader

Contacting Rhonda

State Farm Insurance Company
1105 W. Orangethorpe Avenue
Fullerton, CA 92833
714.992.2188 Office
714.870.0545 Fax

Toll Free: 888-275-2615

Email: Rhonda@rhondashader.com

www.rhondashader.com