I often think most stay because of “The devil you know may be better than the devil you don’t know” attitude.  It’s kind of like election time.  You always hear how nobody likes any candidate but they’re voting for the person they dislike the least, the lesser of the two evils.

Well, when you finally do decide to switch insurance carriers, you must remember to cancel your old policies especially if you switch at anytime other than your renewal.  If not, you’ll continue to receive billing notices and the previous insurer will think you still want coverage.  Generally they’ll continue to provide coverage for about another month before they cancel you.  And, if you ignore their bills and don’t pay for their coverage you can end up in collections.  Not a good thing.

If you switch at your policy renewal it’s a bit different.  Most policies will continue to provide coverage only if you continue to make your payments at renewal.  So, if you don’t pay, they’ll flat cancel the policy effective the renewal date.

However, your best choice is to always notify the previous insurance company and give them the exact date you want it cancelled.  In our office we do it for you to make the transition easy.  Most agencies let you take care of this on your own and don’t walk you through the entire process.

I heard a quote once from someone I think applies.  “The will to survive is not the strongest will in humans.  It’s the will to do what’s familiar.”  (If you know where it came from, let me know)  Maybe that’s why so many people don’t actually look around.  It’s familiar and easy to just keep paying those same payments and assuming all is well.

How can we protect our kids?

• Limit passengers allowed when driving. Drivers with passengers age 8-17 are more likely to get in an accident then driving without a passenger or with passengers age 25 and older.
• Limit where they’re allowed to drive to streets with lower speed limits.
• Encourage them to wear their seat belts.

We can’t be with them all the time so it’s difficult to monitor what they’re doing. Or is it?

There are products out there now that allow you to monitor your child’s driving behavior. They’re fairly inexpensive worth every penny for the peace of mind they provide. GPS Technologies Safetrack is one you can look into. Depending on how much detail you want to monitor it can alert you on your cell phone when they exceed a certain speed set, travel outside a certain distance from home, even locate them on a map via GPS with your computer.

Wouldn’t it be nice to know your teen is actually at the movies tonight and arrived safe? Now you can.

As a parent, it’s scary when your kids start driving.  You’re worried about their safety.  You pray they behave responsibly.  Plus, the price of your car insurance almost doubles.

Some people try to save money by placing the title of a car in the teenager’s name and making their teenage driver buy their own car insurance with minimum liability limits.  The parents then exclude the child on the parent’s policy.  This seems like a good idea because the child has little or no assets and a minimum liability only policy would lower their cost.

However, in Arizona we have something called the “Family Purpose Doctrine.”  It has been held up in the courts that a parent is responsible for their teenage driver’s accidents (Click here to read the court opinion of Country Mutual Insurance v Hartley).

Now, only the court can determine what constitutes “Family Purpose” in a teenager’s accident.  But, as a parent you may be better served to insure the child on your policy.  And, if they carry their own insurance you don’t want to exclude them from your policy.  If you exclude the teen driver on your auto insurance policy and the teen driver has an accident then you have no insurance company to pay for your defense costs or any portion of the claim.

If you have any doubt or still want to insure your child on a separate policy, consult your attorney.  This practice will not insulate you from the actions of your child, as shown by Hulk Hogan’s son Nick.  Their accident was in Florida so it will be interesting to learn the outcome of this case.

Or, get a quote from our agency and let us shop our “teen friendly” insurance companies to find better rates.

I am writing to inform you that our investigation has revealed that those claims being presented have a potential value which may exceed your policy limits of $250,000 per claim under your auto policy. XYZ Insurance Company (name changed) is not obligated to pay any amounts which exceed your policy limits. You may wish to consult legal counsel, at your own expense to advise you on this issue. (Bold added for emphasis)

I assure you that we will continue to make every effort to protect your interest in this matter, and to attempt to settle this claim within your policy limits. In this regard please be advised that we recently received a phone call from the hospital treating Jane Smith (name changed), who was rear ended by your son. They have indicated that her medical bills exceed $700,000.

If this was sent to you, how would you manage to find legal help? How would you find the way to pay the amount above the $250,000 that their policy will cover? What assets do you have to lose now?

While this auto policy already has good limits, an umbrella policy would easily and inexpensively add additional coverage above the base auto policy. It also extends above your home, boat, motorcycle and other policies you may carry. A $1 million umbrella policy starts at around $15 per month. We highly recommend it if you:

• Have young drivers in family
• Own swimming pool
• Own recreational vehicle or ATV
• Own boat or other watercraft
• Own more than one home
• Own a dog
• Want to protect your assets & wages

You can easily get a quote on an umbrella policy from our website at www.AutoHomeLifeBusiness.com/umbrella.html.