Archive for the ‘Car Insurance’ Category

Driving, Drinking and Kids Do Not Mix

Friday, August 27th, 2010

We all know that there is and has been an all out war against drinking and driving across the country. No secret here for sure. Whether you operate or are a passenger you need to care. The Child Passenger Protection Act passed on 12/18/o9 here in NY makes the offense even more serious when children under the age of 16 are in your vehicle. The law is also know as Leandra’s Law due to a very unfortunate accident that occurred October 2009 in NYC.

 

When this law was passed it had another component with a different time frame of implementation. On August 15, 2010 the law triggered new additions to the existing alcohol related laws. This part of the law applies whether or not a child under the age of 16 is in your car or not. It also applies to first time offenders. The long and short is  offenders will have to pay to install and maintain devices that are integrated into the ignition system of the car. These devices would require the driver to essentially take a breathalyzer before the car will start. Failure to comply or circumvent the law yields more bad things for the offender or an accomplice trying to aide the offender.

 

You can view the particulars on the NYS Division of Criminal Justice Services site. I’m sure there are other places as well. The link is http://criminaljustice.state.ny.us/pio/press_releases/2010-7-20_pressrelease.html for more information.

 

Insurance companies are tough on alcohol related offenses as well. With the advent of Insurance Scores (credit and loss based scores that determine pricing) it is less clear as to the dollar value of the offense but the underwriting is still difficult. Many companies will not entertain the risk which forces drivers with these offenses to carriers who are comfortable with it. Those carriers also tend to charge more.

 

If you have or want to obtain a Personal Umbrella Liability policy alcohol related offenses can make that problematic as well.

 

Drinking an driving does not mix for a whole host of reasons. Leandra’s law further ups the consequences for parents, guardians, and custodians because you are reported to the Statewide Central Register of Child Abuse and Maltreatment as well. 

 

Some stats from the NYS Division of Criminal Justice Services: 311 arrests under Leandra’s law through July 10, 2010. Of that number 117 were women and 194 were men. Looks as if the counties of Erie, Westchester and Suffolk had the most activity but arrests have been made in 51 of the states 62 counties.

 

If you have not checked this out you should.

Holes in Your Auto Insurance

Tuesday, September 29th, 2009

It is a pretty common occurrence when myself and the PCI staff (Lisa & Linda) find these coverages short changed in an Auto policy. It is our policy to adhere to standards when it comes to the following coverages to ensure consistency for our clients.

 

The first “hole” is Supplementary Uninsured/Underinsured Motorist (SUM) coverage. I won’t bore you with all the details but suffice it to say this is a coverage that can come in handy if you (or anyone considered an insured for this coverage) are INJURED due to the negligence of another driver that has no insurance or not enough for you to recoup  damages. So it pays you not the other guy. Uninsured motorist coverage is a mandatory coverage in NY so you will have that but SUM is optional and often missed. You can purchase limits up to the limits you have purchased for Bodily Injury coverage to Others.  By and large the coverage is inexpensive and we often find it is either left out or the limits purchased are not the most that can be had by the consumer.

 

The second “hole” is low limits for Personal Injury Protection (PIP) or No Fault. This coverage pays you for medical bills and associated work loss if you are injured in an Auto accident. Remember, this is for medical AND work loss.  PIP is considered the first place to go for medical bills if the injury is Auto related. Health insurance can work but often has copays, deductibles and coinsurance that is not present in PIP. Most health carriers will refer you back to your Auto carrier for coverge anyway. State mandated limits start at $50,000 but if you purchase more coverage (APIP-Additional PIP & OBEL-Optional Basic Economic Loss) you could buy up to $175,000. The mandated coverage is not only lower but the monthly limitations for work loss are much lower than if APIP is purchased.

 

These are two items we see on a routine basis. My belief is they get left out to save premium since many buyers of insurance focus on the bottom line premium number. It is easy for these coverages to get lost in the buying process.  Unless you ask for these coverages you may find your quote comes with only state mandate amounts.

 

Take a look at your policy and check these coverage amounts and as always if you have questions feel free to give us a call.

  

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