Tuesday, March 21, 2023

Gap Insurance

 What is gap insurance?

Gap insurance (or auto loan/lease coverage) is an additional coverage you can add to your car insurance policy. It covers the remaining loan or lease amount you may have on your vehicle if it’s totaled in a covered accident.

So, if your car is damaged in an accident and your insurance company deems it a total loss, your insurance company will pay off your remaining loan balance rather than just the current value of your vehicle considering age, condition and mileage. This loss of value over time is called depreciation.

Without this coverage, you would be responsible for the “gap” (hence its name) between what’s left on your loan and your vehicle’s current, depreciated value.

For example, if your vehicle is totaled in a covered accident, your insurance company will provide you with a claim payout equal to your vehicle’s depreciated value (less any deductible). Depending on the amount of your loan and the depreciation on your specific vehicle, the amount your insurance company pays you may be less than the amount left on your loan. This leaves you having to pay that remaining amount. However, with gap insurance, your insurance company would pay the remaining loan amount.

Example of how gap insurance works

Let’s say your car is totaled after a bad accident. Your car’s current value is $10,000.

You have a loan on this vehicle. Your remaining loan amount is $12,000.

Your insurance company is going to pay you the current value of your car ($10,000).

This leaves a remaining $2,000 balance on your loan, which you will need to pay. If you have auto loan/lease coverage, it may pay the remaining $2,000 for you.

What is the most gap insurance will pay?

In general, your insurance will pay the lender based on what you owe on your vehicle and the coverages your policy has, but this can vary depending on your claim.

Who may need gap insurance?

If you either took out a loan to pay for your vehicle or it’s under a lease, you may want to consider gap insurance.

Other factors that may influence your decision include:

- The amount of principal left on your loan

- The age of the vehicle

- Your personal financial situation   

Where do I buy gap insurance?

To buy gap insurance, you’ll likely need to have a car insurance policy that includes the comprehensive (other than collision) and collision coverages. Most companies will require you have both of these coverages on your vehicle’s policy before they will add an auto loan/lease gap coverage.

We, of course, think that contacting Community Insurance Solutions LLC is the best first step. Car dealerships do offer gap insurance, but it’s often more expensive than just adding it to your existing car insurance policy.

Learn more at Community Insurance Solutions LLC.

Wednesday, March 15, 2023

Why did My Car Insurance Premium Go Up?

 If you opened your car insurance bill recently and noticed it’s higher than you expected, you’re likely experiencing the insurance rate increases being made by most insurance companies in late 2022 and into 2023. Insurance companies are raising their rates in response to significant changes in the marketplace.

Why did my car insurance go up?

Several unprecedented changes are driving up car insurance rates, the first being the increased costs of a car insurance claim. This increased claim cost is largely due to:

- Increased severity of car insurance claims

- Price increases for replacement parts

- Availability of replacement parts

- Repair shops are short-staffed

- Repairs are taking longer, which increases the total cost to rent a vehicle since you may need it longer

There is also a shortage of new and used vehicles. Because of these shortages, the prices to replace a vehicle have significantly increased, making claims for totaled cars much more expensive.

Of course, we can’t forget inflation. Just like many other industries right now, inflation is driving up prices.

How much can I expect my car insurance to go up?

The amount that your car insurance will increase varies by state and depends on your policy. There is no set percentage that all insurance companies are increasing. The adjustment is based on the price increases they’ve seen in their claims and adjustments for inflation. All rate changes also have to be approved by your state’s department of insurance.

What if I didn’t file any claims?

Filing a claim can affect your rates. However, this particular rate increase is usually going to be more heavily motivated by the drastic changes in the marketplace.

Should I switch my insurance?

Seeing your rate increase may prompt the question of switching insurance companies. Since this is a change affecting the entire insurance industry, rates may not be that much different. However, it never hurts to check.

Community Insurance Solutions LLC is a great resource and can help you compare quotes from multiple insurance companies to find the coverage and rate best for you.

Tuesday, March 14, 2023

Replacement Cost vs Actual Cash Value

 Replacement cost and actual cash value are two methods of valuing property in the insurance industry.

Replacement cost is the cost to replace damaged or destroyed property with new property of the same kind and quality, without deduction for depreciation. In other words, it's the amount of money it would take to completely replace a damaged or destroyed item with a brand new one of the same quality.

Actual cash value, on the other hand, is the cost to replace damaged or destroyed property with new property of similar kind and quality, less depreciation. This means that the insurance company takes into account the age and condition of the damaged or destroyed property and subtracts the depreciation from its original value.

For example, let's say a 5-year-old television was destroyed in a fire. The replacement cost of the television would be the cost of buying a new television of the same brand and quality. The actual cash value, however, would take into account the fact that the television is 5 years old and has depreciated in value, so the insurance payout would be less than the cost of a brand new television.

In general, replacement cost coverage tends to be more expensive than actual cash value coverage because it offers more comprehensive protection. However, actual cash value coverage can be a good option for those who are willing to accept a lower payout in exchange for lower premiums.

Learn more at Community Insurance Solutions LLC.

Tuesday, March 7, 2023

Who Needs General Liability Insurance?

General liability insurance is an important type of coverage that can help protect businesses from a wide range of potential risks and liabilities. Generally speaking, any business that interacts with customers or members of the public could benefit from having this type of insurance.

Some examples of businesses that may need general liability insurance include:

- Retail stores and shops

- Restaurants and food service establishments

- Contractors and construction companies

- Professional services firms, such as accountants, lawyers, and consultants

- Health and wellness providers, such as gyms, spas, and massage therapists

- Manufacturers and wholesalers

- Non-profit organizations and charities

- Event planners and organizers

- Landlords and property owners

- Technology companies and software developers

This list is by no means exhaustive, and there may be many other types of businesses that could benefit from general liability insurance. It's always a good idea to consult with a qualified insurance professional to determine what types of coverage your business needs to stay protected. Find out more at Community Insurance Solutions LLC.

Thursday, March 2, 2023

Why You Need an Umbrella Policy

 Umbrella insurance is a type of personal liability insurance that can cover claims in excess of your regular homeowners, renters or auto policy coverage. It can protect not just the policyholder, but also members of your family or household, and it can cover injury to others or damage to their possessions. There are many scenarios that would warrant the need for an umbrella insurance policy. We outline a few of them here.

Example #1: Your teenage daughter is babysitting the neighbor’s kids and leaves the house for a moment to run to the store. When she returns, one of the children is badly injured and requires surgery. The child’s medical bills exceed $300,000. The parents of the children sue you to cover the medical bills.

Example #2: Your son dislikes his gym class as well as the teacher. He goes on social media and writes some very reproachful comments about the teacher that leave him in a bad light. The teacher sues and is awarded $500,000.

Example #3: Your 17-year-old child decides to pick up some friends and go “cruising” in your car. He loses control of the vehicle while showing off how fast the minivan can go. Each child is critically injured. Your umbrella policy helps cover the medical bills.

Example #4: You invite friends to your home to celebrate the Fourth of July. You provide all the entertainment, food and refreshments, including alcohol. One friend who is known for drinking too much, does just that, gets in his car and drives home, getting in a terrible car accident that kills one person. The family sues you, and you’re found to be liable for serving the friend too much alcohol.

Example #5: Your rental property’s deck is rotted and your tenant falls through it, badly injuring his leg and requiring reconstructive surgery. A jury awards the tenant $750,000 for damages.

Example #6: You host a wedding on your property and rent a bouncy house. The house is not staked down and blows away in the wind with children inside of it. The kids are fine, but you’re sued for negligence. The families of the children are awarded $100,000 each for mental and post-traumatic stress.

Example #7: Your dog gets out and viciously attacks the neighbor’s show dog. The dog can no longer show because it has scars and a limp. You’re sued for loss of income, and a jury awards the dog owner $450,000.

Example #8: You’re the “cool mom” and agree to buy your kids and their friends alcohol if they promise to stay at the house. One of the friends leaves the house and is killed in an accident. He is found to be intoxicated. The parents of the child sue you for providing him with alcohol. A jury awards $2 million.

Example #9: You host a summer pool party for your child’s birthday at your house. An unsupervised child gets injured while swimming in the pool, and the parents sue for negligence and win.

Example #10: After a bad experience at a local restaurant, you write an inflammatory review online telling others that it’s the worst experience you’ve had. The owner of the restaurant sues for slander and wins.

Example #11: You’re responsible for a four-car accident, and your insurance can’t cover the replacement of the victims’ vehicles or any of their medical bills.

Example #12: Your child gets in a fight at school and breaks another kid’s arm. The parents of the injured child sue and are awarded 250,000 plus medical expenses.

Example #13: Someone is walking on the sidewalk on your property and trips on a crack in the concrete. They suffer a concussion and sue for damage.

Example #14: You leave for a weekend vacation and don’t cover your pool in the backyard. While you’re gone, the neighborhood kids jump your fence and swim in your pool unattended. While swimming, one of them drowns and the parents sue.

Example #15: While vacationing in Mexico, you rent a boat to go out on the water. While boating, you accidentally crash into another boat. Your insurance doesn’t extend coverage out of the country, and you are left with a large out-of-pocket-bill.

Example #16: Your child is fascinated with reptiles and brings one of your snakes to school for show and tell. While at school, the snake bites one of the children, and the kid is scarred for life. The parents sue for both physical and mental damage.

Example #17: A tenant in one of your rental properties complains about a faulty furnace. You say you’ll fix it, but forget to schedule an appointment with a repairman. The furnace catches fire the next week, destroying the tenant’s possessions.

Example #18: You allow your teenager and her friends to drive your golf cart down to the local lake. On the way, she swerves to avoid hitting a squirrel, resulting in a crash that severely injures your child’s friend. You are held responsible and are sued by the parents.

Example # 19: You hire a group of contractors to add an extension to your house. While on a ladder, one of the contractors falls and hits his head, resulting in a concussion. He sues, and you must pay the medical expenses.

Example #20: One of your houseguests at a Christmas party falls down your stairs. The guest sues for medical bills plus pain and suffering. The amount exceeds your insurance liability limit.

Example #21: While out on a hunting trip, you mistakenly shoot and kill a camper. The family sues you to cover funeral costs.

There are countless situations that can occur and exhaust the liability limits on your home or auto insurance policy – but the good news is that umbrella insurance policies are relatively inexpensive. Contact one of our agents at Community Insurance Solutions LLC for your personalized umbrella insurance quote today.

Renters Insurance

Renters insurance is an important coverage that provides protection for renters. Here are some reasons why you should consider having renters insurance:

Protection for personal belongings: Renters insurance covers the cost of replacing personal belongings such as clothing, electronics, furniture, and other items in the event of theft, fire, or other covered events.

Liability protection: Renters insurance provides coverage in the event that someone is injured in your rental property or if you accidentally damage someone else's property.

Coverage for additional living expenses: If your rental property becomes uninhabitable due to a covered event, renters insurance can help cover the cost of temporary housing and other living expenses.

Affordable: Renters insurance is often affordable, with average premiums costing less than $20 a month.

Peace of mind: Renters insurance gives you peace of mind knowing that you and your belongings are protected in the event of a covered loss.

Overall, renters insurance is a cost-effective way to protect yourself and your belongings, and provides peace of mind knowing that you're covered in the event of a loss. Find out more at Community Insurance Solutions LLC.

Classic Car Insurance

 Classic car insurance is a specialized type of insurance coverage that is designed specifically for vintage or classic cars. These cars are typically older, well-maintained vehicles that are either rare or collectible, and may have a higher value than typical everyday cars.

Classic car insurance policies typically offer different types of coverage than standard auto insurance policies. For example, classic car insurance may offer coverage for the agreed value of the car rather than its actual cash value, which can be lower. Classic car insurance may also have mileage restrictions or require that the car be kept in a garage or storage facility when not in use.

To qualify for classic car insurance, the vehicle typically needs to meet certain requirements, such as being a certain age, having a certain value, or being in good condition. Requirements for classic car insurance can vary depending on the insurance company, so it's important to let us compare policies to find the best coverage for your needs.

If you own a classic car, it's important to protect your investment with the right insurance coverage. Classic car insurance can provide the protection and peace of mind you need to enjoy your car and drive with confidence. Find out more at Community Insurance Solutions LLC.

Life Insurance is Love Insurance

 Life insurance is love insurance. It's a tangible way to show your loved ones that you care about their financial security and well-being, even after you're gone. With the right life insurance policy, you can help protect your family's future and ensure that they have the financial resources they need to continue living the life you've built together.

Life insurance can provide your family with the support they need to pay for final expenses, outstanding debts, and ongoing living expenses, including mortgage payments, education costs, and more. It can also provide them with a source of income to help replace your lost earnings and provide a measure of financial stability during a difficult time.

Invest in the people you love and show them that you care with life insurance. Click here and see just how affordable life insurance really is or find out more at Community Insurance Solutions LLC.

Commercial Insurance

 Commercial insurance is a type of insurance that protects businesses from financial losses due to a variety of risks. From natural disasters to lawsuits, commercial insurance can provide peace of mind for business owners and help protect their investment.

There are many different types of commercial insurance available, including property insurance, liability insurance, workers' compensation insurance, and business interruption insurance.

Property insurance covers damage to a business's physical property, such as its building and equipment, due to events such as fires, storms, or theft. This type of insurance can also cover the cost of repairing or rebuilding damaged property.

Liability insurance protects businesses from financial losses due to lawsuits or claims of negligence. This type of insurance can cover the cost of legal fees and settlements, as well as any damages awarded to the claimant.

Workers' compensation insurance is required by law in many states and provides financial support to employees who are injured on the job. This type of insurance can cover medical expenses and lost wages, as well as provide death benefits to the families of workers who are killed on the job.

Business interruption insurance provides financial support to a business in the event that it is unable to operate due to a covered event, such as a natural disaster or a major fire. This type of insurance can help a business recover from the loss of income and continue operating until it is able to resume normal operations.

When choosing commercial insurance, it is important to work with a knowledgeable insurance agent who can help determine the type and amount of coverage that is right for your business. The agent can also help you understand the exclusions and limitations of your policy, so you know what is covered and what is not.

In conclusion, commercial insurance is a critical component of any successful business plan. It provides financial protection against a variety of risks and helps business owners maintain peace of mind and focus on growing their business. Whether you are just starting a new business or are looking to update your existing coverage, make sure you have the right commercial insurance in place to protect your investment and secure your future. Learn more at Community Insurance Solutions LLC.

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