Personal Insurance

Should You Stay on Your Parents Car Insurance?

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graduationCongratulations, college graduate! You survived finals, senior week, graduation, and made it through the lunch afterwards without looking half as bad as you felt. Now, reality sets in.  In today’s economy, reality might involve swallowing your pride and moving back in with your parents until you can afford another option.

Here are some common questions recent college grads refer to our Greater Portland Maine Insurance Agency. If you live in another state, this advice may or may not be accurate for you.

Am I Covered Under my Parents’ Car Insurance?

If they own the vehicle, and it’s listed on their policy, anyone they allow to use it is piggybacking on their insurance. Even if you have your own car and insurance policy, the vehicle owner’s coverage is primary.

Should I Stay on My Parents’ Policy?

You should stay on your parents’  policy as long as:

  • Their home is your legal address, AND
  • You don’t have your own vehicle or insurance, AND
  • You live at home – at least part of the time.

Your parents have done a lot to help you over the years. Keeping you on their insurance is one more.  It doesn’t benefit them – in fact, it will probably cost them money. But it’s an important thing for you.

Being listed on your policy protects you at 3 Critical Times.

When You Drive Someone Else’s Vehicle.

Listing you on your parents’ policy reinforces that you are part of their household, and therefore an “insured”. Unless you’re an “insured”, you only have coverage when they’re driving THEIR vehicles, not anyone else’s. If you are an “insured”, your parents’ liability limits extend to you when you are driving a friend’s vehicle. Your friends probably have a lot less liability insurance than your parents. That could be important if you have an accident. You already have enough debt from college loans; you don’t need a judgment from a lawsuit on top of that.

When You’re Not in Your Parents’ Vehicle

As long as you’re an  “insured” (see #1 above), you’re eligible for their Medical Payments coverage. This covers you when you’re a passenger in another vehicle, or a pedestrian. Even more important, you’re covered by their Uninsured/UnderInsured Motorist coverage. For example, if you are injured in someone else’s car when it’s hit by someone with little or no insurance, your parents’ auto insurance will pay for your medical expenses.

When You Buy Your Own Insurance

When you do buy your first insurance policy, you will pay lower rates if you can prove that you’ve had continuious insurance. Insurance companies charge much higher rates to drivers who can’t show proof of prior insurance. A copy of your parents’ policy showing you as a listed driver is considered proof of prior insurance.

When Should You Get Your Own Insurance?

This varies from family to family. Because you might move in and out of the house; with or without a vehicle; to your own place or in with someone else; it’s best to talk to your insurance agent. They can advise you when it’s time to get your own auto insurance.

If you have questions, or would like a Maine auto insurance quote, contact a Noyes Hall & Allen agent at 207-799-5541. We are a Trusted Choice Independent Agency representing many insurance companies. This allows us to combine the power of choice with personalized professional advice.

Should I Keep My Child on My Car Insurance?

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graduationMay is Boomerang Month for many college graduates and their parents. In today’s economy, most grads move back in with their parents for at least some time before going out on their own. Even after they get their own place, they often use their parents’ home as a stable legal address for some time.

Here are some common questions our clients refer to our Greater Portland Maine Insurance Agency. If you live in another state, this advice may or may not be accurate for you.

Is My Adult Child Covered Under my Car Insurance?

If you own a vehicle, and it’s listed on your policy, anyone you give permission to use it also uses your insurance. Even if they have their own car and insurance policy, your policy’s coverage is primary. It doesn’t matter whether that person is your child, your friend, or anyone else.

Should I Keep My Child as a Driver on My Policy?

You should list your child on your policy if:

  • Your home is their legal address, AND
  • They don’t have their own vehicle or insurance, AND
  • They live at home – at least part of the time.

You’ve done a lot of things to help your child, and this is one more. It doesn’t benefit you – in fact, it will probably cost you money. But it’s an important thing to do for your child.

Listing Your Child on your policy protects them at 3 Critical Times.

When they drive someone else’s vehicle.

Listing them on your policy reinforces that they are part of your household, and therefore an “insured”. Unless they’re an “insured”, they only have coverage when they’re driving YOUR vehicles, not anyone else’s. As an “insured”, your liability limits extend to them when they are driving a friend’s vehicle. Young adults don’t always buy enough liability coverage. Your limits will protect your child from a lawsuit.

When They’re Not in Your Vehicle

As long as they are “insureds” (see #1 above), they’re eligible for your Medical Payments coverage. This covers them when they’re a passenger in another vehicle or a pedestrian. Even more important, they are covered by your Uninsured/Underinsured Motorist coverage. For example, if they’re in someone else’s car, a pedestrian or a cyclist, and are hit by someone with little or no insurance, your Uninsured Motorist coverage can pay their medical expenses.

Related Post: How to Choose Uninsured Motorist Insurance Limits in Maine 

 

When They Buy Their Own Insurance

When your child buys their first insurance policy, they will pay lower rates if they can prove that they’ve had continuous insurance. Insurance companies charge much higher rates to drivers who can’t show proof of prior insurance. A copy of a parent’s policy showing the child as a listed driver is considered proof of prior insurance.

When Should I Remove My Child from My Car Insurance?

This varies from family to family. Because children can move in and out of the house; with or without vehicles; to their own places or in with someone else; it’s best to talk to your insurance agent. They can advise you when it’s time to remove your child from your auto insurance policy.

If you have questions, or would like a Maine auto insurance quote, contact a Noyes Hall & Allen agent at 207-799-5541. We are a Trusted Choice Independent Agency representing many insurance companies. This allows us to combine the power of choice with personalized professional advice.

How to Be an Instant Insurance Genius With 1 Easy Move

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Did you buy home, condo or renters insurance from one company and auto insurance from another? You’re not alone. Maybe you bought a policy online to insure your first car. Then, when you bought your house or condo, you found a local agent who found you a good deal with another company. Each of your insurance companies has probably solicited you for the part they don’t insure.

Knowing that combining your home and auto insurance is smart is one thing; actually doing it is another. The good news is, it’s not that hard. Having separate insurance companies may not have hurt you too much so far. Sure, you might have paid a few dollars more, or put up with the hassle of multiple insurance bills, but you didn’t feel enough pain to motivate you to combine them.

That will likely change in 2012.

It’s only May, but 2012 has already brought big changes in Maine home and auto insurance. U.S. insurers have lost money on property insurance for several years in a row, due to natural disasters, broadened coverage, depressed pricing and increased reinsurance costs. With today’s low interest rates, insurance companies’ investment income is depressed as well. As a result, homeowners and Maine condo insurance prices are increasing significantly, and underwriters have become much more picky.

The single best personal property/casualty insurance move you can make right now?

Combine Your Property and Auto Insurance.

Here are 10 reasons why you should bundle your insurance today:

1) Save Hundreds of Dollars
Insurers are increasing the “package discount”, making it more attractive to insure your home and autos together. Many companies have increased the discount from 10% to 15%, 20% or even 30% discounts. This can save you hundreds of dollars a year.

2) Better Homeowners Rates and Coverage
Insurance underwriters (the people who choose whether to accept or reject your insurance application) have become VERY picky about home insurance. If you’re buying a home anywhere near the water, you might be quoted a premium nearly twice what the prior owner paid. You might also have a wind deductible of $5,000 or higher, when the prior owner had a $500 flat deductible.  If you only insure your home with that company, you have no leverage with the underwriter.  Bundling your coverage “sweetens the pot” for the insurance company, and levels the playing field a bit.

3) Avoid Non-Standard Insurance on Camp or Second Home
They don’t call Maine “Vacationland” for nothing. Maine has the highest ratio of secondary and seasonal homes to primary homes of any state in the US. Preferred insurance companies have willingly insured these homes for decades, even if they didn’t insure your primary home. In 2012’s tighter property underwriting environment, many insurers refuse to insure these properties unless they insure your primary home and auto. We still have access to insurers who will insure a Maine secondary or seasonal home; but, the rates are higher, and the terms less favorable than those of the preferred companies.

4) Reduced Risk of Non-Renewal
The more business you do with an insurance company, the more likely they will consider you a preferred customer. If you have multiple claims in a 3-year period, your name appears on an underwriter’s list of policies to review. Will they consider you “naughty” or “nice”? One factor they consider is the number of policies you have with the company. They’re more likely to cut some slack to a multi-policy customer than to one with a single policy.

5) Increased Convenience, Reduced Risk of Cancellation
If you have policies with different companies, you’re getting billed by each, and paying a billing charge to each. Most insurance companies can bill all of your policies in one bill. They call it “account billing”. It saves you money (billing fees and postage) and time, and reduces the chance of a late payment by at least 50%.

6) Preferred Umbrella Rates
Many financial advisors are shocked to find how little liability insurance many of their new clients have. Most advisors recommend that their clients buy a Maine personal umbrella policy, which provide liability insurance in excess of their home and auto insurance limits. Preferred umbrella insurers require that they insure all of the policies that their umbrella extends over (called “underlying policies”). We have access to companies that provide umbrella coverage without insuring all of your underlying policies, but they’re usually more expensive.

7) More Favorable Deductibles
Some insurance companies require a higher property deductible ($2,500 or more) if they don’t also insure your autos. They will allow a lower deductible if you have other policies with them.

8) Improved Service From Your Agent
An insurance agent’s worst nightmare isn’t losing you as a client; it’s seeing you suffer an uncovered loss that they could have helped you recover from. The more they insure for you, the better they can help you identify and close expensive coverage gaps.

Let’s say your company starts allowing you to work from home. You might tell your auto insurance company you’re no longer commuting, to get a break on your car insurance rates. But you might not think to tell your home insurance company. When your home is broken into and your work computer stolen, or when a business associate visiting your home slips and falls, you could be shocked to find that you have no coverage for that. If one company handles both, they have the full picture, and can better protect you.

9) Almost Free Renters Insurance
Most Portland Maine renters insurance policies start at about $100 a year. Most Maine car insurance policies are about $600 per year. If you get 15% off each by combining them, you’ve saved $105 a year – in essence getting your renters’ policy for free.

10) Smug Self-Satisfaction
Isn’t it satisfying to read one of these blog posts, and say “Already done that!” Yeah, we thought so.

If you would like a Maine auto insurance quote, or would like to discuss your insurance, contact a Noyes Hall & Allen agent at 207-799-5541.

The Most Popular 2012 Vehicles in Portland, Maine (our corner, anyway)

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The Portland Maine area economy shows signs of life this spring, including car sales. With roughly half of the model year behind us, we thought it might be fun to share which new vehicles our clients have chosen.

We don’t pretend that this is a scientific survey of which cars are the hottest selling, or that it reflects any trends beyond simply what our Portland Maine insurance agency‘s clients have chosen to buy or lease. However, we suspect it’s a reasonable cross-section of local consumer behavior.

It would be interesting to compare these results against prior years, when $4.00 per gallon gas was a distant threat instead of a reality. We do notice that the best-selling models lean mostly towards the fuel-efficient end of the spectrum.

 

 

 

Car Buyers’ Insurance Tips

If you’re thinking about buying or leasing a new vehicle, here are a few tips for saving money on insurance and making sure you have the proper coverage:

  • Check Insurance Prices – Vehicles that seem similar can have very different insurance costs. Call your agent for a quote, or get car insurance quotes from 5 different companies at once from our online quote service.
  • Consider Increasing Your Deductible – Generally, new cars cost more to insure than older ones. They’re worth more, and are more expensive to repair. To keep costs down, consider increasing your physical damage deductibles.
  • Get the Discounts You Deserve – Insurers offer car insurance discounts for all sorts of things, from air bags to being a non-smoker, anti-theft alarms to having a student on the honor roll. Some even offer special discounts for certain types of vehicles, such as hybrids. Contact your agent  and tell them about all of the features of your vehicle.
  • Don’t Buy Coverage You Don’t Need – Many vehicles come with a roadside assistance plan. If you purchased AAA or your insurance policy includes roadside assistance, consider whether you want to drop those. This can save you money. Just remember to add it back on when your new vehicle’s roadside assistance benefit stops.
  • Combine and Save – If you have your property and auto insurance with different companies,  now’s a good time to combine them. Insurers offer substantial insurance discounts when they insure both your property and vehicles.
  • Review Coverage on Your Other Vehicles – Maybe you have an older vehicle that’s not worth as much as it once was. When is it time to stop insuring collision and comprehensive coverage? That’s up to each individual’s risk tolerance, but it’s a good time to consider it, anyway.
  • Mind the Gap – New vehicles deteriorate rapidly at first. If you made a low down-payment, your loan or lease could be “upside down.”  If your vehicle  was declared a total loss, the insurance company would pay the “book value”, which may be less than what you owe the finance company. An inexpensive optional coverage called Loan/lease gap would pay the difference. Talk to your agent about this potentially important coverage.

Does Homeowners Insurance Protect You Against Ill-Advised Posts?

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Most of us have said something in the past that we wish we could take back. Years ago, we could hope that once said, the words went no further. These days, your comments can last for years, and be shared among millions. With so many of us using Twitter, Facebook and other social media, ill-advised words and videos can spread at blazing speed.

Hurtful Words Can Be Costly

Bullying Facebook updates, accusatory tweets, teasing posts, or videos revealing private information about someone can expose you to liability under slander, libel or invasion of privacy laws. The most recent public example of this is the guilty verdict against the New Jersey college student who posted video of his college roommate, creating ridicule that led to the roommate’s tragic suicide. What if your child was accused of one of these crimes? You may be surprised to find that a standard Maine homeowners insurance policy wouldn’t provide protection for this.

A Small Coverage Addition Makes a Big Difference

Maine homeowners policies provide liability protection against bodily injury and property damage due to negligence. Damage to someone’s reputation doesn’t fall into either category. That’s why our South Portland Maine Insurance agency recommends that our clients choose Personal Injury coverage. What is Personal injury insurance? It protects you against accusations of slander, libel, defamation of character and invasion of privacy. It can pay the damages in a civil suit, and more important, the legal costs of defense. Personal injury coverage is usually an add-on endorsement. The cost is usually about $25 per year – a bargain for up to $500,000 in protection.

Talk to Your Children About Online Behavior

Of course, the best defense against these kinds of accusations is to stay away from risky behavior. Talk to your children about social media, how they use it and what’s expected of them. Let them know how their behavior could impact their own reputation – not to mention your insurance. Some parents choose to actively monitor their children’s computer activities. Various commercial software programs are available to parents who want to closely monitor what their children’s online activities.
No matter what you choose to do, we should all encourage respectful discourse and behavior – online and “IRL” (In Real Life).  For more information about Personal Injury Insurance in Maine, contact a Noyes Hall & Allen agent at 207.799.5541.

“Can I Take My Spouse Off My Insurance?” How Divorce Affects Your Maine Insurance Policies

Posted on by Bob O'Brien

Divorce is a major life-change. It’s a complicated and emotional process that takes time to work through. It’s not surprising that it also can have a great effect on your personal insurance coverage. Here are answers to some commonly asked questions about how divorce affects your auto and home insurance. You should discuss your individual situation with your agent and your attorney.

I Want to Take my Spouse Off My Auto Insurance

Until your divorce is final, your insurance agent should not remove anyone’s name from the policy without their written consent. An insurance policy is a contract. Your agent is responsible to BOTH parties to the contract. Each has the same rights under the policy. A professional agent will not only want to make sure that both parties remain covered; they are obligated to honor each person’s policy rights.

We Own Separate Vehicles. Can’t We Get Separate Insurance?

Maybe, but you should consult your attorney first. Maine “joint property” laws may render the registration immaterial. If the property is considered “joint property”, you both should maintain one policy until the divorce is final, and the property is separately owned. Your attorney can help you with this issue.

The Insurance Bills Go to My Spouse. Will My Policy Cancel if They Aren’t Paid? 

Yes. That’s why it’s important that your agent knows how to reach BOTH of you; you need to keep them updated. If payment of bills is a problem, discuss this with your attorney; they may be able to arrange for timely payment.

My Spouse Isn’t Reimbursing Me for Their Share. Why Should I Pay for Their Insurance?

It’s important to keep your coverage in force. The best way to do that is to pay the premium that you are billed. Otherwise your policy could cancel – and you would both lose coverage. Don’t “cut off your nose to spite your face”. Talk to your attorney about how to settle the financial details.

I’ve Moved Out. Does Our Homeowners Policy Still Cover My Stuff? 

It depends. It is very important that you contact your agent to discuss your individual situation.

My Spouse and I Can’t Agree on Anything.

Sometimes, it is best to let your attorneys deal with these insurance issues. Give your agent permission to talk with them. Have them contact your agent.

If you are looking for a Greater Portland Maine insurance agency that understands how divorce affects your insurance, and can help you protect your assets now and later, contact Noyes Hall & Allen Insurance at 207-799-5541. Our agency represents several insurance companies, so we can offer one-stop insurance shopping.

 

6 Best Practices to Deal With Maine’s Rising Property Insurance Rates

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Most insurance companies doing business in Maine would like to forget 2011. Maine narrowly escaped many of the disasters that plagued other Northeastern states (one Maine insurance executive tells of nervously, repeatedly “refreshing” the online map of Hurricane Irene’s storm track). Still, virtually every insurer was affected because they do business in those neighboring states.

Remember the terrible flooding in Vermont? Hurricane Irene in southern New England? The tornadoes in Central Massachusetts? Widespread power outages from falling snow-covered tree limbs? Insurance companies do. They paid all those claims.

Many people don’t know that insurance companies also buy insurance – called reinsurance – to protect themselves from financial disaster. Reinsurance spreads the cost of risk throughout the world, leveling loss experience. Reinsurance works: despite the recession and the heavy losses, insurance companies remain financially solvent and able to pay claims.

Unfortunately, 2011 set a world record for disasters . Losses were $105 billion, the highest number ever. About 1/3 of those losses, and 4 of the top 10 events, were in the US. That means that reinsurance companies are now increasing the rates that insurance companies pay for property reinsurance. Of course, that translates to higher homeowners and business property rates for you and me.  So, what can you do?

Map of major disasters in the US in 2011
click to enlarge

6 Ways to Help Offset Rising Property Insurance Costs

  1. Don’t overinsure. Your Maine business property insurance agent  or homeowners insurance agent can help you determine the insurable replacement cost of your property, so you can adjust your protection accordingly.
  2. Compare rates. There are 2 ways to do this: call around yourself; or consult a Trusted Choice independent insurance agent.  This kind of  insurance agent represents several insurance companies, and can compare prices and coverage for you.
  3. Get the discounts you deserve. Don’t pay too much by failing to get the business or  homeowners insurance discounts you’ve earned. Have you recently replaced your roof, electrical, heat or other system? Installed an alarm or a generator? All of these improvements may qualify for discounts. Talk to your agent, and ask if there are other discounts available.
  4. Combine and save. Most insurers give a discount when they insure both your property and vehicles. That goes for business or personal insurance. If you own coastal, seasonal or secondary property, some preferred insurance companies will accept you if they insure your primary home, too. This can rescue you from paying higher non-standard rates with another insurance company.
  5. Choose deductibles wisely. If you’ve owned your property for a long time, you may have more financial ability to repair small losses (it’s not a good idea to file multiple, small claims anyway). If so, ask your agent how much you could save by increasing your property deductible.
  6. Maintain your property. It should go without saying, but deferred maintenance leads to claims, and claims lead to higher premiums. Replace your roof or heating system before it causes a loss. Clear leaves from your gutters every fall to prevent ice dams. Regular paint and upkeep can prevent trouble later.
Maine property insurance rates are expected to rise for some time. In times like this, it makes even more sense to develop a relationship with a local agent. In the area of Portland Maine, insurance agents are plentiful. Find one whose professional advice you trust, and who represents many preferred insurance companies. If you have questions about your personal or business property insurance, contact our experienced agents at 207.799.5541.

Trusted Choice Insurance Agent Video Debuts in Portland, Maine

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We’re enjoying this new Trusted Choice video, which highlights the advantage of using a local independent insurance agent. Not only will you get personalized advice from a local professional, but you have the option of choosing from among several insurance companies at once.

We are proud to be your Portland, Maine area Trusted Choice insurance agent. For answers to your insurance questions, contact Noyes Hall & Allen Insurance at 207.799.5541.

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Is Your Valentine’s Day Jewelry Insured Properly?

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Americans spent $4.1 billion on jewelry this Valentine’s Day, the National Retail Federation estimates. If you were one of the lucky recipients, you might be wondering:  does my homeowners or renters insurance cover my jewelry?

The short answer is “somewhat”. If your jewelry burns up, or is blown away in a tornado, it’s covered. But that’s not usually what happens to jewelry. Most commonly, jewelry is stolen or lost, or a stone falls out of its setting.

What Kind of Jewelry Should I Insure Separately?

More expensive jewelry pieces should be separately insured, for several reasons. Because they’re subject to limitations on your homeowners policy, they may be only partially covered – or not at all. Certainly, any jewelry with precious stones, especially valuable ones, should be separately insured.

How Much Does Jewelry Insurance Cost?

Jewelry insurance is surprisingly affordable. Insuring $5,000 of jewelry on your Portland Maine  renters insurance, condo or homeowners insurance usually costs less than $40.00 a year.

Do I Need to Have My Jewelry Appraised?

Jewelry pieces valued greater than $5,000 must be appraised to be added to most insurance companies’ policies. Insurance companies also require appraisals about every 5 years. Gemstone, gold, platinum and silver prices fluctuate based on popularity, supply and demand, and condition. Appraising your jewelry makes sure that your coverage keeps pace, and also provides an opportunity to have the settings, strands and gems checked. This can avoid the heartbreak of lost jewelry.

Should I Take Pictures of My Jewelry for Insurance?

Photographing your jewelry is always a good idea. Even if  your pieces were not separately insured, photographs can help the police recover stolen jewelry, or help a claim adjuster identify exactly what you had prior to a loss.

Our Portland, Maine area insurance agency hosts periodic free jewelry inspection events, where you can have your settings checked, and jewelry cleaned and photographed for insurance purposes. If you would like to be notified of future events, like Noyes Hall & Allen Insurance on Facebook.

For answers to your personal or business insurance questions, contact our experienced Maine insurance agents at Noyes Hall & Allen Insurance: 207-799-5541. We represent many different insurers, so we can offer a solution customized to your needs and situation.

 

 

Maine Insurance Dept.: ME Car Insurance Rates Remain Low

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Maine drivers pay some of the best auto insurance rates in the U.S., according to this press release from the Maine Insurance Department. While the individual rankings seem to differ from study to study, it’s clear that Maine’s car insurance and motorcycle insurance rates are in the bottom 20%.

Why Are Maine Auto Insurance Rates Low?

A lot of factors go into the rates each of us pays for car insurance or motorcycle insurance. Your location, driving record, the type of vehicle you drive, your age and gender – even your credit score – all play a part. So, it’s impossible to generalize. But, based upon our experience as a Greater Portland Maine independent insurance agency, we have a theory why Mainers pay lower auto insurance rates. We think it has a lot to do with Maine’s culture of responsible behavior. Mainers are less litigious, and more likely to buy insurance themselves, than other Americans. That helps keep insurance rates low for all of us.

How Do Your Maine Auto Insurance Rates Compare?

Insurance companies change their rates and underwriting rules constantly. The only way to tell if you’re paying a good auto insurance rate or motorcycle insurance rate is to compare. Fortunately, we are an independent agency representing many different auto insurance companies. We also represent Progressive and Dairyland, some of the top motorcycle insurers in Maine. We do the shopping for you, and can present multiple quotes at one time. If you want to do your own research first, you can even get Maine car insurance quotes from 5 different companies at once on our web site. There’s no pressure or obligation to buy (although we’re always ready to answer any questions).

If you live in Greater Portland or elsewhere in Southern Maine and have insurance questions, contact Noyes Hall & Allen at 207.799.5541. An experienced local insurance agent is ready to provide personal service.