If you have a serious car accident, or if your car gets stolen, Gap Insurance could save you thousands of dollars. Gap Insurance could also be called “totaled or stolen” car insurance.
Gap Insurance “closes the gap” between what your auto insurance company pays if your car is totaled or stolen, and the payoff balance of your auto loan.
In other articles, I’ve written about how insurance companies will “lowball” even their own policyholders when it’s time to total out a car. Often, it gets even worse if you’re not at fault, and the other driver’s insurance company is settling your claim. So, one of the ways that you can get some piece of mind...and all the money you are entitled to collect...is to buy Gap Insurance.
Here’s an example. You buy a new car for $25,000. No money down, financed for 60 months. Two months later, your car is stolen. The adjuster makes his WAG (wild-a** guess) on depreciation and determines that your car is only worth $20,000, having lost 20% of its value. The finance company tells you that with tax, title, and license fees, your payoff is $27,000.
What will you do to payoff the car when the insurance company will only pay $20,000, and you owe $27,000? If you have Gap Insurance, no problem.
There are basically four reasons that you might benefit from Gap Insurance:
1. Leased cars – Many times when you lease a car, the leasing company will require you to buy Gap Insurance. If you exceed the mileage in your lease term, the vehicle might have a lower value at the end of the lease term. Many companies will allow you to buy Gap coverage any time during the lease period.
2. New cars – If you are putting 20% or more as a down payment on your car, you might not need Gap coverage. However, if you’re like many these days, and signing 0% down finance deals, your car will depreciate a bunch in the first year, and you’ll never get the value of that car at damage or theft.
3. Used cars – You could find that you paid more for a used car than it’s worth. Many Gap Insurance companies will allow you to buy coverage if the used car is less than 2 years old.
4. “Upside down” or “underwater” – Terms that mean you owe thousands more than the value of the car. This often happens when a person trades in a car and owes more than the value of the car he’s trading in. The finance company allows you to add the unpaid balance of the trade-in to the financed amount of your new car loan. But then you’ll likely always be “upside down” in the loan, and you’d be in deep financial trouble without Gap Insurance.
Keep in mind that most insurers will require you to have Collision and Comprehensive coverage for the Gap Insurance to apply. Most insurers will also require you to continue making your car payments until the coverage pays its benefits.
You can shop for Gap Insurance through various car insurers. Contact your own insurance company to see if they offer it. Otherwise, you could search on the Internet for companies that sell Gap Insurance. There are many from which to choose.
If you have experienced a property loss, whether fire, wind, flood or other, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to the website listed here.
Friday, December 26, 2008
Renter’s Insurance: Do You Know How High Your Risk Is?
Renter’s insurance is one of the most important insurance products sold on the market today. Yet, surprisingly, only a small percentage of renters actually buy renter’s insurance.
Here in suburban Atlanta, Georgia, the Atlanta Apartment Association is a giant association of apartment owners and property management companies. Currently, AAA represents over 1,400 members consisting of 400 companies managing 320,000+ apartment homes in the Atlanta metro area. It is widely reported that there are over 6,000 apartment complexes in the Atlanta metro area.
I interviewed Russ Webb, Operations Manager of the Association. He stated that they estimate that only about 25% of renters purchase Renter’s Insurance. He also stated that here in Atlanta, we average two major apartment fires PER WEEK. A major apartment fire is one in which a multi-unit apartment building is damaged or destroyed by fire.
Think about that. A fire starts in one apartment, and potentially all of the tenants in the building end up with damaged personal property and no place to live.
Think about the risks that are involved for a renter. When I moved to Atlanta in 1992, I rented a first floor apartment in an eight-unit apartment building. So, in my building, there were seven other tenants. There is eight times the chance for a loss in that one building. I could have been the most model, safest tenant who ever lived, but still I could have had all of my personal property wiped out by one of the other tenants who was negligent and started a cooking fire.
Compare that risk to a single family home...one kitchen, one family, limited visitors.
What about the risk when your apartment is in a 12 unit building? A 15-unit building?
Renters have the same needs for insurance that homeowners do, minus the building they live in. They need to protect their personal property and their liability exposures.
Renter’s policies
The standard Renters policy is a "named peril" policy and covers losses from any 17 named perils. If your property is lost or damaged as a result of one of these perils, your insurance company pays you for your loss. The covered perils are as follows:
• Fire or lightning
• Windstorm or hail
• Explosion
• Riot or civil disturbance
• Aircraft
• Vehicles
• Smoke
• Vandalism or malicious mischief
• Theft
• Volcanic eruption
• Falling objects
• Weight of ice, snow, or sleet
• Accidental discharge or overflow of water
• Sudden and accidental tearing apart
• Freezing
• Artificially generated electrical charge
The Renter’s Policy also covers the liability risks you have for bodily injury or property damage from claims of others in and around your apartment.
The policy also has Additional Living Expense, which provides coverage in case you are unable to live in your apartment due to a covered peril. Remember, someone else in the building could have a loss (like fire or water damage) that could make your apartment unlivable.
Available Endorsements
Replacement Cost: means replacing Actual Cash Value for Contents with replacement cost coverage.
Scheduled Personal Property: this coverage provides a set amount of insurance for valuables like jewelry, watches, furs, fine arts, etc.
Computer Coverage: covers hardware and software for any direct physical loss, due to theft, electrical disturbance, magnetic, or erasure. In essence, changes the covered perils for computer losses from Named Perils to All Risks. Still excludes computers used for business.
Medical Payments: Provides first dollar coverage (no deductible) for injuries to others due to your negligence, up to a stated limit. Sometimes called “good neighbor” coverage.
Renter’s Insurance is very inexpensive. I’ve seen rates on a $25,000 policy as low as $15.00 per month, or $180 annual premium.
Don’t risk financial ruin by being a renter without Renter’s Insurance. Show what a smart consumer you are by calling a local insurance agent TODAY!
If you have experienced a property loss, whether fire, wind, flood or other, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to the website listed here.
Here in suburban Atlanta, Georgia, the Atlanta Apartment Association is a giant association of apartment owners and property management companies. Currently, AAA represents over 1,400 members consisting of 400 companies managing 320,000+ apartment homes in the Atlanta metro area. It is widely reported that there are over 6,000 apartment complexes in the Atlanta metro area.
I interviewed Russ Webb, Operations Manager of the Association. He stated that they estimate that only about 25% of renters purchase Renter’s Insurance. He also stated that here in Atlanta, we average two major apartment fires PER WEEK. A major apartment fire is one in which a multi-unit apartment building is damaged or destroyed by fire.
Think about that. A fire starts in one apartment, and potentially all of the tenants in the building end up with damaged personal property and no place to live.
Think about the risks that are involved for a renter. When I moved to Atlanta in 1992, I rented a first floor apartment in an eight-unit apartment building. So, in my building, there were seven other tenants. There is eight times the chance for a loss in that one building. I could have been the most model, safest tenant who ever lived, but still I could have had all of my personal property wiped out by one of the other tenants who was negligent and started a cooking fire.
Compare that risk to a single family home...one kitchen, one family, limited visitors.
What about the risk when your apartment is in a 12 unit building? A 15-unit building?
Renters have the same needs for insurance that homeowners do, minus the building they live in. They need to protect their personal property and their liability exposures.
Renter’s policies
The standard Renters policy is a "named peril" policy and covers losses from any 17 named perils. If your property is lost or damaged as a result of one of these perils, your insurance company pays you for your loss. The covered perils are as follows:
• Fire or lightning
• Windstorm or hail
• Explosion
• Riot or civil disturbance
• Aircraft
• Vehicles
• Smoke
• Vandalism or malicious mischief
• Theft
• Volcanic eruption
• Falling objects
• Weight of ice, snow, or sleet
• Accidental discharge or overflow of water
• Sudden and accidental tearing apart
• Freezing
• Artificially generated electrical charge
The Renter’s Policy also covers the liability risks you have for bodily injury or property damage from claims of others in and around your apartment.
The policy also has Additional Living Expense, which provides coverage in case you are unable to live in your apartment due to a covered peril. Remember, someone else in the building could have a loss (like fire or water damage) that could make your apartment unlivable.
Available Endorsements
Replacement Cost: means replacing Actual Cash Value for Contents with replacement cost coverage.
Scheduled Personal Property: this coverage provides a set amount of insurance for valuables like jewelry, watches, furs, fine arts, etc.
Computer Coverage: covers hardware and software for any direct physical loss, due to theft, electrical disturbance, magnetic, or erasure. In essence, changes the covered perils for computer losses from Named Perils to All Risks. Still excludes computers used for business.
Medical Payments: Provides first dollar coverage (no deductible) for injuries to others due to your negligence, up to a stated limit. Sometimes called “good neighbor” coverage.
Renter’s Insurance is very inexpensive. I’ve seen rates on a $25,000 policy as low as $15.00 per month, or $180 annual premium.
Don’t risk financial ruin by being a renter without Renter’s Insurance. Show what a smart consumer you are by calling a local insurance agent TODAY!
If you have experienced a property loss, whether fire, wind, flood or other, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to the website listed here.
Aetna Rolls Out Pet Insurance
Aetna, the health insurance giant, may soon be insuring Fluffy the kitty or Fido your pooch.
Pets Best Insurance is the new pet insurance company under the Aetna banner. They began underwriting policies last week in six states, and plan to sell in all 50 states before long.
Pets Best intends to trade on the market visibility of Aetna and sell its policies through the 40,000-plus veterinarians in the United States. The policies will also be offered through the company website. Policy premiums will range between $300 and $500 per year per pet, based upon the chosen coverage.
Should you buy Pet Insurance?
About 60 percent of American households have a pet and spend over $10 billion a year on veterinary care.
The policies will pay 80% of costs, subject to a deductible, for each illness. Routine checkups, lab tests, prescriptions emergency room visits and other services are covered.
Pet Best’s policies are comparable to those that have been on the market since about 1998. Some insurers exclude hereditary and chronic conditions, others don’t.
If a pet lives an average of ten years, you could shell out between $3,000 and $5,000 on premiums for each pet. Without insurance, you might not ever spend that much on medical treatment. But if you are the kind of person who will do anything to take care of your pet, then medical insurance for your pet might make sense.
One of the things you might consider next time you’re shopping for a pet...remember that dogs are in veterinary offices twice as often as cats. So, if you’re a person on a budget who can’t stand the thought of life without a pet, consider a cat. Also, do some reading about the health problems inherent in the cat or dog breed you want to own.
Pets Best Insurance is the new pet insurance company under the Aetna banner. They began underwriting policies last week in six states, and plan to sell in all 50 states before long.
Pets Best intends to trade on the market visibility of Aetna and sell its policies through the 40,000-plus veterinarians in the United States. The policies will also be offered through the company website. Policy premiums will range between $300 and $500 per year per pet, based upon the chosen coverage.
Should you buy Pet Insurance?
About 60 percent of American households have a pet and spend over $10 billion a year on veterinary care.
The policies will pay 80% of costs, subject to a deductible, for each illness. Routine checkups, lab tests, prescriptions emergency room visits and other services are covered.
Pet Best’s policies are comparable to those that have been on the market since about 1998. Some insurers exclude hereditary and chronic conditions, others don’t.
If a pet lives an average of ten years, you could shell out between $3,000 and $5,000 on premiums for each pet. Without insurance, you might not ever spend that much on medical treatment. But if you are the kind of person who will do anything to take care of your pet, then medical insurance for your pet might make sense.
One of the things you might consider next time you’re shopping for a pet...remember that dogs are in veterinary offices twice as often as cats. So, if you’re a person on a budget who can’t stand the thought of life without a pet, consider a cat. Also, do some reading about the health problems inherent in the cat or dog breed you want to own.
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