Avoiding Costly Insurance Mistakes

Being over or under insured can cost you. Save money by avoiding these common insurance mistakes.

1) Don't under insure to save money! Auto insurance coverage is often a place where people try to cut costs. Keep in mind that an accident could jeopardize your home, other property you may own and your personal assets if you are involved in a serious accident and don't have enough coverage. If you are trying to save money, carrying low limits on bodily injury and property damage liability will cost you in the end.

2) Keep a higher deductible. Most insurance companies add a surcharge to your policy if you have an accident with a collision pay-out of over $400. If you share the cost of a repair with your insurance company by having a higher deductible, you can save money on your premium.
Avoiding Costly Insurance Mistakes
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3) Never carry low limits on Uninsured Motorist coverage. If you skimp on this coverage you could find yourself with too little coverage to cover injuries you or your passengers sustain in an accident with someone who is uninsured or underinsured.

4) Never over insure your home. You cannot collect coverage amounts over the replacement cost of your home so it is worthless to carry too much. Your home should always be insured for replacement cost, not the purchase price, which usually includes the value of your land and is based on market value (which can be inflated at times). Failure to do so can result in you paying significantly more for homeowners insurance than you need to. We work with you to calculate the replacement cost of your home.

5) Always carry replacement cost coverage. If you have a claim, your home may not be insured sufficiently to cover the rebuilding of your home if you do not base your insurance coverage on replacement cost.

6) Protect your prized possessions. Jewelry, furs, antiques and other high value property should have additional coverage in case of a loss. Your Homeowners insurance limits coverage for these items from theft, usually are $1,000 to $2,500 maximum. Any high value items you have should be listed separately on your homeowners policy to afford proper coverage.

12 Tips for Winterizing Your Home

Losses from winter storms have averaged in the billions annually for the past 20 years. Many winter-related disasters can be prevented if you take a few simple steps to protect your home from snow, wind and freezing temperatures.

Outside your home...

1. Remove debris from gutters, so melting snow and ice can flow freely to prevent ice dams- a condition where water can't drain through the gutters and seeps into the house instead, causing damage. Gutter guards keep debris out of gutters.

2. Trim trees and remove dead branches. Ice, snow and wind can cause weak trees or branches to break and cause damage to your home or car, as well as injury to people on your property.

3. Repair steps and handrails. Broken stairs and banisters can become lethal when covered with snow and ice.

4. Seal cracks in outside walls and foundations.

5. Use caulking to protect water pipes and make sure that skylights and other roof openings have proper weather stripping to prevent snowmelt from seeping in.

Inside Your Home...

1. Keep the house warm. Set the thermostat for at least 65 degrees, since the temperature inside the walls, where the pipes are located, is substantially colder.

2. Add extra insulation. Heat escaping through the attic can cause snow or ice to melt on the roof which can result in a collapsed roof and can contribute to ice damming.

3. Have the heating system serviced. Furnaces, boilers and chimneys should be serviced at least once a year to prevent fire and smoke damage.

4. Check pipes. Look closely for cracks and leaks and have the pipes repaired immediately. Wrap exposed pipes with heating tape.

5. Install an emergency pressure release valve in your plumbing system. This will protect against the increased pressure caused by freezing pipes and can help prevent your pipes from bursting.

6. Make sure that smoke and fire alarms are working properly. Also, consider installing a carbon dioxide detector.

7. Learn how to shut the water off and know where your pipes are located. If your pipes freeze, time is of the essence. The quicker you can shut off the water or direct your plumber to the problem, the better chance you have to prevent pipes from bursting.

8. Hire a licensed contractor to look for structural damage. If damage is discovered, have it repaired immediately rather than waiting for a problem to occur.

9. Check doors and windows for leaks and drafts. Add weather-stripping, and caulk any holes you see that allow heat to escape. Be sure doors seal properly.

10. Replace windows with newer, more efficient ones. Replacing windows can be expensive, but new windows also provide other benefits, such as improved appearance and comfort.

11. Wall plugs and switches can allow cold air in. Get simple-to-install, pre-cut foam gaskets that fit behind the switch plate and effectively prevent leaks.

12. Close the damper on your fireplace. Of course the damper needs to be open if a fire is burning; but if the damper is open when you're not using the fireplace, your chimney functions as a large open window that draws warm air out of the room and creates a draft. Close that damper - it's an effective energy-saving tip that costs you nothing!

Ten Secrets Most Car Insurers Won’t Tell You... But We Will!

Knowing how the industry works can save you a lot of money and grief. Here are the secrets behind the premiums, and how you can save money even after having an accident. Getting a good deal on auto insurance is hard enough. Keeping your premiums from rising can be challenging, but we at Brownell Insurance Center, Inc are diligent to be sure you are getting a good deal for your money by reviewing your insurance annually. Here are a few ways the industry works, with tips to help you save $$$:

1. If you have good credit, you'll pay less. Studies have shown a direct correlation between your credit score and the likelihood that you will file a claim. Tip: If you have unusual credit activity or activity that you know is incorrect... you will need to correct it as soon as possible. Work with the credit bureaus to improve your ratings. If your credit history is shaky, clean it up.

2. Your car model affects your premium. The auto insurers have a rating system for every car make and model. Tip: Look up your car’s relative risk with MSN Money’s comparison tool or something similar. When buying a new car, ask us about the difference in premiums for cars you’re considering.

3. Pay in full to avoid installment fees. “Fractional premium” fees are usually charged when you pay your annual premium in installments rather than all at once. The more you break it down, the more those fees add up. Tip: Ask us about fees for paying in installments. If the fees are small enough, it may be worth it.

4. That Pearl Jam CD in your car isn’t covered. Stolen or damaged personal items like compact discs aren’t covered by your auto insurance. Tip: Most home-insurance policies will cover smaller, less expensive items such as compact discs (subject to your homeowners insurance deductible). However, if you carry expensive items such as computer equipment, ask us about a rider to your home insurance policy.

5. Bad drivers will pay. The industry standard is to increase your premium by 40% of the insurer’s base rate after your first at-fault accident. Tip: Some insurance companies have a “forgive the first accident” policy so ask us if it has a forgiveness policy and how to qualify.

6. You’ll pay for your friend’s bad driving. If a friend borrows your car and crashes it, you’ll have to file a claim with your insurance company and pay any deductible that applies. Your rates will probably go up as a result of your claim. Tip: Best bet? Don’t lend out your car.

7. Your car’s real worth. Auto-insurance companies have their own proprietary list of car values, and most have specialized software for valuing cars in each region. Tip: If you disagree with your insurance company’s value determination, there are several things you can do: a. Present copies of your maintenance record to the insurance company to show the car was in good condition. b. Make sure any special parts or upgrades are included in the insurance company’s evaluation. c. Get price quotes on replacement cars from three dealers within a reasonable driving distance and submit these to your insurance company. It pays to plan ahead. When you buy a brand new car, ask us about “gap insurance.” It could save you thousands of dollars if you “total” your car.

8. Check into “diminished value.” Say your car has been in an accident, but repaired. Is it worth less than the exact same car that hasn’t been in an accident? It’s a hot topic, but some say yes. In 14 states, you’re allowed to file a claim with your insurance company for that lost value. Tip: Thirty-six states and Washington, D.C., allow insurance companies to exclude payments for diminished value, so if you live in one of those states, you won’t get to claim the loss. If you weren’t at fault in the accident, you often can make a successful case against the insurance company of the driver who was at fault.

9. You can wait to add your teenager to your policy until he or she is licensed. You are not required to add your teenager to your policy just because he or she has reached driving age. Tip: Don’t forget to tell us that you have a licensed teen. If you have to file a claim on his or her behalf, your insurance company is entitled to charge you back premiums from the date your teen received a license.

10. You must officially cancel your insurance policy when you switch insurers. Your policy most likely states that you can cancel your coverage at any time by notifying the company or us in writing of the date of termination. Tip: Call us and let us know you are canceling your policy. Give a specific date, or you may end up uninsured for a period of time. We will send you a cancellation request.

Getting the most from your auto insurance - A Standard at Brownell Insurance Center and always for the least money possible. Resources: Track Investments Fast Answers

Ask Marie!

Q. When do I have to add my teenage driver to my auto insurance?

A. One minute, your baby is riding safely in the backseat. There is a mirror attached to the rear headrest where you are able to glance and see every smile, every swat of the dangling bright- colored toy links, and every slumber on your travels. And then the next minute, your teenager is trucking down the road without you in your car to meet some friends at the mall. You taught your child everything that you know about driving, but then again, they never listen. You don’t know anything and they are invincible. Panic sets in. Watching your child grow up and become independent is a painful experience. Another painful experience is receiving your auto insurance bill once your pride and joy gets handed the keys.

Parents often have lots of questions about insuring a teen driver. When?  Why?  What?  How? Where?

• When should I add my child onto the insurance policy?
• Why is a teen driver so expensive to insure?
• What type of car and what type of policy should my new driver have?
• How can you lower your premiums?
• Where should I get this insurance? 

1. WHEN should my child be added to the insurance policy? Insurance companies in some states are allowed to require you to list a teen with a driving permit on your insurance policy. New Hampshire and Maine are not included in this list of states, but it would not be a bad idea to let Brownell Insurance know so we can get started finding you the best insurance solutions. Before your teens are officially licensed they are driving on your license... That is why you are required to be with them whenever they are driving. If they get into an accident or get stopped for a speeding ticket, it is your license that will receive the citation. For this reason, many insurance companies do not charge premiums until teens obtain their actual state- issued drivers license. If your child is listed on the policy and gets into an accident after the license was issued, the insurance company is more likely to accept your claim. In the event of an accident happening where the teen driver was not officially added to the policy, you may be responsible for the premiums dated back to the date of your teen's license issuance or have the claim denied entirely for lack of disclosure. So make sure your teen driver is added to the policy no later than the day they are licensed to be on the safe side. Your child will be needed to be added to your personal insurance policy or set up with a policy of their own quickly. In NH, insurance is not monitored by the state, but you must be able to cover the cost of the accident out of your own funds if your teen is at fault within 10 days or you will be in court. Between court fees, lawyer fees, and lost work time not to mention the monies awarded the victim for the accident, you may pay far more than the cost of adding the teenager on your auto insurance.

2. WHY is my child so expensive to insure? The obvious reason is that they are at higher risk for accidents and violations. They do not have the same experience as the older driver, are easily distracted, and often make the wrong judgment call. Young drivers are four times more likely to die in a motor vehicle accident than any other age group. It is the leading cause of death for teens. Teenagers often have a feeling of immortality and are more careless with safe driving practices- wearing a seatbelt and obeying traffic laws. Younger drivers often do not understand the concept of the financial hardship that accidents and violations can cause an unsafe driver. Teen drivers also lack a positive driving experience, which is reflected by the states (especially NH) to charge an inexperience point ($90) to drivers under 2 years of experience. As a result of these factors, the higher the risk, the higher the premiums. These higher rates will continue for several years... usually to age 25.

3. WHAT type of car should my child have? WHAT type of policy should we consider? Most insurance professionals suggest getting a less- expensive, used car. Not only will you save on the cost of the car, especially if you are paying cash out of pocket, as opposed to an auto loan, you will save on your insurance premiums. You have the flexibility with your coverage with an older car that is paid off. When you are financing a vehicle, you are required to keep a full coverage insurance policy on the vehicle for the life of the loan. With an older vehicle, you can choose to omit collision coverage, which lowers your premium. You are also eligible to carry a liability- only policy. When adding to an already existing policy of a parent, a teen driver will be a lot less expensive to insure if they are assigned an older, used vehicle, rather than being a secondary on a newer, more expensive vehicle. By adding onto the parent policy, the teen and parent are privileged to a multi- car discount which will save on the premium. While an old car may not be the teen's ideal mode of transportation, your teen is hoping for the sporty new car, the older vehicle will hold up well to the dings, dents, scratches, and other "experience scars" your new driver may decorate the car with.
   
   A new vehicle does have some advantages. Insurance companies do give discounts for cars with more safety features. Airbags, seatbelts, security systems, etc. are features often rewarded with a discount. If you decide to provide your child with a new car please think practically with like a Ford Focus or any of the small economy cars. If you are convinced you need to provide a sports car (Camaro or Corvette) consider having your child on his or her own policy. The cost to insure this vehicle with a youthful driver will be quite expensive. Insurance companies feel that giving such a powerful car to a teen is a recipe for disaster. We at Brownell Insurance are here to help you weigh your options and help you decide on the best combination of coverage and premium for your particular situation.

4. HOW can I make sure that I receive the lowest premiums? As stated before, you can save a lot of money by purchasing a liability- only insurance. Collision coverage is expensive especially with a young driver as the insurance companies anticipate the risk involved. Liability- only is a money saving option for a teenage driver for an older, used car that is paid off. If you are financing a newer vehicle the bank would require insurance to protect their investment. This can be quite costly depending on the age and value of the vehicle.
   
   You can also save money by adding your teen to your existing policy. You want to make sure that you are specifying which vehicle your teen will be driving, if possible, as pairing your child with a more expensive car will increase your premium. Allow us to compare rates for you... our mission is to get you the best possible value for your insurance dollar.

5. WHERE should I get this insurance? We may be a little biased, but we think Brownell Insurance is a great place to consider for insuring your teen driver. Visiting our agency is a wonderful alternative to contacting the companies directly. You get the opportunity to sit down with one of our experienced agents, who is able to weigh options and give you several quotes to find the best coverage for the lowest price. Our agents are knowledgeable and happy to go over the fine details of your insurance policy with you and your new driver. We've been there, insuring our own teen drivers, and we know how you feel. We are a family agency located in your neighborhood and we are always happy to help you navigate the scary experience of insuring your teen.