Umbrellas Aren't Just For Rainy Weather

Many of you may have an umbrella policy on top of your traditional insurance policies.  Ever wondered why or if people ever file claims under this type of policy?  The answer is yes, they do, and here are some examples:

• Insured driver rear ended a vehicle stopped to make a left turn, forcing it into an oncoming lane as 16 motorcycles were going past. 3 motorcycles were caught up into accident, injuring 4 motorcyclists and two occupants of the claimant’s auto.


• Claimant is alleging defamation, civil conspiracy, and tortuous interference with contract, intentional infliction of emotional distress, abuse of process and invasion of privacy against the insured.

• Claimant left insured’s premises after consuming alcohol, and was subsequently involved in an auto accident. Claimant sued insured on theory of Host Liquor Liability.

• Insured boat driver and named insured are facing two wrongful death claims and a bodily injury claim as the result of a boating accident. The driver of the insured’s boat whipped the victims, ages 12, 12, 9 and 7, into a raft constructed of barrels supporting a wooden deck.

• Our insured’s son was driving a non-owned vehicle, which was uninsured, when he was involved in this loss. The claimant was sitting on the truck on the outside of the vehicle while it was in motion. Claimant slipped and fell, striking her head on the pavement after suffering a severe head injury.

• Injury to claimant while attending insured’s birthday party. Claimant was shot in the eye with a paintball.

• Insured was walking his dog on a leash. Stopped to talk to neighbor and both insured’s dog and neighbor’s dog were barking. Both insured and neighbor pulled on the insured’s dog leash and the neighbor lost his balance, fell and sustained bodily injury. Claim filed against insured.

• Insured’s wife was going over a hill and came upon an emergency vehicle. She attempted to slow down but slid and lost control of her vehicle, hitting the claimant’s vehicle, two EMT’s, a firefighter and two police officers.

• Insured sued for defamation, humiliation and emotional distress as a result of insured’s daughter wrongfully accusing claimant of sexual misconduct with a child.

• Two year old claimant caught his hand in insured’s boat lift and sustained amputation of the tips of his ring finger and little finger.

If you have any questions about Umbrella coverages please give me a call. I am here to clear up any confusion you may have about your Umbrella coverage.

The Price You Pay

Ever wondered what determines the price of your insurance policy?  Here's your answer...

There are many factors that influence the price you pay for auto insurance. The average American driver spends about $850 a year. Your premium may be higher or lower, depending on:


1.Your driving record.
The better your record, the lower your premium. If you've had accidents or serious traffic violations, you will pay more than if you have a clean driving record. You may also pay more if you haven't been insured for a number of years.

2.The number of miles you drive each year.
The more miles you drive, the more chance for accidents. If you drive a lower than average number of miles per year, less than 10,000, you will pay less. For instance, some companies will give discounts to policyholders who carpool.

3.Where you live.
Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair.

4.Your age.
In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. So insurers generally charge more if teenagers or young people below age 25 drive your car.

5.The car you drive.
Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of the car, the cost of repairs, and the overall safety record of the car.

6.Your Credit.
For many insurers, credit-based insurance scoring is one of the most important and statistically valid tools to predict the likelihood of a person filing a claim and the likely cost of that claim. Credit-based insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. For example, regular, on-time credit card and mortgage payments affect a score positively, while late payments affect a score negatively.

7.The amount of coverage.
Of course, like anything else, the more coverage you have, the more you pay. However, you may qualify for discounts.

Source: http://www.iii.org/articles/what-determines-the-price-of-my-policy.html