Not all auto insurance policies are the same. Types of coverage vary. So does the amount of coverage.

Ask yourself — Do I have the right coverage? That’s why it’s important to understand what is available and how much of it you need in order to get you back to where you were before your auto accident.

Here’s a breakdown of the five parts of an auto policy
Coverage for the other party:
1. Liability — provides coverage for the other party if you are responsible for the accident.

Coverage for you:
2. Other Than Colission (OTC) or Comprehensive — provides payment for the loss or damage to your insured vehicle caused by something other than collision such as fire, theft, windstorm, flood, vandalism and animal strike.

3. Collision — provides coverage for your insured vehicle if it is physically damaged due to colliding with another vehicle or object, or if the vehicle is overturned.

4. Uninsured/Underinsured Motorist — reimburses the policyholder, covered family member or your passengers for bodily injury if they are the victim of an accident caused by a hit-and-run. It also covers the same if a driver who doesn’t have any insurance (uninsured motorist) or a driver who doesn’t have high enough limits to cover the damages or injuries (under insured motorist).

5. Medical Payments — Covers costs for the treatment of injuries to the driver and passengers of the policyholder’s vehicle no matter who is at fault.

The takeaway
Choose coverage(s) based on your circumstances, the vehicle use and its age. Then, choose your deductible, which is the amount you pay before the policy reimburses you for your claim.
Ask a Connecticut Insurance Exchange licensed agent to help you choose the best options for your situation. They're here to help and it won't cost you a penny more for their expertise!

Auto Policy Tips

• The higher the deductible, the lower the premium
  
• Review your auto policy coverage when circumstances change such as buying a new car, adding a new driver, or buying a new home
  

You should also consider adding a personal umbrella policy to cover your assets when your auto policy coverage reaches its limits.

An umbrella policy works like this:
Let’s say you're at fault in a car accident that injures another driver. The other driver’s injuries are severe and cost $450,000. Your automobile insurance will cover the other driver up to the limit of your policy (let’s say that amount is $300,000), minus your deductible. Without an umbrella policy, you would be liable to pay the $150,000 difference out of your own pocket, but the umbrella policy would cover you for the difference up to the limits of its policy (usually $1,000,000).

No. A financial credit score factors in your payment history, the amount of credit you owe, the length of your credit history, the types of credit you have and the amount of credit for which you apply. On the other hand, an insurance score is a three-digit number used to estimate the likelihood of you filing a claim. Your insurance score is a combination of your credit score and your insurance claims history.

Insurance companies began incorporating financial credit scores a few years ago, because studies have shown people with a lower credit score have a greater chance of having more claims than those with a higher credit score.

Just like credit scores from companies Experian, TransUnion and Equfiax may be similar but not the same,  insurance scores differ as well because no two insurance companies use the exact same method to calculate your score. Some may also include information of other policyholders with similar traits to yours. Because Connecticut Insurance Exchange represents over 20 A+ rated insurance companies, we are able to match you with the best company in light of your credit score. So, having a low score is not necessarily a deal killer — having a good driving record and minimizing homeowner risks matter.

Want to improve your insurance score? Check out these tips:

For your auto

• Drive safely and avoid moving violations
• If possible, keep your car garaged or covered to avoid weather-related damage
• Tire traction matters — replace worn out tires, especially in the winter

For your home

• Discourage burglars by leaving a light on when not home; Better yet, install a security system
• Install smoke detectors and keep a fire extinguisher handy, especially in the kitchen
• Before a big storm, put away toys and tools, and secure patio furniture
• Keep your walkways, driveway and steps free of ice and anything that can cause slips and falls

 For your credit score

• Pay your bills in time
• Reduce the balances on the credit you owe

A borrower who has a good mix of secured credit (such as a home or car) and unsecured credit (credit cards) scores better than someone who has only credit cards

Some insurance companies are now treating distracted driving habits such as texting and/or holding a phone to your ear as a DUI “major violation.” Consequences could range from drastic rate increases or even cancellation.

Whether you've been driving for 30 years or 30 days, you cannot drive safely unless driving has your full attention. Any activity other than driving like playing with car controls, eating, applying makeup (you've seen that, right?) is a potential distraction which increases your risk of having or causing an accident.

The Connecticut Department of Motor Vehicles (DMV) does yet not penalize distracted driving with the same number of points as a major violation. But some insurance companies are starting to. And, many more are following suit.

If you — the insured and the occupants of your vehicle — were injured in an auto accident, who would cover medical expenses? Two coverage options are available — Medical Payments (Med-Pay) and Personal Injury Protection (PIP).

Med-Pay covers the insured, family members and passengers in a covered car for medical and funeral expenses (subject to per person policy limits below) if they are injured in a car accident by a vehicle designed principally for use on public roads regardless of who is at fault (1). It also pays medical and funeral expenses arising from the accident including accidents in which the victim is a pedestrian or bicyclist.
 
In Connecticut, Med-Pay Limits apply per person and range from $1,000 to $10,000 for Personal Auto Policies and from $5,000 to $25,000 per person for Commercial Policies.

PIP provides the same coverage as Medical Payments for your medical expenses in the event of a claim without regard to fault (2).  However, PIP can also provide lost wages, transportation expenses, and miscellaneous household assistance expenses, like cleaning or lawn care, while you recover from your injuries.

Because PIP provides more coverage than Med-Pay,  it's a little more expensive.  

Who would benefit from purchasing Med-Pay or PIP?

• If the insured and passengers already have health insurance that cover similar expenses, Med-Pay may not be necessary. Check your health insurance policy for deductible and co-insurance requirements. Used in conjunction with health coverage, Med-Pay can pay health insurance deductibles and co-insurance, so Med-Pay may be worth buying even if you have health insurance should a car accident cause bodily injury.
• If you don't have short-term disability insurance, consider PIP because of the additional coverage it affords, like lost wages. 
• If you don't have any health insurance, then it is highly recommended to buy either Med-Pay or PIP.

Understanding Policy Limits
Minimum auto liability limits in Connecticut are 25,000 (bodily injury to one person), $50,000 (bodily injury total), and $25,000 (property damage). In many cases, minimum limits will not adequately cover losses. Considering the average cost of a new vehicle in the first quarter of 2017 was $31,400 (3), then these limits are inadequate for most people, especially when significant injuries result from an accident.

Read more about policy limits here or speak with a Connecticut Insurance Exchange agent.
    
Other Insurance
Uninsured and Underinsured Motorists (UM/UIM) coverage is mandatory in Connecticut, at the above minimum limits of $25,000 bodily injury per person and $50,000 bodily injury total. UM/UIM does NOT apply to property damage. It's a good idea to purchase a UM/UIM limit equal to your own liability limits.

UM/UIM protects you in the event that you and/or your passengers are injured by someone who:

• Does NOT carry insurance;
• Carries insufficient limits to pay for your injuries; or
• Is a hit-and-run driver

Resources:
Policy Limits
Car Insurance

Two facts about Halloween: 1) Children are more than twice as likely to be hit by a car and killed on Halloween than any other day of the year according to Safe Kids Worldwide.  2) The National Highway Traffic Safety Administration reports that Halloween is one of the top three days of the year for pedestrian injuries and fatalities. So, drivers and parents need to pay extra attention.

Related Links: Umbrella Liability

Many people who fly to a vacation destination reserve a rental car online. At the airport car rental pick-up counter, the agent offers insurance to cover the vehicle during the rental. They will say the renter of a car is fully responsible for any loss (theft) of the vehicle as well as any damage that occurs to the vehicle during your rental period. They will also tell you it's likely loss-of-use costs are NOT included in your personal auto policy.
 
And they may be correct.
 
Car rental companies are now asking for reimbursement of the lost revenue (loss of use) that vehicle would have generated had it not been in a repair shop.
 
So, what options do you have?

What you need to know before you sign that rental car agreement…

First things first.

• Before your trip, it’s a good idea to check with your insurance agent to review your personal auto insurance policy.
• Most insurance companies consider a rental car a “replacement vehicle,” so the same coverage an insured has for their own vehicle would apply to the rental.

EXAMPLE: If the insured DOES NOT have Collision, Other Than Collision (Comprehensive) coverage on their own vehicle, then they DO NOT have it on the rental vehicle. That means the insured would be responsible to pay for any damage to that rental vehicle.

• Bodily injury or damage caused to others’ vehicles would be covered under the insured's personal auto liability coverage, up to the limits of the policy. But the deductible would apply.

Credit Cards and Car Rental Protection.
Many — but not all — credit card issuers cover damage to rental cars when their credit card is used to rent the car. Some even include protection for loss-of-use claims.

This is great, right?

Well, there is a down side — credit card issuers rarely provide liability coverage and dealing with a credit card company for a claim can be a difficult and long process.

• Check with the credit card company for a complete description of the coverage they offer and if there are any restrictions or exclusions.
  
• Be aware that some credit issuers refuse coverage if you rent a vehicle in certain countries outside the United States.
  
• If you opt for this protection, make sure to have the credit card used to book the rental with you (in your purse or wallet) in the event of a claim.
  

Educate yourself.
 
Understanding your insurance options before planning a trip is the best way to protect yourself from any unpleasant surprises if you happen to be involved in an accident with a vehicle you rent. 
 
Contact a Connecticut Insurance Exchange agent today at 860 666-5443 or info@cieltd.us. Our agents will be happy to review your policy and discuss cost-effective coverage options.

Related links: Auto Insurance

Here's the bad news — the average American will have at least three auto accidents in their lifetime. (1)

Here's the good news — most accidents are not fatal.

Knowing how to handle an automobile accident can help you and your family through a stressful experience.

So, what should you do at the scene of a car accident?

1. Stop immediately, but don't obstruct traffic.
2. Document the scene of the accident. If it is safe to do so, take photos of the damage to both vehicles before you move them. If the accident is minor and it will not put anyone in jeopardy, move the cars to the side of the road and turn on your hazard lights if needed.
3. Stay calm and assist the injured. Even if you think you are “OK,” your body can be pumped up with adrenaline, which can mask pain. After the adrenaline wears off, you may realize you were injured.
4. Collect information of the people involved. Get the name, phone number, and address of the other party including driver's license number, insurance company, policy number and claim phone number, as well as contact information of witnesses and injured persons. 
5. Collect information of all cars involved. Get the make and model of the vehicles and license plate numbers.
6. Call the police. Without a police report,  it may be difficult to convince your insurance company you were not at fault, jeopardizing your ability to be paid in full for your injuries and damages.
7. Notify your insurance company as soon as possible after your accident. Give your insurance company as much complete and accurate information about the accident. The sooner you get complete information to them, the sooner your claim can be processed.

What should you NOT DO if you are involved in a car accident?

1. DO NOT take responsibility for the accident. Avoid saying anything that could sound like the accident was your fault. Even saying “I’m sorry” to the other party could be taken as an "admission of fault." Remain courteous and consistent in your version of the event.
2. DO NOT leave the scene of the accident. Especially if there are injuries or you could face criminal charges for a hit-and-run.
3. DO NOT discuss your accident on social media. Better yet, don’t talk to anyone about the accident other than your own insurance company and the police.

Questions or concerns regarding a claim?
Get your insurance agent involved! At Connecticut Insurance Exchange, writing a policy is only the beginning. We are committed to supporting our clients through all aspects of the insurance transaction — including accidents and claims.

If you have questions regarding the claims process, have trouble reaching an insurance company representative, or need a partner to advocate on your behalf, we're here to serve. That's Connecticut Insurance Exchange.

(1) More than 2.4 million people were injured and nearly 35,000 people died in 6.2 million crashes nationwide in 2015, according to the National Highway Traffic Safety Administration. Adult drivers in the U.S. will file a car collision claim approximately once every 18 years according to carinsurance.com.

Distracted driving is anything that takes a driver's attention away from driving. Distractions include activities such as talking on a phone or texting, eating, drinking, talking to people in your vehicle, and operating  the vehicle's entertainment or navigation system.

Facts:

• Taking your eyes off the road for 5 seconds at 55 mph, is the equivalent to driving the length of an entire football field with your eyes closed. Reading a text message while driving distracts a driver for a minimum of five seconds each time. (1)
  
• Every day, 11 teenagers die because they were texting while driving. (1)

Figures (2):

• Every year, about 421,000 people are injured in crashes that have involved a distracted driver.
• Each year, over 330,000 accidents caused by texting while driving lead to severe injuries. This means that over 78% of all distracted drivers are distracted because they have been texting while driving.
• 1 out of 4 car accidents in the US are caused by texting while driving.
• Texting and driving is 6 times more likely to get you in an accident than drunk driving.

1. Source: https://www.nhtsa.gov/risky-driving/distracted-driving
2. Source: http://distracteddriveraccidents.com/25-shocking-distracted-driving-statistics
3. Source: http://time.com/money/4706657/auto-insurance-rates-distracted-driving-smartphones/
4. Source: https://www.tipmont.org/safety/safety-blog/item/5-distracted-driving-stats-you-should-know

Why would you want to risk all your assets if you were found at fault for a claim?
When you hear the term "umbrella policy," do you have a deer-in-the-headlights moment? You're not alone! However, it's vital to understand how an umbrella policy can protect your assets and future earnings because that's what's at stake in the event you were found at fault for a claim.

TRUE-LIFE EXAMPLES:
Client A allowed their guests to use their ATV around their property. The guest's teenage son hit a tree leaving him paralyzed from the neck down. 

Client B had a party in their backyard. A guest jumped out of their second-story window aiming for their trampoline. The guest missed, suffering from major back injuries.

Client C (a high school student) was driving his girlfriend's car and had an accident where the other party sustained major injuries. The girlfriend's family did not have high enough policy limits, so the injured party also sued the driver's family even though it wasn't his car.
 
It’s not uncommon to hear of $1-million, $2-million, and even $10-million liability judgments against individuals. If someone is injured on your property, in your pool, or from a vehicle accident, you could be subjected to such a judgment whether or not the accident results in death.

Know this — accidents and injuries are not predictable. Nobody expects to be the subject of a lawsuit. But once you are the target of a liability lawsuit, it's too late to get coverage.

Ask yourself this question: How will you or your family support themselves if your finances are suddenly hit by a tragic accident in which you were held responsible for damages or bodily injuries?

Situations change. Time to ask yourself, 'do I have enough coverage?'
Everyone is more than busy these days. However, it's a good idea to stop and re-assess your insurance coverage on a regular basis. That’s because coverage may very well need to be updated or changed to accommodate any life changes to fully protect you, your loved ones and your property.

Consider this — if you aren't covered properly, the cost of a claim may come out of YOUR POCKET. That's why DIY, online insurance sites may seem to save you money. But in actuality can COST YOU MORE in claims... A LOT more... if you don't have high enough limits.

Here's an actual case straight out of the "penny-wise-pound-foolish" department:
In 1984, while he was a captain in the U.S. Army, Charles Cohan purchased an automobile insurance policy from USAA with a $100,000 per-person liability limit. He kept the same coverage limits through 2011. He married Lisa Cohan in 1995 and added her to the auto policy as an “operator,” but never increased the liability limit.
In 2002, the Cohans purchased land and built a new home. They purchased homeowner's insurance with liability coverage in the amount of $1 million per occurrence but did not purchase an umbrella policy.
Lisa Cohan, while driving a Cohan vehicle, collided with another vehicle, killing the driver. A wrongful death suit was brought against the Cohans. The insurance company defended the action on Lisa's behalf. The matter settled for $300,000 but the insurance company paid only the policy limits of $100,000. The Cohans were responsible for paying the remainder of the settlement amount — $200,000!

Got questions about policy limits?
Don't be penny wise and pound foolish. Know your limits. Protect yourself, your loved ones, and your assets. Contact Connecticut Insurance Exchange at 860 666-5443 or info@cieltd.us for more information. We're always here to help!