He's Going Away to School

You nursed him through whooping cough, cheered at his soccer games, and cried when he graduated.  Now he is off to college even though you may not be ready.

There are so many details that need to be addressed, including insurance.  Is there coverage for his laptop and x-box?  Will he be covered if he drives his roommate’s uninsured car?  What if he burns the dorm down with a chemistry project?  Will your insurance cover him when he is away at school?

·         The Need

In addition to property coverage, the student away at school needs liability insurance to cover two basic exposures:

o   Non-owned auto

o   Personal activities

Although the student has no assets, he does have a promising future.  A judgment handed down today could hang over his head for the rest of his life

·         The Parent’s Policies

If the student gets sued for bodily injury or property damage, his parent’s insurance may apply.  The policies provide coverage as long as the student is considered a resident of the parent’s household at the time of loss.  What qualifies a person to be considered a resident of the household is not defined in the insurance policy; the insurance company will make that determination when there is a claim.  This issue has been the focus of numerous court cases; the findings of the court vary from one jurisdiction to another

·         Separate Policies

Those families who feel uncomfortable with this uncertainty, can purchase insurance in the student’s name.  A renter’s policy will provide both property coverage and liability for personal activities.  If the student has an auto policy in his own name, that policy will usually provide liability for driving non-owned autos.  Of course, the additional cost of these policies is always a consideration.

Your insurance agent will be able to advise how your insurance applies to the student away from home and the coverage options that are available.  Then you can make a decision on the steps to take to protect your student’s future.

Beware When You Rent a Car

A Michigan agent alerted me to a new problem with the rental car claim.  Budget Rental now has this clause in their rental agreement:  “If the car is damaged, you will pay our estimated repair cost, or if, in our sole discretion, we determine to sell the car in its damaged condition, you will pay the difference between the car’s retail fair market value before it was damaged and the sale proceeds”

In this case, the insured rented a Ford Freestar valued at $26,500 and brought it back damaged.  Budget sold the car at auction in its damaged condition for $11,700 and billed the renter for the difference.  The renter’s personal auto policy paid the amount it would have cost to repair the car plus loss of use for a total of $7873.  The renter was responsible for the difference:  $6926.

Does the renter have any recourse?  Not really.  He signed the contract with the rental car company; it establishes his financial obligation.  The wording of the insurance policy determines what the company will pay for the loss.  When the proceeds of the policy do not meet the obligation under the rental agreement, the renter is legally liable for the difference.  Actually, Budget has the contractual right to charge the $6926 to the renter’s credit card.  Had the renter purchased the Loss Damage Waiver (LDW) from Budget, it would have covered all of his legal obligations for the damaged vehicle.

Last week I was in Indiana and I heard a similar claim; this one was with a different rental car company.  The renter was being billed for over $3000 additional after the car had been sold in its damaged condition.

Uninsured/Underinsured Motorists Coverage

Today, many motorists drive without insurance or carry limits of liability that are grossly inadequate.  When one of these drivers causes an accident, the victims may not be compensated for their loss.  The insurance industry has developed two coverages designed to indemnify the innocent victims for the loss caused by an uninsured or underinsured driver.

The purpose of the coverages is to put the victim in the same position as if the motorist who is legally liable had bodily injury coverage sufficient to pay the damages.

Uninsured Motorist coverage provides compensation to insureds who have suffered bodily injury in an accident with an at-fault motorist does not have any bodily injury liability insurance.  The coverage also applies when the victim is injured by a hit and run vehicle or if the insurance company covering the at fault driver either denies coverage or become insolvent.  A second coverage, Underinsured Motorist coverage, is activated when the at fault driver has some coverage, but not enough to cover all the damages of the accident.

With an increasing number of uninsured and underinsured drivers on the road, the prudent person is buying limits for Uninsured and Underinsured Motorist coverage equal to the liability limits found on their auto insurance policy.  In addition, many people endorse excess limits of Uninsured and Underinsured Motorist coverage on to their Personal Umbrella Liability policy.

In a perfect world, everyone who owns or drives a car would insure it for substantial limits of liability.  In the real world, we cannot assume this is the case and today drivers need to enhance their own auto policy by adding Uninsured and Underinsured Motorist coverage.

How an Umbrella Works

Odds are you will never be sued for a million dollars.  But, what if you were?  What if your teenager caused an auto accident leaving a passenger in the other car permanently disabled?  And then what if the injured person sued you for $1 million and won.

How much liability coverage do you have under your auto policy?  Would it be enough?  If it is not enough, where would the money come from?  The fact is, you could lose everything you own and continue to pay for years to come.

The chances of this happening to you are not very great:  that is why insurance to cover the exposure is so affordable.  A Personal Umbrella liability policy can usually be obtained for less than $150 a year (Standard premium based on one home and one auto).  That same amount will only pay for the services of a good attorney for less than an hour.

A Personal Umbrella policy sits on top of other insurance that includes liability protection, such as your auto, homeowners and boat policies.  When coverage under these primary policies is not enough, the umbrella policy is triggered, spreading protection (hence the term “umbrella”).

Only you can decide how much liability coverage is right for your family.  In making that decision, you may want to know what an umbrella should cost in your particular situation.  Call your agent and get a quote.  Then you can make an informed decision.

Liability: Peace of Mind Coverage

The liability promise is the biggest commitment an insurance company can make.

“We will pay up to the limit of liability for the damages for which the insured is legally liable”

Liability coverage is designed to pay when an insured hurts someone or damages another’s property.  The “damages” referred to are those sums paid to the claimant, the person who has sustained damage.

·         A neighbor slips and falls on the ice on your sidewalk; you are liable for their damages

·         Your teenaged son loses control of your boat and collides with another; you are liable for the damages

·         Your over-active eight-year-old propels a loaded shopping cart down the aisle, hitting a little old lady and sending her flying; you are liable for the damages

In addition to paying the damages for a covered loss, your liability coverage pays for all the attorney fees and defense costs.  With most liability policies, the entire limit of liability shown on the front of the policy goes to pay damages; defense is paid in addition.  Today, the cost of defense is often more than the amount of the damages.

There are always expenses involved with a liability claim:  claims expenses, investigation expenses, and court expenses.  A liability policy will pay for these and the payment does not come out of your policy limit.

As with any insurance contract, there are exclusions in a liability policy.  Generally, liability policies do not cover intentional damage.  In addition, a homeowner’s policy does not cover any business-related claim.  An auto policy excludes coverage when carrying people or property for hire.  When buying an insurance policy that includes liability, you should always ask what is excluded.  But, despite the exclusions, the coverage provided by a liability policy is very broad.

There is liability coverage on an auto policy, a homeowner’s policy, and a recreational vehicle policy.  You can also purchase a Personal Umbrella liability policy which provides excess limits.  One of the most important insurance decisions an individual makes is the amount of liability coverage.

The liability promise is the biggest promise an insurance company can make.  It is true “peace of mind” coverage

How much is enough

With liability insurance, you are offered the opportunity to transfer a portion of the risk of being sued; only you can decide how much of that risk you should transfer.  The experts say there are four factors everyone should take into consideration when making the decision:

·         What do you have to lose?

What are you saving for?  Retirement?  College?  A dream vacation?  How would you feel about turning your savings over to a total stranger?  Would you be able to continue to save if you had to pay an uncovered judgment?

·         How likely is it to happen to you?

Some people are more likely to face a large lawsuit.  Do you have teen-aged drivers, recreational vehicles, a swimming pool or a dog?  Are you active in the community or visibly successful?  Do you coach little league or play bocce ball?  Some people have more exposures to loss than others

·         What will it cost?

Higher limits of liability are usually affordable; your agent will be able to tell you the cost of increasing the limits on your policy.  Then, call a good defense attorney and ask what he would charge to defend you if you were to be sued for more than your limits.

·         How do I feel about risk?

Cautious people transfer more risk to an insurance company; risk takers are comfortable taking their chances with lower limits.  Remember to consider the risk tolerance of your entire family.  How would the dynamics of your family change if you faced a liability claim that was only partially covered?  Would your family’s sense of security be threatened if you were sued for more than your limit?

Only you can decide how much liability is right for you.  Consider these factors, make a decision, and adjust your insurance to what you consider appropriate for your circumstance.  Remember, today you do not have to be a millionaire to be sued like one.

Firework Safety

When Things go BOOM in the Night - Fireworks Safety

For most of us, the Fourth of July is a time to enjoy the company of family and friends, having fun and creating memories - whether at home or up at the cabin.

But for some families, the holiday is a nightmare. Homes each year in Wisconsin are damaged by wayward fireworks. Thousands of people are injured in accidents.

At Mower Insurance, we want your holiday to be happy, but also safe. So here are some tips to help you protect yourself and your property on the Fourth.

Protecting yourself (and others)

·         To minimize the risk of injury, don’t use consumer fireworks. Attend a public display conducted by professionals in Chippewa Falls or elsewhere.

·         If using consumer fireworks, always follow instructions. Do not attempt to re-light “duds” or create homemade fireworks.

·         Never let children handle or light fireworks. Even sparklers, which burn at more than 1,000 degrees, can cause third-degree burns. Kids under the age of 15 account for approximately 40% of fireworks injuries, according to the U.S. Fire Administration.

·         A responsible adult should always be present when children - even teenagers - are around fireworks. More than half of fireworks injuries happen to those younger than 20 years old.

Protecting your home

·         According to the National Fire Protection Association, the best way to protect your home is to not use fireworks at home.

·         Remember, fireworks can cause grass fires and other types of blazes as well. Make sure you light fireworks in a safe area, away from homes and buildings, as well as other combustible material. Keep a fire extinguisher nearby in case of emergency.

·         Look out for tree limbs or bushes that could catch fire. Trimming vegetation to keep it away from your home is a good idea anyway, but it could save you from a catastrophic fire on the Fourth of July.

·         If your gutters have accumulated leaves, pine needles or other flammable material, clean them before using fireworks near your home.

·         Finally, if you won’t be home on the holiday, ask a neighbor to keep an eye on your house if others in your neighborhood will be using fireworks.

With some common sense and planning, the Fourth of July can be both safe and enjoyable for everyone. Whether you’re staying at home or heading up North, we hope you have a wonderful time celebrating our independence!

Firework Pet Safety

Keep your pets safe during the Fourth of July Fireworks

For most of us, the Fourth of July is a time to enjoy the pyrotechnics that mark the holiday. But for our pets, fireworks are another story. Many pets can be traumatized by the noisy rockets and firecrackers so many of us enjoy.

At Mower Insurance, we hope your holiday is happy and safe for you and your pets. So along with our other story about fireworks safety, here are some tips to help you protect your pets on the Fourth in Wisconsin, or elsewhere.

Protecting your pets

Many pets are very frightened by the loud noises caused by fireworks. If you can’t take them away from the noise, here are some pointers from the American Society for the Prevention of Cruelty to Animals that will help them have a more peaceful holiday.

·         Don’t take your pet to a public fireworks display. In addition to the noise, they may be spooked by the crowds.

·         If possible, leave your pet inside in a safe, secure room. Do not leave them outside, even if your yard is fenced. They may try to flee, and they may succeed; July 5 is a busy year at many animal shelters in Chippewa Falls, as dogs and cats are frequently found miles from their homes. Taking your pet on a walk early in the day can help tire them out.

·         Give your pets a comfortable place to rest, as well as plenty of food and water. You might even leave a TV or stereo on to drown out the fireworks. Provide soothing music, if possible. A favorite toy (or their favorite owner!) can help comfort them, too.

·         Make sure your pets have an ID tag or microchip, in case they get scared and escape.

·         Check with your veterinarian before giving your pet any medication intended to calm them. They may be able to provide you with a prescription or suggest alternatives.

·         And, of course, keep your pet away from used and unused fireworks.

With some common sense and planning, the Fourth of July can be both safe and enjoyable for everyone - and less scary for your pets. Whether you’re staying at home or heading up north, or elsewhere, we hope you have a wonderful time celebrating our independence!

How Insurance Works

Every day, every individual faces the risk of loss – physical loss, emotional loss, financial loss.  You buy a house; it could burn down.  You drive a car; you can be in an accident.  Knowing that risk of loss exists creates an uncertainty that makes planning difficult and diminishes the quality of life.

Insurance is a mechanism by which an individual or business can transfer risk.  By transferring some of the risk that is a natural part of modern life, you can enjoy peace of mind and are better able to focus your energies on other, more important aspects of life.

Only a portion of certain types of risk can be transferred.

·         Financial Risk:  Insurance only addresses financial loss.  It will not compensate for the sentimental value attached to the family photo album, for example.  It usually does not compensate for emotional loss.  And, do not expect compensation for you inconvenience.

·         Non-Speculative Risk:  Only certain types of financial losses can be transferred to an insurance company.  And individual cannot insure speculative risks, such as a loss in the stock market.

There are three types of financial risks that can be transferred to an insurance company.

o   The risk of loss of physical property

(Your car is totaled in an accident)

o   The risk of being found legally liable for the loss of someone else

(You cause an accident that totals your friend’s car)

o   The risk of financial loss that occurs due to disability or death

(You cannot work for six months because you were hurt in the accident)

·         Selected Portion:  Insurance is intended to cover only a portion of the financial loss.  Many insurance policies have deductibles as well as dollar limits.  In selecting limits, you decide how much of your risk to transfer to an insurance company

The individual who experiences an insured loss should not expect to be fully compensated for the loss; insurance is not designed to do that.  It will not compensate for a lot of intangibles, such as inconvenience.  And, in most cases, it will only pay for a portion of your financial loss.

The individual who buys good insurance never has a loss is the real winner in the insurance transaction.  That person has enjoyed the peace of mind that comes from proper insurance.  Peace of mind is the real product of the insurance transaction.

Future Classic Cars

Do you own a classic car of the future?

There’s nothing quite like driving a speedy, shiny classic car that turns heads and starts conversations. In fact, the beauty and elegance of old collectibles – like the 1964 Aston Martin DB5, the 1963 Corvette Sting Ray and the 1969 Dodge Charger – can be downright captivating.

If you don’t happen to own one of these timeless beauties, it may not mean you will never own a classic. In fact, there are many automobile aficionados and industry experts that predict we can expect a whole new generation of cars that will one day be bestowed the same level of prestige as, say, the 1969 Chevy Camaro.

If your curiosity is getting the better of you, Mower Insurance is offering you a peek at the 10 models predicted by CNET’s Car Tech editors as being the vintage cars of the future. Who knows, you just may own a classic after all.

1.       Toyota Prius (first generation): Built from 1997 to 2003, sold in the U.S. from 2001 to 2003

2.       Honda Insight (first generation): Sold in the U.S. from 1999 to 2006

3.       Toyota MR2 Spyder: Built from 1999 to 2007

4.       Honda S2000: Built from 2000 to 2009

5.       Scion xB: Offered from 2004 to 2006

6.       Infiniti G35: Built from 2003 to 2006

7.       BMW 335i/N54 3-series: Built from 2006 to 2010

8.       Pontiac G8: Built from early 2008 to mid-2009

9.       Dodge Magnum: Built 2004 to 2008

10.   Chrysler 300C: Built 2005 to 2011

If any of the above-named vehicles is sitting in your garage, congratulations may be in order. And if not, it’s not too late to start checking the classified and used car lots.

Regardless what you’re driving or what automobile you might have stored away, we at Mower Insurance are here to make sure you have it covered! Contact us today.

Motorcycle Gear

Proper motorcycle safety gear helps you ride right

Whether you’re an experienced rider or just getting started, the right protective gear will help you have enjoyable and, most importantly, safe journeys. Even if you’re riding just a short distance, the fact that motorcycles don’t offer the same protections as other vehicles means that you need to take great care when you hit the road.

We here at Mower Insurance Agency, Inc. want everyone on the road to reach their destination in one piece. So we’re providing some safety gear tips gleaned from motorcycle safety organizations, including the Motorcycle Safety Foundation and the American Motorcyclist Association.

Keep your head

Perhaps the most important piece of safety equipment — other than a well-maintained bike — is your helmet. Not only does a helmet protect your head in the event of a crash, the visors and face shields provide additional safety benefits along with a more enjoyable ride. You don’t really want to get hit in the face with a pebble or a bug on 53, do you? Full-face helmets also cut down on wind noise and can help reduce rider fatigue.

Always make sure your helmet has a secure fit and that any face-protection options you select allow you to easily see what’s around you.

It may be tempting to feel the wind in your hair as you ride along 29, but wearing a helmet should be a no-brainer when you consider the safety benefits.

Your feet and hands

Boots protect your feet and ankles from injury not only in a crash but also during the ride by providing a barrier against road debris and hot exhaust pipes. The right boot soles (oil-resistant, rubber-based composite) will help you keep your feet where they need to be — on the pegs.

And remember to protect your fingers! Gloves improve your grip and prevent abrasions and blisters. Just be sure that they fit properly so you can still work the controls of your bike.

The rest of your body

When it comes to clothing to wear while riding your bike, there are options for every style choice. Look for protective gear designed specifically for motorcyclists – it will offer you the best protection while still allowing you to comfortably operate your bike.

There’s a reason many riders wear leather. It is extremely durable and protects against abrasions. Newer fabrics, however, also provide these benefits. Look for reflective strips or other features designed to help make you more visible to other drivers, or add your own reflective strips if needed.

If it’s windy, you’ll want to wear layers to help keep the wind from your body. If you ride in inclement weather, don a rain suit or other gear designed specifically for those times when the road ahead isn’t quite sunny. You can even look for clothing that features electric heat, which can make your journey a lot more comfortable.

Non-clothing items

Safety gear isn’t all about clothing. Some items to keep handy: a flat-tire repair kit, tire-pressure gauge, spare fuses and anything that might be of use for your particular bike. Remember to pack a flashlight, in case you end up on the side of the road in the dark. (And it can help keep you visible to passing traffic, which is always a real concern.)

We know that this list of safety gear sounds like a lot, but safe riding means being responsible. If you are looking to buy cool new gear to go with your bike, you might as well get the kind that will make you look good and help save you from injury.

Sidebar:

Other safety resources

The Motorcycle Safety Foundation (http://www.msf-usa.org) is a great resource to learn more about safety gear and motorcycling in general, as is the American Motorcyclist Association (www.americanmotorcyclist.com). We’re here to help, too! If you have questions about insurance coverage for your bike, or want more safety resources, give us a call at 715-723-5525.

RV Safe Driving

Tips for safe driving in your RV

With spring just around the corner, it’s a great time for a “spring break” RV trip. Whether you’re heading to Hayward or planning your getaway a lot farther from home, you’ll want to make the trip safely.

At Mower Insurance, we want you to travel safely too. Here are some great tips to help you get out there and back without worry, because nothing can ruin an RV trip faster than trouble on the road.

First, know your ride — even if you’re just along for the ride

Of course, knowing the features (and limitations) of your RV is the first step to safely driving it. Are you towing a car? Be mindful of how that will affect your stopping power and maneuverability. Know the dimensions of your vehicle to help with parking and any tight spots you might encounter on the road. Make sure you know that you can fit under the overpasses and bridges on your route.

And even if you’re just a passenger, it’s a good idea to learn how to drive the RV as well. You might need to take over in an emergency or other situation.

Maintenance, maintenance, maintenance

Just like a car, keeping your RV well-maintained is extremely important. Are your tires in good shape and properly inflated? If you’re towing a car or boat, do you need additional braking power? Are your mirrors angled correctly? Is your safety equipment (for example, your fire extinguisher) in good working order? Doing a walk-around and conducting some quick checks before you leave can save you a lot of frustration down the road.

Down the road!

Your RV is much bigger than a car, of course, and that means you need to act more carefully when you’re driving it.

·         Know your blind spots and use caution when changing lanes, merging or turning.

·         Be patient and aware at all times. Consider installing a rear camera to help give you a complete picture of your surroundings.

·         Other vehicles may act aggressively to get around you, and sometimes will cut you off once they have passed. Prepare for these situations and understand that many drivers don’t realize that you need additional space in front of the RV.

·         Because your vehicle is far heavier than others, it picks up speed faster when going down hills or mountain passes, so keep an eye on that speedometer.

What about parking?

·         It’s best to have someone to guide you into a parking spot. If you don’t have anyone with you, check out the area before you try to pull in.

·         Practice turns and backing up before you leave on your trip.

·         Of course, never park for the night in an area unless you have approval or know that it’s safe.

Need to learn more?

Consider taking an RV driving safety course, if possible. At the very least, practice in a large parking lot before hitting the road. Taking a little time to learn how best to drive your RV or improve your skills can have a big impact for you and your family!

Sidebar:

You’ll find a lot of helpful resources online for RV owners. We like:

·         Good Sam Club at www.goodsamclub.com

·         Family Motor Coach Association at www.fmca.com

·         The list of RV clubs at www.rv-clubs.us/rv-clubs.html

·         Great safety tips at www.safeco.com/rv-insurance/rv-safety-tips

Remember to give us a call at 715-723-5525 when you need coverage for your RV or anything else. We’re here to help!