Common Car Insurance Terms Explained

Like just about every professional field, insurance is full of industry-specific jargon and acronyms that can leave the average person scratching their heads, or calling their insurance agent in a panic, asking what something means.  We thought we’d clear up some of the confusion.

Let's take a closer look at an important document most people don't spend much time reading in great depth--your auto insurance policy. Read on for a helpful explanation of some of the most common auto insurance policy terms:

“Binder”.  A temporary insurance policy that shows proof of insurance until the insured receives a permanent policy.

“Comprehensive”. Also called “comp”, this coverage pays for loss or damage to your vehicle from something other than an accident, such as a fire, flood, hail, or other weather-related incidents.  

“Collision”. This coverage pays for accident-related damages, regardless of who caused the accident. The carrier must pay for the repair or up to the actual value of your vehicle.

“Contract”. An insurance policy is sometimes referred to as a “contract”, as it is an agreement between the insurance company and policyholder.

“’Dec page’”. Short for the “declarations” page or called the “dec” for short, this is an important part of an insurance policy because it contains all the vital information about the coverage—the insured’s name and contact information, policy period and limits, and other important details.

“Deductible”. This is the amount the insured must pay in a loss before the company pays out any money.

“Premium”. The amount a policyholder pays to the insurance company to maintain the insurance policy.

“Named Insured”. The named insured is the actual owner of the insurance policy.

“Second Named Insured”.  This is the second person named on the insurance policy who has the same coverage as the primary named insured.

“Vehicle Identification Number”.  Commonly referred to as the VIN, the vehicle identification number is the unique 17-digit code given to every on-road vehicle in the United States.  The VIN is found on the identifying documentation for your vehicle, including your insurance and registration cards.

If you’re still confused or overwhelmed about your car insurance or any other coverage, contact us! We work with several carriers for a wide range of coverage, and as independent agents we have the flexibility to shop around for the best plan for your needs and budget.

Options for Keeping Your Valuables Safe

Where do you keep your most important papers? If your answer is something like “In a shoebox under the bed”, “In the attic/basement”, or “Somewhere in my desk drawer” (or you’re not sure!), it might be time to get more organized with your storage methods.  Buying a home safe or fireproof lock box, or renting a safe deposit box from your local bank, is a great way to keep your valuables safe in case of an unexpected event, such as a burglary or natural disaster like a fire or flood.

There are three standard types of home protection units:

•          Safe with a combination lock
•          Fireproof box
•          Safe deposit box*

*Usually rented from, and kept on-site at, a local bank.

All of these safety units are good investments if you want to keep your prized possessions and valuable papers in one place. But what should you put in them?

Home safe or fireproof box

Your home safe or fireproof box should hold the items that you don’t use often, but would need to access quickly when you do need them. Some examples would include:

•         Birth certificates of all family members
•          Social Security cards
•          Passports
•          Spare car keys and all vehicle titles
•          Wills, Power of Attorney documentation (if you are named as such for a relative), and other important legal documents
•          Medical information for all family members (including physicians’ names, prescribed medications, and dosages)
•          Bank account information (including retirement accounts, investments, etc.)
•          Computer back-up discs and SC cards
•          Spare cash
•          Armed forces documentation papers (which could also be kept in a safe deposit box at the bank)

Safe deposit box

A safe deposit box would contain important items you don’t need or use regularly and don’t want to keep in your home. This could include:

•        Heirloom jewelry or watches
•        Collectibles (such as coins, stamps, or baseball cards)
•        Savings bonds
•       Property deeds

You should not keep your only copy of a document (such as a will) in a safe deposit box.  

If you're thinking of buying a home safe, there are several types available. A fireproof box is useful, but a burglar could pick it up and take it out of your home (although, if it’s locked, they would have a tough time getting it open). A traditional safe is usually quite heavy and might require a hand truck to get into your home; these models are best kept on the ground floor or in the basement. Smaller models that can be bolted to the floor or wall are usually kept in a spare bedroom, home office, or library.

Besides having secure storage units for your important possessions, consider purchasing insurance for valuables like jewelry, collections, sports equipment, collectible firearms, and artwork for additional peace of mind in the event of a burglary or natural disaster. ETA Insurance Group works with several carriers who provide this important coverage. Contact us to learn more!

Five Reasons to Buy Life Insurance

Unlike car or homeowners’ insurance, life insurance is one of those coverages that keeps getting moved further and further down the priority list. And that’s a shame, because life insurance can give both financial and emotional peace of mind to the insured’s family upon their death. While it may not be the most uplifting purchase you’ll ever make, in the long term, it could be one of the best.

If you’ve thought about buying life insurance but haven’t purchased a policy, below are five reasons why life insurance is a wise investment:

Pay for final expenses. Despite what you might hear or read on social media, GoFundMe is not life insurance. Rather than relying on the generosity of others to pay for your final expenses, why not take the initiative and pay for them yourself with the proceeds from your life insurance? There are many levels of coverage available; your agent can work with you to find a policy that best meets your needs.

Supplement your family’s income. If you’re part of a two-income household, losing one income would mean tightening up the household budget. But if you’re the sole earner for your family, the loss of that income due to your passing would be devastating. Life insurance can help make up some of the financial loss.

Pay for your child(ren)’s education. Many parents use the deceased insured’s life insurance proceeds to open a savings or 529 account to be used for their child(ren)’s higher education plans.

Charitable donations. If the insured was involved in a local organization or there was a cause especially important to them, you can still make contributions to that organization using some of the proceeds. Depending on the gift you wish to make or number of causes you wish to support, you may need to meet with a financial planner to make sure the funds are distributed according to the deceased’s wishes.

Continue a family business. Instead of selling the company that likely took years to build, life insurance proceeds can be used to offset business expenses, such as buying new equipment, upgrading or buying a new building, or expanding in other ways.

Life insurance is one of the best investments you can make in your family’s financial future. No one wants to think about the inevitable, but knowing your family’s needs can still be met after your passing can be very reassuring.

Campus Safety Tips for College Students

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As a new college student, you’re dealing with a lot of “firsts”—probably your first time away from home for more than a few days, your first time being on your own and having real control over your schedule, your first time meeting new people (students and faculty) who are different from your friends, classmates, and teachers in high school. College is also likely the first time you’re really looking out for yourself—both your physical safety and personal property. Even if you’re going to a small school in a tight-knit community, you always want to make your safety and well-being a top priority.

Below are a few basic ways you and your belongings can stay safe on campus.

Walk in well-lit areas. Obviously, you’ll have to leave your room and walk around campus for a variety of reasons. If you’re coming back to your dorm after dark, stay in lighted areas and/or walk with at least one other student if you can.

Check in with your roommate(s). You’ll likely have a different class or social schedule from your roommate, so you may not see each other regularly.  But you should always let someone know your whereabouts if you’re leaving your room. At one time, students left messages for each other on white boards on their dorm room doors (low tech, but effective!). Text messages and other forms of instant communication have come along since, and with everyone connected at all times, it seems, there’s really no reason to not let your roommate know where you are (and vice versa).

Protect your possessions. Always lock your door when you leave your room, and encourage your roommate to do the same. Even if you have friends on the same floor or in the same building, don’t leave yourself open to potential theft. And never, ever leave your bag unattended. Think about it—you’re carrying around textbooks and electronics worth a few thousand dollars. It would be a shame to call Mom and Dad and explain your bag was stolen while you were in the dining hall or library. Some campus buildings, like the dining hall or bookstore, require students to leave their bags outside and provide storage carrels for this purpose.

Create a personal inventory. A personal inventory is a list of your most valuable possessions. If you’re keeping costly electronics or sports equipment in your dorm, you should have a list of these items should you ever have to make a claim because they were lost, stolen, or damaged. Contact your insurance agent to see if they have an inventory template you can use, otherwise you can download one. Some insurance carriers even have apps that allow you to catalog your belongings instantly.

Ask your parents if their homeowners’ insurance policy extends to your on-campus housing in the dorm. If it does, this means you (or your parents) can file a claim in case something from your room is lost, stolen, or damaged.

College is great—the time in your life to learn more about yourself and your interests, and develop some independence and personal responsibility. Make the most of it, and do it safely!