Progressive’s so-called “Image Capture” technology allows consumers to get a car insurance quote in mere minutes…as long as you have reception, that is!

How Does it Work?

The technology is similar to that of a bank, many of which are now able to accept check deposits with the use of a smartphone camera.

In fact, the company that developed the technology, Mitek Systems, also developed this dandy app for Progressive, which is also being marketed as “Progressive Mobile.”

Simply put, you snap a few pictures of documents that display the personal information necessary to obtain insurance quotes. Here’s the rundown of the necessary steps:

1. Enter your zip code into the application.
2. Take a picture of your driver’s license.
3. Take a picture of your vehicle identification number (VIN) or your current auto liability insurance card.

The app then scans these documents to auto populate the necessary information to get your insurance quote started. This information will likely include your insurance score, MVR and C.L.U.E. report.

Next, you confirm your information has been uploaded properly and you’re on your way.

Of course, the software doesn’t read your mind and choose coverage for you, but that process is completed by filling out a couple more forms and viola! Your quote is ready to go.

You can also purchase your policy using this application…assuming you like the insurance premium Progressive comes up with.

Can I Use This in My State?

There are currently 28 states in which you can utilize the Image Capture from Progressive app. Don’t fret if your state is not listed here; Progressive is poised to release this futuristic quoting option in more states in the very near future.

For now, insurance shoppers in AZ, CA, CO, CT, FL, GA, IA, IL, IN, MD, MI, MN, MO, MS, MT, NE, NH, NJ, NV, NY, OH, OK, OR, SD, TX, VA, WA, and WI can try their hand at the smartphone quote software.

If you own an iPhone, download the Progressive App for iPhone from the Apple app store to get started. If you have an Android phone, head over to the Google Play website to get the Progressive app.

Good luck and happy quoting!

[How are car insurance rates determined?]

Move Over Sliced Bread?

Maybe,maybe not.

We here at TTAI believe that no matter how easy it is to obtain an auto insurance quote, you should still speak with an independent agent or a company representative to ensure you understand your (complicated) coverage.

Beyond that, you should also obtain several quotes to ensure you aren’t paying too much money for “ease-of-use.”

After all, knocking a couple hundred dollars off of your annual auto insurance premium may be worth spending a few extra hours shopping.

At the end of the day, this is a cool new feature if you want to see where you stand without a lot of work and sales pressure from a live rep, but it certainly doesn’t replace the value of a few well-placed phone calls.

So take the time to shop around before committing to one insurer. Otherwise you’re simply paying a premium, no pun intended, for convenience.

Read more: How can I lower my auto insurance rate?

That made us wonder what was behind the decrease. We at TTAI think the phrase is called “tired-head.”

If you’ve ever been around children, you may have experienced the moment when a little one has simply had enough and can’t concentrate anymore…queue the YouTube video of a toddler falling asleep while eating an ice cream cone.

But what’s behind this case of adult tired-head?

Save Hundreds by Switching

If you haven’t heard that phrase before, congratulations on purchasing your first television, radio and computer today!

Insurers spent $5.7 billion dollars on advertising in 2011 to get us to shop our rates, per JD Power.

Our guess is that $5.69 billion of that was spent on advertisements touting the hundreds of dollars in savings you’ll enjoy by switching auto insurance carriers.

[Which insurance company spends the most on advertising?]

Let’s face it; we’re all tired of hearing how we can save hundreds by switching. The reality appears to be that everyone who is interested in leaving their current insurer has already received quotes and done so.

This concept is supported by the findings that even though fewer people are shopping, a greater percentage than ever are still making the move after they shop.

Here’s why. The first several million people who listened to those commercials made the switch and realized that once you save the initial couple hundred dollars, you’ve reached the bottom and there is no reason to continue shopping.

Customer Loyalty = Fail

The longer you stay loyal to a particular insurer, the higher the likelihood you’re overpaying for insurance (at least in a soft market, which we have been in for years).

The first insurance company to advertise the “switch to save hundreds” concept started the revolution, which would not have been possible without the ease of getting insurance quotes via the Internet.

Insurance companies, like cable and mobile phone companies, are always offering lower rates to new customers, but your premium tends to stay the same or increase…right?

Well, if you simply paid your renewal premium every year for the past five to 10 years without asking any questions (or listening to your insurers TV advertisements telling you how good of a deal you’re getting), you’re probably overpaying.

All you have to do to get the “new guy” rates is to be a “new guy” to a different insurer. You are now paying the “going rate” for coverage…not the same old rate from years past.

Common sense tells you it is not possible to simply be the “new guy” every year and reduce your insurance costs by 50% each time…thus the fact that less people are shopping now.

Most of us already got the memo and realized we were paying too much and switched, and subsequently recognized there was not much lower we could go.

Something to Think About

If you are one of the last people who still believes an insurance company that has the most television commercials must be a better insurer, it’s time to wake up.

The JD Power survey clearly points out that even though there are less shoppers overall (most have already made the switch), a higher percentage of those who do shop are saving money.

But don’t take it from us. Take it from the insurers who are still spending $5.7 billion dollars on advertising to help you figure out that.

You should shop your rate at least once every two years to ensure your insurer is not giving the best deal to the “new guy.”

Read more: How are car insurance rates determined?

For the record, Aetna is the company that will actually underwrite the policies and pay insurance claims. They will simply aim to shoot the fish in Costco’s HUGE customer barrel.

Insurance companies are always looking to partner with organizations that are trusted by thousands (if not millions) of people. This way, they ride the coattails of a previous relationship to get access to more insurance premium dollars.

What Health Insurance Products are Available?

We’re looking at basic, standard individual health insurance plans here.

This might be up your alley if you are one of the millions of Americans who:

- Do not qualify for health insurance through your employer.

- Are self employed.

- Feel your employer’s plan is simply too expensive!
[Can I get health insurance without a job?]

OK, What’s the Benefit to Us?

While the wording of the press release isn’t definitive, a representative from Aetna says the savings from selling insurance online (versus in-person we assume) are passed on to the customer.

Basically, this means that the Costco-Aetna health insurance policies will cost less…than Aetna policies sold via the traditional means.

So, this doesn’t mean they will be the most cost effective health insurance option in the U.S. when compared to every other plan from other insurers.

Simply put; they will be cheaper than policies not purchased directly through Aetna.

This makes sense, as Aetna will be spending much less money advertising. In fact, they expect to sell more insurance while spending less on advertising.

Also, purchasing your medications from Costco will result in lower co-pays for those who opt for the Costco-Aetna health insurance plan. This may be a lifesaver for those of us who purchase medication on a regular basis.

Free Samples and an Insurance Agent?

Thankfully, no. Costco will not have insurance representatives handing out free samples of Lipitor to get us to buy their health insurance in bulk.

This is going to be an online program on the Costco website for the time being.

You will, however, be able to grab a brochure from in-store employees should you decide you want a little information before hitting the Costco website for a quote.
[See: Health insurance dictionary.]

This type of dual marketing is likely to be repeated with many large retailers across the U.S.

And this method will be even more commonplace if Costco and Aetna make a boatload of money.

There is really almost no way to lose for either company. The insurer, Aetna in this case, gets access to a group of people for which they have a lot of information – based on Costco’s raw consumer data – and Costco gets to earn a hefty commission by acting as an insurance broker, while taking no actual risk – i.e. not paying out health insurance claims.

Is There Any Downside?

Insurance can be complicated…especially health insurance.

It is always recommended that you speak to an insurance agent for help navigating the insurance waters. What may seem like a great deal based on the premium may not be the best thing for your individual needs.

If Costco-Aetna health insurance is the product that best fits your needs and also saves you some money (and time if you’re already at Costco once a week), then this could be the best option for you.

The only way to be sure is to compare multiple insurance quotes online from several health insurers and speak to a professional before making your final purchase.

Read more: Is health insurance tax deductible?

(photo: greenwenvy08)

Re-read that if you need to! Almost half of us who bothered to shop our auto insurance last year decided to switch to another insurance company. Why? You probably guessed it…the quotes were competitive enough to make the switch.

Why Such Large Numbers?

Let’s all give a collective “Thank You” to Al Gore’s Internet. The “old days” of using your lunch hour or having an insurance agent visit your home during dinner to obtain auto insurance quotes are long gone.

Brick-and mortar chain insurers, such as State Farm and Allstate, who collectively insure a good portion of the cars on the road in the U.S. (and charge some of the highest insurance premiums), now have to compete with hundreds of insurers who offer car insurance quotes in as little as 5 minutes online…which can be obtained while we’re still “working” at our desks!

The JD Power and Associates study points out that 52 percent of auto insurance shoppers start their process online and 73 percent visit at least one insurer’s website at some point during their shopping experience.

TTAI is not surprised to hear the study also shows that 32 percent of customers solely obtained quotes online. Further, 34 percent of all recent “shoppers” said they would most prefer to purchase their new policy online.

This might explain Allstate’s recent purchase of the online insurer Esurance. Allstate has got a good portion of us locked up as far as personal insurance goes, but they have certainly taken notice of the number of consumers who use the Internet to shop nowadays.

Of course, the chain insurers are spending billions of dollars per year on advertising to convince us they are still the best way to go, but the savvy insurance consumer isn’t going with “Grandma’s” insurer anymore.

Those advertising dollars are still well spent though, as their current client base depends on these commercials to continue to convince them to pay more for a company “they can trust” via brand awareness.

What Does This Tell Us?

TTAI’s Rocket Science degree (along with our insurance prowess, of course) tells us that shopping auto insurance makes sense…especially during these tough economic times.

A celebrity endorsement is simply not enough to convince us to forego the month’s rent payment to pay for higher insurance premiums.

Dennis Haysbert (the Allstate guy) has the most reassuring voice ever (probably according to Allstate’s focus groups – and certainly according to this writer’s mother).

Heck, we at TTAI even want to pay his salary, but the fact remains, he’s cashing checks and we’re paying for them.

And with nearly half of the people who bother to shop their insurance deciding to switch, clearly something isn’t right.

So do you have five minutes to see if you can save enough to switch?

Read more: The 10 best times to shop your insurance rate.

(photo: wayne’s eye view)

She believes this so strongly that she has presented a bill in the state (HB1195) to abolish the $500 deductible associated with an uninsured motorist property damage claim.

This sounds like a great idea, unless you know the first thing about how insurance works, specifically the concept of why a deductible is necessary and what it “does” for insurance – specifically with regard to insurance premiums.

TTAI believes insurance premiums for LA drivers will likely increase (they currently pay the second highest in the nation, next to Michigan) if this bill becomes a law.

Why Rates May Go Up If This Bill Passes?

Louisiana drivers can certainly expect to see increased costs for auto insurance after a short time. Why? It’s simple; costs for insurers will increase and those costs will be passed on to insurance consumers.

Just like the Florida PIP fraud “problem” where millions of dollars are paid in fraudulent claims each year, costing Florida drivers millions of dollars in additional premiums, this bill would lend itself to the potential for abuse. How?

Here’s an example:

Imagine a driver who did not purchase physical damage coverage for their vehicle (in order to save money), but did have uninsured motorist coverage. They get into an accident, maybe with no other vehicles involved, or perhaps with a “partner” in the scam.

The driver would then be able to file an uninsured motorist claim – without having to pay an auto insurance deductible – and collect for damages to get their vehicle repaired.

Repeat this situation (just like in Florida PIP claims) 10,000 times per year and you can easily see how insurers will get taken for a ride.

However, the insurance companies will pass these costs on to Louisiana drivers in the form of higher premiums.

Sound like a stretch? Talk to a few people in Florida regarding the matter. They will tell you otherwise.

Why Are Deductibles Necessary?

While property damage deductibles aren’t an insurance consumer “favorite,” they provide some basic benefits to consumers. Deductibles, “huh,” what are they goooood for? Read more about why insurance companies have deductibles.

They keep insurance costs down for everyone. This is accomplished by prohibiting insurance consumers from filing knick-knack claims for “losses” such as paint chips. Think about it.

What would stop everyone in the U.S. from filing claims to have microscopic paint chips repaired on their cars as a result of everyday driving on the freeway? Well, the deductible, which means us insured are responsible for damages up to a certain dollar amount.

Additionally, deductibles are designed to help prevent individuals from filing illegitimate insurance claims to recover “damages” from insurers. This is also related to keeping costs down.

A deductible may make a person think twice about leaving their keys in their car overnight or allowing a car to be stolen simply because they do not want to make their monthly payment anymore – after that “new car” euphoria fades and you’re left with a $500.00 per month car payment!

Insurance costs are passed on to consumers. It’s a fact of life. If claims were increased by the millions each year, insurer costs to adjust and repair damages would skyrocket, which would lead to substantially higher costs for the rest of us.

Uninsured Motorist Coverage – Actually Liability Coverage

Deductibles are generally only necessary for property damage claims. That is, if your property is damaged, you file a claim and are responsible for sharing in the cost of the repair or replacement of the property.

Uninsured motorist and underinsured motorist are technically liability coverage parts of an auto insurance policy. This can be a little hard to explain/understand, but just think of it this way.

Your own insurer is “covering” you against the liability of a third party that is simply not listed on your policy.

Basically, you have purchased insurance for those who have not done so, but continue to operate a motor vehicle and subject others to damages for which they would be liable, i.e. they were “at-fault” for.

Our guess is that Jackson is utilizing this concept as the basis for the bill, even though we think this ideology is flawed – if it is actually the line of thinking being used here.

Final Word

This bill speaks about making the uninsured motorist responsible for the deductible. So, the person who doesn’t purchase the state minimum liability insurance coverage (which may be less than $500 per year) is going to be on the hook for paying your deductible?

Have you ever heard the phrase, “squeezing blood out of a turnip?”

Good luck with that. Perhaps it would be a better idea to focus on decreasing budget shortfalls and creating jobs in Louisiana rather than sticking the insurance paying public with higher overall premiums.

The most likely outcome of this piece of legislation would be higher overall insurance rates for drivers in Louisiana, which surely doesn’t make a lot of sense.

Of course, this is probably more of a political move, which has nothing to do with helping people in the long run and more to do with pandering for votes by taking the side “of the people” rather than “the man,” i.e. insurance companies.

Compare insurance quotes online to see if you can obtain cheaper coverage. The idea of beating insurers at their own game is rarely, if ever, a winning idea.

Read more: How are car insurance rates determined?

We do, however, from time to time, point out that there may certainly be better ways to accomplish a particular insurance-related goal. The “Gerber Life College Plan” may fit into that category.

What’s the “Pitch?”

This product offers a “safe and guaranteed growth” plan for your investment money, which is ultimately a term life insurance policy with an accruing cash value. This means unlike regular term insurance policies, you can borrow against your balance as it accrues.

The marketing is targeted as a college savings vehicle, but any research you perform will quickly point out the money can be used for “anything,” including expenses that are not remotely linked to college.

The idea here is that you can save money for your child’s college fund, with no risk of investment loss…and if you “expire” prior to the policy term, the insurance policy limit is paid to your beneficiary, even though you didn’t live long enough to complete your savings goal.

If you don’t die, you simply save about the exact amount of money you were aiming for over the period of the Gerber Life College “term.”

[Term life vs. whole life insurance]

What are the Benefits of Gerber Life?

Policy Values – you can opt for a policy in the amount of $10,000 all the way up to $150,000.

Guaranteed Money – Unlike other college investment plans, which invest your money into stocks and mutual funds, the Gerber Life College Plan will never return less than what you put into it (unless you borrow against the funds and pass away prior to repayment).

Fixed Monthly Payments – you will pay a fixed installment each month during the term of the policy.

Is There a Catch?

We’re glad you asked. Yes, there are some “catches” and as you may suspect, Gerber does not advertise these particular potential downsides to “investing” with them.

The reality is; this is not technically an insurance policy, but an “endowment” policy. Why does that matter? Because endowment policies that return capital are taxed as such, whereas other college savings plans are not (think the 529 college savings plan).

So, while you are seeing your money grow in the Gerber Life College plan based on their examples, they forget to tell you that you are paying taxes on some of the “growth.” If you were to pay your taxes out of your plan, the returns would be significantly less over time. Ouch!

At the end of the day, most of the individuals who opt for this plan, those 24-45 years old, are not likely to die and collect the policy limit payout.

This is why term life insurance policies are so cheap and offer very high limits in the first place…insurers love them. If you don’t die, you are basically giving your money to Gerber for 10-20 years and getting it back with no real increase in your investment. Your money may even lose value as inflation eats away at it.

All the while, Gerber is using your money for whatever they want (probably investing for a return) each time you make a monthly installment.

Another potential downside may be the fact that you can probably only afford to contribute to the $25,000 plan, as the costs are already hefty at this level.

What are the odds your child will be able to attend a college in 20 years that will only cost $25,000. Are you kidding? That may be good for a single year at an out-of-state college in 2022.

No sweat, opt for the $150,000 plan, right? Well, how does a potential $400-plus monthly contribution sound to you? Not good? We thought so.

Is Gerber Life the Best Way to Invest for College?

The answer depends on your tolerance for risk…just like every other investment on the planet. The Gerber Life College Plan could be for you if you like the idea of not losing a dime of the money you are setting aside over the long term, with the “safety net” of the insurance policy paying out the full amount if you don’t make it.

BUT, and this is a large but, if you were to simply buy a term life insurance policy for SIGNIFICANTLY less per month versus your Gerber installments and place the rest of the money in a 529 college savings plan with a reasonable rate of return, you’d have SIGNIFICANTLY more money to pass on in the event of your untimely death, and the 529 money would return quite a bit more over any period of time you measure against Gerber’s plan.

The term life policy may cost as little as $25 per month for $100,000 in coverage. If Gerber is asking you for $150.00 per month and only offering $25,000 in life coverage, you’d be paying $125.00 more for one-quarter of the life insurance coverage portion of their plan.

Now, take the left over $125.00 you saved with the term life policy and place it in a 529 college savings plan for the same 20-year period and you’ll likely earn much more money on your investment…and your child will have an additional $75,000 if you kick the bucket before you’re done saving for their college.

Do yourself a favor and compare term life insurance policies online. You’ll probably be happy to see you can obtain similar coverage for a tenth of the cost of the Gerber Life College Plan and have a ton of money left to invest in the 529 plan, which will likely at least keep pace with inflation for goodness sake.

Read more: How much does life insurance cost?

(photo: gruntzooki)

We’ll let the cat out of the bag right away and tell you the 12-month auto insurance policy is the way to go…if you can get it!

Put simply, the 12-month policy term allows you to lock in a lower car insurance premium for a longer period of time.

There is really no downside, because if you find a lower premium any time during the policy term, you can typically switch insurers and get back any of your unearned premium in the form of a refund check.

Why Insurers Only Offer 6-Month Policies

The odds are you didn’t even know you had a choice in the matter. But before you rush to call your agent or dig up your most recent policy declarations page, we should point out that many of us don’t.

Several insurers, including national chain companies such as State Farm and Allstate, don’t offer a 12-month auto policy option. So what, right?

Well, the reason why many insurers don’t offer the 12-month policy may make you feel differently about the matter.

News flash! Insurers are out to make money. Almost any question relating to insurance is ultimately answered by following the money trail…so let’s follow it and see where we end up.

The answers to why many insurers don’t offer a 12-month auto policy term, which would make everyone’s life easier, have to deal with both how our car insurance rates are determined and how insurance companies make money.

There are two basic reasons insurers like the 6-month policy term, both of which revolve around being able to make premium adjustments more quickly if need be.

The Ability to Make Quick Program Changes

Insurers won’t know if they are making money for a few years after they sell a particular product. Basically, an insurance company sets their rates, sells as much of their product as they possibly can, then sits back and collects data for about a 1-2 year period and see if they charged enough to make a profit after paying for all of the claims and operating expenses.

Many insurance claims take more than one year to settle, which increases the amount of time insurers need to see if they have a winner.

If they charge too little, they lose money. If they charge too much, they risk losing market share to insurers with cheaper rates. So they may be able to also lower rates more quickly, although this is much less common.

Where does your 6-month policy term come into play? Well, assume the insurer realizes they are charging too little for car insurance. Instead of having to wait an entire year (12-month term) to increase your premium accordingly, they can start renewing policies at a higher premium in as little as six months.

It may not seem like much to us when our policy goes up $15 every six months, but multiply that $15 by 300,000 policies and we’re looking at $4,500,000. So your insurer may be leaving millions of dollars “on the table” in just a six-month period!

The first reason deals with insurance at the macro-level. Six-month policies allow insurers to react more quickly to pricing mistakes or unexpected claims. Think about Hurricane Katrina.

Car insurance companies were not expecting to have hundreds of thousands of claims for water-damaged vehicles when they originally priced their product prior to the hurricane.

But, you can bet they needed to raise their rates in response to the storm, and the quicker the better (for them).

Pricing Control at the Individual Level

Insurers also like to have more control over pricing at the individual level. There is much less risk for an insurer at the individual level, but they still like to be able to make adjustments.

What adjustments may be necessary at the individual level? It is important to understand that your insurer cannot raise your premiums midway through a policy term, even if you get a ticket or have an accident.

However, they can certainly raise your premium at renewal. With this in mind, most insurers would prefer to be able to raise (or lower) your premium at six-month intervals rather than once annually.

For example, if you received a speeding ticket three weeks into your six-month policy term, you’d have about five months left paying your current premium. You’d have eleven months at the “pre-ticket” premium on the 12-month policy.

Tip: Insurers who offer both six and 12-month policy terms may not offer both to you. Your driving and credit history, including your MVR, C.L.U.E. and insurance score reports may be evaluated before offering you the coveted 12-month term.

Any “activity” on these reports or a less-than-perfect credit history may force you into a six-month policy, as you have demonstrated that the insurer may need to bump your rate up more quickly in the event your past will predict your future, which is how all insurance rating works.

Many of the insurers who offer a 12-month premium may charge slightly more for this policy term option. Why? Because they know they are stuck with that rate for 12 months and cannot make any changes.

Remember, rates typically go up, so the 12-month option is more secure for you.

But be sure to shop around as you might find a 6-month policy that is SIGNIFICANTLY lower than a 12-month policy from another insurer. And you won’t know for sure unless you compare rates!

Read more: How to lower your car insurance premium.

First thing first, how’d they get a name like Wawanesa? The answer is simple…they’re Canadian, and the company planted its roots in Wawanesa, Manitoba all the way back in 1896!

Wawanesa Insurance started the way many insurance companies did back in the day; as a farmer’s mutual insurer. Farm and crop insurance has been around for a long, long time.

Wawanesa American Operations

Eventually, Wawanesa was incorporated in 1929 and began issuing insurance policies in places like California as far back as 1975.

This insurance company is a “direct marketing company,” which means they solicit clients without using either captive (chain insurers) or independent insurance agents to attract customers. This is similar to the GEICO model of insurance.

Wawanesa’s U.S. headquarters are in San Diego, California. And most insurance related operations on this side of the border are handled in “America’s Finest City.”

Oregon is the second, and only other, U.S. state in which Wawanesa offers their insurance products. Perhaps they will expand to others in the near future…

Why Wawanesa May Work For You

Wawanesa’s claim to insurance fame is that their prices are significantly lower than prices of their competitors. You might expect to see auto insurance premiums 25-35% below “standard manual rates.”

Their home insurance products (standard dwelling and condo) are also purported to be below the standard manual rates available in each state.

We don’t see any claims of 25-35%, so expect their property insurance to be less “competitive” than their auto – which is likely the bread-and-butter for Wawanesa.

Tip: Standard manual rates do not necessarily include discounts you can obtain through other insurers, so the 25-35% discount may not actually be your exact savings.

How Do They Do It?

First, they probably save a few hundred-million dollars each year on their advertising costs, or lack thereof.

Most of the chain insurers (State Farm, Farmers) typically offer much higher insurance premiums as a result of spending a large portion of their revenue on advertising. Or hiring LeBron James.

Of course, this expense is passed on to the customers. There’s no way around it.

Wawanesa claims to get a HUGE portion of their new business sales through existing client referrals.

So, instead of bombarding you with advertising about how great they are, they let word of mouth advertising do the legwork, which is much less expensive.

What Insurance Does Wawanesa Offer?

Currently, Wawanesa offers automobile, home and condominium insurance.

Their underwriting appetite appears to be for standard/preferred clients only. This is considered the upper echelon of insurance consumers, or those who a company does not expect to have to pay a lot of claims for!

Auto Insurance – full coverage auto insurance is available, including liability and physical damage coverage. All auto policies are for a 12-month term, which benefits both the insurer and insured, as you can lock in the rate for a longer period of time and simply cancel the policy if you find cheaper coverage.

Tip: As discussed, drivers that do not fit the “preferred” profile need not apply. Wawanesa will not offer a policy to drivers with more than 1 point on their MVR or more than one at-fault accident within the past 36 months.

[How much does insurance go up with 1 point?]

Home Insurance – Sticking with the preferred coverage tier, Wawanesa is looking to insure single-family primary residences.

Tip: The condition of your home, your previous claim history (C.L.U.E. report) and your proximity to brushfire prone areas will all be taken into account when seeking coverage from this insurer.

Condo Insurance – Simply re-read the “Home” details above. The condo guidelines are identical.

Is Wawanesa a Clear Winner?

If you frequent our site, you know the answer already. It is certainly worth a shot to call Wawanesa and obtain insurance quotes.

After all, insurance quotes are free and don’t really take that much time to complete.

Always be sure to shop with more than one insurance company, or it’s not really “shopping.”

Get quotes online and speak with an independent insurance agent to ensure the quote you eventually go with is the best available.

You never know…Wawanesa may be significantly less expensive than your current coverage (especially if you are with a national chain insurer), but you might still be leaving money on the table if you don’t get multiple quotes.

(photo: ajbatac)

Many consumers mistakenly believe that purchasing an insurance policy, no matter which one, will automatically cover any potential insurance claim they may have. This, sadly, is not the case and many of us learn the hard way that the policy we though put us in a magic bubble, does not provide coverage against every loss we may suffer.

Case in point; auto theft coverage. Thousands of cars are stolen each year, many of which are not insured, which leaves the victim high and dry.

What’s worse is that the top 10 stolen vehicles typically do not “fit” the type of vehicle that would prompt us to purchase the coverage necessary to reimburse us for our stolen car.

What do we mean? Well, only two of the top 10 stolen cars are model year 2002 or newer. This means they likely do not have an actual cash value, the amount you’d be reimbursed for a loss once your auto insurance deductible is satisfied, high enough to bother to pay for the coverage.

What Coverage Do I Need?

Coverage for theft of a motor vehicle falls under the comprehensive “cause of loss” on an auto insurance policy. This means you’d be out of luck if you purchased a liability-only auto insurance policy, which doesn’t include any coverage for physical damage to your vehicle.

You would simply have coverage for bodily injury and property damage you negligently cause to others.

Another common misconception is that collision coverage may pay for all “losses” to your vehicle, including a theft. This is also not the case.

Read more about the difference between collision and comprehensive coverage if you are not clear on the topic.

Tip: You may be surprised to discover that damage caused to your vehicle by animals (even if you “collide” with one) is covered by comprehensive coverage…not collision coverage. This is an important fact if you live in deer country, where hitting a deer with your car can be a common problem. In fact, collisions occur an estimated 1.6 million times per year! Go ahead and read that again.

Is Comprehensive Coverage Worth The Cost?

It sure is if your car is newer, but as discussed above, the most frequently stolen vehicles are “older” and not terribly valuable. Honda’s 1994 Civic tops the list. Kelly Blue Book estimates the value of this vehicle, with 100,000 miles on it, at a little under $3,000 in good condition and under $2,000 in fair condition – your insurer might believe the vehicle’s value to be much lower, especially as the mileage racks up.

Let’s assume you’re 19 year-old Honda Civic is in fair condition. Perhaps you purchase comprehensive coverage with a $250 deductible as part of your overall policy at a cost of $50 per year.

The maximum amount of money you would receive from your insurer if your vehicle is stolen may be $1,750. This is your $2,000 actual cash value, minus your $250 deductible. If your vehicle had 150,000 miles on it, this value may be as little as $1,200, which would net you $950 (after deductible) if your vehicle were stolen.

Does this make financial sense? Probably not. Assuming your car isn’t stolen every year, or the first year you paid for the coverage, that $50 coverage cost rises to a total of $100 after two years, $150 after three years…and so on. All while your car’s actual cash value is steadily decreasing, which means your insurer will offer to pay less if the car is stolen.

Tip: If you have a loan or a lease, your lender or financing company will require this coverage to protect their interest in your property.

No Way To Win?

Not really, when it comes to the unavoidable numbers in the example cited above. Your best bet is try to avoid having your car stolen in the first place, as insurance coverage is not really an “answer” to this problem.

Make sure to park in your garage (if you have one), or a well-lit area if possible and always keep the windows rolled up and the keys out of the ignition.

We’d recommend installing a car alarm, but just as the increased insurance premium associated with adding comprehensive coverage may not make sense, the expense to install an alarm could be the same catch-22.

When shopping for car insurance, discuss the option of comprehensive coverage in detail with your insurer or insurance agent. They may be able to assist you with the decision, but ultimately, the choice to add the coverage will fall into your lap.

While many people may scoff at the idea, pet insurance policies are widely available and increasingly more common in the insurance marketplace.

Gone are the days when if your pet had a major illness or undiagnosed disease, Fido would simply be “put to sleep” without debate.

But, is pet insurance something you really need? The answer depends on the financial lengths you are willing to go to in order to keep the family pet healthy (or alive).

Why Buy Pet Insurance?

If money is no object when it comes to your pet, an insurance policy for Fido or Mrs. Whiskers may not be a bad idea.

Health technology for veterinary care is evolving rapidly. Procedures that were reserved for humans, or even super athletes, are now available for your pet in many cases.

Of course, the costs for these procedures can be staggering depending on what ailment your pet is suffering from.

Here are a few examples:

• Radiation therapy for cancer
• Kidney transplants
• Hip and knee replacement

As you may suspect, the cost to diagnose and treat these types of disorders can easily run into the thousands. And so a pet insurance policy is the best way to protect yourself against the financial loss associated with these procedures.

How Does Pet Insurance Work?

Every insurance policy will differ, but you should certainly expect pet insurance to mimic a “human” health insurance policy to some degree.

For instance, you pay a monthly insurance premium, care may be subject to a deductible and/or a co-pay, and certain exclusions may apply.

However, when you visit a vet’s office, you will have to pay for services out-of-pocket at the time of the visit, unlike a traditional human heath insurance plan where you are only required to come up with a certain co-pay upfront.

Once you get home, you must file an insurance claim with your pet insurance company to get reimbursed, assuming the services performed are even covered (this is the scary part).

Be sure to keep your bills/invoices handy, make copies, and contact your insurer as soon as possible to ensure you receive a check for services rendered.

Potential Pet Insurance Features

It is recommended that you evaluate the following potential coverage options in order to make sure you understand the policy and aren’t being taken for a ride.

1. Deductibles – similar to other insurance policies, the higher the deductible, the lower the premium.

2. Age of the animal – Life and health insurance are more expensive for humans as we age and there is no difference in the animal insurance policy. The older your pet, the more likely you’ll file a claim. And the more likely you are to file a claim, the more the insurance will cost.

3. Pre-existing conditions – This is a hot topic on human health coverage. Insurers tend to shy away from offering policies to those of us who are already ill. It is no different for animals.

4. Breed /Genetics – You can expect to see exclusions in policies where these conditions are common for your breed. For example, your German Shepherd has a high statistical chance of developing hip dysplasia. The insurance company knows this and will likely exclude coverage for any claims arising out of this common disorder.

So when it comes down to it, you may only be covered for catastrophic stuff like your dog getting hit by a car, or if a cat fight ensues.

You may not get a great return on your money for incidentals, such as office visits, annual exams, vaccinations, flea control, mild illness, and skin infections.

However, more expensive pet insurance plans may include all of these items, along with bloodwork, teeth cleaning, cancer treatment, spaying/neutering, and even cremation/burial services.

What About in the Car?

This is a different ballgame altogether.

Many insurers have added the bell (or whistle) of offering a pre-determined amount of coverage for bodily injury your furry companion may suffer as a result of a covered auto insurance claim.

You may see a $5,000 to $10,000 “bodily injury” limit for Mrs. Whiskers while in transit.

This coverage mimics car insurance rather than health insurance. If the animal isn’t injured as a result of being in the vehicle, there is no coverage.

How Much is Pet Insurance?

As alluded to, a more robust pet insurance plan on an older or higher-risk animal will tend to come with the highest price tag.

Conversely, a bare-bones (no pun intended) pet insurance policy on a statistically low-risk animal may be super cheap.

It’s hard to throw out a number, but some pet insurance plans may start as low as $5-10 per month, or be as high as $100 or more.

As with any insurance policy type, you should shop around and compare a number of insurance quotes before making a commitment, as coverage afforded by pet insurance policies can vary widely. What could be the best pet insurance for one family could be the worst for another.

Doing your homework now will save you money (and headaches) later.