R&R Insurance Blog

Real-World Case Study: The Risk of Teen Driving
Provided by PersonalUmbrella.com

Emily, a 17-year-old, decided to treat her best friend, Taylor, to a movie to celebrate finishing their finals. They were running late and didn't want to miss the show, so Emily sped down the highway.

She lost control going around a notorious turn and crashed into a car with a family heading to dinner.

Sadly, Taylor passed away at the hospital months later due to serious complications. The family suffered loss of wages, emotional distress and lengthy hospitalization - and one child had a permanent disability and needed ongoing physical therapy.

Emily's parents' standalone personal umbrella policy covered the exorbitant medical bills of all the victims.

Claim: $3MM

Here are 3 reasons why you need an umbrella policy:

1. A standalone personal umbrella policy adds a critical layer of protection for liability loss exposure.

2. You don't need to be a millionaire to be sued like one. You could be liable for any injuries resulting from an at-fault, covered auto claim.

3. All licensed drivers in the household or regular use operators must be listed on all policies, including youthful/inexperienced operators. Contact your carrier for requirements.

Contact a Knowledge Broker in our Personal Insurance Department to learn more.

Holidays don't need to be dangerous, they need to be celebrated! We have some pointers of things to watch out for so you and your favorite four-legged friend remain jolly!

1. Chocolate is everywhere during the holidays. Dogs are at risk for chocolate toxicity, which by itself is rarely fatal when treated. The darker and stronger chocolate put your pooch more at risk.

2. Ornaments, wrapping paper, ribbons, all things you'd think a dog wouldn't want to eat; however they do some silly things. Keep holiday decor up and out of the way!

3. Poinsettia and mistletoe are mildly toxic for dogs!

4. Grapes or raisin indigestion may lead to fatal kidney failure, so remind your guests not to throw any to your dog!

5. Onions and garlic also are toxic for dogs, and can cause anemia!

Holiday decorations that glitter with lights and sparkle symbolize the joyous spirit of the holiday season, but we must not forget the potential fire hazards that can be a tragic part of this time of celebration. Wisconsin residents, contact knowledgebroker Kori Cumley for fire safety tips or a quick quote on home and auto insurance.

With summer coming to an end and fall creeping in, most of us are planning to hunker in for the cold weather. For many, this becomes the perfect time to start a home renovation or home improvement project. According to Statistic Brain, in the next two years 26% of homeowners plan a bathroom renovation or addition and 22% plan a kitchen renovation or addition.

If you are planning to be a part of that percentage, we highly recommend keeping these tips in mind:

1. Consider how the renovation will impact the value of your home. Do you need to update your property insurance? With large increases to the value of your home, it’s important to be sure your insurance agent is aware.

2. When working with a contractor, be sure to get referrals from family and friends. Do you trust the person you’ll be inviting into your home day after day? Do they have a clean track record?

3. Check out the Better Business Bureau for additional contractor and subcontractor references. This is a great way to avoid surprises and ensure you’re happy with the quality of work at the end of the project.

4. Make sure your contractor provides proof of insurance. Ask to see their certificates and be sure that coverage will be in effect the entire time the work is being done. This will cover any damages, injuries, etc. that may occur.

5. Contact your knowledge broker at R&R prior to signing any contracts. Not keeping your insurance agent informed may leave you with claims that are not covered. At R&R, we are more than happy to walk you through contracts and answer any questions you may have before signing the dotted line.

Home improvements and renovations are an exciting time for any homeowner! Be sure to keep these tips in mind, or contact a knowledge broker for more information.

Summer in Wisconsin calls for countless family celebrations, parties with friends, and neighborhood barbecues. Along with that comes the responsibility of what happens if an accident occurs at your home. To test your knowledge of your own insurance coverage, see if you can accurately answer the questions below.

Are the following incidents covered by your home insurance policy?

1. The neighbor’s son, Little Timmy, taunts your nine year old Golden Retriever and she snaps back with a bite. Timmy is left with a gash on his leg and a trip to the walk-in clinic. Covered?

2. Little Timmy’s older brother teaches the kids how to play backyard baseball and one goes right through the brand new front window. Covered?

3. Your family sticks around much longer than expected and the mayo filled pasta salad doesn’t get put away. They all call the next morning to tell you about their awful food poisoning and midnight trip to the emergency room. Covered?

4. Grandpa Joe, Uncle Don and Uncle Bob don’t listen to your direction and all sit on the same side of the 20 year old porch. All three are left sitting on the concrete when it collapses. Covered?

5. Your best friends bring a bucket filled with water balloons to your son’s birthday party. After an all-day battle, unlucky Little Timmy takes one right to his eye and winds up back at the walk-in clinic. Covered?

If you answered yes to all five questions above you are an expert insurance policy holder! All of the incidents above would be covered under your homeowners’ policy.

However, more often than not we recommend an Umbrella Policy to make sure you are adequately covered. Whether you own a home or car, are married, or have kids, an Umbrella Policy can save you from possible lawsuits down the road. Click here to learn more about the importance of having an Umbrella Policy.

As more and more people take advantage of the rapidly increasing rideshare options like UberX, Lyft, and Sidecar, it’s important to know what coverage you have. Whether you are the driver or a passenger, you should always fully understand what your insurance policy covers and where you may be exposed.

In general, there are three different insurance policies that may be active throughout the rideshare process:

1. The Driver’s: the owner of the car and the driver of the vehicle must have a personal auto policy (PAP) provided by a personal insurance carrier
2. The Company’s: the commercial auto policy (CAP) is provided by the rideshare company, officially called Transportation Network Companies (TNCs)
3. The Passenger’s: if an individual has a PAP, then as passenger, the individual may have some coverage as a last line of defense

The driver’s PAP is in place until the rideshare app is turned on. As soon as the driver logs into UberX or Lyft, then all coverages provided by their PAP cease. It is also important to note that the CAP does not begin to provide any coverage or full coverage until a match has been made on the app. During this time, there is a gap in adequate coverage for the driver. (Click here for additional details on this gap).

As soon as the match is made, the CAP provided by the rideshare company begins. Most CAP policies carry liability limits of $1 million, though this is not guaranteed. Physical damage coverage (Collision and OTC) is available if the driver has the coverage on their PAP. These high liability limits could prove to be a source of comfort if the rideshare driver is involved in an accident while picking up or transporting a passenger. However, if the rideshare driver is at fault, and the passengers are injured, it is not as clear how much coverage is available for Med Pay for those passengers.

Fortunately, if the passengers have their own PAP, the Med Pay coverage will follow them into the rideshare vehicle. Unfortunately, while there will be some coverage to pay for medical expenses, the Med Pay limits are usually in the thousands while the injuries can cost tens of thousands of dollars.

As you can see, insurance for ridesharing can be complex. If you have any questions about your coverage as a passenger or the driver, please contact a Personal Lines knowledge broker at R&R. We can walk you through the process and assist with any questions you may have.

If you are considering becoming a rideshare driver, this provides great insight into when and why you have no coverage.

There is a void between the time one’s personal auto insurance policy stops providing any coverage and the time the commercial auto policy starts. If there is ever an incident that occurs during this gap, drivers could find themselves left to pay for all damages on their own.

This gap exists because of the rapid rise of Transportation Network Companies (TNCs) like UberX, Lyft, and Sidecar. They have gained in popularity and spread throughout the US so quickly, that the insurance industry and lawmakers have not had the time they require to methodically update the policy language or laws. Revisions are required to better manage the new risk.

There are three distinguishable risk periods in the TNC business model. Period I is when the driver turns the mobile application on, logs in, and is waiting to be matched with a passenger. Period II is when a passenger has requested the driver’s services and the driver agrees – a match is made. Period III is when the passenger is in the vehicle with the driver, and they are en route to the desired location. So, when exactly does the driver of the private passenger vehicle become a transporter?

Personal insurance carriers argue that the instant the app is turned on, the driver is now working for the TNC – coverage ends at the start of Period I. The TNCs argue that the driver does not begin working until a match is made – coverage begins at the start of Period II. And therein lays the gap. Neither the personal insurance carriers nor the TNCs want to offer any coverage during Period I.

The traditional idea of carpooling and sharing the gas expense with a friend on a road trip does not present any problems to a personal auto policy. However, there is a dilemma when the driver is no longer sharing expenses but making a profit by delivering passengers or goods. This is because almost all personal auto policies have a specific exclusion for the transportation of goods or passengers (Livery Exclusion). Personal insurance providers have this exclusion because there are increased risks and claims that are associated with livery exposures, such as distracted driving, commuting in congested traffic, and additional mileage.

This exclusion, by definition, means that the very second the UberX or Lyft driver turns on the mobile app to find a passenger, the coverage from the personal insurance policy disappears. To make it even clearer, many insurance carriers are revising their policy language to specifically exclude coverage during all periods while the driver is working for a TNC.

The TNCs, on the other hand, view their drivers more like contractors than employees and do not believe that the driver has become a transporter in Period I. Their interpretation is that the driver is only hired to complete a job when a match is accepted. If there is no match, then there is no contract, and, if there is no contract, then the full insurance coverage is not in place.

In addition, TNCs are concerned with drivers unintentionally and intentionally turning on the app and not accepting any matches. They do not want their commercial coverage to become a substitute for personal insurance. It is on the other side of the coin, but again, there are increased risks and claims that the commercial insurance providers do not want to be held accountable for.

Still, some TNCs may provide lower limits of liability coverage only (bodily injury and property damage done to others) during Period I. However, these limits could easily be inadequate for serious accidents, and there would be no physical coverage for the vehicle.

So, for now, if you are considering becoming a rideshare driver, you will want to 1.) verify adequate coverage with the TNC, and 2.) be extremely cautious during Period I. Otherwise, if there is a claim, you could find yourself all alone. If you have additional questions, contact a knowledge broker at R&R insurance!

Have you ever been in a car accident? Did you feel prepared for what steps to take? Was there anything you forgot to do?

As a CSA in our Personal Lines Department here at R&R, I frequently assist clients after they’ve been in a car accident. Unfortunately, I was recently in one myself and learned what it’s like to be on the other side of the phone. Being the client was a great reminder about what steps someone should take immediately following their accident. I encourage you to keep these tips in mind, and never hesitate to contact your knowledge broker for more information.

• Safety First! Make sure yourself or the other party is not seriously injured. Call for medical assistance, if needed. If cars can be moved out of the road to a shoulder or side street, try and do so to avoid another potential accident. If they cannot be moved, stay in your vehicle with your seatbelt on. Don’t forget to put on your emergency flashers!

• Call the police. They can help get tow trucks, direct traffic out of the way, and can file the policy report right there. Having a police report on file for your insurance claim will be very helpful down the road.

• Don’t discuss fault with the other driver or a police officer. Leave it up to the officer and insurance companies to determine it. Just explain what happened so the police can document it on their reports, don’t admit fault or place blame on the other driver.

• Gather information. Take a picture of the other party’s insurance card and driver’s license if you don’t have a pen and paper available. Make sure to get their name, phone number, license plate number, insurance carrier and insurance policy number. If possible, take some pictures of the damage done on both vehicles.

• Witnesses. If there are any witnesses at the scene who have stopped to help, get their information as well. It may be important in helping determine who is at fault later on.

• Call your insurance agent. It may take around 10 minutes to get the claim started, so make sure you’re in a safe place and out of traffic to do this. If you are in need of a tow truck or a rental car, they can help you out with that as well.

• Seek Medical Attention. It may take some time before you realize that you've been injured. Once the shock of being in an accident wears off, you might realize you’re swollen or sore in places. It doesn’t hurt to get checked out by a doctor. Make sure that your doctors document everything, in case your pain gets worse later on.

Contact a knowledge broker for more information on car accident safety.

The advancements in car safety features over the last few years have been tremendous. From automated braking and back-up cameras, to alert systems and running lights, “car safety” has taken on a whole new meaning.

While the majority of these features can be life-saving, they also offer a great deal of cost savings as well. Many insurance companies offer discounts to drivers whose vehicles are equipped with certain safety features. The USAA provides insight into a few of the most common features available:

1. Back-Up Camera. Once a luxury vehicle standard, the backup camera often displayed in the rearview mirrors or in-dash display is now a popular option on midrange cars, giving drivers assurance when backing out of a parking spot or down a driveway.
2. Automatic braking. If the driver doesn't respond to the warning, some systems are able to brake automatically to prevent a collision or lessen the impact. Systems that combine forward-collision warning and auto-brake are the most effective.
3. Adaptive headlights. This innovative technology, which allows drivers to see better as they round a curve, surprised researchers with how well it performed. According to Highway Loss Data Institute research, property damage liability claims fell as much as 10 percent with adaptive headlights.
4. Sideview assist. Sensors can detect a car in your blind spot and then alert you with a light in your side mirror or with a beep if you engage your turn signal.
5. Forward collision avoidance system. Using the same forward-looking sensors, these pre-crash warning systems alert drivers with visual or auditory cues when the vehicle is getting too close to the one in front.

To learn more about car safety features or to find out how they can positively impact your auto insurance, contact one of our knowledge brokers.

More often than not, people are sued and have no extra protection to block the plaintiff from going after their personal assets in the lawsuit. To protect yourself from such a quandary, you need to have an umbrella policy. Every day ordinary citizens are served with a lawsuit, with the reasons ranging from justified to frivolous. A Personal Umbrella policy will help protect your assets from this lawsuit.

An umbrella policy is designed to protect you from almost everything that your home and auto insurance does not, as well as fill in gaps in coverage when the limits of your regular policy are exhausted. An umbrella policy is often referred to as excess liability. This excess liability coverage kicks in when the underlying limits on your home or auto policy have been exhausted. Depending on the company, you can purchase anywhere from 1 to 5 million dollars worth of excess coverage, sometimes as high as 25 million.

Most insurance companies will not offer you the coverage unless you have both your home and auto already insured with them. Also, the insurer will require that you maintain a certain level of liability on the home and auto policies in order to qualify for the umbrella policy.

The coverage is inexpensive. It is possible to obtain $1 million worth of excess liability for as little as $15/month. The more cars and homes you have, the higher the price for the insurance, but the cost is still low. In addition to your home and cars, liability associated with any other conveyances you may have, such as boats, motorcycles, and other recreational vehicles, may also qualify for coverage under the umbrella, depending on the insurance company.

Umbrellas often times pick-up miscellaneous coverages such as Personal Injury. This includes false arrest, false imprisonment, malicious prosecution, defamation, invasion of privacy, wrongful entry, or eviction.

Please feel free to contact a knowledge broker for more information on umbrella policies.

Homeowners Insurance is an important aspect of owning a home. It is a must-have product for those who wish to be protected homeowners. The insurance can, however, be very expensive. Here are some great ways to save money on your homeowner’s policy:

1. Get a Home Security System

Home security systems are a terrific way of keeping your home and personal property safe from theft or any damage. If there is less theft or damage, there will be fewer claims. The cost of your homeowner’s premium will increase each time you file a claim. Certain companies offer up to a 15-20% discount on your homeowner’s premium for having a security system.

2. Extra Security Measures

Installing other security measures such as deadbolts and window locks can prevent theft claims. Additional protection measures such as fire, carbon monoxide, flood, and heat detectors can also help prevent natural disaster and home damage claims.

3. Have Good Credit

Most people don’t know this, but everyone has an Insurance Score that is loosely based on their credit score. Of course, there are other factors involved in this insurance score, such as driving history, employment history, and the number of risks on the policy, but credit score is a contributing factor. The better the credit score, the lower the homeowners premium.

4. Bundle Your Policies

If you get multiple lines of insurance, try to bundle the coverages as a “package policy." Almost every company offers up to a 20% discount on all policies included in the package. This is the most efficient and cost effective way to purchase insurance.

5. Get Multiple Quotes Before Purchasing Insurance

Getting multiple quotes from different insurance companies ensures that you are paying the lowest premium for the coverage you want. This is very easy to do with an insurance agent or broker, who often represent multiple insurance companies. Brokers, like R&R Insurance Services, will quote your policy with all their companies at one time to ensure you are getting the best deal on your policies.

6. Be a Loyal Customer

Many companies offer discounts if you have your insurance with them for a certain number of years. This discount can be anywhere from 5-15%.

7. Raise Your Deductible

Deductibles are what you will pay out of pocket for any losses before your insurance company pays for the rest of a loss. This is what you pay each time you file a claim. Most policies have a standard $500 deductible, but they can range anywhere from $250-$2500. Raising your deductible can save you up to 25% on premium. It is one of the easiest ways to lower your premium.

8. Organization Affiliation

Some Companies will offer discounts for being associated with certain organizations, such as Employment Unions and organizations, age associated organizations, or having a certain type of credit card. Ask your insurance provider for a list of organization affiliation discounts. You may be entitled to a discount through something you are already a part of!

Hopefully with these tips you can save gr-eightly on your homeowner’s policy! If you would like more information on what a homeowner’s policy is, or general information on having a homeowners policy, contact a knowledge broker here at R&R Insurance.