Is My Vehicle Totaled?

How Will My Auto Insurance Company Total My Vehicle After an Auto Accident?

A car is considered totaled when the cost to repair the damage exceeds a certain percentage of the total value of the vehicle itself. Therefore, minor damage to an old clunker of a car may qualify it as totaled, whereas extensive damage to a newer, nicer car may not.

Some insurance companies consider your car totaled once repair costs exceed 51 percent of the vehicle's worth; others use 80 percent as their limit. Once it is determined that your car is totaled, your insurer will pay you the car's cash value, minus any deductible you may have in your coverage. If your insurance company considers your car totaled, but you want to keep it anyway, they will pay you the vehicle's cash value minus deductible, and then subtract the amount of money they would have gotten from the salvage yard as well. Then it is up to you to pay for the repairs.

The terms of an auto policy should be that your insurer does not have to pay more than your car is worth, but they are supposed to reimburse you to the point that you are in more or less the same place financially as you were before the accident. So, if you drove a '98 Honda Accord before the accident, you should be able to buy a '98 Accord in the same basic condition with your claim check (minus, of course, your deductible). This is not always the case, however.

Keep in mind that the insurance company is not required to pay off your auto loan when they total your car.  This can be a pressing issue if you have purchased a brand new vehicle and financed it for a long period of time as there is a good chance that a some point in your loan repayment  you will owe more than your car is worth.  This problem could be eliminated if you choose to purchase loan gap coverage.

If the money your insurance company gives you for your vehicle is significantly less than the current market value for that vehicle, you may choose to bring in an independent appraiser, though this will probably be at your own expense. If that does not net favorable results, you may have to resort to arbitration, or even litigation. This is a worst-case scenario, but it never hurts to know all of your options ahead of time.

Insuring Your Dock at the Lake of the Ozarks

What kind of insurance do I need for my boat dock at the Lake of the Ozarks?

Winter weather has everyone wondering if their boat dock, at the Lake of the Ozarks, has the right kind of insurance coverage. Melissa Kupfer at McGrath Insurance Group has some quick tips to make sure you have the coverage you need.

First things first, you need liability protection.  We will assume everyone is careful while enjoying the use of your boat dock, but accidents can still happen.  You need to make sure that your liability coverage will extend from your homeowners or fire insurance policy.  Make sure your insurance agent is aware that you have a dock on the premises so they will properly cover your exposure.

It is likely that you have some money invested in your boat dock so now you need to purchase physical damage coverage.  You would probably like to insure your dock against wind, fire, or damage caused by collapse.  This can typically extend from your homeowners or fire insurance policy under your coverage for outbuildings.  This coverage is usually automatic and typically it amounts to ten to twenty percent of your dwelling amount.  If your automatic coverage is not sufficient to cover the full value of your dock, most insurance companies will allow you to buy an additional amount of insurance coverage for a minimal premium.  Just remember to include the value of your lift and any other attached items when advising your agent of your docks value.  You might also want to confirm that your personal property on the dock (i.e. life jackets, rafts, fishing poles, etc…) will be covered on your home or boat insurance policy.

Collapse coverage on boat docks always comes up this time of year, especially with record snowfalls.  Some companies automatically provide coverage for the collapse of your dock caused by the weight of snow while others specifically exclude it.  There are also some insurance companies that will provide "All Peril" dock coverage with an additional endorsement for extra premium.  When available, this endorsement can cover your dock for damage caused by weight of ice, snow, shifting of ice, and even wave wash.

The best approach to having adequate boat dock insurance coverage is to make sure your agent is aware of your exposure.  Coverage varies from company to company, so be sure to have everything in the open and documented so you can enjoy your summer on the dock and not worry about the risks involved.

Risks of Purchasing Insurance Direct Online

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The purchase of insurance is an important decision. While shopping and buying online is an available means, the absence of professional assistance makes this a riskier avenue to pursue.

“Everyone’s time is valuable. In the time you spend comparison shopping online for insurance, a professional agent can do all the work for you with no obligation, and at no cost to you,” says Patrick McGrath of McGrath Insurance Group.

The agents at McGrath Insurance Group work closely with each client to be sure they are meeting all of their clients needs. From adequate coverage to cost, each facet of the client’s needs are carefully considered when choosing and presenting options for coverage. Even if the introduction to the individual happens online.

“If you have a claim, after you have purchased an insurance policy online, who do you turn to for help? The agents at McGrath Insurance Group will be there to help you every step of the way, from filing the claim to its resolution,” added McGrath.

Fifteen minutes could save you 15 percent, but you want to make sure that savings won’t end-up costing you more in the end.  A common way for these insurance companies to save you money, is to offer you the lowest coverage possible which could leave your assets exposed to a lawsuit.  In many cases, they also do not offer all types of insurance and as a result do not consider all of the customer’s exposures.  Many customers may end up with serious gaps in coverage if all of their insurance policies are not reviewed and taken into consideration at the time of purchase.

“Peace of mind is what insurance is all about. The paper your policy is written on is much more reassuring when you know there is a real person with years of experience there to assist you when you need them,” concluded McGrath.

Paying Too Much for Insurance?

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The uncertainties in our current economic climate have us all looking for ways to save money. With so many different insurance options available, how do you know if you have the right coverage at the right price?

“We know insurance is complicated and that all policies are not equal.  We also know that getting the wrong insurance coverage can be very expensive in the end, even devastating in some cases,” said Mike McGrath at McGrath Insurance Group.

One solution is to seek out an insurance advocate. McGrath Insurance Group is an independent agency in the Lake of the Ozarks, Missouri.  Unlike captive agents, such as State Farm or American Family, independent agents are not tied to a single company’s product offerings or agenda.  Being independent gives us the freedom as an agency to work with the top insurance companies across the country to find the best insurance solutions for our customers.

As great as an individual agent may be, at the end of the day they can only provide their clients with State Farm or American Family products.  Independent agents are really match-makers, working with any number of insurance providers to find their clients the best fit for their insurance risk. McGrath explains, “Different companies offer different coverages.  One insurance company could be a great fit for one of our customers and not for another.  Pricing for the same coverage can vary too.  Every company has a different appetite for a different kind of client.  It’s the agent’s job to match their clients with the right company to maximize their insurance investment.”

When asked about the difference between captive and independent agents, McGrath responded, “From our prospective it's hard to believe that any single company is going to be able to offer the variety and depth of products that a group of clients is going to need. With a captive agent like a State Farm, even though their company might write multiple types of coverage, they are still limited to the coverages that their company has chosen to offer.  Where on the other hand, an independent agent is going to be able to offer whatever is needed for that circumstance.”

Five Common Insurance Mistakes

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In the current economic climate everyone is looking for ways to save money. While there is some great advice out there, it’s important to be armed with knowledge to avoid taking the wrong path.

Melissa Kupfer, personal lines agent, at McGrath Insurance Group has put together a list of five common insurance mistakes you should avoid in a struggling economy.

1) The current downturn in real estate values should not be mistaken for a reason to reduce the amount of your homeowners insurance; before reducing the amount based on current value, do some research into replacement cost. “It’s likely, in the event of a loss, it will cost more to replace your home than the current real estate value,” according to Kupfer.

2) Choosing an insurance agency on price alone is a poor strategy. Ask people you trust for recommendations. You want to be sure you’re not trading knowledge and service for a lower cost.

3) Reducing the amount of liability coverage you carry or the replacement cost of your home can be a dangerous way to conserve premium.  Pennies saved today could cost dollars down the line.  A terrific way to reduce your total insurance expense without compromising your protection is to increase your deductible.  Choosing the highest deductible you can comfortably afford in the event of a loss will reduce the risk assumed by the insurance company, which will help to reduce your premium.

4) Purchasing only the legal limits of auto insurance coverage is very risky in the long run. “In the event of an accident your out-of-pocket expenses will most likely far out weigh the limited savings,” added Kupfer.

5) Eliminating or neglecting to purchase renters insurance will not provide you with a significant savings up front. The cost to you in the event of a loss could be devastating. “The cost of renters insurance is minimal so talk to your agent for affordable premium options,” concluded Kupfer.