​ When you get a quote for auto insurance or purchase a policy, secondary coverages are (and should be) an afterthought. That's because your five basic auto insurance coverages are more important to think about first. So it's very important you know this information before ever worrying about additional optional coverages. But with that, you still need to look at and consider the secondary coverages offered as well. Some are very important while others are worthless. So you need to know which coverages are worth looking further into, and which ones you should ignore.


   I have comprised a list of these common additional coverages and the rundown on them. You will notice that some are very cut and dry regarding their value while others can go either way, depending on the company that offers the coverage. For those types of coverages, you're going to have to take a close look at each individual policy and find out exactly what that additional coverage offers because it can vary by a lot. I'll explain those as we get to them. But here's a list of additional coverages and also some advice to help you separate the worthwhile from the worthless:

• Gap insurance.For people who buy new cars or almost new, gap insurance coverage is a must have! It protects you from becoming upside down on your car loan in the event of a total loss. For example, let's say that you buy a brand-new car for $30,000. And let's say that after driving the car for nearly a year, you wreck the vehicle and completely total it. .... The problem in this case is that having regular auto insurance may not, and probably will not be enough to cover the total loan you took out on the car. As you know, vehicles depreciate very quickly once they leave the dealership parking lot. By the time of your accident, the actual market value of your vehicle may have fallen to say $25 -26,000. But with the way car loan payment schedules work, your first few months of installment payments only pay mostly the interest part of your loan and not the principal. So you may still owe over $29,000 on the loan. This is where gap insurance comes in. It will cover that difference for you. Depending on the company, some policies pay off exactly the difference between a loan and the payout amount. While other companies may go ahead and just replace your vehicle with a brand-new similar vehicle. Either way, you come out much better ahead than if you only purchase the basic comprehensive and collision coverage. Besides the deductible, you will also have to eat the difference in the loan if you do not have this gap coverage. Gap coverage is usually very inexpensive. In my opinion for a new car or any car that qualifies, it's a no-brainer to have gap coverage!

• Total loss replacement coverage. This works the same way as gap coverage does. It helps protect you from becoming upside down on your loan. Although it's usually not quite as generous as the coverage on gap insurance is, it is very close. Insurance will pay over and above your basic auto insurance coverage by a certain percentage, usually 25%. So in the original example, I used buying a $30,000 vehicle, both gap or total loss replacement coverage would protect you. However, most companies do not offer both gap and total replacement coverage. Most only offer one or the other. But no matter which one is offered, I believe it's a no-brainer to take it. The possible benefits far outweigh the small increase in premium.

• Roadside assistance coverage. Just about any of the insurance companies offer some form of roadside assistance coverage nowadays. But here's one area where you have to be really careful and read your policy closely to see exactly what you are covered for. Some provide very broad and extensive coverage, while other roadside assistance coverages are lousy and very limited. Remember that the auto insurance company usually does not handle roadside assistance claims themselves. They contract these claims out to a third-party. And because of that, that's why you have such a big variance in quality between one roadside assistance coverage to the next. My advice: some roadside assistance packages are very inexpensive nice to have. The key is to look and see exactly what's covered how far away from home what limits and then compare that to the premium and decide for yourself whether or not it's worth it to have. Some of your better roadside assistance coverages may also offer vacation coverage (a.k.a. lost trip interruption coverage). This covers you if your vehicle breaks down while you're visiting out of town. This will not only include the cost to tow your vehicle to a mechanic as roadside assistance coverage does, but this also offers extra money for meals and lodging. Again, look at exactly what's covered and for how much and decide for yourself.

• Rental coverage. In the event of a loss in which the insured vehicle or a replacement vehicle is not available, this coverage will provide you the rental, or at least pay for part of the rental until you get your vehicle back. It's important to look at whether or not the vehicle will be rented up front by the company or if you have to pay that up front and they reimburse you later. Many companies will give you an option of different dollar amounts per day as to how much coverage you want. Generally with most auto insurance policies, this is pretty good coverage to have simply because it's inexpensive. But you do have to look because some companies are kind of skimpy as far as coverage is concerned. Know what you're getting for the money you're spending before you make a decision.

• Disappearing deductible coverage. When you select this option you pay a little extra premium for the chance that for every policy period that you do not file a claim, a certain percentage of your deductible gets lowered. This usually continues as long as you go claim-free until the deductible reaches zero. I personally am sort of indifferent on this one. I think the biggest key is what your deductible is currently. I think that if you have a high dollar deductible like a thousand dollars or more, then this might be a very good idea. If you have a low deductible such as 250 or less, it may not be worth the trouble because your deductibles are already small anyway. And for the common $500 deductible, that's sort of middle of the road. Bottom line: Look at how long it takes the decuctible to drop to zero and the extra price it takes to get there and decide for yourself. Sometimes this is the better option. But other times, it may just be easier to go with a lower deductible to begin with.

• Accessory coverage. This coverage offers specific coverage on additions you've made to your vehicle. For example, let's say you buy a van and have a conversion package installed on it. Insurance is only going to cover you for the value of the original van unless you have accessory coverage to cover your expenses for the conversion package. A lot of automobiles and trucks have a lot of accessories added to them as well. Generally speaking, many companies will offer free accessory coverage up to a certain amount. And then if you want to purchase more coverage you have the option to do so. Again, you have to look at what is covered in the price. Of course if it's free you'll definitely want to take that. If you put a lot of money into accessory coverage, I think it's a good idea to insure it as well. For the most part, accessory coverage that is purchased beyond the free coverage is generally inexpensive as long as you don't get into the really high dollar accessories.

• Personal property coverage. This offers coverage for personal contents that are in your vehicle at the time of a loss. An example would be having comprehensive coverage on your car and it gets broken into. Personally, I have always believed this coverage is kind of silly! With comprehensive coverage, you already have a limited amount of coverage included with it anyways. Why not simply take your personal property with you instead of leaving it in your vehicle where it becomes a theft magnet? Apparently, auto insurance companies mostly believe this is a silly idea also. Because very few offer this personal property coverage. But I have noticed recently that it's becoming more common and more companies are starting to offer it. Personally, the only time this coverage ever made any reasonable sense to me would be on something like a boat insurance policy. I don't think it's of much value for an auto insurance policy.

• Death and Disability benefits.This coverage is self-explanatory. But the real question is how much is covered? How much does the benefit provide to your family if you're killed in a vehicle accident? And also how much will the disability part pay you if you're disabled as a result of an auto accident? This type of coverage varies greatly from one company to the next. It can also vary greatly from one state to the next depending on that state's laws. Some states already have this coverage included in the basic auto policy structure, but most don't. From the coverages I have seen personally regarding death and disability benefits, it's usually not a bad idea to take this coverage if offered because it is very inexpensive in most cases.  So even if coverage is lousy, in many cases it still worth taking.

   
     Summary: Some optional coverages are very worthwhile to carry while others are not. I recommend you take some of these coverages and stay away from others. But in many instances, you are going to need to look deeper into what is covered for what price and decide for yourself. But the bottom line is, for most secondary coverages, you should at least find out these particulars because some are definitely worth having.


     


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​Having an active SR22 in place is usually the last step before having your drivers license reinstated with the Ohio BMV. But how do you go about setting up the SR22 filing correctly so that you have coverage for what you need?  And, how can you do so while also getting the lowest affordable rate?


The process isn't as complicated as you might think. It's really only a four-step process:

• The first step is determining which type of policy you need to set up.
• The second step is determining which levels of coverage you need.
• The third step is to simply go through the quoting process to find the company with the lowest rate at the coverage levels you need.
• Once you have found the right policy for you, and have bought a policy, the fourth and final step is to file the SR22 with the Ohio BMV.

 First step: Determining which type of policy you need.
 The first step is real simple:

• If you own a vehicle or have a vehicle registered in your name, you simply need to take out a regular auto insurance policy, and attach the SR22 filing on to it.

• This allows you to choose what coverages you need for your vehicle. Besides liability coverage which is required, you will be able to choose whether or not to carry comprehensive and collision coverage on your vehicle.

•  You will also be given the options of choosing higher levels of liability coverage than what the state requires. You will also be offered medical payments coverage and uninsured motorist coverage. All of which I highly recommend, as these are important coverages.

• Not all auto insurance companies will do SR22 filings, and some companies that will do SR22's are very expensive. Make sure you get quotes from companies that are SR22 friendly. An independent agent who deals with high risk auto insurance is your best bet for getting the best quotes with minimal effort (you only need to give your quote information once and the agent will do the shopping for you). The alternative is getting quotes from one company at a time, which is both time consuming and inefficient.

• If you do not own a vehicle or have a vehicle registered in your name, then you need to buy either a Financial Responsibility Bond or a Named Operator Policy, and attach the SR22 onto it.
  • A financial resposibility bond is generally cheaper than a named operator policy, but that's because it only offers state minimum liability coverage and nothing else. 

• A named operator policy offers higher limits of liability coverage and also offers medical payments and uninsured motorist bodiliy injury coverage.

• Neither policy offers any comprehensive or collision coverage on the vehicle you're driving. It is up to the owner of the vehicle whether or not they want to carry that coverage on their own separate auto insurance policy.

• Both the financial responsibility bond and named operators policy serve as secondary policies. The primary insurance (the policy that pays first in the event of a claim) is the vehicle owner's auto insurance policy. These secondary policies only serve as backup liability coverage if the owner isn't carrying liabilty auto insurance on their vehicle. That way, if you borrow someone's car and cause an accident, you don't have to worry about whether or not the owner has active coverage at the time you're driving their vehicle.

  Second Step: Selecting the proper levels of coverage.


  After you have determined which type of policy you need, you then need to select the levels of coverage that is right for you. If you do not understand the basics of an auto insurance policy, see my blog article titled Basics of an auto insurance policy. This will give you a better understanding of coverages and how to select the right levels that you need

• This step is primarily for vehicle owners who have a higher responsibility when it comes to auto insurance coverage. It's important to understand the coverages you're buying and selecting the right levels of coverage to meet your needs.

• This step does not apply to non-owners who choose to attach their SR22 with a financial responsibility bond.

• Only 3 of the 5 basic components apply to non-owners who choose to attach their SR22 with a named operators policy. 

• Remember that comprehensive and collision coverage are only offered to vehicle owners on a regular auto insurance policy.

Third Step: Going through the quoting process.

• Now that you have determined the policy and coverage levels that you need, it time to start crunching numbers! Somewhere out there is the right company for you that provides the coverage you need at the lowest premium. Finding that company is the tricky part. Here are your options:

• Calling or going online one company at a time to get a quote. There's nothing wrong with doing this but it is very time consuming and having to give out personal information multiple times is a pain also.

• Calling or going online to get a quote with an independent insurance agent. You give your quote information once and the agent does the grunt work for you. The agent then does the shopping around and calls/emails you back with the company that has the lowest rate.

  Fourth and Last Step: Filing the SR22 with the Ohio BMV.


There are two ways of doing this. The easy way and the fast way:
Easy way:

• Simply do nothing! Once you buy any of the above auto insurance policies and attach an Ohio SR22 onto it, the auto insurance company automatically files the SR22 electronically to the Ohio BMV (unless you instruct them not to).
• Depending on the time of day that you purchase your auto insurance policy with the SR22 attached, the Ohio BMV will receive it either the same day or the next morning business day.
• Usually the Ohio BMV will process this SR22 within one business day from the time that they receive it. But you can't always count on that. Sometimes the BMV gets behind.
• Never just assume that your license is reinstated, if you go this route. Always check first before driving to see if your license status is valid or still suspended. It's real easy and fast to check. Simply google "Ohio BMV 2 yr abstract" link, and click on the "unofficial driving record" link. It's free and will tell you right away if your license is valid or suspended.

 Fast Way:

• An agent can email or fax to you the SR22 paperwork that you need to take to a BMV reinstatement office personally yourself. Your SR22 will then be processed on the spot, and your license will be reinstated.
• I realize that I am using the word "Fast" very loosely here. I've heard the complaints about waiting in some of these BMV reinstatement lines. That is why most people go with the easy method.

Summary:
Getting the right Ohio SR22 policy is not as complicated as it seems. Arming yourself with knowledge of these 4 simple steps will help you find the right policy, coverage, and price for you. If you would like some help in finding the right Ohio SR22 policy, feel free to fill out one of the three quote forms below. I will do my best in finding the right coverage and price for you.  And as always, I handle all quotes personally and privately.




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 Owning a boat made of wood can be frustrating when it comes to finding boat insurance for it. That's because the vast majority of boat insurance companies will not insure a wooden boat.

    What makes it particularly frustrating is the fact that not even liability coverage is offered by many companies. When some companies are scared of insuring a vehicle, whether it be an auto, motorcycle, RV ..... whatever....  if they have a problem with insuring that type of vehicle. They simply don't offer comprehensive and collision coverage. They will in most cases insure the vehicle with just liability coverage.

    However, that's not the case when it comes to wooden boats. Many companies won't even insure a boat with liability only coverage. Why is this? I have no clue. But most insurance companies avoid wooden boats like the plague! And if you own a wooden boat, you've probably already found that out.


    Liability coverage only applies when your boat crashes into another boater and/or another object, person, etc.  A wooden boat is not going to do any more damage than any other boat of the same size, weight, etc. So it really makes no sense. But whether we like it or not, that's the way it is. Many insurance companies who insure boats simply stay far away from wooden boats.



 Despite the frustration you may feel from making several calls and having no luck, there are boat insurance companies who can help you. There are a few boat insurance companies who are willing to cover your boat with excellent coverage and .... at a decent rate to boot. Some of them may only offer liability coverage, but that's the complaint I hear from most people who own wooden boats. They only want liability coverage in the first place and can not find it.

     But there are companies that will even insure the boat with physical damage coverage. These are mostly specialty companies that can be harder to find. But an independent insurance agent is a great place to start your search. Many of these insurance companies are not your more common brands as far as insurance companies are concerned. Some of these boat insurance companies are very small and to a large degree unheard of.


    However, many independent agents carry these type of companies mostly for occasions in which the customer has trouble finding insurance with other companies. The same thing applies to boat insurance for wooden boats. There are some companies out there who will take care of you.

What about insuring my boat under a homeowners policy?


      As long as your homeowners policy will insure your wooden boat, there's nothing wrong with that. But understand that if your boat has market value any higher than say thousand or $1500, chances are this boat coverage will not insure your boat for it's full value. For more information on that, see my blog article titled 5 reasons why you should not ensure your boat under a homeowners policy.




Summary:
    Many wooden boat owners do not have adequate boat insurance coverage simply because it's very hard to find. But my advice is to just check with the some of the specialty companies who are more lenient about insuring wooden boats. An independent agent is probably the most efficient way to search because they already are somewhat familiar with these companies.

And the most surprising thing about this is that what you pay in premium for inadequate coverage on a wooden boat, you may end up paying the same or just a little bit extra premium for much better coverage. So don't be afraid to shop around. Chances are there's always a boat insurance company out there that's going to offer you better coverage and/or a better rate.




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Many people were surprised to learn that Michigan's MCCA fee won't increase this year. After all it seems to have gone up steadily for the last several years. But this year, lawmakers have been pressured to overhaul the auto insurance system. That probably played a big influence on why the fee didn't go up like it was expected to. But hey! I'm certainly not going to argue! Even though it still stands at a high amount ($186 per year per vehicle), I was really expecting it to break the $200 barrier this year.


Also the threshold in which the auto insurance stops paying and the MCCA fund starts paying stayed the same as well at $530,000. This threshold has also risen considerably in recent years, which makes the non-MCCA part of your auto insurance premium increase.
Michigan also recently passed Louisiana as being the most expensive auto insurance state in the nation. So the timing was good considering there will be no increase this year. However, the fact still remains that Michigan is the only state that requires guaranteed unlimited lifetime medical benefits. And regardless of whether or not the MCCA fee goes up, it's still a big problem! In fact, auto insurance has become so expensive that it's estimated that 50% of all drivers in the city of Detroit are uninsured.


Some laws and proposals are in the works as we speak. Lawmakers have said that they're wanting to overhaul the entire system. My guess is that some major changes will be made, but I can't see two parties settling on a major overhaul that they both could agree upon.


And even if a major change gets implemented, it still takes a long time before the changes go into effect. Usually when state lawmakers change insurance laws, an entire year of grace period is offered for the insurance companies to make it effective.  And another six months to a year can sometimes pass before before policies renew. So even if the change happened tomorrow, it will take months if not a couple years before you see any changes happen.


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​If you're looking for boat insurance, or if you already have boat insurance, you may want to take a close look at your policy. It's very important that you know exactly what you're getting before you buy a new policy or renew your old one.

    That's because when it comes to boat insurance, there are huge variances between one company's boat insurance policy to the next. Sometimes there are very big differences that go unnoticed until a claim needs to be filed.

    So I have comprised an easy checklist for you, so that you can go over your boat insurance policy to see if you have adequate coverage. A common theme you're going to be hearing throughout this article is comparing standalone boat insurance to boat insurance that is attached to a homeowners policy. There are usually huge differences between the two as far as what is covered.

Nine times out of 10, a standalone boat insurance policy is going to offer more and better coverage than a boat that is insured under a homeowners policy. There are some exceptions where companies offer excellent boat insurance coverage as a homeowners endorsement. But many other homeowners policies that attach boat insurance are lousy!. You certainly wouldn't take a boat out in the water if you are aware of any holes that might leak. So why would you want boat insurance coverage that has more holes in it than Swiss cheese?

Here are some of the things to look for when reviewing your boat insurance policy:

1. Many boat insurance policies get picky about where you store your boat during boating season. Some homeowners insurance companies won't even cover a boat that is moored in a marina. How crazy is that?
2. A good boat insurance policy will always be flexible with mileage. Most companies offer up to 75 nautical miles at no additional cost with the option to purchase more coverage if you need to go farther.
3. Boats that are attached a homeowners policy typically have less flexibility about the size and the horsepower of the boat. If you have a larger or more powerful boat, you're much better off with a stand-alone boat insurance policy.
4. Liability coverage. Liability coverage is an area that many boaters settle for state minimum limits. This is a huge mistake simply because liability coverage on boats is very inexpensive. But in addition to how much is covered, the difference between a good policy and a bad policy can be how exclusive the liability coverage is. For example a good boat insurance policy will offer the liability coverage for spillage and fuel leakage. A good boat insurance policy will also pay the recovery costs for debris removal. These types of things aren't covered with many boat insurance policies.
5. Coverage for your personal property. If you have personal property that gets stolen or destroyed you should be able to find very adequate coverage for very minimal cost. However you will find that a bad insurance policy isn't much help with personal property. This is especially true for you fisherman, who have a lot of money invested in fishing equipment. Make sure your coverage is adequate.
6. Trailer coverage. A good boat insurance policy will offer the option of insuring the trailer as well. Some trailers can cost into the thousands so it's not a part of insurance you want to neglect. Trailer coverage is fairly inexpensive as well.
7. Accessory coverage. Have you made any improvements to your boat? Is your boat totally tricked out? A good boat insurance policy offers free accessory coverage up to a certain amount and will also give you the option to purchase extra coat coverage if you need. People who make expensive improvements to their boat need to keep this in mind. One example would be those who have nice stereo systems installed into their boat.
8. A lousy boat insurance policy will sometimes exclude very popular boating activities. A good boat insurance policy will not do this. But some of you need to look at the exclusions on your boat insurance policy. Because many do not offer coverage when you're involved in a fishing tournament, regatta or poker run.
9. A good boat insurance policy will also offer uninsured boater's coverage. This works exactly like uninsured motorist works with auto insurance. This is simply the marine version of that. Also, a good boat insurance policy will offer some type of medical payments coverage as well. And again these coverages are very important and inexpensive, so don't overlook them.
10. Although companies very greatly on this how you would be paid in case of a total loss is very important. Most boat insurance policies that are attached to a homeowners policy usually only offers an actual cash value basis. Many of them do not offer on an agreed value basis. But many standalone boat insurance companies will cover your boat on an agreed value basis, provided your boat qualifies.

Summary: it would be a great idea for you to review this checklist at the same time while looking at your boat insurance coverage. How does your boat insurance policy stack up? If you're finding a lot of holes in your policy as far as how much or what is covered, perhaps you should shop around for other boat insurance quotes.

This thing will probably surprise you the most is the boat insurance policies with very adequate coverage don't cost that much more than a lousy boat insurance policy. So make sure you have proper and adequate coverage before taking your boat out on the water this year.


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