Hello! I'm Dan Lyles with Lyles Insurance. And in this video, we're going to cover a very often asked question: Should I carry Comprehensive and Collision coverage on my auto insurance?
As you can see here, there are five major parts to an auto insurance policy. And Comprehensive coverage and Collision coverage kind of work hand-in-hand as the fourth and fifth parts.
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Comprehensive and Collision coverage together provide the physical damage coverage on your vehicle. Now, while these are both optional coverages, if you finance your vehicle, your bank is going to require you to carry both Comprehensive and Collision coverage until your loan is paid off.
So now, let's go over what Comprehensive and Collision actually covers. And the best way to understand it is to learn it backwards. Collision coverage pays for damage to your vehicle from an accident. Whether it be just a two-car accident, a one car where maybe you ran off the road and hit something and damaged your vehicle, or multi vehicle accident. Anything like that is under Collision coverage. Comprehensive coverage, which is also known as “Other than Collision” coverage in some states, it pays for damage to your vehicle for just about anything else. Examples include theft, fire, vandalism, weather damage, hitting a deer, things like that. They both pay for damages to your vehicle up to its market value minus whatever deductible you choose.
So now let's dive into the question: Should I carry Comprehensive and Collision coverage? And this applies whether you already have Comprehensive and Collision coverage on one or more of your vehicles. Or if you're looking for a new policy and a vehicle to insure. The main thing to remember is that the coverage amount offered on both Comprehensive and Collision coverage will slowly drop over time as your vehicle depreciates in value. And this leads to much debate about when is the right time to drop or pass on it. Some suggestions you might hear people say, is to drop it as soon as you've paid off a car loan. Some say when your vehicle reaches a certain age or whether your vehicle(s) market value drops below a certain amount. Keep in mind there isn't a right or wrong answer. My suggestion is to do the math and decide for yourself. And I'm going to help you with that.
Before we get into doing the math, it's important that you understand how deductibles work. Deductibles are your out-of-pocket expense whenever you have a Comprehensive or Collision claim. Let's suppose for example that you have damage that costs two thousand dollars to repair: If you have a 250 dollar deductible, a claim would pay out $1,750 (2000 - the 250). Same with the $500 deductible. A claim would pay out $1500. Or, if you had a thousand dollar deductible, the claim would pay out a thousand. So deductibles have an inverse relationship with price. The higher the deductible, the lower the premium (but of course that also means more out-of-pocket money if you have a claim. And vice versa, the lower the deductible, the higher the premium.
The best way to determine whether to keep or drop Comprehensive and Collision coverage is to simply do the math and decide for yourself. In order to do that, you just need to know three variables: the market value of your vehicle. What deductible you are carrying. And also, find out how much extra premium that you're paying just on the Comprehensive and Collision parts, and add those together.
So to do the math, you simply take the cost of premium for Comprehensive coverage. Add that to the cost of premium for Collision coverage. And compare the total with the market value of your vehicle minus the deductible. This will allow you to answer two key questions: Number one, How long would it take of paying the extra premium to equal the market value minus the deductible on your vehicle? And number two, If you were to drop Comprehensive and Collision coverage, could you afford to replace your vehicle if you were to total it? And again, there are no set right or wrong answers to this question. This is something you need to decide for yourself.
I hope this video has helped you understand the thought process of comparing whether or not it's worth it to keep or drop Comprehensive and Collision coverage. If you have any questions, I'll be happy to help you. I've posted links to my auto insurance web page, my email address, and my phone number. And if you would like for me to personally run you a quote, and you live in Ohio, Indiana, Pennsylvania, Michigan, Virginia or West Virginia, click on and fill out the quote link below. And I'll be happy to run you a quote and get back to you with prices. Thanks for watching. And have a great day!
Link from video: Auto Insurance Page
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Hello! I'm Dan Lyles with Lyles Insurance. And in this video, I'm going to explain why anonymous online auto insurance quotes are useless.
I'm sure you've seen ads from some auto insurance companies using the buzz phrase “get an anonymous online quote” in their commercials. But are those anonymous quotes all that they're cracked up to be?
If you look at how auto insurance companies calculate rates, you're going to find two major problems with anonymous quotes. Number one, they are very inaccurate. Without knowing who you are, the best they can do is a ballpark guess. There's no way to get a quote accurately without knowing your identity. Number two, it's very inefficient. Because by getting an anonymous quote, you're only quoting with one auto insurance company at a time.
There are two major reasons why anonymous quotes are not accurate. Number one being credit. Almost all companies use credit at least to some degree as a rating factor. If they don't know who you are, it's nearly impossible to gauge that score accurately. Even if you monitor your credit closely and know your FICO scores, remember the auto insurance companies weigh credit differently than what a credit card company would or what a loan company would, and they're not really relevant. The second reason is CLUE factor. And CLUE is simply a report of your insurance policy and claims history. Again, if they don't know who you are, that becomes irrelevant as well. So what happens is, you'll get this low rated quote. And then when you go to buy a policy, all of a sudden at the last minute, it'll jump way up. I've seen this happen so often with anonymous quotes.
I quickly want to go over privacy and efficiency concerns because they're both very important also. Privacy concerns: We always hear about companies getting hacked. The good news about auto insurance is, if you avoid a couple things, you're going to avoid the vast majority of your problems. Number one: Stay away from lead generation sites! I'm going to talk more about that on the next slide. And number two, make sure you're getting an online quote from a secured website, which is easy to do now because all browsers show whether or not the website is secure. Efficiency concerns: This helps you with prices. And the best way to do is to get a quote from an independent agent. Because they have more than one company that they can quote you with at once. And this gives you the best chance of getting the best rate.
As far as lead generation sites and why they are so bad, you’ve got to understand how they operate. They look almost exactly like any typical insurance agency website, or any auto insurance company's website. The only difference is they don't sell auto insurance at all. They just take your information and then sell them to other auto insurance agents. And the problem is, a lot of them are shady and sell to dozens of agents at once. And so when this happens, your phone just blows up! And that's where the privacy comes into play. You don't know with that many people who they're selling them to. And the easy way to spot these sites is what I call look for a “NAP”, which is name, address and phone number. That's the easy way to bust these sites out. Any legitimate agency or company is going to have their name, address and phone number displayed prominently on their website. If it's not on their homepage, it'll be on their “About Us” page. But that's a good way to tell the difference between a legit site and one of these phonies!
I hope by now that I've talked you into not getting an anonymous online auto insurance quote for the reasons I've mentioned. But if you'd like some more information about auto insurance, visit my website. I've got an auto insurance page that I've included a link to. And also my blog, which I've included a link to. Which has a couple hundred articles and quite a lot of videos like this one. And also, for anybody living in Ohio, Indiana, Virginia, Michigan, Pennsylvania and West Virginia: If you'd like to have me personally run you a quote, I've also included a link to where you can fill out an online quote. And I'll get back with you with prices. Thanks for watching and have a great day!
Link from video: Auto Insurance Page
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Hello. I'm Dan Lyles with Lyles Insurance. And in this video, we're going to help drivers who need auto insurance but don't own a vehicle. As you're probably aware, you can't buy regular auto insurance unless you have a vehicle to insure. So if you need insurance, how do you do so without a vehicle? This video is going to help you with that.
Why would a driver who doesn't own a vehicle need auto insurance? Well, there's a couple reasons. Sometimes it's an employment requirement. But most often it's because a driver needs a state filing, which is usually an SR22. Virginia drivers also have FR44 filings, and Indiana drivers sometimes see SR50 filings. And what happens is, when a driver gets their license suspended, the state motor vehicle bureau will require them to carry one of those filings for three years. And this reinstates their license and keeps it valid. None of these filings are actually auto insurance. They're just a state filing that attaches onto an auto insurance policy. So if you don't have a vehicle to insure on a regular policy, your best option is to buy what's called a Named Operator auto insurance policy. It's also known as a non owner’s policy. And any of the above three state filings will attach onto it.
Let me briefly go over the basics of a named operator auto insurance policy. It's a special type of policy that only offers secondary coverage, meaning it's not primary auto insurance like a regular auto insurance policy is. So when you drive someone else's vehicle, their regular auto insurance policy is your main coverage. A named operator policy only pays out on a claim if the owner’s auto insurance policy didn't have enough coverage to pay for all the damages. A named operator policy also does not offer any coverage on a vehicle that you own, or any vehicle owned by anyone in your household.
Coverage is limited on a named operator policy. Unlike a regular auto insurance policy which offers five major parts, a named operator policy only offers three of them: Which is liability coverage, uninsured or under-insured motorist coverage, and medical payments coverage. The two major parts of an auto policy that a named operator policy does not offer is Comprehensive and Collision coverage. Which of course some people put together, call it full coverage. It's the actual physical damage coverage on the vehicle you're driving. That's not available on a named operator policy.
As I mentioned earlier, a named operator policy won't cover you driving your own vehicle. So what happens if you take out a named operator policy and then later on buy a vehicle? Well, the good news is that a named operator policy can easily be converted into a regular auto insurance policy once you have a vehicle to insure. It just takes a few minutes and a call to your agent to get it taken care of. And if you need a state filing, it won't affect your filing in any way.
So where do you find a named operator policy? Because not all companies offer them. The best place to look is an independent auto insurance agent who has multiple companies to quote you with. That will save you the trouble of shopping around for the lowest rate. Let them do the dirty work for you. And for those of you who live in Ohio, Indiana, Virginia, Michigan, Pennsylvania or West Virginia, if you'd like a quote, I will be very happy to help you or answer any questions you have. I've put a link to my website for named operator insurance there at the bottom. Or if you'd rather give me a call, I've also included my phone number. Thanks for watching. And have a great day!
Link from video: Named Operator Page
Vehicle Owners: Get an FR44 Auto Insurance Quote with Lyles Insurance
Non-Owners: Get an FR44 Named Operator Quote with Lyles Insurance
Call me for a Quote
Hello! This is Dan Lyles from Lyles Insurance. And in this video we're going to cover a very common question: What is Virginia FR44 auto insurance?
So first, what is an FR44 filing? Contrary to popular belief, it is not auto insurance. An FR44 is simply a state filing that attaches onto an auto insurance policy. And it's for drivers
who have a suspended license, but they need to get their license reinstated.
As far as the purpose of FR44 filings, it lets the Virginia DMV know that you're carrying active auto insurance liability coverage. Once the DMV processes your FR44, your license will be reinstated (assuming you met all other requirements). And it will remain valid as long as you keep this policy active. For most of you, not everyone, but the vast majority of
you, you’ll be required to carry an FR44 for three years.
Here's the bad news about an FR44 filing. If you ever cancel or lapse on that policy. the auto
insurance company is required by law to notify the Virginia DMV. And the way I like to explain it is they're required to “tattle” on you, telling them that you cancelled your policy. Once that happens your license will be suspended again until you either reinstate the old
policy, or buy a new one with another FR44 attached.
It's important that you select the right level of liability coverage when you need an FR44 filing. In Virginia, the state minimum liability limit is 25/50/20. However, when you need an FR44, you've got to carry at least double that, which is 50/100/40. If you'd like more information about what those numbers mean, I've posted a blog article that I wrote which
explains it more thoroughly at the bottom.
It's very important that you attach your Fr44 onto the right type of policy. And it's real simple. If you own a vehicle, just take out a regular auto insurance policy with a company that writes FR44 filings, and attach it on to that. It's that simple. Now, if you don't own a vehicle, you'll need to take out what's called a named operator or non owners policy. Either way the FR44 will attach on to get your license back.
Now there is a second option if you own a vehicle. Some drivers choose to pay for two separate policies at once. They'll take out a regular auto insurance policy without the Fr44 just to insure their vehicles. And then they'll take out a named operator, non-owners policy and put the Fr44 onto it just to keep their license valid. There's nothing wrong with doing this. And for a small percentage of you, it's a good idea. But the vast majority of you need to forget about it because it usually comes out more expensive that way.
So I hope you've learned from this video what you need to know about FR44 filings. If you have any questions, or you want to get a quote, I've posted links here to both my blog, which has several articles about FR44s. I've also posted online quote links for me to run you a
quote personally, for both vehicle owners and non owners. Or if you'd like to just give me a call and talk to me personally, I've posted my number at the bottom. Thanks for watching and have a great day!
Link from video: SR22/FR44 Auto Insurance Page
Hello! I'm Dan Lyles with Lyles Insurance. And in this video, we're going to go over the right way and the wrong way to insure your collectibles.
It's important to insure your collectible items of significant value just like it's important to insure any type of property of significant value. However, when it comes to collectible items, insuring them properly involves making right choices versus making wrong choices. And if you're not aware of the pitfalls to look out for, it's real easy to make the wrong choice. And that's what this video is about, is to give you a heads up and let you know what those pitfalls are to look out for.
First, let's go over the wrong way to insure collectible items. Insuring collectibles as attached scheduled items on a homeowners or renters insurance policy has many shortcomings. And this is where most people make the mistake. There are several problems with an attached policy. It has exclusions that are not found on a good collectibles policy. They only pay claims on an actual cash value basis (meaning just its market value). It almost always has a deductible. Very few policies will ever offer a zero deductible policy if
it's attached to another policy. And it doesn't offer additional coverages that a good collectibles policy does.
So now let's go over the right way to insure collectibles. A standalone exclusive collectibles policy offers much better coverage than one that's attached to another policy. And like I
mentioned before, there is little to no difference in premium between a good policy and a lousy one. So it makes it a no-brainer to go with better coverage for about the same price.
Here are some reasons why an exclusive collectibles policy beats an attached policy. It pays claims on an agreed value coverage basis, which means you know up front exactly what your items are being insured for. It offers zero deductible option, which of course is your out of pocket expense. It does not have those crazy exclusions that you'll see on an attached homeowners or renters policy for collectibles items. They offer extra types of coverage that you won't get on an attached policy. And you don't have those maximum coverage limits like many attached policies do.
Now, there are several very good companies out there who will offer standalone collectibles
insurance with the right coverages for the right price. My personal favorite happens to be American Collectors Insurance. Now I'm a little biased because my agency has carried them for several years. But I'm very happy with them. They're the leading company in collectibles insurance and they offer all the top coverages for very little premium. And as you see here,
the yearly premium is usually less than 1% of the total insured value.
Here are some other major benefits of insuring with American Collectors Insurance. First, they have excellent claims handling service by people who specialize in collectibles. They don't require appraisals where most collectors companies do. They offer inflation guard protection, in which your actual agreed value coverage increases yearly. This is a big one because it helps offset inflation, and it will also help if you have an item that appreciates in value. And they cover things that a lot of attached lousy policies won't cover. Examples include accidental breakage, fire, flood, theft, hurricane, earthquake and other things. You've got to look on the policy to see what's covered and what's not to really tell the difference between a good policy and a lousy one. And also, American Collectors Insurance
provides coverage while your items are being shipped, stored outside of your residence, or used for special occasions.
Here's a list of the items that American Collectors Insurance insures. It isn't all exclusive, but it's the vast majority of them. And as you see, that they're willing to insure a lot of things. You can see a lot on this list.
As far as things that American Collectors Insurance does not insure, only a few things: jewelry, furs, furniture, fine art and also items that you use for commercial or business purposes. But other than that, they'll insure just about any other collector's item.
So I hope you've learned what you need to know about insuring your collectible items properly. If you'd like some more information, I've listed my collectibles insurance webpage from my website on the top link. Or for those of you who live in the territory that I'm licensed in, which includes Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia, if you'd like for me to run you a quote, I'd be happy to do so. I've also provided a link to my quote form or I've also added my phone number, if you'd rather give me a call. Either way would be just fine. And I'll be happy to help you. Thanks for watching. And have a great day!
Link from video: Collectibles Insurance Quote
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..