what? everybody needs insurance!!!. updated on: apr 11 2013 08:44:28 am cdt madison, wis. - a new...

INSURANCEWhat? Everybody needs insurance!!!

Updated On: Apr 11 2013 08:44:28 AM CDT MADISON, Wis. -

A new report says about 400,000 fewer Wisconsin residents obtained health insurance through an employer than a decade ago.The Milwaukee Journal Sentinel reported Thursday the drop comes as fewer employers offer coverage.

Insurance-–Protection against possible financial loss--loss/damage to property, personal illness or injury, etc.

Self Insurance--Putting money normally paid for insurance into savings for use if/when loss occurs

Insurer/Insurance Company – risk-sharing business that agrees to pay for losses

The following are actual statements found on insurance forms where drivers attempted to summarize the details of an accident in the fewest possible words.

I had been driving for 40 years when I fell asleep at the wheel and had an accident.

Amusing Insurance Claims

My car was legally parked as it backed into the other vehicle.

I thought my window was down, but I found out it was up when I put my head through it.

Policy--Contract purchased from insurer stating it will cover losses of the policyholder as long as certain criteria are met

Premium--Fee paid for insurance policy

Coverage--Protection provided by terms of the policy

Deductible--Amount insured is responsible for paying before insurer begins to pay

Co-Pay--Amount insured is responsible for paying after deductible has been paid (ex. 80/20 copay means insurance company will pay for 80% of costs after deductible has been paid and insured will pay for 20%)

The pedestrian had no idea which direction to run, so I ran over him.

To avoid hitting the bumper of the car in front, I struck the pedestrian.

An invisible car came out of nowhere, struck my car, and vanished.

More Claims

Risk--Chance of loss or injury – higher risk means more money charged to insured – usually broken down into personal, property, and liability

Peril--Anything that may cause a loss (fire, windstorm, explosion, robbery, accident)

Hazard – anything that increases likelihood of loss (bad electrical wiring, driving record, etc.)

Negligence--Failure to take ordinary or reasonable care to prevent accidents (ex. not clearing ice from sidewalk)

Risk Management

-Risk Avoidance--take care to avoid situations where there is risk (don’t drive in bad weather)

-Risk Reduction--decreasing likelihood of harm (wearing seatbelt)

-Risk Assumption--taking on the risk of loss if you know loss will be small (not getting full insurance on older car)

-Risk Shifting--transfer financial risk to insurance company

Claim--request for payment to cover loss

Liability--legal responsibility for the financial cost of another person’s losses or injuries (even if it isn’t your fault)

Motor Vehicle Insurance

Financial Responsibility Law--Law requiring drivers to prove they can pay for damages/injury caused by auto accident – 49 states require insurance

Uninsured Motorist Protection--Insurance that covers accidents with uninsured (or underinsured) – usually only covers medical expenses, not car

I had been shopping for plants all day and was on my way home. As I reached an intersection, a hedge sprang up, obscuring my vision and I did not see the other car. The other car collided with mine without giving warning of its intentions.

In an attempt to kill a fly, I drove into a telephone pole.  

Additional Claims

Bodily Injury Liability--Insurance covering physical injuries caused by accidents you are responsible for--covers damage to others

Medical Payments Coverage--Insurance covering medical expenses to people in car (including you)

Property Damage--Insurance covering damage to property of others

Collision--Insurance covering damage to your vehicle, regardless of fault, but limited to value of vehicle

As I approached an intersection, a sign suddenly appeared in a place where no sign had appeared before. I was unable to stop in time to avoid the accident. The indirect cause of the accident was a little guy in a small car with a big mouth. I told the police that I was not injured, but on removing my hat found that I had a fractured skull.

Claims

Comprehensive--Insurance covering damage in non-accident situations (fire, theft, vandalism, hail, etc.)

No Fault Insurance–-Drivers who are involved in accidents collect $ from own insurance company, regardless of who was at fault

Other Coverage--Wage loss insurance, towing insurance, etc.

Factors That Impact Premium Cost

All based on statistics and likelihood of insurance company paying out $

-Vehicle Type--year, make, model of car; value; safety rating; theft prevention; ABS; engine; 2 door vs. 4 door; frequency of theft-Territory--based on where you live (number of accidents, thefts, etc.)

-Driver Classification--age, sex, marital status, driving record/habits; grades (younger drivers)

VEHICLE INSURANCE TIPS

• Shop around for best rate/coverage

• Increase your deductible

• Consider only liability insurance with older vehicles

• Maintain a good driving record

• Purchase vehicles that cost less to insure

Renters & Homeowners Insurance

Renters--Protects personal property and liability when you live in rental property, but doesn’t include structures

Homeowners--Protects personal property and buildings/other structures you own on your property, as well as liability for injury on your property

COST

Renters==$12 average

Homeowners==$644 average in Wisconsin 2012

COVERAGE

Usually---FireLightningWindstormHailExplosionSmokeVandalismMalicious MischiefTheftWater related damage from utilitiesElectrical surge damage

Notice what is NOT on the list:FloodingMoldAnimalsEarthquakesHome BusinessesValuable Personal PropertyYour Future Assets

An umbrella insurance policy help protects you and your future earnings if you're in a serious automobile accident or if someone is injured at your home. This type of insurance provides liability coverage in excess of your auto and home policies to protect your net worth.

ADDED COVERAGE

You can add on to your initial policy. If I wanted to protect all my computer stuff beyond what the policy states, I could add on additional coverage. The more add-ons, the higher the premium.

WHAT ARE YOU TALKING ABOUT NOT COVERED!!!!

Make sure you understand that you are not covered by anything happening, it is limited.

You are not covered by your landlords insurance policy if something happens when renting.

Make sure that you are not paying more for coverage that you would never need. There isn’t too much need for earthquake insurance around here.