It is astonishing these days the percentage of TV ads that are devoted to trying to convince you to switch auto insurance companies to save money.  It has almost become the case that the noise level from some of these insurance companies with huge ad budgets is so loud that we almost don’t notice them anymore.   A recent 2009 survey found that only 14 percent of people who shopped around for a better rate on their car insurance found that they could save money by switching.  Still, the ads play on and each one tries to come up with a gimmick that will entice you to call them and start shopping.  So what about these gimmicks, are they for real or just marketing hype?  Let’s pull back the curtain and see what is behind some of the claims in these ads.

Let’s start with the vanishing deductible plan that Nationwide offers.  It sounds simple on the surface; Nationwide will cut $100 off of your deductible for each year that you don’t cause an accident or file a comp claim such as glass breakage, vandalism or theft of your vehicle.  Now, if you do have a claim that involves your collision or comprehensive coverage, your deductible will then go up to it’s original level, minus a $100 sign up reduction.  But, at most, only $500 of your deductible can disappear.  What you don’t see in the ad (unless you can speed read the blurry 6 point font at the bottom of the screen) is that you have to pay $60 per year per car for this feature.  So, breaking that down, you are paying $60 per year for $100 of protection that you may never need.  This my friends,  is not a good deal for you, but it is a great deal for Nationwide.  A much better plan if you are truly a safe driver and have few claims, is to take the highest deductible that you can afford and apply the savings to making sure that you are purchasing high liability limits.

What about the Progressive Insurance snapshot program?  To begin with, this is only available in 39 states and right now North Carolina is not one of them.  But you won’t clearly know that from watching the ad.  This program plugs a big brother like device into your car and transmits your driving information to the insurance company.  In general, I like the idea of rewarding good drivers for their good driving habits but let’s face it, you will have to be cream of the crop to beat out the others who are participating in this plan.  Under a voluntary system, only the safest drivers will sign up and that is your competition for the discounts.  Worse yet, it’s a bit like having your insurance agent riding in your back seat all of the time watching you.  It’s really a bit creepy in terms of your privacy.

Allstate’s accident forgiveness ad is another program that may turn out not to be a great a deal as the ad makes it seem.  First of all, you will have to pay extra to enroll in this program.  And in North Carolina, there is already a first accident forgiveness program built into the regulations.  To learn more about that, click here.   For safe drivers, the Allstate program means that you may be paying for something that you will never need.  And the rebates for safe driving have to come from somewhere.  Well, you probably guessed it, they need to collect this money from you in advance in order to give it back to you later.  Allstate recently reached an agreement with California regulators to stop selling their Your Choice program there after a lawsuit alleged that the program overcharges policyholders and that the costs for this program were deceptive.

My advice is that you take the time to find an independent insurance agent that you trust.  Choose one that will take the time to listen to your situation and your needs and then go out and shop the marketplace of insurance companies to find the one that is best for you right now, and going forward into the future.  Car insurance is complicated and important.  You are trying to protect all of your possessions and your income stream and this should not be a do it yourself project.

At Clinard Insurance Group, we are a NC independent insurance agency.   We insure over 5000 families all across North Carolina and we want all of our clients to be informed insurance buyers.  We will take as much time as you need to be sure that you are comfortable and have a full understanding of the insurance policies that you purchase from us.  If we can help you with your homeowners insurance, your auto insurance, your life insurance or even your business insurance, please call our office, toll free at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

Vicarious liability is a legal term that describes a situation where you or your business becomes liable for the actions of another because of a special relationship that you have with this other person or company.  For instance, if you hire a subcontractor to work on your job site and you don’t know that this person has a drinking problem and they get drunk on the job and injure another worker, you could be held responsible for the injuries.  There are many possible ways that vicarious liability can impact you or your business and it’s very important that you take the time to study these exposures with an eye to how you can reduce potential losses and how you can use various business insurance policies to protect your company.

One of the most often overlooked types of vicarious liability for employers comes from actions of their own employees and managers with each other.  If one of your managers is harassing an employee with sexual innuendos and remarks, then you and your company can be sued for sexual harassment.  The insurance policy that you need to help protect you from this type of loss is called Employment Practices Liability Insurance.  Very few businesses understand this policy and even fewer have taken the care to purchase one. 

Another common form of vicarious liability stems from the use of vehicles that you don’t own.  If you send your receptionist to the bank and post office to take the daily deposit and pick up the company  mail, then you have a vicarious liability exposure from this activity.  If your receptionist runs a red light and kills someone, her insurance may not be enough to pay this claim.  In that case, your company is probably next in line to pay for the injuries and damages.  If you knew that your receptionist had a drinking problem and she was drunk during this accident, it’s even possible that you might move up to the front of the line in terms of liability.  To protect yourself from this type of vicarious liability, you should add non owned auto liability coverage to your business auto policy or to your businessowners insurance policy.

Businesses in industries that require the use or hiring of security guards or security firms face huge vicarious liability exposure should those security personnel use excessive force in protecting people or property.    If the guard has any history of physical abuse then the employer is at even greater risk as it is the employer’s duty to discover these kinds of past behavior with background checks and other care.

If your company handles any personal identity information for your clients, then you must carefully consider those employees who handle the information as well as those who might be able to get their hands on it.  If you hire a temporary worker during a busy time or a holiday season, then your vicarious liability risks will increase during that time.  You should protect yourself by performing the appropriate background checks on the temporary worker before they enter your office environment.

It’s clear that vicarious liability handcuffs you legally to others with whom you have special business relationships.  That connection may not feel so special if you are being dragged into court because of that person or that firm’s actions.  Protect yourself on the front end by learning all that you can about a person or company who may bring vicarious liability into your sphere.  Also make sure that you have run through the risk scenarios with your insurance agent to make sure that you have the protection that you need and want from your insurance policies.

At Clinard Insurance Group, located in Winston Salem, NC, we want all insurance consumers to be informed buyers.  If we can help you and consult with you about your insurance and protection needs, please call us, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.