What’s the difference between full coverage & liability only for car insurance?

 

Car insurance can be a tricky subject for anyone. How do you know whether your car needs liability only or full coverage? Do you know the difference? Has anyone ever explained it to you? Here are some key points about what each means and which makes the most sense for your car.

Liability only simply means that you are only insuring the bodily injury or property damage of someone ELSE. If you’re in an accident that is your fault your insurance will pay for the other party’s vehicle and their possible injuries. You would be on the hook to repair or replace your vehicle. However, if you’re in an accident that is the other party’s fault, THEIR insurance must pay for your damages to your car and potential injuries.

Full coverage means you are insuring for both the other person’s injuries and damages as well as for your own car’s potential damages. Keep in mind that there is are deductibles attached to this full coverage option that will come into play in the event of an accident. Also, it is important to note that this option is more expensive than liability only because the insurance company is taking on more risk in the event of an accident. Full coverage may also mean that you carry towing, rental reimbursement, and loan/lease gap coverage, but not all agents would consider that as a part of the full coverage option. Make sure you check on that prior to insuring your car.

Now that you know what the difference between liability only and full coverage is; how do you decide which one you should have? This can be complicated and in most cases it really comes down to personal preference.

Generally speaking, if your car is older (more than 10 years old) and has high mileage, you may want to consider having liability only. By the time you would pay your deductible and the extra cost for insurance, it might not be worth it to have full coverage on an older car.

Full coverage, on the other hand, is required when you have a loan on the car or it is leased. The bank will require you to carry this coverage so their loan will be repaid in the event you total the car in an accident. Even if the car isn’t leased or financed, this might be the right coverage for you if your car is newer and has low mileage.

Your insurance agent should be able to offer their advice on this subject by going over the items mentioned above. Feel free to call us at 440-236-5041 or email us at info@frankclarkeagency.com and we would be more than happy to offer our own advice. You can also complete the form below for a car insurance quote.  Just remember, though, the decision is ultimately yours.

Meet our newest family member!

Say hello to the newest member of the Frank Clarke Agency family!

Jameson Joseph Green was born 7/27/14 at 9:59am weighing 8 lbs. 2 oz. measuring 21″.

Frank is the proud great grandfather, Colleen is the proud grandmother, and Nikki and Sean are the proud aunt and uncle!

Congratulations Kristin & Donny!

jameson

Sean Puckett published in Insurance Magazine

Sean Puckett, our resident Nonprofit Specialist, was recently interviewed for Best’s Review.  Best’s Review is a leading insurance industry periodical.  He makes some great points about what types of insurance coverages that nonprofits should have.  Check out the article here:  Sean’s Article.

sean

What our customers think of us!

We recently received a very nice testimonial from one of our long time insureds.  Thank you, Nadine!

 

I’ve been dealing with the Frank Clarke Agency since January of 2000.  All of the staff have been extremely helpful and very professional providing immediate responses to all my needs.  Kudos to the staff and I would recommend them for all your insurance needs.

-Nadine Perry, Things to Move, Inc. (Medina, OH)

Why You Need Renters Insurance

TEN REASONS WHY YOU REALLY NEED RENTERS INSURANCE

 

  1. Your landlords insurance doesn’t cover your stuff.  If there was a fire, the landlords coverage would repair the building itself but will not cover any of your possessions.
  2. If you are put out of your apartment because of a fire or pipe bursting, your policy would pay your “additional living expense” to live somewhere else.
  3. If you are put out of your apartment because of a fire or pipe bursting, your policy would pay your “additional living expense” to live somewhere else.  The burglary rate per 1000 households is 53% higher for renters than for homeowner households.   Likewise, the theft rate is 41% higher for renter households.*
  4. Your personal possessions would be covered worldwide, like when you are on vacation and your suitcase and laptop are stolen from your hotel room.
  5. Your Liability coverage protects you if you’re sued and this coverage follows you everywhere. What if you throw a party and a guest slips and falls on your bathroom floor and sues you?  You would be covered up to your policy limit for the court judgment and legal expenses.  The same is true if your wayward golf ball injures someone else out on the course, or you accidentally trip someone on the dance floor resulting in a broken leg.  Accidents can happen anywhere.  You need to protect your assets and your future earnings against a judgment.      
  6. Renters’ policies also include Medical payments to cover the medical bills of an injured guest in your apartment.
  7. As a tenant, you could be liable for property damages.   If you leave the water running and it seeps down through the floor causing damage to property of the tenant below, you could be liable for the whole soggy mess.
  8. Renters Insurance is CHEAP!  For about the cost of one large pizza a month, $10-$20, you can protect yourself from a huge financial loss.
  9. There are usually discounts available if you purchase a renters policy from the same company that insures your car.  Sometimes the discount given on your auto policy almost pays for your Renters policy.
  10. The cost of replacing all your stuff adds up!  Take a moment and list all the things you couldn’t live without.  What would it cost you to replace your iPod, cell phone, game system, laptop, TV, golf clubs, all the clothes in your closet, your CDs and DVDs?    Can you afford to be without Renters Insurance? 

  *US Bureau of Justice Statistics, 2005 National Crime Victimization Survey

**NEW REFERRAL PROGRAM FOR 2014**

 

 

We have a new referral program for 2014.  For every referral you send us, we’ll send you 3 lottery tickets, enter you into a monthly drawing for a $50 gift card AND enter you into a yearly drawing for a 42″ HDTV!!

STARTING SENDING THOSE REFERRALS TODAY!!
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Be A Common Sense Host

Holidays and special events often include celebrations that bring together families and friends in homes across the country.  Food, fun, talk, and spirits flow generously and, unfortunately, so do injuries and accidents.  Increased drinking leads to increases in personal tragedies and the consequences can be substantial.

Hosts are magnets with regard to party consequences.  Hosts are given the credit for the enjoyment that their guests experience at a party.  On the dark side, party-givers are also asked to bear partial or full responsibility for guests who cause damage or injury on the way home from a gathering.  In other words, they may be sued for contributing to losses caused by alcohol-impaired guests.

Although hosts are often found legally culpable for accidents; the brunt of responsibility has to be faced by the individuals who directly cause a loss.  There would have to be strong evidence to support a host being held financially responsible, since any involvement is indirect.  For example, Jane provides drinks to Barrie, who then plows into the side of Chris’ car and garage.

While a homeowners policy may offer coverage if a host has substantially contributed to a loss, an insurer may be able to deny a claim for a number of reasons, including:

  • A gathering involves the host making an income.
  • The involvement of paid bartenders.
  • The party is thrown as a fundraising event.
  • A host’s knowledge that the guest was impaired and continued to serve liquor.
  • The host failed to make arrangements for impaired guests (designated drivers, taxis, lodging, etc.).
  • Local or state law(s) related to providing alcohol.

Hosts who take their responsibility seriously are those who make sure that parties are thrown responsibly, are done as a social (rather than business) event, and that the chances of sending drunken guests on the road are minimized.  A good host will make sure that food is available, that  a liquor supply under his or her control is cut-off and that impaired friends or relatives are prevented from endangering themselves or others.  No celebration should end up with a lawsuit.

This information is taken from Insurance Publishing Plus, Inc. c. 2013

What is Business Interruption Insurance?

Business Interruption Insurance

Business interruption insurance can be as vital to your survival as a business as fire insurance. Most people would never consider opening a business without buying insurance to cover damage due to fire and windstorms. But too many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable. Business interruption coverage is not sold separately. It is added to a property insurance policy or included in a package policy.

A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential.

Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster, it can take more time than many people anticipate to get the business back on track. There is generally a 48-hour waiting period before business interruption coverage kicks in.

The price of the policy is related to the risk of a fire or other disaster damaging your premises. All other things being equal, the price would probably be higher for a restaurant than a real estate agency, for example, because of the greater risk of fire. Also, a real estate agency can more easily operate out of another location.

Extra Expense Insurance

Extra expense insurance reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period. Usually, extra expenses will be paid if they help to decrease business interruption costs. In some instances, extra expense insurance alone may provide sufficient coverage, without
the purchase of business interruption insurance.
Source: Insurance Information Institute

Independence Day

Happy Independence Day!!!

We hope you have a fun-filled, safe holiday weekend!

Our office will be closed Thursday & Friday.

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How Often Do Dogs Bite?

 

Here is an infographic that tells the story of how often – and who – dogs bite.  Click on it to enlarge it.  Pretty interesting, huh?dog-infographic2