Home Inventory Tips & Tools

According to a 2012 survey from the National Association of Insurance Commissioners (NAIC), more than half of Americans don't have a home inventory of their possessions, putting them at risk for inadequate home insurance coverage, should a disaster strike.

Home inventories are invaluable for showing insurance companies what you lost in a break-in, fire, or other catastrophe. “The information you place in your home inventory can make insurance claim settlements faster and easier,” said Ken Goodwin, California Licensed Property & Casualty Insurance Broker and Principal Owner of Pacific Preferred Insurance Agency in Oxnard. He added, “It’s also been a great way for us to determine whether our clients may need personal property limits higher than already specified in their policy.”

Taking pictures or recording video of the contents of your home is the recommended method of taking stock of your possessions, according to Goodwin. Armed with a digital camera or camcorder it's easy to shoot as many pictures or minutes of video as you need. Always take an extra few seconds to snap a picture or zoom in on the serial numbers and the important details of your possessions—flip a piece of china over to show the make, take a close up picture of a stamp or proof mark on an antique that shows the age and value, etc. Burn the pictures or video to a DVD and/or upload them to a secure account online to ensure you have them when you need them.

Know Your Stuff® - Home Inventory, the Insurance Information Institute's free online home inventory software is a good solution. The application makes creating and updating your home inventory easy and efficient. And with their free, secure online storage you will have access to your inventory anywhere, any time.

You can also download the new Know Your Stuff® — Home Inventory app to your iPhone. It is available in the iTunes App Store (or search for "III Inventory").

Information about your belongings, including adding rooms, items and photos, can be entered either through the iPhone app or through the Web-based software and your data will automatically synchronize between the two. All of your information will be kept in your personal, password protected account, on Amazon secure servers. And, like the online version, the Know Your Stuff® app is easy to use and free of charge.

If you would like to learn more you can visit www.knowyourstuff.org or www.pacificinsuresme.com

Determination of “Principally At-Fault” Accidents in California

In 2011, The California Department of Insurance made changes to California Administrative Code Title 10, Section 2632.13 Determination of “Principally At-Fault” Accidents.
This section explains the procedures an insurer should follow to determine whether a driver may be considered principally at-fault for an accident for the purpose of determining the driver’s driving safety record and eligibility for the Good Driver Discount.

Effective last December, insurance companies made the following changes to adhere to these requirements:

• Insurance carriers will record a claim as “Chargeable – Damage to Property Only” with the surcharge of (1) Good Driver point where:
• The driver is greater than or equal to 51% at fault; and
• No CA-specific fault exemptions apply; and
• Damage is to property only and the damage exceeds $1,000
  Please note: the $1,000 threshold is inclusive of any deductible charges. For example: $500 deductible + $600 collision payout would be considered as chargeable.
• Insurance carriers will record a claim as “Chargeable – Bodily Injury Involved” with the surcharge of (2) Good Driver points in the event that the claim involves bodily injury or death and:
• The driver is greater than or equal to 51% at fault; and
• No CA-specific fault exemptions apply

It is important for consumers to keep any evidence of how a claim was handled in their personal records. California Department of Motor Vehicle records do not show which party was at fault in an accident. If you change insurance companies, you may need to prove to your new carrier that an accident was not chargeable. Keeping a copy of the claims adjustor’s letter can be very helpful. You should keep this information for a minimum of three years. If you don't have this information you may have to ask the insurance carrier at the time of the accident for a letter of experience.

Car Totaled in California: You Have Options

If unfortunately you end up in a serious accident, your insurance company may declare your vehicle a “total loss” or “totaled”. A car is totaled if the cost to repair it exceeds its current value as determined by industry statistics. Insurance companies tend to use databases such as CCC Information Services. For most insurers, the vehicle will be considered totaled if repairs add up to 75% or 80% of market value.  Insurance companies may use factors like age of vehicle, mileage and general condition to figure out the car’s actual cash value. 

Before you decide to accept a settlement amount, be sure to use resources that can easily be accessed online to validate the actual cash value.  For example, use Kelley Blue Book, the National Association of Automobile Dealers guide and Edmunds’ True Market Value appraiser to name a few.  You can always contact dealers to obtain an estimate as well.  You will need this information if you decide to appeal the settlement offer and request for an adjustment.  Whichever database, site, or appraisal source is used, remember, the insurance company has an obligation to restore you to your pre-accident status, vehicle-wise that is.

At the end of the day, if you and the insurance company still can’t resolve your differences, you may have the right under your policy to get an independent appraisal.  In California, the Department of Insurance offers an Automobile Claims Mediation Program, which helps resolve disputes about total losses and other physical damage claims.  Although there is no cost for consumers, the amount of claim must exceed $7,500 and the disputed difference between the policy holder and the insurance company must be at least $2,000.

Sometimes there are good reasons why people might want to keep their vehicle even when it is declared a total loss by the insurance company.  Whether your reasons are sentimental or financial, you can negotiate a deal to buy back the vehicle from the insurance company.  This transaction typically will subtract from the final cash settlement offer whatever the insurer could have received for the wrecked vehicle from a salvage yard.

For instance, if your car is worth $5,000 but the repairs would be $5,800, and you want to buy it back, you would get the $5,000 cash value, minus what a salvage bidder offered -- $1,000 or so – and your deductible. You pay the salvage bid, because that is the money the insurer could have recouped by totaling the car and selling it to the salvage yard.

If what is left over is sufficient to repair your vehicle or you are willing to come out of pocket because you don’t want to part with the vehicle, you can then get it fixed on your own.  But, wait, in California, like in most states, you still will need to deal with the issue of the insurance company reporting the car as totaled to the Department of MotorVehicle.  The title on the vehicle will then show salvaged, which is a way of informing future buyers that the car was severely damaged and totaled at one time.  Additionally, the repairs you get done on the vehicle must pass DMV inspection before it can be re-registered. Although the insurance company may continue to cover it, there might be restrictions that could include eliminating coverage for any future accident repairs.   

Few people want to hear after an accident that an insurance adjuster has pronounced their vehicle a total loss, but it happens.  If it happens to you, the team at Pacific Preferred Insurance Agency hope that this article has helped by making the experience a little less painful and more informed to make the best decision for your own unique situation. We always suggest that you discuss with your agent questions you may have as it relates specifically to your policy.

Insuring Your Teenager: Tips And Tricks For Saving Money

If your son or daughter has recently reached the age when they are starting to drive, you likely already have enough anxiety without thinking about what your teen driver is going to do for your car insurance rates. Inexperienced drivers usually come with high insurance premiums, and having the facts about insuring your teen driver before contacting your insurance company will ensure you are ready to find the best deal possible. Here are some tips to saving on your car insurance if you have a teen driver!

How Insurance Companies Include Additional Drivers - Some insurance companies assign the most expensive car to the most expensive driver, making them the primary driver for that vehicle whether or not this actually reflects the circumstances. If you have a luxury car, this could cost you a fortune. Your options are to buy your teen an older vehicle or switch to an insurance company that doesn't use this method.

Have Your Agent Shop Around - Getting the best deal with any major purchase involves shopping around. Getting quotes from several companies before adding a teen driver may save you money.  Your agent will not only save you money, but saving you time can be just as important, especially nowadays. 

Keep Their Grades Up - Most insurance companies look at factors such as your teen's grades to gauge responsibility, much as they would look at the credit score of an adult. Requiring good grades as a part of their responsibility as a new driver is a good idea, both for them and your pocketbook.

Driver's Education - Taking a Driver's Education course often provides an insurance discount for teen drivers. It will also give them the skills they need to be safe and accident-free.

Increase Your Deductible - This is always an effective way to reduce your insurance rates, but always be sure you choose a deductible that you can safely afford.  It's a good idea to discuss this with your insurance agent.  He or she will be able to guide you best on making the most informed decision.

Keep Your Teen Accident Free - The best way to keep your rates down and your teen safe is to encourage safe driving practices. This includes having rules about when your teen can drive, the number of passengers they can have in the car, and a no tolerance policy if they violate these rules. Driving is a privilege, not a right, and instilling this mentality in them as new drivers will keep them safe through the years.

These tips can help make the cost of insuring your teen a little less stressful.  We recommend that you give us a call today at 805.351.3851 to discuss your options further.  At Pacific Preferred Insurance Agency, we take pride in delivering "preferred service", "preferred rates", and "preferred coverage", for you and your family. 

We want to be your agent for life!

Five Mistakes Good Drivers Make and How to Steer Clear of Them

Don’t become a victim of one of the 6.3 million car crashes that occur each year. Here are five critical mistakes good drivers make and what you can do to avoid them.

Mistake No. 1: Overconfidence

Why it matters: Think you’re a good driver? So do 99 percent of people on the road, according to a National Safety Council survey. Never mind that 93 percent fail to follow basic safety practices like turning off cell phones or obeying the speed limit.

What to do instead: Acknowledge your vulnerability. And even with advanced vehicle safety features, don’t take it for granted that your car is going to protect you.

Mistake No. 2: Multi-tasking

Why it matters: A 2004 study by the Virginia Tech Transportation Institute shows that driver distraction preceded almost 80 percent of crashes.

At 60 mph, you can cover a lot of ground fast — 30 yards per second or the length of a football field in the time it takes to un-wrap a hamburger. If you veer off course, you’d better hope there isn’t a bicycle, pedestrian or vehicle in your way.

Driving under the influence of anything, including everyday distractions, is every bit as debilitating as drinking and driving, experts agree. That includes talking on a cell phone, hands-free or not.  Drivers using cell phones are four times more likely to get into a crash, according to the Insurance Institute for Highway Safety. And a hands-free phone doesn’t reduce the risk.

What to do instead: Think of yourself as an airplane pilot — check controls and settings before you take off.  “Train your eyes to look 12 seconds out so you can concentrate on what’s ahead,” suggest experts. “And remember: smart drivers just drive.”

Mistake No. 3: Failing to Secure Loose Objects

Why it matters: Loose items, from pets to pop cans, cause 13,000 injuries in accidents every year, according to the National Safety Council.

Remember high school physics? In a crash, your car comes to a sudden stop, but anything not battened down keeps moving at the same speed. At 30 mph even the smallest object becomes a dangerous projectile. Think of your 4.4-ounce cell phone as a deadly missile aiming for your toddler with a force of 11 pounds, or two bricks. Or imagine your 60-pound black lab hurling against the back seat with the might of 1,200 pounds.

What to do instead: Put your junk in the trunk. Luggage, laptops and other heavy objects are best stowed in a closed compartment or under a cargo net.  Never place objects on or near the airbag module; even a tissue box is nothing to sniff at when an airbag deploys. Keep pets secured in a latched cargo crate or with a doggy seatbelt.

Mistake No. 4: Drowsy Driving

Why it matters: More than half of American motorists admit to driving while drowsy and one in five say they actually nodded off or fell asleep at the wheel during the past 12 months, according to a report in the New England Journal of Medicine.

What to do instead: Pay attention to your body. Constant yawning, a nod of the head, heavy eyelids, blurred vision and lane drifting are warnings you may be on the verge of falling asleep.  If you’re tired, stop driving. Rolling down the window, drinking coffee and cranking up the stereo are only temporary fixes. You’ll feel more refreshed if you take a 20-minute power nap. During long trips, stop to stretch every 100 miles or two hours. Drive with someone else in the car whenever possible.

Mistake No. 5: Thinking Green Means Go

Why it matters: One in three Americans admitted to driving through a red light or stop sign without coming to a complete stop in a 2005 poll commissioned by Volvo Cars of North America in partnership with the National Association of Police Organizations and the National Sheriffs’ Association.

That means that even if you’ve got the green, you could be right, but you could be dead wrong.

What to do instead: Yield anyway, even if you have the right of way. Look both ways and then look both ways again. Know what it takes to bring your vehicle to a complete stop.

Pacific Preferred Insurance Agency insists that you don’t trust anyone.  We often think that the other driver will do the right thing, but unfortunately they often don’t and we often don’t.  This results in 138 people dying each day in traffic crashes on our streets and highways.