High-tech Safety Features Cost More To Insure
Many people assume that safer cars always mean lower insurance rates. While this used to be true in the days of daytime running lights being a major safety innovation, many of today's advanced safety features do not lower premiums. High-tech features that require apps, computers and other expensive electronics to function are actually more expensive to insure.

High Safety Versus High Cost
Some of the best modern cars boast crash-prevention systems and other state-of-the-art technologies. From blind spot detection to parking assist, features that include sensors and cameras are costly but are included on most modern vehicles. One of the reasons why insurance for vehicles with these features is so expensive is because there are limited replacement parts. Another major expense is the cost of digitally calibrating a system when it is not working properly. 

Insurance companies say that safety features could contribute to reduced collision statistics in the future. However, they also point out that there are not enough of the newest vehicles with these features on the road to make a huge difference right now. Many drivers are still using older cars that lack some of the latest technologies, which work best around other vehicles with similar technologies. 

Accident rates are still high, and insurance companies pass on the costs to consumers in the form of rate increases. In 2016, one automotive company reported that nearly 15 percent of the cars it sold had anti-collision technology. According to insurance experts, about 50 percent of vehicles on the road should have such technology to reduce overall accident rates.

Insurance Costs Increase Everywhere
People who buy cars that are loaded with high-tech safety features are not the only individuals paying more for insurance. Every policyholder must pay more for liability coverage, which is the mandatory minimum for all drivers. If a driver who only carries liability coverage crashes into a new vehicle that is loaded with safety features, the driver is responsible for the higher damage costs. While insurance companies are keeping their increases below 10 percent, the rate changes are enough that drivers everywhere are noticing the difference. 

Safety Discounts
Some insurance companies still offer safety discounts for drivers who purchase vehicles with high-tech safety features. For all companies to offer discounts, accident rates will have to fall significantly across the country. The safety discounts are based on devices that drivers plug into cars with compatible technologies, and the devices measure driving habits. Another insurance company offers discounts for vehicles with rear-end safety braking. Experts say that 40 percent of crashes could be avoided if all cars had this technology.

While high-tech safety features may be great for improving safe driving, they are costly in new cars. For all budget shoppers, it is important to call an insurance agent to inquire about rates before buying a specific vehicle. Although this insurance issue may leave some drivers with tighter budgets dismayed now, the good news is that more companies will start offering discounts in the near future. To learn more about rates and changes, speak with one of our agents at 214-275-8372.

​Top Habits and Misconceptions That Make The Roads More Dangerous

In recent years, motor vehicle deaths have increased significantly. The National Safety Council pinpointed some of the most common beliefs and behaviors of drivers that put everyone on the road at risk. During the past year, NSC surveys were collected to show the surprising rates of dangerous habits and opinions. Researchers said that these could especially explain why fatalities were on the rise. They also said that their findings showed the urgency of promoting awareness of misconceptions and dangerous habits. 

Experts said that while most drivers understand the basic dangers and risks on roadways, they do not take the proper steps to make their own driving habits safer. Many people still believe that bad things are more likely to happen to other drivers than to them. This is even true among drivers who admit to driving distracted. Many believe that they can safely manage distractions such as using a cell phone while driving. These were some of the top dangerous habits of American drivers according to the research report:

• More than 45 percent of drivers said that it was safe to send text messages using voice dictation or manual input.
• More than 70 percent of drivers said that they could drink three alcoholic beverages before they were too impaired to drive.
• Approximately 35 percent of teens admitted to checking their social media notifications or interacting on social media while driving.
• More than 15 percent of teens who were in accidents said that their own distractions were the cause of the crash.
• More than 30 percent of drivers felt that they could drive safely with fewer than four hours of sleep.
• Nearly 15 percent of drivers admitted to using marijuana while driving within the past month.
• More than 30 percent of drivers felt that new vehicles could practically drive themselves and did not require as much concentration to operate.
• While only 25 percent of drivers felt that their own distractions were dangerous, nearly 70 percent said that they were concerned about the risky behavior of other drivers.
• About 45 percent of people said that they felt compelled to check cellphone notifications while driving because of demanding employers, and about 45 percent of those who reported feeling this way had crashed within the last few years.

Council researchers try to remind motorists every year of the dangers of distracted driving and the realities of just how unsafe popular misconceptions are. To learn more about staying safer on the roads, speak with one of our agents. Call 214-275-8372

​What To Do Before And After An Auto Accident
No person is completely prepared for a car crash whether it is minor or major. However, drivers can be more prepared to handle the claims process afterward by remembering some important information. By taking a few simple preparatory steps, auto owners can prevent costly mistakes or delays that keep them from receiving compensation for damages.

What To Do Ahead Of Time
Make a list of important information to keep in a vehicle. An insurance agent's contact information, emergency phone numbers and contact numbers for family members should be included. Many insurance companies offer their own apps for accidents. Check with an agent to see if there is such an app. Some will walk policyholders through the steps to follow such as taking pictures and writing down information, and several have convenient platforms that allow people to upload the information directly to the insurer. If not, there are plenty of free apps for accident preparedness. Download one to use in the event of an accident. These apps are especially helpful since it may be difficult to remember what to do immediately after an accident with the confusion and stress that inevitably follows. 

What To Do After An Accident
The first and most important step is to call an ambulance. People may not realize that they are injured. Anyone who is involved in an accident should be examined to rule out major injuries. Do not get out of the vehicle unless it is unsafe to stay in it. Never admit fault if another driver or spectator approaches. Be polite and courteous to everyone.

If taking any photos after an accident will put anyone at risk, do not take any. Take them from inside of the vehicle until help arrives. When it is safe to do so, take photos of the following:

• License plates of all involved vehicles.
• Damages to all involved vehicles.
• Damage to any property affected by the accident.
• Street signs or surrounding buildings that identify the location of the accident.

​When it is safe to do so, write down the following information:

• Names and contact information of any other drivers or affected passengers.
• The year, make and model of any involved vehicles.
• Insurance and agent contact information for the other driver.
• Name and contact information for responding police officers.

An agent is an advocate throughout the claims process. Many people are afraid to contact their agent quickly because of a potential rate increase. However, the cost of handling an accident incorrectly can be much more expensive than a small rate increase. To learn more about preparing for an accident, give us a call at 214-275-8372

What Types of Insurance do you Need for your Small Business

There are four types of insurance that most small businesses purchase. The first is property insurance. This type of coverage provides compensation if business property is damaged, stolen or lost. In addition to covering the physical business structure, property insurance covers personal property. This includes inventory, office furnishings, raw materials, computers, machinery and other items that are part of business operations. Property insurance coverage doesn't end with protecting physical assets. It also affords operating funds when business owners must take steps to get their business back on track following major loss. Property insurance may provide coverage for broken equipment in some cases. It may also provide coverage for water damage, debris removal following a fire and several other specific items.

Business vehicle insurance is the second type of coverage many small businesses purchase. Anyone who uses their own personal vehicle for business purposes should discuss this type of coverage with their agent. Most personal vehicle insurance policies don't provide coverage if the automobile that is involved in an accident is used mostly for business purposes. Business auto insurance policies afford coverage for vehicles that are owned and used by a business. Third parties injured by the policyholder's vehicle receive compensation for damages up to the policy limit amount. Some policies may provide compensation for repair or replacement of vehicles that are damaged from flooding, theft, accidents and similar events.

The third type of coverage most small businesses purchase is liability insurance. This is because any business may face a lawsuit at some point in today's litigious society. For example, a person may claim that a business caused them harm from a service error, defective product or negligence in providing a safe environment. Liability coverage provides compensation for damages a company is liable for. However, the coverage is only provided up to the policy's limit amounts. These policies usually also provide funds for legal defense expenses, attorneys' fees, medical bills and several other related expenses.

Workers compensation is the fourth type of insurance purchased by many small businesses. In nearly every state, employers are required by law to have workers compensation coverage if they have employees. This number usually varies from three to five, and even if a business has less than three employees, it is still wise to purchase this coverage. Workers compensation pays for a portion of lost wages for workers who are injured. In addition to this, it also covers the medical care they require. Coverage is provided to employees who are injured at work regardless of who is at fault. If workers die as a result of the injuries they sustain, the insurance company compensates the surviving family members of the deceased worker.
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In addition to the four major types of coverage purchased, there are several other valuable policies some companies may want to purchase. Umbrella policies, terrorism coverage and specialized liability policies are all helpful. Umbrella policies, much like an umbrella, cover above and beyond the normal inclusions. These are usually obtained to prevent high losses by businesses with high risks. Specialized liability policies are made up of several types of individual coverage. It's best to speak with an agent about these options. Terrorism coverage provides compensation for damages and medical care to a certain extent in the event of terrorism. To find out which options are best for an individual business, give us a call at 214-275-8372

​Whole vs. Term Life Insurance
The two main types of life insurance are whole and term. In some instances, whole life coverage may be called permanent life insurance. It includes many subcategories of insurance such as variable, universal and variable universal coverage. Term life insurance is set for a specific amount of time. Group life coverage is a different type of product than the policies that are sold to individuals. This information applies to individual policies. 

Term Life Insurance
This is the simplest type of coverage. It only pays if a death occurs during the policy's active term. A term may be anywhere from a single year to 30 years in most cases. If a person dies after the term ends and he or she did not renew the policy, the beneficiary does not receive the death benefit. The two subcategories of term life insurance include decreasing and level term coverage.

With a level term structure, the death benefit is the same for the entire term. When the policy has a decreasing term structure, the benefit amount drops. As a rule, the benefit drops a small amount each year for the entire length of the policy.

Whole Life Insurance
This form of coverage pays a death benefit regardless of when the beneficiary dies. There is no term limit. The policyholder could die one year or 70 years after the policy's implementation, and the beneficiary will still receive the payout. Permanent or whole life comes in the three subcategories mentioned at the beginning of the article. There are additional variants within those subcategories.

With traditional whole life coverage, the benefit amount and premium stay the same for the entire life of the policyholder. For every $1,000 of benefits purchased, the cost of a new policy rises steadily as a person ages. When a person reaches the age of 80, the cost becomes significantly higher. This is why it is helpful to purchase this form of coverage at an early age. The premium for a whole life insurance policy is much higher than the cost of a term policy. However, the higher premium early in the policyholder's life covers claims and the cost of investing to provide future funds.

This structure may result in over-payments, which must be returned to the policyholder if he or she decides to cancel the policy. The cash value is an alternative benefit and not an additional one. There are several choices to consider. The right one depends on a person's family status, budget, income, health, projected future needs and much more. To learn about life insurance policies and which options are best for individual needs, give us a call at 214-275-8372.

​Your Jewelry and Other Valuables may NOT be Covered on your Homeowners Policy

Homeowners insurance policies include personal property at a fixed amount based on the replacement cost of your home. However, coverage amounts may be limited for certain types of personal property.
Examples of items that have coverage limitations are:

• Jewelry
• Musical Instruments
• Guns
• Furs
• Artwork
• Cash & Coins
• Stamps
• Sports Cards
• Other Collectibles
• Silver and Gold
• Business Property

These coverage limitations help keep policy premiums affordable. Without these sub-limits, home owners with less than the included values of the above items would end up paying for more coverage than is needed.
If you have more than a few of any of the above items, other collectibles, or items that are of special value to you, discuss these items with your agent. They can tell you how much coverage you have and exactly what is covered. Learning a treasured possession is only partially covered, or not covered at all after a claim occurs is most unpleasant.

The good news is, there are several options to cover your valuables, and some companies may even allow you to increase your coverage without an appraisal. Most companies offer what is called a "floater" on an "all-risk" form, which will cover your personal items regardless of the cause of loss (with few exceptions). Even if your main homeowners policy does not cover things like earthquake and flood, scheduling valuables on this all-risk form may include losses caused by these types of incidents. While most companies will require an appraisal when a special schedule floater is added, properly documenting the item is a good practice that will help you out at claim time.

Losing valuables is an unpleasant experience and while insurance may not restore your unique, treasured collectables, it can give you the comfort of being able to replace those items. If your item was damaged by a covered peril, your coverage will give you the funds to repair the damage.  Don't make the mistake of assuming your valuables are covered. Discuss your needs with The Hanks Group to make sure your property is properly covered.