Insurance Topics Blog

Winter Driving Tips

Although today is the first day of winter and temperatures are in the 50s, we live in New England and eventually we will have some sort of measurable, messy snowfall.  We always need to remember to be cautious while driving in any adverse weather conditions, but especially in snowy and icy conditions.

 The following are some tips for driving in the winter time:

• Clear snow and ice from all windows and lights – even the hood and roof – before driving.
• Pay attention – don’t try to out drive the conditions – remember the posted speed limits are for dry pavement.
• Keep your hands at 10 and 2 on the steering wheel.
• Do not use cruise control.
• If you go into a skid, steer in the direction you want to go.
• Increase your following distance.
• Avoid driving fatigued.
• Make certain tires are properly inflated.
• If possible, avoid using parking brake in cold, rainy and snowy weather.
• Never warm up a vehicle in an enclosed area such as a garage.
• Know the current road conditions – call 511 from your cell phone.
• Most importantly – SLOW DOWN and ALWAYS WEAR A SEATBELT!

November is Long Term Care Awareness Month

November has been declared Long Term Care Awareness Month by the American Association of Long Term Care Insurance.

Long Term Care Awareness Month reminds us of the importance of this planning. While most people do not like to think of this aspect of retirement planning, it is just as important as drafting a will or saving for retirement.

Long Term Care insurance typically covers the costs for in-home care, assisted living and nursing home care. According to the U.S. Department of Health and Human Services, at least 70% of all Americans over the age of 65 will need care at some point (www.longtermcare.gov 10/2008). Because of that likelihood and the fact that in 2010 the average annual cost of care in a nursing home in Massachusetts was over $100,000.

If you would like to review more information regarding Long Term Care, please check out our blog that was posted on July 22, 2011, “What is Your Plan for Long Term Care?”

 Enjoy autumn in New England!

Preparing Home for Winter Heating Season

Winter is right around the corner, which makes this the ideal time to consider the steps needed to winterize your home. Below are some tips to which can save you money this winter when heating your home.

Adjust the Thermostat

When you are away from home and while sleeping, turn the thermostat down 10 - 15 degrees cooler. By doing this, you can potentially save up to 20% on your heating bill. A great investment, which will make this more convenient, is a programmable thermostat.

Prevent Pipes From Freezing

Although you may be saving money by adjusting your thermostat, do not let the temperature in your home get too low. Pipes will freeze. If you are going out of town, be sure to turn off the water, drain the pipes and set the thermostat at no lower that 55 degrees.

Energy Efficient Double Pane Windows

Single pane windows let out a great deal of heat. Double pane windows, on the other hand, absorb the heat from the outside, while keeping the heat from the inside from escaping.

An alternate and more cost effective route is to simply  cover the interior of the windows with clear plastic sheeting.

Fireplace Draft

The fireplace is the ideal route for cold air to enter the home. While you may be able to seal the opening with an insert, you may find that putting in a fireplace door is more convenient and cost effective.

Water Heater

Generally, water heaters are factory-set at a higher temperature than what the typical person may require. Make sure that your water heater is set to 120 degrees.

Adjust your Ceiling Fans

For the winter adjust your fan to turn counterclockwise. This will cause the warm air to be redirected downward, instead of residing toward the ceiling.

Ensure That Your Home is Properly Sealed

There are many openings to the outside winter elements. Small and large, but all important. Check all doors that open to the outside and also the attic. If there is a draft, add weather stripping to cover the cracks and additional space around the door.

Check that all the ductwork, cable insert holes and plumping are all well sealed. This would be a great time to also check the outside walls for any cracks and holes and seal them as well.

By implementing these steps, you will be on your way to an energy efficient and cost effective winter season.

Auto Insurance Savings for Student Drivers

Auto insurance rates are highest for student drivers and those under 25 years of age. The reasons for the increased rates are due to the young driver’s inexperience and statistics show an increase in traffic accidents for young drivers. Auto insurance companies can combat these higher rates by offering a number of discounts to lower the overall cost. Lower insurance rates are available by becoming eligible for these discounts:

The Good Student Discount

Good student discounts are discounts offered to students who maintain a 3.0 grade point average. To be eligible for these discount students must be between the ages of 16 and 24 and show good scholastic accomplishments such as making the dean’s list, honor roll or achieving high SAT scores. The student remains eligible for the discount, which could be 15 percent or more as long as the grade point average remains the same. The student may be required to submit a copy of the student’s report card or school transcript as proof of eligibility.

Safe Car Discount

Safety features on newer cars such as anti-lock brakes, airbags, and a passive restraint system lower the rates for student drivers. Safer cars generally mean fewer accidents and fewer insurance claims, which save the company and the policyholder money in the end. Reduced rates are given to drivers that have no accident claims.

Discounts for Driver's Education Courses

Many insurance companies offer discounts for student drivers that have taken a driver’s education course or defensive driving course. These courses provide the student with the knowledge to avoid traffic accidents and be a safer driver, which also lowers the young driver’s risk factor. These courses can be found by checking your local directory or performing an Internet search. Check with your insurance company for state-specific eligibility and requirements such as certificate of course completion.

Adding Student Drivers to Existing Policy

Parents can add student drivers to an existing policy for less than if the student applied for a separate policy. Assign the student to an older model vehicle for more savings. The policy will cover the student when driving this vehicle. The premiums will go down year after year as long as the student remains on the policy. The longer the student has been driving the less risk they pose to other drivers.

Additional Ways to Save Money on Auto Insurance

Additional discounts are offered for older model cars, multiple cars on the same policy and cars with security or anti-theft systems installed.

Hurricane Checklist

 We always hope for the best during New England storms!  Hurricane Irene is expected to impact our area on Sunday with winds and flooding.  Gutters are going to overflow.  Basements are going to flood.  There is going to be trees down and power outages, all types of damage.  As we know from past experience we never know the exact impact until the storm is upon us!  Keeping this in mind, it is always important to be prepared.  Following are a lot of the little things we can do to protect our homes before a hurricane hits:

 

• Check sump pumps and down spouts
• Board up any big windows
• Bring in all lawn furniture, toys, potted plants
• Put cars in the garage, if possible

 

Every home should have a stocked basic emergency supply kit that could be used for any emergency.  Each kit will be unique to each family, but should include a portable radio, flashlight, extra batteries, a supply of non-perishable foods, along with bottled water, a first aid kit, extra prescription medication, and extra food and supplies for infants and pets.

Stay informed as the storm approaches.  Educate yourself and family about emergency plans for your community, place of business, your child’s school and camp. Know what potential risks your community and neighborhood is susceptible to in a hurricane, such as storm surge, flooding, etc.  Carefully monitor the Media and follow instructions from Public Safety officials as hurricane approaches.  

If you should experience damage,  contact your agent as soon as possible.

Stay safe!

What Is Your Plan for Long Term Care ?

There is now more than a 40% likelihood that one person among a couple over the age of 65 will have a need for some type of Long Term Care during their lifetime.  That likelihood and the fact that in 2010 the average cost of a nursing home in Massachusetts was over $100,000, is an important reason to consider a well-designed Long Term Care policy.  This type of coverage can help cover the cost of expenses associated with a stay in a nursing home, assisted living facility or be used towards home healthcare.

Long Term Care (LTC) insurance can play a critical role in the overall financial planning process, providing a variety of important benefits:

• It is the only insurance that covers the costs associated with long term care, helping you protect your retirement assets for their intended purpose.  Medicare will only cover you up to a maximum stay of 100 dates.

 

• It enables you to control where you receive care, including in nursing homes, assisted living facilities, adult day care centers, and at home – where most people prefer to stay.

 

• It’s less expensive than you might think. The cost of coverage is based on your age and health when you apply. So the younger and healthier you are, the lower your premiums.

Planning for long term care is your responsibility, but you don’t have to figure it out on your own.  Get in touch with an insurance agent who specializes in Long Term Care Insurance today.

To get your free Massachusetts Guide to Long Term Care click here.

 

 

 

Things to Consider When Buying Auto Insurance

In my last blog I talked about things to consider when buying homeowners insurance.  I also spoke about the costs associated with the insurance.  One thing that can help to offset the premium is to combine home and auto insurance with one carrier.  Many companies offer up to a 15% discount for the business.

Other factors that your agent will look at to determine the most effective, cost efficient coverage is the following:

AUTO INSURANCE

• Year, make and model of vehicle
• Address car is garaged
• Drivers – all household members eligible for coverage   
  • Date first licensed
  • License # and date of birt

 COVERAGES

• Full physical damage coverage required if loan is involved
• If more than one vehicle on policy multi-vehicle credit could apply.  Also, account credit would apply if home/auto with same company

Many companies offer various credits and discounts.  The best advice is to consult your agent and discuss your coverage needs.  Take advantage of all savings by having your agent assess your needs on a yearly basis. 

If you would like to read our blog on Things to Consider When Purchasing Homeowners Insurance please click on the following link:

http://www.murphyinsgroup.com/blog/bid/51462/Things-to-Consider-When-Purchasing-Homeowners-Insurance

 

Things to Consider When Purchasing Homeowners Insurance

Purchasing a home for the first time can be extremely overwhelming.  There are so many new considerations, for example finding the right mortgage lender, interest rates, loan amount, space requirements, inspection and homeowners insurance to list a few.

This article is meant to help first time buyers consider some common items that may have an effect on your homeowners insurance:

 

• Is the home in a flood zone?  If so, this could substantially increase insurance costs.

 

• Do you own a dog?  If so, some insurance companies may deny you home owner’s insurance coverage or increase your premium due to the breed of the dog or what is referred to as “high-risk” breeds, including but not limited to Pit Bull, Rottweiler, Doberman, German Shepherd, etc. For more information regarding “high-risk” breeds contact your insurance agency.

 

• Do you own a trampoline?  If so, this could increase insurance costs.

 

• Cost of Homeowners Insurance:

The cost of homeowners insurance is based on the cost to rebuild the residence from the ground up. The market value of the home does not play a role in determining the cost to rebuild.   

For example, you could buy a 750 square ft. home on Beacon Hill in Boston and have paid $1 million for it because of the land. However the insurance value might only be $ 150K because it is only 750 square feet or the cost to rebuild (i.e. land doesn’t burn).

Generally the insurance value is estimated using a cost to rebuild figure ranging from $185 to $225  per square ft. to rebuild a “normally” constructed home.  However, if the house has several upgrades using high end finishes the cost could go as high as $500 per square foot or higher.

 

As you can see there are many variables that go into determining the cost of homeowners insurance. The best advice is to contact your agent as early as possible in the home buying process so they can give you an estimate as to what the expected cost may be.                 

     

 

 

 

Life Insurance Buying Tips

Life insurance can be a very confusing topic to many people who are looking into coverage for the first time. We have put together some helpful things to keep in mind when you begin the process:       

• How long do you need the coverage to last?  By determining this upfront you can usually decide whether Term or Permanent insurance is best for you.   
• Figure out the amount of coverage you need.  There are several insurance needs calculators available today over the internet but in short you are trying to determine the number of years of income you are trying to replace on a working spouse.  The second major reason to purchase life insurance is to cover the amount you owe on a mortgage or bank loan. 
• Depending on the type of coverage you are looking for you can either begin your research on the internet or by speaking with an insurance broker if you need help calculating the correct amount or type of policy?  Insurance rates are the same whether you contact the insurance company directly or work through a broker so you may want to seek some help with this step.
• Look for an insurance company that is Financially “A” rated or better with one of the major rating services such as AM Best or Fitch.           
• Make sure the policy has a liberal conversion policy.  This feature can allow you to continue your coverage in later years even if your health has declined.

Once you have completed your research and found the company with the most competitive rates for what you are looking for you are now ready to schedule your medical exam and start the application process. This final step usually takes 3-5 weeks before you are approved and have your new coverage in place.