Accident Brochure |
Lake Forest and Libertyville, IL Insurance Tips
What to do in case of an automobile accident..
If you are involved in a car accident, you may use this form as a guide.
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| Vol. 9 No. 4
Understanding the importance of Insurance
An unexpected occurrence, such as a death, disability, or other personal loss, is certainly not the type of event for which you can easily plan. Yet, the financial ramifications can be staggering—not only to you, but to your family as well. Therefore, it is important to include some type of risk management plan within the framework of your overall financial plan.
Insurance, in all its varied forms, is quite simply a method for handling risk. In order to plan an effective insurance program, you need to consider what risks you and your family are exposed to and how financial loss would affect you. For each risk exposure, the key elements to consider are the severity and frequency of loss.
All Risks are not Created Equal
Some risks may be so negligible that you may decide to accept full responsibility for any potential loss. In insurance language, you "self-insure" for risks you choose to accept. For example, it is rarely cost-effective to carry collision coverage on a ten-year-old automobile. Since collision coverage generally pays actual cash value, and since a ten-year-old car may have little current fair market value, it is common to self-insure in such cases. In making this choice, you assume full responsibility for any accidental damage to the vehicle that you might cause.
In contrast, in other situations, the risk is so large (or the cost of insurance so great) that the best strategy is to try to avoid the risk entirely. You practice risk avoidance in daily life when you invoke the phrase "not worth the risk" to describe your decision not to participate in some events.
Sometimes, risk can be reduced. Installing an automobile anti-theft device is one example of a strategy employed to reduce the conditions that may create loss.
Risk Transfer and Risk Sharing
Buying insurance is the process of transferring risk you cannot afford, or choose not to accept. Since you may be unable to afford to rebuild your home in the event of fire, you may choose to transfer that risk to an insurer by purchasing a homeowners policy. However, even in situations of risk transfer, it is quite common to share some of the risk. For example, the deductible on a health insurance, automobile, or homeowners policy is a form of risk sharing—you accept responsibility for a small portion of the risk while transferring the bulk of the risk to the insurer.
Taking a closer look at the different types of risks that you face on a daily basis can help you answer questions such as: What should I insure? What type of Lake Forest, IL Insurance do I need? And, how much coverage should I purchase? The fundamental rationale behind all forms of insurance is to determine what risks you can transfer on a cost-effective basis. Give us a call. We would be happy to help you set up an insurance plan that meets your needs both today and in the future.
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Fire prevention for kids
Some of the saddest news accounts we hear each day are those involving accidental death or injury to children. It's especially disturbing when these tragedies might have been prevented. According to the National SAFE KIDS Campaign, one of the leading causes of unintentional death and injury to children is fire.
Many fires involving young children erupt while they are playing with matches and lighters at home. Fires often start in a living room or bedroom where children are left alone to play. Boys may have a greater risk of fire-related accidents than girls.
Young children are especially vulnerable if a fire occurs because they tend to be less aware of danger, have less control over their environment, and lack the ability to react quickly and appropriately to an emergency. Also, their lungs may be particularly susceptible to damage from smoke and fumes.
Teach Your Children Well
·Set a good example. Teach your children that fire is a tool, not a toy. Protect them by keeping matches, lighters, gasoline, and other flammable materials out of their reach.
·Install smoke alarms in your home. Smoke alarms slash the risk of death from fire by half. Place an alarm on every level and in every bedroom. And, remember, they can't protect you if they don't work. Test them every month and change the batteries once a year. Replace your alarms every ten years. To provide the best protection, consider installing different types of alarms for different types of fires. Photoelectric alarms are better at detecting slow, smoky fires, while ionization alarms are better at sensing flames. Keeping the appropriate type of fire extinguisher on hand can also help reduce the risk of death and injury.
·Take the time to plan and practice escape routes with your children. Practicing escape routes from every room in your house, and identifying an outdoor meeting location, can help children, who may become disoriented and frightened in a fire, escape safely.
It's impossible to prevent all accidents. But, by following these steps, you can help reduce the chances that your children will become the victims of a tragic fire.
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Own a pet? you need not fret
For many people, life isn't complete without a pet. Pets can be a joy to own, provide comfort and entertainment, and even help teach your children responsibility and kindness. Yet, no matter how cute and cuddly they are, if Fido or Fluffy causes an accident, injures someone, or damages your neighbor's property, you could be held liable. And, if a lawsuit results, it could prove costly.
To avoid problems, it's important to do all you can to reduce the risks of owning a pet. Here are some basic tips to help keep you out of the "doghouse":
·Never leave your pet alone with an infant, child, or stranger.
·Keep your pet indoors, and on a leash or restrained when outside.
·Teach your pet submissive behaviors, such as relinquishing food easily.
·Avoid roughhousing with your pet.
·Reduce aggressive tendencies by spaying or neutering your pet.
If you are considering adding a pet to your family, it may be a good idea to consult your local animal hospital to be sure you find the right pet to meet your needs. Owning a pet can be a positive experience—taking the right steps can help ensure it remains a positive experience.
Did You Know
Hospital Stays Down
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As recently reported by the Centers for Disease Control and Prevention and the National Hospital Discharge Survey (2001), the amount of time patients are staying in hospitals has dropped 31.5% since 1980. What was typically a 7.3 day hospital stay is now only 5 days. These sources attribute these numbers to the rise of outpatient surgeries, as well as constant medical advancements.
Dozing Drivers
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Did you ever arrive at a destination so tired from the drive that you didn't even remember it? If your answer is "yes," you are not alone. The National Sleep Foundation (2000) reports that 51% of the nation's drivers have driven when they were sleepy. Of those drivers between the ages of 18 and 29, 24% have even admitted to falling asleep while operating a motor vehicle.
Are You Insured?
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Do you have adequate Libertyville auto insurance? If you're not sure, you may want to check with your insurer. In 2001, the Insurance Research Council reports that between 1995 and 1997 almost 14% of all drivers on our roadways were uninsured. This may be a warning to motorists who are contemplating dropping collision coverage to think twice before risking serious loss.
For Your Information
Hazards of Home Appliances
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For many Americans, a clothes dryer has become a standard household appliance. But, how safe are they? The Chimney Safety Institute of America (CSIA) suggests homeowners have inspections done on their clothes dryer ducts by a CSIA technician. For more information regarding this matter you can find CSIA on the web at www.csia.org or contact them at 1-800-536-0118.
School Bus Safety
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For most students, riding the school bus is an enjoyable part of growing up. However, the trip between home and school can pose many risks for your child, such as injuries due to mischief, or worse, by a motor vehicle accident. To learn what precautions you and your child can take to avoid disaster visit the National Safety Council website at www.nsc.org.
Buckle Up
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Putting on a seat belt has become second nature to many people. Unfortunately, ignoring this task still takes the lives of many of our youth. According to the National Highway Traffic Safety Administration, the majority of young people who die in car accidents were not buckled up. In order to educate yourself on this and other vehicle-related statistics, look up Mothers Against Drunk Driving at www.madd.org.
Replacement parts: denting your wallet?
Rebuilding a car with manufacturers' replacement parts can often cost many times more than the car's original sticker price. It's possible that, if a new car costs $25,000, rebuilding it with replacement parts could cost over $75,000! And, that's not just true with some manufacturers; many manufacturers' replacement parts carry high price tags. Every year, the insurance industry spends huge sums for parts and labor needed to repair vehicles damaged in auto accidents. The high costs are due, in large part, to the price of manufacturers' replacement parts. Unfortunately, these costs are ultimately reflected in your auto insurance premiums.
LKQ—Are They for You?
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The good news is that there are alternatives to expensive manufacturers parts. They are called quality replacement parts, also known as like-kind quality (LKQ), and they typically cost a lot less. Bear in mind that insurers are obligated by their policies to provide policyholders with replacement auto parts that are equal to or better than those of the original manufacturer. Hence, neither quality nor safety is compromised and the cost savings often range from 25 to 40 percent.
Does Profit Compromise Safety?
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Insurers are concerned about safety as much as you are, because safer vehicles mean fewer and less expensive accidents. Quality replacement parts, or LKQ, are made to the same rigid specifications as the original parts—in state-of-the-art factories—and are generally comparable in quality to those made by the original manufacturer. Some reputable makers of quality replacement parts offer warranties that match, and often exceed, those offered by the car manufacturer.
If your vehicle is damaged, quality replacement parts, or LKQ, may be a safe and affordable option. They are an example of how the insurance industry is always looking for new ways to help keep your premiums down while providing the quality service you deserve.
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Does your insurance coverage still "fit?"
As the seasons change, many of us reach into our closets to discover our clothes no longer fit or suit our current needs. If this has happened to you, you're not alone. Life is constantly changing. What worked well in the past often needs to be "altered" to fit better, as our lives and circumstances change.
The same holds true for your insurance. Are your policies still adequate for your needs? If you haven't reviewed your coverage lately, it's possible your policies no longer fit your current circumstances. Periodically reviewing your coverage can help you avoid costly insurance gaps. Here are some considerations for the six basic types of insurance:
Homeowners Insurance
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The largest investment many people will ever make is the purchase of a home. A general rule of thumb is to protect this valuable asset by purchasing enough homeowners insurance to be able to rebuild it and replace the contents at current replacement costs. Remember, your home's value changes as it appreciates, as building costs rise, and as you acquire new possessions. It's wise to periodically review your coverage to make sure it's sufficient. Even renters should occasionally review and update their renter's policies as they accumulate possessions.
Auto Insurance
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Your main concern with auto insurance is to keep the liability limits high enough to protect your income and assets if an accident should result in a lawsuit. To save money on premiums, consider increasing your deductibles.
Personal Umbrella Insurance
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It's possible the liability coverage on your homeowners and auto insurance policies may not provide adequate protection if you're sued. Personal umbrella insurance provides a layer of coverage above and beyond your primary limits. It is available in million-dollar increments, and is relatively inexpensive.
Life Insurance
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Ideally, life insurance should be five to eight times your annual salary. If you're the main breadwinner, life insurance can help your loved ones continue to pay the bills and maintain their current lifestyles if something should happen to you. Be sure to adjust the coverage as your income increases and as you go through major life stages, such as the birth of a child or retirement.
Disability Income Insurance
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Your chances of becoming disabled during your working years are much higher than your chances of dying. According to the National Association of Insurance and Financial Advisors (NAIFA, 1998), an individual between the ages of 35 and 65 has a greater chance of missing at least three months of work due to an accident or illness than of suffering an untimely death. Even more important, the average recovery period is two and a half years (NAIFA).
Yet, many people don't carry disability income insurance, which provides income if you're unable to work. Check to see if your employer offers coverage. If not, give us a call and we can discuss your options. Being proactive pays; once you experience major health problems, it may be difficult or impossible to obtain disability income coverage.
Health Insurance
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Like most people, you may need only basic health coverage. However, lengthy hospital stays and costly medical treatment may require a major medical policy. If your employer does not provide health insurance, individual and family policies are available. If you're temporarily between jobs, you may want to consider a short-term policy.
Call today for a review of your insurance needs. As you can see, having the right insurance "fit" is important. We can help ensure your coverage provides the protection you need.
Copyright© 2001 Liberty Publishing, Inc. All rights reserved. The content of this newsletter is taken from sources that are believed to be reliable. However, this newsletter is not intended as a substitute for legal, financial, or professional counsel.
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