How is the Cost of my Car Insurance Policy Determined?

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Have you ever wondered how your car insurance rates are calculated?  What affects that number on the bottom of the page? Here’s the answer:

1. What type of car you drive- some cars cost more to insure than others do. Your rate can be affected by how likely your car is to be stolen, its age, the cost of any future repairs, and how safe it is (or isn’t).
2. Your driving record- your driving record largely determines how well you drive (at least in the eyes of your insurance provider). The fewer incidents you’ve been involved in, the lower your premium will be. If you have a slew of accidents and driving violations on your road resume, expect to pay significantly more than if you have a clean record.
3. Where you live- Outside of your own driving ability, some areas are simply safer to drive in than others, both in terms of crime and accident statistics. Your rate can vary depending upon where you garage your car as well.
4. The number of miles you drive each year- Statistics says by the law of large numbers that the probability of an accident increases with the amount that you drive. Therefore expect a higher rate if you put hefty mileage onto your vehicle each year.
5. Your age- Young drivers (especially males) will have to pay augmented rates. Generally insurance providers divide the “steps” into drivers who have been on the road for under three years, three to six years, and more than six years.
6. Your credit- for many insurance providers, your credit score can have an impact on your insurance rates.
7. Coverage- like any other insurance rate, the price is partially determined by the coverage you already have. Make sure you shop around and get the best possible price for the coverage you need.

The good news: There are a variety of auto insurance discounts available to insureds. Here’s a video made by our agency that explains the various discounts you may be eligible for:

Corbin Foucart
Andrew G. Gordon Insurance

Bicycle Theft Prevention

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Now that the weather (in MA anyway) is growing ever so slightly more amenable to outdoor activities, you may find yourself on a bike. Unfortunately, bicycles are favorites for thieves, especially on college campuses. An unlocked, ungaurded bike is one of the easiest things to steal; don’t forget, thieves are enjoying the warmer weather too.

The National Bike Registry is a pretty cool service; by registering with them, if your bike is stolen, police have a way to identify it as yours if found. Otherwise, it will end up in police auction. As the name suggests, this is a national database that covers all 50 states. It’s definitely worth the time to register with them, especially if you have a nice bike.

According to the III:

• Bicycles are generally covered under homeowners or renters insurance. However, there is usually a $250 – $500 deductible. Your homeowners or renters policy also provides liability coverage in the event of a collision that results in injury to another person. There are no deductibles for liability claims.
• Once you purchase a bicycle, keep the receipt for it and any accessories you add. Also, take photographs of the bike. Store these documents off-premises and alert your insurance professional to your new purchase. If you own an expensive bike, consider purchasing a floater. This will provide more coverage than a homeowners or renters policy. For instance, in the event of an accident, a floater covers the cost of bike repairs. A floater costs approximately $9 for every $100 of the bike’s value and there are no deductibles.

The best way to prevent bicycle theft is simply to lock your bike up. Cable locks are generally able to be cut, so invest in a sturdy U-Lock. In addition, make sure your bicycle is locked up correctly:

 

Corbin Foucart
Andrew G. Gordon, Inc.

Related Articles

• New Solutions to Residential Bicycle Theft Unveiled (adelaidecyclist.wordpress.com)
• Third of cyclists suffer bike theft (autonetinsurance.co.uk)

MA Insurance: Pool Safety

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As a swimmer and a lifeguard, I’ve spent an inordinate amount of time in and around pools. While a great source of summer fun, deep water fun demands the respect of those who participate. According to the Center for Disease Control and Prevention (CDC), there are 7.4 million swimming pools and 5 million hot tubs used for recreation in America. Unfortunately, there are generally over 3,400 related drownings  each year, with 20% of the victims under 14 years of age. Here are some steps you can take to keep your family safe around pools.

ABC Pool Safety is a great resource for simple steps you can take to avoid pool accidents. Here’s what they say, in a nutshell:

Pool accidents can be prevented with three steps:

1. A – Adult supervision:
   • Adult supervision is the single most important aspect of safe pool use. Make sure there is a supervising adult at ALL TIMES. This means removing kids from a pool in the event of a telephone call or use of the restroom. Furthermore, in a large party or group, always have one adult designated to watching kids in the pool. Drowning often happens without sound or commotion, and if no adult is actively watching, it can go unnoticed.
2. B – Barriers:
   • Barriers that keep children away from the pool when not in use are essential (especially for small children). There are a variety of affordable products available for this function. Make sure that any furniture or structures that children could use to climb over the barriers are kept INSIDE the fence.
3. C – Classes:
• This step refers to CPR classes for parents should a crisis arise, and swimming lessons for children so that they are comfortable and able to swim in the pool. Never assume that floaties or inflatable toys are adequate substitutes for life-vests or similar safety devices. 

 For the full article, click here.

Further more, the Insurance Information Institute recommends the following:

1. Contacting town or municipality officials- every town or area has a specific set of guidelines as to what constitutes a ‘pool’ or ‘spa’. Contact the appropriate officials to make sure that your pool or spa meets the safety guidelines. If an accident does occur, this will help when dealing with your insurance provider.
2. Alert your insurance agent- If you purchase a pool, give your insurance agent a call. Pools increase your liability risk, and most providers have minimum standards of coverage required for pools and water recreation. Make sure everything is copacetic isurance-wise before taking the plunge.
3. Keep small children away from filters or pool cleaners; the suction from these devices are much more dangerous to small children than to an adult.
4. Never keep electronic devices such as radios near pools or on pool surfaces. DON’T BE THESE GUYS!
5. Limit alcohol use/consumption aroud pools. According to the CDC, a large portion of adolescent and adult poolside accidents occur as a result of alcohol.

Be safe, and have fun! Look to Gordon Insurance for your MA insurance needs and please use us as an informational resource; our business is your safety and peace of mind.

Corbin Foucart
Andrew G. Gordon, Inc.

MA Insurance: Grilling Safety

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 Summer for most Americans means “busting out the grill” and hosting some barbeques in the warm weather, whether it be with friends, family, or both. According to the Insurance Information Institute, Americans enjoy more than three billion barbeques each year. By my calculations that’s enough chicken and steak to reach around the circumference of the Earth four times! (I just made that up, but still, there’s a lot of grilling going on). As you prepare a succulent host of BBQ food this year, remember to keep grilling safety in mind!

Some things to remember:

1. Wear a protective fire-resistant apron or similar garb, and mitts that reach up to your forearms to avoid burns.
2. Keep you grill’s gas cylinder AWAY from your house or flammable structures.
3. Check for leaks often by sprinkling soapy water around the gas valve; if there’s a leak, bubbles will form. Never check for a gas leak by using a match. This can happen.
4. Make sure the gas is off whenever the grill is not in use.
5. If using a charcoal grill, only use lighter fluid specified for charcoal grills. NEVER USE GASOLINE. Also never add more lighter fluid once a fire has already started; if needed, add small sticks or other tinder to augment the flame.
6. When finished, douse coals with water before disposing of them in the trash.
7. Our specialized outdoor flame/fire consultant advises you to take extra caution when grilling in the woods. Only you can prevent forest fires.
8. Check grill hoses for cracks or leaks; make sure the hose doesn’t kink.
9. Keep additional open flames away from the grill.
10. Always follow the manufacturer’s instructions.
11. Never attempt to repair a grill yourself.
12. Remember that grills can remain hot long after the fire is out.
13. Be safe and have fun!

 

Corbin Foucart
Andrew G Gordon, Inc.
Insurance & Risk Management

MA Accident Coverage

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When the inevitable happens……

If you are on the roads driving at all, it is usually only a matter of time until you get in one – an accident, fender bender, crash, whatever you call it, it never happens at the “right” time.  Well, it happened to me a couple of weeks ago and although it was minor, it still does seem to shake you up.

I have been in the insurance business for about 25 years but still had to think about what information I would need to collect at the scene.  What I did use was the Accident Reporting Form that we include in the plastic registration holders that we have in the office.  (Please call (781-659-2262), stop by (680 Main St, Norwell), mail (PO Box 299, 02061) or email us here if you would like one.)  You will have all necessary information in order to call in the accident if you complete this form. 

You can visit our website to find the phone numbers of the company here so that you can call the claim in directly to the company.  They do like to hear from the drivers directly and they can set up an appointment with you to look at your car.  If you need to complete a Crash Report you can download one from our website and mail to us; we will be more than happy to make copies and forward them as necessary. 

Although it is never a pleasant experience, we are here to help you through  the process.

In the meantime…drive carefully!!

 Sue Renfrew  
Andrew G. Gordon, Inc.

Related Articles

• Car Crashes: a word to the wise from the not-so-wise (agordonins.wordpress.com)

Motorcycle Safety

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With the warmer weather of spring, expect to see more motorcyclists on the road. March 22nd – April 30th was proclaimed Motorcycle Safety Awareness Period by Governor Patrick.  It has been a long winter and riders are eager to get out and enjoy their bikes so please be sure to keep an eye out for them when driving.  Here are some tips for sharing the road with our fellow drivers of the two-wheeled variety:

1. Because of their small size relative to cars, motorcycles look much farther away than they actually are. When at an intersection or when being passed by a motorcycle, assume that the motorcycle is closer than it looks.
2. Also because of their size, motorcycles can be completely hidden in blind spots. Check both blind spots thoroughly when switching lanes. Motorcycles can also be obscured by other moving objects, especially SUVs.
3. Motorcycles commonly slow down by downshifting rather than using the break. Therefore a motorcycle may slow down without its break lights coming on. Allow extra following space when behind a motorcycles to account for this.
4. Unlike cars, motorcycles do not have self-cancelling turn signals; sometimes a rider’s signal will remain on even when they are not making a turn. Keep this in mind and be patient (especially with young, less experienced riders)
5. Although protrayed differently in action movies, motorcycles can not stop “on a dime”. In fact, in poor weather conditions, motorcycles generally take longer to stop than cars, as it is easy to lose control with only two wheels. Never tailgate a motorcycle, even on town roads.
6. Before you use your car’s spray-clean feature to clean your windshield on the road, check to see if there is a motorcyclist behind you. They will not appreciate suddenly entering a rainstorm of dirty windshield fluid that will form behind your car.
7. Never, ever, ever share a lane with a motorcycle.

Here’s a driver’s ed video with tips on sharing the road:

Appealing a Surcharge

 

Before you start the process of appealing a surcharge, it is important to first understand how the Merit Rating Board and Safe Driver Insurance Plan (SDIP) work.

 The Merit Rating Board:

All Massachusetts auto insurance companies are required to report at-fault accidents and out-of-state driving records to the Merit Rating Board (MRB). The MRB is the state agency that maintains driving records.
The MRB driving record consists of surchargeable incidents. A surchargeable incident is any event in which you are:

1. Convicted of, or pay a fine for, a motor vehicle violation
2. Assigned to an alcohol education program or controlled substance treatment or rehabilitation program
3. Found to be more than 50 percent at fault for an accident, and your insurance company makes a claim payment above a certain threshold

If you decide not to pursue an appeal, the surcharge can increase your premium and SDIP step.
In addition, each surchargeable incident counts toward possible license suspension.

You are considered to be more than 50 percent at fault in an accident if your insurance company:

1. Finds you at fault according to one of the 19 At-Fault Standards  and
2. Has paid a claim of more than $500 for Collision, Limited Collision, Damage to Someone Else’s Property, or Bodily Injury to Others.

Safe Driver Insurance Plan (SDIP)
The Safe Driver Insurance Plan (SDIP) is mandated by state law to establish classifications of risks to fairly reflect the driving records of insureds and adjust premiums based in part on at-fault accidents. The Plan encourages safe driving by rewarding drivers who do not cause accidents or incur traffic law violations with a credit to their automobile insurance premiums, and discourages unsafe driving by requiring high-risk drivers to pay a greater share of insurance costs. Massachusetts, unlike many comparable jurisdictions that afford no or limited due process rights, provides the right to a hearing before an impartial hearing officer of the Board.

If you believe that you are not more than 50% at-fault for an accident in which you received a surcharge, you may appeal the motor vehicle accident surcharge to the Division of Insurance Board of Appeal.

Your insurance company will mail you a Notice of Surcharge.

1. If any of the information listed on the Surcharge Notice is incorrect (name, driver’s license number or date of accident), contact the issuing insurance company to make the corrections before appealing.
2. If you do not receive a Surcharge Notice or misplace it:
3. Contact your insurance agent for a copy of the Surcharge Notice     OR
4. Request a late appeal from the Merit Rating Board.
5. Complete the Surcharge Appeal Form located on the reverse side of the Notice of Surcharge.

• The appeal must be filed within 30 days of the surcharge date.
• If you did not submit your appeal within 30 days because you never received a Surcharge Notice, you must obtain a Late Appeal from the Merit Rating Board. The Board of Appeal must receive the Late Appeal within 30 days of your policy renewal.

1. Submit a $50.00 check or money order payable to the Commonwealth of Massachusetts/Board of Appeal.

• The fee is non-refundable.

1. Mail your appeal to the post office box designated on the application. Late appeals must be sent directly to the Division of Insurance, Board of Appeal.
2. Upon receipt of your surcharge application, the Board will mail you a postcard to acknowledge your appeal. Your cancelled check will serve as an additional receipt of your filing.
3. The Board will mail you a Notice of Hearing approximately 3 weeks prior to your hearing date.
4. Appeal hearings are scheduled in Boston, Brockton, Cambridge, Peabody, Plymouth, Somerville, Springfield, Waltham, or Worcester. Carefully note the location of your hearing listed on the Notice. Directions are included at the bottom of the Hearing Notice.
5. Upon receipt of the Hearing Notice, you have three options for which to pursue the appeal:
1. Appear in Person.
   Bring your Hearing Notice to the scheduled location.
   Bring copies of all relevant information, any documents/photographs etc. that you want the Hearing Officer to consider when making the decision.
2. Submit a Written Statement in lieu of your appearance.
   The Board must receive your written or typed statement via mail or facsimile at least 5 days priorto your hearing. The statement must include:
• copies of all relevant information, any documents/photographs etc. that you want the Hearing Officer to consider in making the decision
• your signature on the Hearing Notice that identifies you are waiving a personal appearance in favor of your written statement & affirms that your statement is truthful.
3. Select a representative to appear on your behalf.
   If you elect to submit a written statement via a representative, instead of appearing in person, it must include:
   • Copies of all relevant information, any documents/photographs etc. that you want the Hearing Officer to consider in making the decision
   • your signature on the Hearing Notice that identifies you are waiving a personal appearance in favor of your written statement & affirms that your written statement is truthful.

The hearing is informal and public, lasting approximately 20 – 30 minutes. The Hearing Officer will make an audio tape recording of the hearing. You and your insurance company representative will be given an opportunity to present all pertinent information. You may also bring a witness or a witness statement to the hearing. The Hearing Officer may ask you or the representative questions to clarify the information presented or the circumstances of the accident.

At the conclusion of the hearing, the Hearing Officer will take your appeal under advisement. The facts and circumstances presented will be reviewed in accordance with the governing laws and regulations.

The Memorandum of Finding and Order, the Board’s decision, will be mailed to you within 2-4 weeks. The Board will also contact the Commonwealth’s Merit Rating Board and your insurance company so that your driving history record will be properly updated.

• If the decision is marked VACATE, the Board has found that you were not more than 50% at-fault for the accident. Any points that you received on your driving record as a result of the accident will be removed.
• If the decision is marked UPHELD, the Board has found that you were more than 50% at-fault for the accident. The surcharge points will remain on your driving record.

If you disagree with the determination of the Board, you may appeal the decision to your county’s Superior Court or in Boston Suffolk County Court. You must file this appeal within 30 days of your receipt of the decision.
A surcharge incurred due to a traffic violation or a non-moving violation are not appealable to the Board…

Bill Cordaro
Commercial Accounts
Andrew G. Gordon, Inc.

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• What is an insurance surcharge (wiki.answers.com)

Accident Prevention: Defensive Driving Course

Image courtesy of the Patriot Ledger

A recent Facebook posting by a friend shows a picture of the family car on its side with the passenger side crushed.  Luckily no one was hurt in this accident which happened when their teenage son was driving to school on a snowy “spring” day that was surprisingly slick and dangerous.  Unfortunately, on the way to school accidents are quite common as new and newish drivers are on their own for the first time in conditions that as “permit” drivers they might not have encountered.

Unanticipated conditions are often met with panic and reactions that aggravate rather than help.  Here on the South Shore there is a driving school that is dedicated to helping drivers cope with realistic, emergency situations.   Unlike pre-licensed driving and class courses, this school, which is run by professional race car drivers, puts the driver into “controlled” situations like spin-outs, mock accidents, slick driving conditions and shows the driver how to deal with such encounters.

My own family members have taken advantage of this course and felt that it was invaluable as well as a lot of fun.  You can link to a 10% discount for this course from our website www.agordon.com/auto or go straight to the discounted sign-up page here: http://driveincontrol.com/agordoninsurance/

 

Kay Gordon
Andrew G. Gordon, Inc.

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Insurance in the Courtroom: Are You Covered?

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Many people feel that we now live in a litiginous society.  We hear about lawsuits being filed for injuries resulting from seemingly minor auto accidents or slip and fall injuries at residences.  With this trend in filing lawsuits, we strongly recommend that our insureds consider purchasing an excess liability, or umbrella, policy to protect their assets.  These would include any homes or properties owned, vehicles, boats, retirement income, etc.  Coverage can be purchased starting at $1M in coverage for a relatively low premium and can often be endorsed onto the existing homeowner policy.

One might think that only well-established people would need this coverage but we have learned that even the young who may not yet own any property or have older vehicles of insignificant value should also consider this coverage.  In the event of an at fault auto accident which may have caused injuries to others, a law suit may be filed against the young operator with no assets and a judgment may be assessed to garnish future wages for many years.  A $1M umbrella would certainly help in such a situation as not only would the settlement amount be paid for under the umbrella but also the defense costs are built into this coverage.

It is extremely important that one protects the assets that could be made available to someone who has been successful in obtaining a judgment against you.

Another factor to consider in protecting yourself is not only to purchase this excess liability coverage but also to try to eliminate the potential risks for injury.  When driving an auto, avoid alcohol, cell phone usage, and other distractions while observing the rules of the road and maintaining safe speed limits.  At residences, paths should be kept clear of ice and snow in the winter and smoke & carbon monoxide detectors  should be maintained in proper working order.  Power tools, weapons, and alcohol should be kept under lock and key and toys and gardening tools should not be left where visitors could trip or fall.  If there is a swimming pool or pets, verify that you are complying with town ordinance requirements for the pool’s fencing and gates as well as pet restraints. 

It is not our intent to alarm anyone but rather to educate people by making them aware of their ability to keep themselves and their assets protected.

For additional information on other insurance coverages or to read some of our other informative blogs, please visit our website at www.agordon.com.

Donna Bellavance
Andrew G. Gordon, Inc.

MA Documents: The Notorious Notary

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We all know death and taxes are certain. Have you also noticed there is a growing need to have mainstream documents notarized? As recent as a few years ago, common day documents such as simple permission slips for minors for a field trip to the museum  or rental agreements for college age students were simply signed by the  student, parent or guardian. Not so much any longer as many mundane forms now require the official stamp of notarization from your local friendly notary. Here at Andrew G. Gordon Inc., we are happy to help out any customer with our complimentary notary service. This service is also available to new visitors to our agency.

What is a notary, you ask?  A notary public is an official of integrity appointed by the state to serve the public as an impartial witness in performing a variety of official fraud-deterrent acts related to the signing of important documents. These official acts are called notarizations or notarial acts. Notaries are publicly commissioned as “ministerial” officials, meaning that they are expected to follow written rules without the exercise of significant personal discretion, as would be the case with a “judicial” official.

If you are asked for your driver’s license, please do not be offended. It is the duty of a notary to screen the signers of particularly sensitive instruments — such as property deeds, wills and powers of attorney — for their true identity, willingness to sign without duress or intimidation, and  awareness of the general import of the document. Some notarizations also require the notary to put the signer under an oath declaring under penalty of perjury that the information contained in a document is true and correct. Impartiality is the byword of the notary and the foundation of its public trust. Notaries are duty-bound not to act in situations where they have a personal interest. This means the notary cannot notarize a family member’s document.  The public trusts that the notary’s critical screening tasks have not been corrupted by self-interest. Impartiality dictates that a notary never refuse to serve a person due to race, nationality, religion, politics, sexual orientation or status as a non-customer.

Remember that Andrew G. Gordon, Inc. offers complimentary notary services to our clients or new visitors with appropriate documentation.  Stop by and we will be sure to assist you!

Katherine McCarthy
CPCU, Andrew G. Gordon, Inc.

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