Shopping for Car Insurance: Why Cheaper is Not Always Better.

 

It doesn’t matter what kind of car you drive, experts in the industry this week are reminding drivers that at the time of a collision, there is a significant difference between a good quality car insurer and policy, and one that is weaker or that offers less. Many consumers are finding this out when trying to save money but learn that fly-by-night insurance carriers are not there for them nor have they been properly advised. Unfortunately, with budgets being tighten, many are not discovering this until it’s too late. 

The peace of mind of having a trustworthy and responsible insurer behind you at the time of an accident can make an immeasurable difference. That said, while the majority of people continue to insure their property and homes, many still fail to obtain proper car insurance. Moreover, those who do have car insurance often try to find the cheapest, regardless of the service they will be receiving.

The first thing that a driver must do is obtain adequate insurance to cover all of the costs that would occur as a result of a collision. This will not necessarily be the least expensive, but it will by far be the most effective in an accident situation. Some things to think about when finding the right limit of liability is; do you own a home to protect in the event of a lawsuit, a savings or retirement account or even a college fund for your children and do you have an educated source for information like the right insurance agent that can help you out.

While liability insurance does provide coverage regarding your responsibility in an accident, it doesn’t cover your vehicle.

Physical damage coverage is therefore highly recommended over liability insurance, alone. Moreover, for a particularly expensive car, such as a luxury car or a classic car, it is important to obtain an additional rider to make sure that your investment in that specific type of vehicle is fully protected for special equipment.

Also, ask your agent if you really need medical coverage and rental car coverage. Consider this, if you have more cars than drivers, save some money and remove rental car coverage – why pay extra for coverage really not needed. Lastly, most insurance professionals suggest keeping your limits of uninsured motorist coverage the same as your liability, this will avoid any confusion in the event of a loss and the cost is minimal.

An Art Lesson Courtesy Of Billionaire Sam Zell

Is your art insured? Real estate billionaire Sam Zell got his insurer Chubb to pay out $5.775 million after a dealer allegedly sold three artworks consigned by Zell and pocketed the proceeds, according to a case filed in Los Angeles Superior Court last week. “Mr. Zell was lucky because he was insured on this issue,” says Joy Berus, an art lawyer in Orange, Calif. “Many people aren’t.”

Insurer Chubb, as subrogee of Sam and Helen Zell and the Samuel Zell Revocable Trust, filed the complaint for conversion (stealing) and breach of oral contract against the dealer, David Tunkl, and his business Worldwide Masterpiece, to recover the $5.775 million. A call to Mr. Tunkl for comment was not returned.

The Zells delivered the pieces to Tunkl in 2007 and 2008 and entered into an oral agreement by which Tunkl was to convey offers to the Zells, according to the complaint. Then, in 2009, the complaint says, Tunkl confessed to the Zells that updates about interested buyers that he had given the Zells had been false and that he had sold the artworks without their authority and had spent the proceeds.

There are two key lessons here for collectors. First, don’t rely on oral agreements. Bizarrely, this is commonplace in the art world, even for artwork worth millions. Instead, make sure you have a proper written consignment agreement. It should cover details like how much you expect to sell the painting for, how much room the gallery has to negotiate the price—say 10%– without contacting you first, how soon you expect to be notified after a sale, and terms relating to payment, taxes and insurance. Don’t just sign a form the gallery hands you without reviewing it carefully, warns Berus.

Second, check on your insurance coverage. Homeowner’s policies will include some artwork under general household contents but special provisions are likely to impose sublimits, plus your deductible will apply.
Being underinsured (or uninsured) is a common problem for collectors, says Don Soss, vice president of high net worth underwriting with Fireman’s Fund Insurance. Your agent should help you determine what should be lumped under general household contents, and what should be listed under a fine arts or collectables rider. By moving items to the rider, you may pay about the same amount in premiums, but have better coverage.
Alternatively, there is blanket fine arts coverage, good if you have a handful of smaller items. Serious collectors who itemize each piece can set the value in advance, and if there is a total loss, get a payout of 150% of that value if the market value has gone up, says Soss.

Article taken from www.forbes.com