Month: July 2019

The Red Car Myth

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The Red Car Myth And Other Auto Insurance Fables

Buying a car is probably one of the first substantial investments you’ll make as an adult. And because of its significance, you’ll want to do your homework. Automobile insurance is one essential piece of the package that you should not overlook. Trying to avoid industry rumors, fables, and false information can sometimes make your research challenging. The most notorious piece of misinformation in auto insurance is the red car myth, which has people avoiding the purchase of a red vehicle for fear that this paint color will leave them with higher insurance premiums.

It’s vital that auto insurance customers are well-informed, so keep reading to dispel of the red car myth and other common auto insurance fables.

Myth #1: Red Cars Cost More to Insure

According to one study, nearly half of Americans believe that owners of red cars will pay more for auto insurance, showing the wide reach of the red car myth. Car insurance companies have repeatedly dispelled this falsehood, with many not even asking about the color of your car when providing quotes. The aspects of a car that will matter are the make, model, type, and age of the vehicle, among some other characteristics of the car. But color is not one of them.

Myth #2: Cheap Cars Are Cheaper to Insure

Another aspect that won’t be taken into account when determining your car insurance policy is the correlation between the price paid for a vehicle and the rates on the insurance policy. While more expensive model cars may have features that cost more to insure, the fact is that cheaper cars can be heavy, rare, or have other characteristics that still drive up insurance rates. So, while certain aspects tied to a vehicle will correlate with rates, it cannot be assumed that the cheaper the car, the cheaper it is to insure.

Myth #3: Car Insurance Won’t Cover At-Fault Drivers

Another common misconception is that auto insurance policies won’t cover at-fault drivers. However, most car insurance policies which U.S. consumers buy will help to pay for damages, even if the driver was at fault.

Myth #4: That Speeding Tickets Will Automatically Increase Insurance Rates

While it’s true that a driver who has a history of reckless driving will pay more for insurance, your auto insurance provider will not necessarily automatically increase your rates if you get a ticket. For drivers that have an otherwise clean record, their premiums may not increase at all for minor violations. Further, many insurance policies include accident forgiveness, promising not to increase rates for your first minor accident.

To find out more information about auto insurance, contact Schechner Lifson Corporation. Discover how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible.

Corporate-Owned Life Insurance

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Is Corporate-Owned Life Insurance The Right Choice?

Insurance will always be your saving grace when it comes to protecting your business. As a business owner, are you well-versed on all of your options? One type of insurance policy many aren’t aware of is corporate-owned life insurance. While it may be a bit more unconventional, corporate-owned life insurance might be the perfect fit for you and your organization.

Defining Corporate Owned Life Insurance

The main distinction with corporate-owned life insurance is that it is a policy that is purchased by a company, rather than by a singular person, used to insure a specific high-ranking employee or group of employees, within that company. In this scenario, it is the company that purchases and owns the policy, and they are also the beneficiaries that would get the payout, while the key employees are the ones who are insured on the plan.

Situations which warrant Corporate Owned Life Insurance

One main reason a company might consider purchasing a corporate-owned life insurance policy is if the work and value provided by the covered employee or employees are so critical to the business function, that their passing would set the company back significantly, in terms of reputation, customers, and profit. To help keep the business afloat in the aftermath and to help the company find a replacement, this coverage payout can be critical.

Beyond the payout, another advantage is the company can withdraw or borrow against the corporate-owned life insurance policy’s cash value. This can even be seen as a primary benefit of this type of coverage, as no income tax is due on the distribution and this borrowing could end up earning the company additional income, even when paying the insurance premiums.

Want to find out more?

With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right coverage at a price that may just be more affordable than you think. Contact us today to see how we can make sense of the world of insurance, providing you with the best coverage possible.

Commercial Property Policy Coverage

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How Much Does A Commercial Property Policy Cost?

For business owners or those who own and lease out commercial property, ensuring that you have the proper commercial property policy is critical. Should something happen beyond your control, having a commercial property policy will make sure your business is protected. However, many business owners might be wary of investing in such insurance coverage for fear of how much a commercial property policy will cost them. As with most types of insurance policies, this type of coverage will provide you with peace of mind and a security net.

What’s Covered?

First things first, a commercial property policy will provide coverage for the building that houses a business, as well as all related equipment and inventory inside the location, regardless of whether the property is owned or leased by the business owner. These insurance policies will cover the replacement costs for the building and everything in it, should there be fire, vandalism, and other acts out of the owner’s control, subject to the exact terms of the policy.

The main areas of loss that are typically covered by commercial property policies are the building itself, both the body of the building and the associated components, such as electrical and HVAC systems, the building contents, other people’s property that might be housed within the building, and exterior signs/marquees.

What are the Costs?

As with any insurance, the exact cost of coverage will vary based on several factors. The insurance company you choose, the total amount of coverage required, the deductible elected, the building location, the type of business, and more will all have immense impacts on the final premium costs you pay on your commercial property coverage.

On average, across the United States, a commercial property policy will run business owners between $500 and $1,000 each year for small businesses, with rates extending into the range of hundreds of thousands of dollars for larger corporations. On average, the policy will be in the $700 to $800 range, with a good rule of thumb being that policies will run $1,000 to $3,000 per every million dollars of commercial property policy coverage you want. Policies also typically require a certain deductible to be paid by the policy owner in the event of a claim, usually in the $500 to $1,000 range.

Schechner Lifson Corporation can offer you help in weighing the costs and benefits of commercial property policies. Contact us today to see how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible.

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