Coronavirus effects on insurance

Coronavirus And My Insurance Policies

I know people are wondering if this pandemic will affect their home and auto policy premiums

It can, but it shouldn't

Your premium will most likely change at your next renewal, but that is common. There is no way to know exactly how the effects of this pandemic will affect premiums in the future. When companies lose money, they generally increase premiums to gain it back. But for now, your premium should stay the same unless you make changes, such as adding coverage.

My neighbor said I should lower my auto coverage

You may hear it is a good idea to lower your coverage on your auto policy since you won't be driving much for a while. I would caution against this. If you cancel the policy, it is illegal for you to drive- anywhere. If you lower your coverage and have an accident, you will pay much more out of pocket expenses for the damage. We do not know how long we may have to stay in our homes. We may need to drive because of an emergency. Think long and hard about the possible consequences before you make changes.

Can I still get a hold of my agent?

If you are looking for a new policy or need service work done, this should not be affected by the pandemic. Most insurance can be done by phone, fax and email. I know many agents have closed their office locations, but many of those have set up a way to work from home. If you don't get an answer when you stop by, call. If you don't get an answer when you call, email your agent. 

How is my carrier reacting to all of these changes?

Most of the carriers are working from home also. They have set up systems so their workers can answer phones and email from home. Many of them have offered payment deferrals for 30-60 days. This is for people directly affected by the coronavirus (loss of job or contracting the virus would qualify) But keep in mind, you will still have to pay your premiums eventually and you may have less time to pay it in, leading to higher payments you have to make down the road.

I know these are scary and uncertain times. I know many will have to make tough decisions. Whether your insurance is valid shouldn't be one of them!

Have questions? Need a quote?    
* Call us  877-987-8683  
* Visit brockmanpremierins.com

How important are insurance reports?

There are several different reports insurance carriers will run before thy will insure you. There are credit reports, claims history reports, payment history reports, violations reports. Home and Auto insurance carriers will both utilize these reports. This is the part where your history will affect your rates!

Can I Lie About My Driving History?

You can try, but it won't work. All carriers run your history reports before (or sometimes after) they write your policy. Most run the reports before they will bind the policy. Your reports largely determine your rates so they can be very significant in your pricing.

The CLUE report provides a 7 year history of claims associated with the driver/car. It will show the date of the loss, the type of loss, the amount paid out and the driver and car associated with the claim. Your agent can send you your CLUE report and you can dispute any claims that are on your report in error. 

The Motor Vehicle Report (MVR) provides your driving history, your drivers license history (including suspension or cancellations), your traffic violations/citations and DUI convictions. The time frame of the MVR varies by state. 

Why Home Insurance Reports?

Home insurance claims are filed less frequently than auto claims of course. They will be different than the auto reports, but what they are looking at is the same;  your claims history. 


Catastrophe claims shouldn't affect your rates too much. These include tornadoes, hurricanes, hail storms. The industry decides if it is a CAT claim once the estimated claims from the "storm" reach a certain amount. 
Water Claims will affect your rates due to the price of repairs. It does not take long for water to cause expensive damage.
Liability claims will affect your rates. It shows a concerning lack of safety and upkeep at your home. 
Negligence claims will cost you , you may have a hard time finding a carrier who will insure you at all. And again, you can lie or not disclose, but the carrier will run reports and the claims (and their circumstances) will be found. 
Frequent claims filing will cost you in premium and by minimizing the number of carriers who will insure you. If you believe a claim should be filed, wait! Call out a certified contractor and get estimates! If you file a claim and it turns out the repairs will cost less than your deductible, the carrier will NOT pay out the claim. But you will still have the claim in your history. 

Why Do Carriers Use These Reports?

Home and Auto insurance carriers use these reports to decide how great the risk is to insure you.  The greater the risk (bad history), the higher the rates. So a clean driving or claims history will earn you better rates. Most carriers will look back 5 years. 

Your claims history is very important to your rates. You can lie all you want. We have had people tell us they have not had any claims and then we find out they do. "Oh I forgot about that" seems to be the common retort.  The reports will show your history, whether you have revealed it yourself or not and it will affect your rates. So be honest with your carrier for consistent rates. Carriers rate claims and violations differently, so where one carrier may choose to not insure you, another carrier may have decent rates for you. So don't lose heart and decide insurance is a luxury you cannot afford!

Have questions? Need a quote?    

* Call us  877-987-8683  

* Visit brockmanpremierins.com

Auto Insurance Basics

Back to Basics-Car insurance

    Have you tried to read your insurance policy and just given up? It can be very confusing! But I am going to try to simplify it for you. Over the next several weeks I will attempt to simplify each type of insurance, begining with Car insurance:

    Every policy should have a Declarations Page. 

This page “declares” who you are, what cars you have insured, your coverage choices and how much you are paying for this policy period.

    There are 2 types of coverage on your auto policy: Coverage that protects the other party and coverage that protects you.

Coverage that protects the other party:

Bodily Injury Liability: protects you from having to pay medical costs, lost income and funeral expenses of other people involved in an accident that is your fault.

Property Damage Liability: protects you from paying for the repair or replacement of the other person’s car.

            There is no deductible for liability coverage. You have many amount options for this coverage. The state minimum in Texas is $30,000/$60,000/$30,000. This means you are covered for $30,000 per person/$60,000 per accident and $30,000 for property damage. I would suggest higher liability limits than the state minimum. If you cause an accident and the liability claim is 75,000, and you have state minimum coverage, you will pay the additional $15,000 out of pocket. It is not expensive to increase your liability limits. Ask your agent to explain your options.

Coverage that protects you:

Uninsured/Underinsured Bodily Injury: covers your injuries (or death) in case the responsible party has little or no insurance. It also covers those riding in your car.

Uninsured/Underinsured Damage: covers damage to your car or property in case the responsible party has little or no insurance.  There is a state mandated $250 deductible in Texas for Uninsured/Underinsured motorist coverage.

Medical payments: covers medical or funeral expenses if you or anyone in your vehicle are injured in an accident.

Personal Injury payments: covers medical or funeral expenses and possible lost wages if you or anyone in your vehicle are injured in an accident.

Collision Coverage: pays for damage to your car if you hit another car or something else (like a tree or a building).  You must pay a deductible. Deductible amounts determine the cost of this coverage. The higher the deductible, the lower the premium.

Comprehensive Coverage: (also called Other than Collision) pays for damage to your car if something other than a collision occurs. This could be fire, theft, hit by an

Animal (yes, the animal hit your car!) The same type of deductible rules apply to Comprehensive as they do to Collision. They are two different deductibles though.

Optional Coverages that protect your car:

 Towing: pays for towing and some basic roadside assistance, depending on the carrier and towing option you choose.

 Rental Reimbursement: pays for the cost of renting a car while yours is being repaired after an accident.

Loan/Lease Gap Insurance: pays the difference between what you owe and the total value of your car if it is totaled in a claim. This is only valid if you have a new car (less than 3 years old).

So there you go. There are many options to consider in Auto insurance, but they don't have to overwhelm you. If you have any questions, please contact your agent. That is what they are there for. If they cannot answer your questions, please contact us. 

Have other questions? Need a quote?

    * Call us  877-987-8683  

    * Visit brockmanpremierins.com