Category: Insurance

Should You Pay for Rental Car Insurance?

6/29/2016

Sandvik Insurance Agency Should You Pay for Rental Car insurance?

Picture it; you’re standing at the rental car counter waiting to start your vacation. You just got off the plane and the kids are stir crazy. Now, just one quick question before you can begin your vacation. “Would you like to purchase the rental car insurance?”

Now, you’re pretty savvy about insurance. You’ve read your policy and ask great questions of your insurance agent each year at your annual review! Unfortunately, the rental car insurance options you have in front of you have nothing in common with your personal auto insurance policy.

Don’t worry, there is a simple solution. We’ve broken it down to two key points that make the decision about whether or not you need rental car insurance an easy one. A little homework before your trip will help the rental process run more smoothly when you get to your destination.

The tips below will help you gather the necessary information to make an informed decision. Rental car insurance is just one of the many examples where your agent can help you make the best insurance decision.

Review the two key points you need to know and then contact your independent insurance agent to get started.

How much coverage do you have on your car?

As long as you are renting a car for personal use only, then whatever coverage you have on your own vehicle may carry over to your rental car. You’ll need to know whether your insurance policy covers administrative fees, loss of use or towing charges.

If you don’t currently own a car, and frequently rent or borrow from friends, contact your agent about a non-owner liability policy.

2. Does your credit card provide any coverage?

Call the number on the back of your credit card and ask the operator to send you the rental car coverage details in writing. In most situations, your card may provide a small amount of coverage if the card is used to purchase the rental. Card benefits are often a backup to your personal auto insurance or the rental car insurance (if you choose to purchase).

Coverage varies greatly between cards and there is often more coverage on higher level cards. Liability is usually not included.

Whenever you have an insurance question or are concerned or unsure about your coverage, contact your independent insurance agent! Your agent is a resource to help you make informed decisions that protect your property, family and finances. Courtesy of Integrity Insurance

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Five Key Factors in Selecting a Worker's Compensation Carrier

4/29/2016

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Sandvik Insurance Agency Five Key Factors in Selecting a Workers’ Compensation Carrier
It's no secret independent insurance agents love to shop for their clients. Think of them as the best gift-givers around! When it comes to shopping for Workers' Compensation insurance, your agent's job is to find a carrier that's the best fit for your business, but the process is a little more complicated than you'd think. Selecting a carrier based solely on economic decisions might not be the smartest choice. And while price is definitely important, it's not the only factor. As an owner or manager it's important to understand the process when it comes to your Workers' Compensation insurance.

Check out these five key factors your independent insurance agent is considering when recommending a Workers’ Compensation carrier.

1. Financial Stability
Your Workers' Compensation carrier needs to be financially strong. If they had to pay out a large portion of policies, would they be able to do so? It's important to know before you have to file a claim. A.M. Best is a company that rates insurance carriers' Financial Strength Rating (FSR), which represents their ability to meet commitments to policyholders.

2. Claims handling practices
If the unfortunate happens, how fast would you want the carrier to respond to a Workers' Compensation claim - immediately or several weeks after the incident? Time is money when it come to business and you can't afford to wait. Carriers track claims response rates and the ones that are highly rated are likely to toot their horn and let you know about their timely and helpful service.

3. Risk management resources
Top insurance carriers should have a library of resources available to help your business maintain a risk-free work environment and information on return-to-work programs. The best part is that access to these resources is usually included in with your Workers' Compensation policy.

4. Experience in your industry
You would never take your BMW to a mechanic that doesn't specialize in imports because they would have little experience with your German engine. That's the same reason why you shouldn't select a carrier that has little-to-no knowledge of your business. Experience in your industry is important so they understand your needs to provide adequate coverage.

5. Tenure in the industry
A carrier who has only been selling Workers' Compensation coverage for 6 months might be more of a risk for your business as opposed to another who has a strong book of business selling Workers' Compensation coverage for more than 30 consecutive years.

Leaving the shopping to an independent insurance agent will not only give you the best possible Workers' Compensation coverage for your business, but the peace of mind that comes along with it. Courtesy of Integrity Insurance

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Three Important Reasons to have Renters Insurance

3/2/2016

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Sandvik Insurance Agency's Three Important Reasons to have Renters Insurance
Every dollar you take home is important and you do your best to spend them wisely. When purchasing a house, most people borrow from a bank and are required by the lender to buy insurance. However, when you rent, that check and balance isn’t in place to remind you of the risks of being uninsured. In fact, an Insurance Information Institute (III) poll completed in 2014 showed that only 37 percent who rent a house or apartment are insured.

Did you know that if you rent, your landlord’s insurance will only cover the costs for damage to the building and not your personal items? Renters insurance is well worth the investment. Check out the three ways that renter’s insurance protects you – the renter.

1. Coverage for your personal possessions
It doesn’t seem likely that you could ever lose your “stuff”, but it can happen to even the most careful person because well, unexpected things happen. Then what? Well, renters insurance may reimburse you for loss of, or damage to your personal possessions from causes such as fire or lightning, windstorm or hail, explosion, vandalism or malicious mischief, theft, falling objects, weight of ice, snow or sleet, water damage resulting from utilities and electrical surge damage. Some policies even include a limited amount of off premises coverage for when you travel.

2. Liability protection
If you’re sued because you, your family member or your pet cause someone to suffer bodily injury or incur property damages, a renters insurance policy gives you protection. How? The policy pays for your defense attorney and any damages awarded - up to the limit of your policy. A standard policy typically provides at least $100,000 of liability coverage, with more available for additional premium. Your renters policy also provides compensation to someone who is actually injured while in your rental unit. Most policies allow between $1,000 and $5,000 in coverage.

3. Additional living expenses
Where would you stay if your property was damaged by fire or storm and you had to move out temporarily? A renters policy may provide you with additional living expenses (ALE) so you can live elsewhere if your rental is damaged or destroyed by a disaster. The ALE pays for meals, hotel bills and normal expenses (laundry, utilities, etc.) you incur while the property is repaired or rebuilt. Make sure you know how much coverage you have and what the limitations are. Some insurance companies provide coverage for a specific amount of time and others have a financial cap.

Protect your personal property and your savings by contacting your independent insurance agent to discuss your options for renters insurance today. Ask about discounts you may be eligible for. The benefits far outweigh the cost and you’ll sleep better knowing you’re covered. Courtesy of Integrity Insurance

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Business Auto Insurance

12/15/2014

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Four Questions To Get The Right Auto Insurance
Using the right tool for a job is key to success in any profession. Experts say the same principle applies when selecting an auto insurance policy. Having the right type of policy can help ensure that you, your employees and your business are all protected in the unfortunate event that one of your vehicles is involved in an accident.

If you’re a business owner and you or your employees use a vehicle for business-related deliveries or to carry certain materials to and from a job site, you may need a commercial auto insurance policy that’s tailored to more closely suit the needs—and risks—of a business vehicle operator.

Here are some questions that can help you determine if you might need a commercial auto policy instead of a personal auto policy, courtesy of Sandvik Insurance Agency:

Do you need more liability coverage than your personal auto policy provides? Generally, a commercial auto policy provides higher limits of liability, but less or no coverage in areas that are typically not associated with commercial auto risks.
Do you need special coverage for situations associated with con-ducting business? Commercial auto policies also usually offer certain coverage's — such as hired and non-owned auto coverage and coverage for towing a trailer for business use—that are not available with personal auto policies.
Do you need to list any employees as drivers? You can do this with a commercial auto insurance policy.
Do you use your vehicle for business purposes? If you use your vehicle for things like pizza or newspaper delivery, catering, door-to-door consulting service, landscaping or snowplowing service, logging business, day care/church retreat van service and/or farm-to-market delivery, you might need a commercial auto policy.

Sandvik Insurance Agency is an independent insurance agency – trained, licensed insurance professionals who offer personal service and advice. We can help match you with the type of policy that best suits your needs and those of your company.

To learn more about all an independent agency offers, e-mail us at contactus@sandvikagency.com or give us a call at (507) 226-8481.

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Car Insurance Savings

12/11/2014

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Shedding Light On Car Insurance Savings
It can be easier than you think to put the brakes on high auto insurance rates – as an independent agency, Sandvik Insurance Agency can help! We can review your policy and possibly help you find a variety of illuminating ways to save money. Here are some things you may want to consider:

• Ask us to check several companies’ rates. This is the single most important thing you can do to get the best possible rate—and we can do it for you quickly and easily. The difference between the highest and lowest rate available to you from different companies could vary by hundreds of dollars.

• Reduce or drop physical damage coverage on an older car. Depending on your car’s age and where you live, comprehensive and collision coverage may not be worth keeping. We can give you advice on whether it makes sense to reduce or drop this coverage altogether.

• Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15 to 30 percent. In addition, because the average driver files a collision claim only once every ten years, odds are that over the lifetime of your car, a higher deductible will save you money. We can show you how raising your deductible will lower your premium.

• Look for discounts. Many insurance companies reduce premiums for certain driver traits or car features. For example: being a homeowner for more than three years, nonsmoker, nondrinker, students with good grades, senior citizens who have taken an approved defensive driving course, people who only drive for pleasure, cars kept in garages, antilock brakes, antitheft devices, air bags, etc. Ask us to check.

• Don’t assume having your car and home insured by the same company is the best option. Because auto insurance rates vary so much from company to company, it may make sense for you to have your car and home insured by separate companies. Let’s talk about it.

To learn more about all an independent agency can offer you, call Sandvik Insurance Agency or email us at contactus@sandvikagency.com.

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Future Classic Cars

10/8/2014

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Do you own a classic car of the future?

There’s nothing quite like driving a speedy, shiny classic car that turns heads and starts conversations. In fact, the beauty and elegance of old collectibles – like the 1964 Aston Martin DB5, the 1963 Corvette Sting Ray and the 1969 Dodge Charger – can be downright captivating.

If you don’t happen to own one of these timeless beauties, it may not mean you will never own a classic. In fact, there are many automobile aficionados and industry experts that predict we can expect a whole new generation of cars that will one day be bestowed the same level of prestige as, say, the 1969 Chevy Camaro.

If your curiosity is getting the better of you, Sandvik Insurance Agency is offering you a peek at the 10 models predicted by CNET’s Car Tech editors as being the vintage cars of the future. Who knows, you just may own a classic after all.

  1. Toyota Prius (first generation): Built from 1997 to 2003, sold in the U.S. from 2001 to 2003
2.   Honda Insight (first generation): Sold in the U.S. from 1999 to 2006
3.   Toyota MR2 Spyder: Built from 1999 to 2007
4.   Honda S2000: Built from 2000 to 2009
5. Scion xB: Offered from 2004 to 2006
6.   Infiniti G35: Built from 2003 to 2006
7. BMW 335i/N54 3-series: Built from 2006 to 2010
8. Pontiac G8: Built from early 2008 to mid-2009
9. Dodge Magnum: Built 2004 to 2008
10. Chrysler 300C: Built 2005 to 2011

If any of the above-named vehicles is sitting in your garage, congratulations may be in order. And if not, it’s not too late to start checking the classified and used car lots.

Regardless what you’re driving or what automobile you might have stored away, we at Sandvik Insurance Agency are here to make sure you have it covered! Contact us today.

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Renters Insurance

9/25/2014

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The Importance of Renters Insurance
If you live in a rental home or apartment, chances are you don’t have the proper insurance. Despite the fact that rented homes are more likely to be burglarized than owner-occupied properties, nearly 60 percent of renters don’t have a renters policy.

Why does it matter?

“If you rent a house or apartment and think that your landlord is financially responsible when there is a fire, theft or other catastrophe—think again,” warns the Insurance Information Institute*. “Your landlord may have insurance to protect the building you are living in. But your landlord’s policy won’t replace your personal possessions or pay for your living expenses while the building is being repaired. The only way to protect yourself financially against disasters is to buy a renters insurance policy.”

Renters insurance covers your possessions, liability and additional living expenses Let’s take a look at these three types of protection:

Possessions

Standard renters insurance protects your personal belongings against damage from fire, smoke, lightning, vandalism, theft, explosion, windstorm, water and other disasters listed in the policy. Floods and earthquakes are not covered.

To decide how much insurance to buy, you need to know the value of all your personal possessions—including furniture, clothing, electronics, appliances, kitchen utensils and even towels and bedding. The easiest way to figure this out is to create a home inventory, a detailed list of all of your personal possessions and their estimated value.

There are two types of renters insurance policies for your possessions:

Actual Cash Value pays to replace your possessions minus an amount for depreciation (the reduction in the value of items due to age and use) up to the limit of your policy.
Replacement Cost pays the full cost of replacing your possessions (with no deduction for depreciation), up to the limit of your policy. The price of Replacement Cost coverage is about 10 percent more than Actual Cash Value coverage, but can be well worth the additional cost.

Note that a standard renters policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.

Liability

Standard renters insurance policies also provide liability protection in the event you or members of your familiar cause injury to others or damage their property. It also pays for damage your pets cause.

If you are sued, the liability portion of a renters policy may pay for both the cost of defending you in court and for court awards, up to the limit of the policy. Liability limits generally start at about $100,000. Your policy may also provide No-Fault Medical coverage. If visitors are injured in your home, regardless of fault, you can submit their medical bills directly to your insurance company. You can generally get $1,000 to $5,000 worth of this coverage. It does not however, pay medical bills for your own family or your pets.

Additional Living Expenses

Many people are pleasantly surprised to learn that Additional Living Expense (ALE) coverage is typically included in a renters insurance policy. If the home or apartment you are renting is damaged or destroyed and you need to live elsewhere while it is being repaired or rebuilt, renters insurance will cover your additional living expenses—namely the difference between your regular living expenses and the additional costs incurred by having to live away from your home, such as hotel bills, temporary rentals, restaurant meals, etc.

Need help deciding what coverage is best for you?

Contact us today At (507) 226-8481

*Insurance Information Institute, September 30, 2009

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Insurance to Value

9/18/2014

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Do You Have Enough Coverage to
Rebuild Your Home?

Imagine how devastating it would be to lose your home in a fire. Now imagine not being able to rebuild it completely because you didn’t have the correct amount of insurance.

Selecting the proper amount of coverage is the single most important decision you can make with your Homeowners policy. Without it, you may not have enough coverage to rebuild after a total loss. This is called “insurance to value.” Below are some explanations and tips to help you make the right choices for your needs — and remember, if you need help, we’re just a phone call away!

What is insurance to value?

Insurance to value is the relationship between the amount of coverage selected (typically listed as “Coverage A” or “Dwelling Coverage” on your policy declarations page) and the amount required to rebuild your home. Insuring your home for anything less than 100% insurance to value could mean you wouldn’t have enough coverage to replace your home in the event of a total loss

Why is the cost to rebuild different from the market value?

A home’s market value reflects current economic conditions, taxes, school districts, the value of the land and location, and other factors unrelated to construction cost. The cost to rebuild your home is based only on the cost of materials and labor in your area. It is important that you insure your home based on its reconstruction cost, NOT its current market value

Why is reconstruction more expensive than new construction?

New-home builders typically build many homes at once, and solicit bids from various sub-contractors to receive the best pricing. Their business model is based on economies of scale. For example, they may purchase 20 bathtubs at once, securing a lower unit cost. These economies of scale don’t exist when building a single home.

How can I make sure I have the correct amount of insurance?

Work with your agent to provide detailed information at time of purchase to be sure that you receive a thorough and accurate quote.

Ask us about additional coverage options that may be available.

Review your insurance to value calculation on a regular basis with your agent.

Tell your agent about any changes or improvements that you make to your home.

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Rental Car Insurance

9/11/2014

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Do you need rental car insurance?

You’ve probably been at the rental-car counter, listening to the representative ask if you want to purchase the company’s insurance. And the thoughts start racing through your head. “Is this a rip-off? Doesn’t my regular auto policy cover me? What about my credit card? Why didn’t I figure this out before I left on my trip?”

At Sandvik Insurance Agency, we are here to help. And while not every situation is the same, we’ve got some general tips that will help you make an informed decision the next time you’re standing at that counter.

1. Know your personal auto policy.

Because insurance policies vary, it’s a good idea to give us a call — before you rent a car — to make sure you have the coverage you need. In many instances, your personal auto policy will provide coverage for a rental car — but that coverage may be limited to the value of the car you own, rather than the one you’re renting. Of course, if you don’t have a personal auto policy, you’ll need to purchase coverage from the rental company.

And keep in mind that in the event of an accident, many rental companies will charge fees beyond repair costs. They may assess a loss-of-use fee for each day the car is unusable, as well as charge you because the value of the car has decreased. Not all insurance policies cover these fees.

2. Also know your homeowners or renters policy.

If you’re traveling with expensive electronics or other valuable items, you probably want to consider what coverage you’ll have in the event they are stolen. Your personal auto policy and/or credit card coverage likely won’t provide protection for this scenario.

3. Check your credit card protection.

Most credit cards will also provide some coverage, but often payment is limited to reimbursement of your personal auto policy deductible (after that policy pays for repairs). Generally, loss-of-use and other fees are not covered, but it’s important to check with your credit-card provider to determine their policies. And while some cards may offer additional protection for a fee, usually coverage is limited to damage to the car, not liability for any injuries to others. Remember, to receive any sort of benefit from your card, you must use that card to pay for your entire car rental.

4. Consider any unique circumstances.

Are you renting a car in a foreign country, or for more than a week? You’ll definitely want to get confirmation of coverage from both your insurance carrier and credit card company because different rules might apply. Also, no matter where you are, vehicles such as trucks, RVs or exotic sports cars often aren’t covered under standard agreements. And if you’re using a car for business purposes, your personal coverage might not apply. Finally, if multiple people will be driving the car during your trip, make sure your coverages will apply to them.

5. Learn about the insurance offered by the rental car company.

According to the Insurance Information Institute, rental companies offer four main types of coverage.
A Loss Damage Waiver (LDW) relieves you of responsibility if your rental car is damaged or stolen. This may also provide coverage for loss of use.
Liability Protection provides protection from lawsuits if you are sued after an accident.
Personal Accident Insurance covers you and passengers for medical bills after an accident. You may not need this if you have adequate health and auto coverage.
Personal Effects Coverage protects you if items are stolen from your car. You generally are covered for this under your homeowners or renters policy, but keep in mind that the loss must exceed your deductible for you to receive payment. If you have a high deductible, it may make sense to purchase this coverage from the rental company.

When you go on vacation, you don’t want to stress out about insurance. So give us a call before you leave. Then, when you head over to the rental-car counter, you can stop worrying about your coverage — and start enjoying your trip!

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Auto Insurance Deductible

9/5/2014

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How To Choose An Auto Insurance Deductible
When quoting auto insurance for clients, we frequently discuss how to choose the right deductible. I thought I’d take a few minutes to share this information here on our website too!

A deductible is the amount you pay out of pocket when you have a claim. If you have a $500 collision deductible and have an accident, then you would pay $500 towards repairing your vehicle and insurance would cover the rest.

The deductible you choose directly relates to the amount of money you spend on premiums each month. The higher the deductible ($250, $500, $1000), the lower your monthly cost.

So how do you choose? Cheaper price or lower out of pocket expense?

First, look at your emergency savings. Do you have enough cash available to cover a higher deductible if you had to pay it? If the answer is no, then you’re better off paying a little extra each month.

Compare the cost savings. When we run a quote, we can show you several different options. Ask your agent to run the premium based on several different deductibles so you can see the actual dollar cost savings.

You can always change your mind. If you’re short on cash now, but know you could afford more out of pocket next year, you’re always able to change. Keep your deductible in a comfortable range and you’ll always be well protected!

Call us at 507-226-8481 for more information and a personalized quote!

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Sandvik Insurance Agency Blog

Should You Pay for Rental Car Insurance?

Five Key Factors in Selecting a Worker's Compensation Carrier

Three Important Reasons to have Renters Insurance

Business Auto Insurance

Car Insurance Savings

Future Classic Cars

Renters Insurance

Insurance to Value

Rental Car Insurance

Auto Insurance Deductible

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