Whose Home or Auto Insurance Pays when the Wind Knocks a Tree onto my Car/House?

Whose Fault is it?

Sunday night near Cerritos, CA the wind was blowing at approximately 30 mph. Thirty. Miles per hour. That’s as fast as a car driving down a street. If you’ve had the “pleasure” of walking outside during a windy evening, you know what it feels like having your hair whip your face or small debris blowing into your eyes even as you shield them. Now, imagine this same 30 mph wind blowing consistently and terribly enough to knock over your neighbor’s 30 foot tree, right on top of your car or house. Imagine the damage that just happened. Your fairly new Toyota Rav4 not only got its first scratch, it also received a hole in the roof and passenger door so damaged that it’s dangling by a single hinge. Besides not being able to drive to work this week, you’ve got other problems on your hands now. Who is responsible for paying the cost of repairs or replacement? Do you go confront your neighbor or make a claim with your own insurance company?

If it falls on your car, it’s an Auto Insurance claim covered under comprehensive. If it’s home damage, it’s a Home Insurance claim, though some things are taken into consideration. Why is your neighbor not responsible for the damage if it was his tree? The reason for this is that it is not your neighbor’s negligence that caused the tree to fall, the falling is considered by the insurance companies as “an act of God.” Just as your neighbor would have to file a claim with his or her own Homeowner’s Insurance carrier if a tree from your yard was blown onto his/her property and damaged the car or house.

Auto Insurance to Cover Your Damaged Car

Your Car Insurance will cover this loss up to the amount of your Comprehensive Coverage, that is if your do in fact have this coverage on your Auto insurance policy. It is covered under comprehensive because the tree hit you, you did not collide with the tree in an accident. If you have deductibles to pay, you’ll need to pay this amount out-of-pocket before the insurance company will jump in and pay. However, if you had told your neighbor in the past that you were concerned about this tree possibly falling over and cause damages to your property, your Auto Insurance carrier may try to get your neighbor’s Homeowner’s Insurance to pay for the claim including your deductible.

Homeowner’s Insurance to Cover Property Damage

Damage to your house or other structure on your property would be covered under Homeowner’s Insurance because your insurance is primary in this case. It was a natural occurrence and there was no negligence on the part of your neighbor. The tree was healthy, the windstorm was just too strong for the tree roots to stay grounded. The rule is that if your neighbor knew or should have known about how unsafe the tree was, he would be responsible. So, if it’s your property, you are responsible for it unless you are able to provide proof that it was somehow your neighbor’s fault.

Lowering Auto Insurance Rates By Keeping Safety in Mind

“Be safe!”

When you were younger, your mother or father probably said something like that to you whenever you were heading out onto the road. Back then, they probably had good reason to, given that motor vehicle accidents have long been the top cause of death among teenagers and young adults. But this advice holds true for any age driver for another reason: better auto insurance rates.

You see, the amount of money you pay for auto insurance is almost completely determined by statistics. Some of those metrics you cannot control – for instance, younger drivers tend to pay more for auto coverage than older ones because more collisions (and their resulting injuries) are caused by people under 30 than by other working-aged Americans.

Make “Driving Safety” Your Co-Pilot

In contrast, you are responsible for your own driving record, including how many citations you receive and the number of accidents you are involved in – both of which are indicators of unsafe driving. Because riskier drivers are more likely to require insurance claim payments (either for themselves or others), auto insurers will charge them higher premiums. But the reverse is also true: safer drivers represent a smaller risk to insurance providers, so these individuals will pay less for auto coverage.

So how can you become (or remain) a “safe” driver?

A major part of the answer is to heed all of those warnings you heard from your driving instructors. This means engaging in behaviors like checking your mirrors consistently, observing speed limits, maintaining safe following distances on highways, obeying traffic laws, and exercising caution in adverse driving conditions. But it’s also important to refrain from dangerous activities like operating a mechanically unsound vehicle or driving while texting, distracted, drowsy, or under the influence of alcohol or drugs.

2 Things You Need to Know Before You Buy Auto Insurance

What grade did you receive in your Introduction to Auto Insurance class?

Wait – you mean you didn’t take such a class in high school or college?

So how are you expected to know the ins and outs of auto insurance?

Unfortunately, most Americans don’t receive any “formal” instruction on how to purchase auto insurance, even though these policies are necessary in order to drive legally. With that in mind, here are the basic concepts about auto insurance that you should know before signing your name on a policy:

1. The parts of an auto insurance policy.

Here’s a quick glossary of words and phrases:

• Term: The length of time your policy covers (usually one year).
• Declarations page: the page of your policy that summarizes your auto insurance. Think of it like the paper version of the “dashboard” for your policy.
• Endorsements: changes to your policy (i.e., an additional driver, roadside assistance coverage, etc.)
• Exclusions: the types of scenarios where your auto insurance policy will not pay out any money. Examples include damages incurred while using your car to make money (like Uber drivers), intentionally damaging your vehicle, damage incurred while drag racing, or damage from certain catastrophic events (like a nuclear disaster).

2. What the different monetary amounts mean.

• Premium: The amount of money you agree to pay for your auto insurance policy.
• Quote: An estimated cost of a policy issued by an insurer – it is neither exact nor binding, and it is subject to change based on the insurance company’s research into your driving record, credit score, etc.
• Deductible: The amount of money you agree to pay before the auto insurance coverage kicks in (much like a co-pay for health insurance). So for example, if you file a claim that totals $3,000 and your deductible is $500, the insurance company will pay out $2,500 to you.
• Limits: The maximum amount of money the insurer will pay for a given type of claim. So if you cause $50,000 in damage to another vehicle and your policy limit is $30,000, you could be on the hook for the remaining $20,000.

Teen Drivers and Auto Insurance

The 21st century teenager. Over the millennia, it has evolved into a creature of many curious habits.

Notice the speed in which its thumbs move across the keypad of its smartphone. Or how it will stand silently when asked by its parent about the events of its school day. It can even flawlessly execute a stunning roll of the eyes in order to communicate equal parts boredom and disgust.

But one skill the modern teen struggles to master is the practice of operating a motor vehicle. Because of this, auto insurance providers must try to mitigate their risk of paying out accident claims for teen boys and girls who are still trying to learn how to drive. These companies do this by charging significantly higher insurance premiums for teens than they would for typical adult drivers.

Teen Auto Insurance WILL Be Expensive

when a typical married couple adds a teenaged driver to their auto insurance policy, the total premium surges by an average of 79%. In other words, a couple who pays $1,000 for six months’ coverage would see that figure skyrocket to $1,790 after enrolling their teen for auto coverage.

It’s worse for boys than for girls, simply because statistics show that teen boys are involved in more collisions than their female peers. While the average 16-year old girl’s inclusion on her parents’ policy raises the combined rate by 67%, a boy of the same age added to the family policy typically results in a more drastic 92% increase.

These numbers underscore the importance of comparison shopping for auto insurance coverage for teenaged drivers. After all, it’s a major purchase much like a house, car, or large appliance; and in those cases, you wouldn’t simply buy the first product that you see, right?

How Lower Gas Prices Impact Auto Insurance Rates

Developments around the world in 2015 have caused gas prices to drop nearly 50% over the last six to nine months, from a peak of close to $4.00 per gallon in 2014 to under $2.00 on average as winter draws to a close and spring begins. Oil has dropped from close to $100 per barrel in 2014 to between $25 and $35 a barrel, on average, due to an increase in U.S. oil production and a number of political and economic factors in other parts of the world.

In addition to the U.S. nearly doubling its oil production in recent years, countries like Russia and Saudi Arabia have continued to produce at the same levels, while Iran, whose production had been stifled by sanctions, is expected to add even more oil to an already flooded market as sanctions are lifted.

The oil industry is in a period of deep downturn, with about two-thirds of existing oil rigs being decommissioned and new exploration grinding to a halt. Larger oil companies are losing money and many smaller ones have gone bankrupt, with an estimated 250,000 oil workers losing their jobs in 2015 and 2016 so far. The stock market in the U.S. and other countries has also declined at least partly due to the impact of dropping oil prices.

How to Save Money on Auto Insurance

Take it easy. It’s all right. Just breathe. It’s not the end of the world.

It may help to keep repeating these words when you are pulled over by a police officer and given a traffic ticket. Or if you’re involved in a fender bender. Yes, your day may have taken a turn for the worse, but your life isn’t over. You will get through this.

Of course, one of the downsides of tickets or accidents is that you might get an unwelcome surprise in the mail when your auto insurance bill comes: the premium may be higher than it was before because of your earlier mishap.

Again, take it easy. It’s all right. Just breathe. It’s not the end of the world.

While this may make you tighten your budget in the short term, you’re not doomed to a life of skyrocketing car insurance rates. There are plenty of ways to lower the costs of your auto insurance – even if you have a less-than-perfect driving record.

Why Does My Insurer Have to Raise My Rate?

The reason that auto insurance premiums go up after accidents, thefts, or traffic violations is because those occurrences send a signal to the insurer that you are A) an unsafer-than-average driver, and/or B) more likely to file a car insurance claim. And like any other business, insurance companies try to limit expenses, such as paying out money to repair vehicles, pay medical bills, and address other related costs.

Insurers operate under the assumption that past behavior is indicative of future behavior – that is, drivers who have gotten ticketed or caused crashes in previous years are likely to continue that pattern going forward. Therefore, insurers try to offset some of those predicted costs by increasing the insurance rates of those drivers who have blemishes on their record.

Cheapest Car Insurance in Kentucky

It’s important to shop around when looking for cheap Kentucky auto insurance. Rates for a single policy can change dramatically from one company to the next, so consumers benefit from comparing as many estimates as possible. 

To make things easier, Im has done the homework for you. We researched rates from the seven largest insurers in the state and found the three cheapest options for the following driver types:

The average for good drivers among the three cheapest companies was $1,588 per year. State Farm notched the lowest average estimate at $1,467 a year. The company has a superior financial strength rating from industry reviewer A.M. Best and offers a wide variety of coverages and discounts. Kentucky Farm Bureau was the next closest competitor at $1,571 a year. Though more limited than national insurers like State Farm or Geico with regard to discounts and service area, Kentucky Farm Bureau provides personal service from fellow Kentuckians, plus member benefits such as deals at local merchants, which could make a difference to shoppers.

Drivers in their early 20s can typically get by with leaner policies than older motorists, who tend to have families and more assets to cover. The result is comparatively affordable Kentucky auto insurance. Geico led the field in our test with average rates of $899 a year. That’s actually about $47 a month less than the cheapest average quote we found for older good drivers who have more coverage.

Cheapest Car Insurance in New York

If you’re looking for the cheapest car insurance in New York, you’ll find a wide range of rates for the same policy. To make your shopping easier, IM researched premiums from the six largest auto insurers in New York to find the cheapest options in the state for a variety of drivers.

Cheapest for good drivers

For drivers with no at-fault accidents, DUIs or moving violations; range of average prices: $1,437 to $3,586

The average for good drivers among the three cheapest options was $1,958 per year. Geico offered the best car insurance rate for good drivers in New York in our analysis, coming in more than $500 a year less than the next-cheapest company.

If you have a clean driving record, you’re in an enviable position because you qualify for some of the best rates. If you also have good credit, even better. You can push your rates even lower by making sure you get the discounts you’re entitled to, such as a claim-free discount for going without incident during your previous policy term.

Cheapest Car Insurance in Massachusetts

If you’re looking for cheap car insurance in Massachusetts, comparison shopping is key. The insurance company with the best price will vary depending on your situation.

Massachusetts law prevents auto insurers from basing rates on factors including sex, marital status, age (except a discount for safe drivers 65 and older), occupation, income, education, homeownership status or credit information. But companies can consider your driving record, past car insurance claims, where you live and what kind of car you drive. 

Im analyzed rates for 10 large auto insurance companies in 10 Bay State ZIP codes to help you find the best deal.

Good drivers in Massachusetts pay an average of $1,500 per year for car insurance from the 10 insurers we surveyed. These rates are based on high liability limits and full coverage for drivers with no tickets or accidents.

Having the most expensive insurance company can cost you hundreds each year: We found a $746 gap between the lowest quote, from Hanover, and the highest quote, from Arbella Insurance.

Massachusetts requires insurance companies to set driving record-based discounts and surcharges using its Safe Driver Insurance Plan, or come up with their own version. The Safe Driver Insurance Plan provides the following discounts on liability, personal injury protection and collision coverage:

• Excellent Driver Discount Plus: 17% off for drivers who have at least six years of experience and no moving violations or at-fault accidents in the previous six years

• Excellent Driver Discount: 7% off for drivers with at least five years of experience and no incidents in the previous five years, or one minor moving violation in the previous six years that occurred at least three years before the policy took effect

How to negotiate lower car insurance

Today’s tips is to negotiate lower car insurance. Most of us pick a rate once, then never go back again. But if you do, you can save hundreds of dollars each year.

Fourth, be an expert caller by asking these questions.

With each call, you should say, “AAA (or whoever) is offering to insure me for $XXX less” (silence). See what they do. (Note: Negotiating lower insurance using this technique is much harder to do with car insurance companies than banks, so don’t expect very much from this.)

How much would I save if I insure my car and house with you?

What about renewal discounts? How long have I been a member with you? What can you offer me as a discount for long-term membership?

Can I save money by pre-paying my entire year up front?

Let’s check my car. I know other firms offer discounts for features like anti-lock brakes. What about you?

What kind of low-mileage discounts do you offer?

If I enrolled in a defensive-driving course, what kind of discount would you offer? Oh, really? Which courses qualify?

What about discounts for my employer? (Tell them the specific name of your employer?)

Some insurance companies offer discounts for low-risk occupations (engineers). What kind of competitive rates do you offer?

Am I paying for roadside assistance? What other additional “benefits” am I paying for? (If you already pay for AAA, you don’t need roadside assistance through your car insurance. Also, check your credit card: They may offer roadside assistance (but call them and ask how much it really costs if you have to use it – some of their offers for “roadside assistance” really mean “we will assist you by calling someone for you and then charging you out the ass”).

Can you walk me through the deductible changes I could make to save money? (Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you more than 40%. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim. More details here.

AAA, Costco, credit cards, large employers, associations (AARP, teachers’ union): Many of these offer discounts on car insurance. Log onto their website and browse to “perks.”