Yates Insurance Agency - Atlanta, GA Georgia - Auto, Home, Business, Commercial, Life, Liability, Individual Health, Group Health, Surety, Long Term Care LTC, Workers Comp

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Yates Insurance Agency
4 Executive Park East, NE, Suite 200
Atlanta, Georgia 30329
Tel: (404) 633-4321 � Fax: (404) 633-1312
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TRYING TO SAVE MONEY? AVOID THE FIVE BIGGEST INSURANCE MISTAKES.

With nearly one in 10 Americans out of work, and others forced to make ends meet with less money, many people are looking for ways to cut costs. There are smart ways to save on home and auto insurance; however, there are also mistakes that can result in being significantly underinsured.

When money is tight, it extremely important to be financially protected against a catastrophe with the right amount and type of insurance by taking a few simple steps, it is possible to cut costs and still be protected should disaster strike.

Following are five of the biggest insurance mistakes that consumers should look out for:

Insuring a home for its real estate value rather than for the cost of rebuilding. When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings.

A better way to save: Raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your premium payments.
Selecting an insurance company by price alone. It is important to choose a company with competitive prices, but also one that is financially sound and provides good customer service.

A better way to save: Check the financial health of a company with independent rating agencies and ask friends and family for recommendations. You should select an insurance company that will respond to your needs and handle claims fairly and efficiently.
Dropping flood insurance. Damage from flooding is not covered under standard homeowners and renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25 percent of all flood losses occur in low risk areas.

A better way to save: Before purchasing a home, check with the NFIP to check whether it is in a flood zone; if so, consider a less risky area. If you are already living in a flood zone area, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance.
Only purchasing the legally required amount of liability for your car. In today�s litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket�and those costs may be steep

A better way to save: Consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.
If you don't own your home, neglecting to buy renters insurance. A renters policy covers your possessions and additional living expenses if you have to move out due to a disaster. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue.

A better way to save: Look into multi-policy discounts. Buying several policies with the same insurer will generally provide surmountable savings.

SCHEDULING ITEMS UNDER YOUR HOMEOWNERS INSURANCE

Perhaps it's the latest electronic gadget or large screen hi-def television, or new sporting goods gear or maybe a piece of sparkling jewelry. If you happen to receive or purchase a particularly expensive item, you may consider purchasing extra protection, just in case.

Why would I need to schedule valuable items?

The protection provided for personal property under the typical homeowners, condo or renters policy is very broad, and includes coverage for your furniture, clothing, and appliances. It only provides limited coverage for valuable items such as jewelry, silverware, furs, and art. It may not cover some types of loss that may be important to you, such as the stone falling out of your diamond ring, your china being accidentally broken or your rare coins being stolen.

What types of property can be covered?

Here's a quick listing of some of the items typically covered:

cameras (video or still) and related equipment
china and crystal
coins (rare and current)
firearms
furs
golfer's equipment
jewelry
musical instruments
personal computers
stamps (rare and current)
silverware
works of fine art, including paintings, etchings, pictures and other bona fide works of art (such as oriental rugs, statuary, rare books, manuscripts and bric-a-brac) of rarity, historical value or artistic merit.

If you own something of value that is not listed above, it may still be eligible for coverage.

How to Schedule Personal Property

The process for scheduling valuable personal property differs from one insurance company to another. The insurance company keeps copies of appraisals or recent receipts for the items on file. The dollar amount of the value of the items added determines the price of scheduled property insurance.

Scheduling items allows you to purchase better protection for your special property than would be available under the typical homeowners policy. In addition to being able to purchase higher limits of coverage, more perils are covered.

PURSUE THOSE AUTO INSURANCE DISCOUNTS

One way to avoid paying too much for your personal automobile insurance is to assure you are getting all the discounts you deserve. The following are discounts you should inquire about. Some may not be available in all states and from all insurers, but it doesn�t hurt to ask. These discounts may significantly affect your insurance premium.

�Home/Car Discount.� Many insurers offer discounts of 10 percent or more if they pro-vide both your homeowners and personal automobile insurance. This can lower your costs on both policies.
�Good Student Discount.� Statistics show that good students tend to be more reliable and mature than students with marginal grades, leading to better driving decisions. Therefore, many states allow a 5 to 10 percent discount if your student driver makes good grades, usually an overall �A� or �B� average in high school or college. If your child has to pay his or her own automobile insurance, this will be another motivator for him or her to make good grades.
�Auto Safety Features.� Most insurers recognize that owners with cars containing safety features may have fewer accidents and reduced injuries. Many insurers encourage drivers to purchase cars with antilock brakes by giving small discounts for these safety features. Other insurers give discounts for vehicles with airbags and daytime running lights.
�Auto Club and Professional Organizations.� Some insurance companies offer auto insurance discounts if you are a member of AAA or similar organizations.
�Multicar.� Many insurance companies provide generous discounts up to 15 percent if you have multiple cars on your policy. This reduces the insurance company�s administrative costs, on a per-vehicle basis, in issuing the policy.
�Long-Term Customer.� More insurance companies are offering discounts of 5 to 10 percent if you stay with them at least 5 years.
�Claims-Free Customer.� If you have been insured with the same insurance company for at least 3 years and have not experienced any losses, inquire about a claims-free customer discount. These discounts help insurers retain customers with excellent driving records.
�Defensive Driving Discount.� This discount can save you 10 percent on most of the major coverages under your auto policy, such as liability, medical payments, and collision coverage. Defensive driving courses can cost as little as $20 and last as few as 5 or 6 hours. However, the discount normally applies for 3 years. For example, if your auto insurance premium is $100 per month, the premium is $3,600 for 3 years. If liability, collision, and medical payments or personal injury protection coverage constitute 85 percent of this $3,600 premium, the resulting premium subject to this discount is $3,060. In this scenario, the actual premium savings would be $306 (10 percent of $3,060) for that 3-year period. To get the true savings, you must deduct the cost of the defensive driving class. If the cost is $26, the savings in this example would be reduced to $280. If you spend 6 hours taking the class, you are earning $47 per hour in savings�not an unproductive way to spend a Saturday!

HAVE A QUESTION...
GIVE US A CALL AT (404) 633-4321

Please consider this newsletter an invitation to call us anytime you have an insurance question.

Insurance is an unusual product. It's personal and most often needed in times of stress. If your home catches fire or is burglarized, your insurance agent is one of the first to respond.

That's a big responsibility and we take it seriously. You also may hear from us from time to time because the more we know what's important to you, the better we can serve you. We believe one big advantage of having your insurance with us, an independent insurance agency, is the advice and service we provide. Our goal is to help you protect your way of life.