Tom Larsen

This year I used Windows Movie Maker to turn my 2012 goals into a video. I am more a visual guy, so this has already definitely helped over my past years of written goals.

Now I took out my bucket list and chose 3 items I'd like to cross off this year. I will add them later to my movie but I have also got pictures I printed to place on my board at the office.

How about you? Any Bucket List items to cross off this year in mind?

Williamsville, NY

You hear the squawking ads on TV, in your car, online – “Save 15%” or “We have the lowest rates” or “Nobody beats A*******” – their sole job is to make a sale, not protect you & your family correctly. They are under pressure to sell, sell, sell; regardless of the coverage’s you may require (they get fired for NOT selling enough).

The Matt Davis Story

Here is a story of Matt Davis (last name changed to protect our client) of Amherst, who was a homeowner client of our agency. In being proactive with our single policy only clients, Matt got a letter from us, letting him know it would be good to have us look at his auto insurance too.

To our shock, Matt had the bare minimum insurance liability limits NY State requires - $25,000 per person, $50,000 per accident and $10,000 of property damage. Why were we shocked? Let’s say if Matt causes an accident with someone driving a 2009 Honda Accord and they then hit a 2008 Ford Fusion, causing $20,000 property damage to those 2 vehicles. What limits was he carrying before us? $10,000. Where would the other $10,000 of property damage come from?

Matt would have to come up with the $10,000 he lacked in his insurance policy. And what if Matt didn’t have the $10,000 to pay? He would be taken to court by the injured parties and a judgment would be granted AGAINST Matt Davis.

Judgments in NY State & Real Property

Do you know what happens with judgments in NY State? They automatically attach to real property you own in this state – a lien. So Matt could never sell or refinance his home, without paying off that $10,000 lien first. Something no one was telling him but we did and he listened too.

Byron Brinton’s Story

In Byron Brinton’s (last name changed again to protect our client) of Williamsville, he too was with a “discount” insurance company, who sold him the lowest allowed limits in NY State- $25/$50/$10 is how us insurance people say it. Let’s say Byron only hit 1 car but caused serious injury to that person driving. So in our example, $10,000 of property damage (100% covered by insurance) but $85,000 of pain & suffering, plus hospitalization of the other driver.

Byron’s policy would pay the $50,000 policy limit but then he would be responsible for $35,000 of claims against him. Again,this judgment then becomes a lien on Byron’s house, which MUST be satisfied on any sale or refinance.

Do you too have a “broken” insurance policy?

By not taking into account what you own, what is at your families risk or asking pertinent questions – you too may have bought a broken insurance policy. Too many people equate insurance with the lowest cost – don’t you get fooled by this assumption. Insurance is about transferring risk and what risk you are willing to take vs. giving it to an insurance company.

The sad story of Adel Smith

Adel Smith (last name changed again to protect the damaged party) is not a client of our agency but a neighbor of a client of ours. Adel got sold car insurance on the fact she could save hundreds of dollars, since her 17 year old now was driving and had her own car. Adel made the switch, a single parent trying to cut corners and save a few dollars. Adel was a tenured teacher, with a great teacher’s pension, a paid up house and a few years away from retirement.

Adel’s 17 year old daughter, one spring day 3 years ago, clipped a motorcyclist with her car, causing him to slide off of it causing serious injury. Months and months of medical treatments & bills started piling up for the injured cycle driver.

Of course a lawsuit was pending and when all the court litigation was done, judgment for the plaintiff for $750,000! Adel’s new auto insurance policy paid $50,000 and walked away from any further responsibilities due to her policy limits being paid.

So $700,000 judgment needed to be paid – but how? Adel sold her $500,000 paid for home and borrowed $200,000 from her teacher pension plan. She also planned to continue to work & not retire, since she needed to rebuild her pension.

This is a sad but very true story, as told to me.

How can I avoid a “broken” insurance policy?

When you deal with somebody who doesn’t need to make a sale to keep his or her job, you’ll get the truth. This is done through Independent Insurance broker’s (like us), who DO NOT represent just 1 insurance company. We represent several insurance companies, shopping the insurance marketplace on behalf of our clients.

In my world of insurance, it seems like companies are buying each other up year after year. We knew this day was coming when out west (Seattle) giant, Safeco would be swallowing up a smaller company in Peerless Insurance. While we are not happy about it, due to Peerless great rates and strong record, we understand these things happen.

Peerless Insurance still has great rates and writes all their policies on a Package (one policy for auto, home, umbrella) but that does go away 12/31/2011. Peerless is letting us put in as many new policyholders as we can until 12/31/2011 and will hold those rates for at least 12 months (maybe longer, as transitions take time).

If any realtors or mortgage broker's in New York have real estate closing between now and end of year, you'd be wise to at least look at Peerless Insurance Company. They have been a leader (quietly) in New York Insurance for a long time.

Here is a link for you.

Happy Holidays to one and all!

I have been invovled in Mastermind Groups for over 6 years now and am starting another new one next week. I wrote a little about it here: http://bestinsuranceinnewyork.com/?p=409

If you aren't in one or never heard of one, pick up the book Meet & Grow Rich to learn. Then instead of waiting around for someone to ask you to join one, start your own!

If you are in the Buffalo, NY area and are interested, we are having a meet & greet meeting on Tuesday at 8:00 am.

Let me know! On to Masterminding!

I watched the memorials today.

I saw the memories.

I saw the children, now 10 years older.

I cried.

I prayed.

I felt grateful to live here.

I don't want to forget.

Hatred never wins.

Love one another. Hug a loved one. Make a difference.

Do something kind today, tomorrow, when you can.