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Tehachapi Insurance Solutions
Welcome to our discussion of insurance policies, practices, regulations and legislative issues as they relate to consumers in Tehachapi. The purpose of this blog is to stimulate new ideas, clarify confusion, voice concerns and facilitate a better understanding of auto, home, health, life, disability, business, workers comp and liability insurance & more. PLEASE NOTE: This information may not be applicable to you or your insurance policies. Please consult with a licensed insurance agent before considering any change or purchase.
With the economy in a massive recession and consumers pinching pennies, I’ve encountered insurance agents and agency staff that are leading consumers down the “low road” to get "the sale". When it comes to home insurance quotes, I've been seeing a lot of more of what I refer to as "shaving".
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By Carlo Narduzzi
I was remembering back to my days as an insurance professional in Washington State and how in 1993 they implemented health care reform and how it failed miserably. Thank goodness it was finally repealed. I thought this would make for very interesting research to be posted on my blog. Last week, while I was starting my research , I mentioned it to a friend of mine, Dan. Within an hour he called me with a link to this article written in 1997.
To my amazement, I couldn't have dreamed of writing a more complete historical account of the rise and fall of Washington State's health care reform debacle, let alone finding one such as this! Interestingly, the title of the article is, "The Rise and Repeal of the Washington State Health Plan: Lessons For America's State Legislators" Published on June 11, 1997 by Robert Cihak , Bob Williams and Peter Ferrara at the Heritage Foundation.
The direct link to this article, with footnotes is: http://www.heritage.org/Research/Reports/1997/06/BG1121nbsp-The-Rise-and-Repeal-of-the-Washington
Obviously, none of the legislators in Congress who voted for Health Care Reform bothered to look into past attempts at the same thing. 1993 was not that long ago. As it has been said, "Those who are ignorant of history are doomed to repeat it."
What is so amazing is this: if you change out the dates to 2010 and use "Federal" in place of "State", you'd think this was a current article about Obamacare. I invite you to take the time to read it and forward it to everyone you know, every media outlet you can think of and every state and federal representative you have.
This is concrete, historical proof that Obamacare should never have been proposed or passed and that for the good of the nation, it must be repealed immediatley. The existence of this historic, documented turn of events needs to be made public and incorporated in all efforts to repeal it.
Special thanks to Dan, the authors and the Heritage Foundation!
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By Carlo Narduzzi
With the slow economy, competition between businesses is heating up. This type of environment may not be filled with "consumer friendly" bargains. In an effort to undercut competition, many sales people tend to cut corners on what they disclose about their product or service. They know you're looking for a bargain, but like a cheap tool, what they're selling is likely to fall far short of your expectations and will let you down when you need it most.
Here's are some common examples of where I've seen some insurance sales agents cut coverage to be competitive when quoting:
AUTO INSURANCE: Bodily Injury and Property Damage Liability
What it does: These coverages pay up to the policy limits for bodily injury or property damage you may cause in the operation of your insured motor vehicle. If you injure someone or damage their property and there isn't enough coverage to pay for what you've done, you're not going to have the privelege of walking away from your responsibility. Even bankruptcy may not protect you from a liability judgement. Without enough insurance, the people you've hurt will reach into your future paychecks, savings, investments and other assets.
How it should always be quoted: In California, it is reccomended for property owners to carry liability limits of at least $100,00o per person, $300,000 per accident for Bodily Injury and $100,000 for Property Damage liability (aka 100/300/100). For renters, it's adviseable to have at least $50,000 per person, $100,000 per accident for Bodily Injury and $50,000 for Property Damage liability (aka 50/100/50). In actuality, there's not a very big difference in premium when comparing these limits to the state minimums.
What "they" may do to cut corners: Agents may underquote this with the state minimum limits of $15,000 per person, $30,000 per accident for Bodlily Injury and $10,000 for property damage (aka 15/30/10). This is not nearly enough to pay for even one day in the hospital, let alone the cost to repair or replace a newer vehicle. In fact, California's state mandated minimum limits are so far below other states' that all California Auto insurance liability contracts are required to automatically "bump up" liability coverage to 25/50/25 when driving in another state! (But 15/30/10 is good enough for in-state driving??)
AUTO INSURANCE: Uninsured/Underinsured Motorist Bodily Injury
What it does: This coverage provides benefits to you and people in your vehicle in the event of an injury caused by someone without insurance or without enough insurance to pay for the injuries they've caused, up to the policy limits of course.
How it should always be quoted: Uninsured/Underinsured Motorist Bodily Injury coverage limits should always be equal to your policy's Bodily Injury Liability Limits, never less. After all, this coverage protects you from other people, so why should they have more protection than you? The actual savings in premium is minimal compared to the amount of protection that's been given up.
What "they" may do to cut corners: Just like with liability insurance coverage, sales agents may underquote this using the state minimum limits of $15,000 per person, $30,000 per accident. (aka 15/30) This is not nearly enough if you are seriusly injured in an accident. What did they save you? $5, $15? How was that worth it? Oh yeah, they had a lower quote...
HOMEOWNER, MOBILE HOME AND LANDLORD PROPERTY INSURANCE: Premises Liability
What it does: This coverage protects you, up to the policy limits, in the event of a liability claim occuring on your owned or rented property, such as if someone slips and falls on your icy porch, etc.
How it should always be quoted: In California, it is highly reccomended to carry a premises liability limit of at least $300,000 for a home you own. If you're an investor and have rentals, each building should have at least $1 million for premises liability.
What "they" may do to cut corners: Preferred companies don't usually offer a premises liability limit of less than $100,000. The actual savings in premium is minimal (Usually $30 to $45 a year) when compared to the $200,000 of protection that's been given up. Recently, I was working with an investor who received a quote from another local agent for a four-plex he was about the purchase. The premises liability limit quoted was only $25,000. What makes it worse, that agent never disclosed it. He just handed over the lowball quote. When the investor noticed it and brought it to the agent's attention, the agent actually explained how he felt that $25,000 was adequate. Obviously, it would have brought up the cost of the policy considerably and he really "needed" the sale.
HOMEOWNER, MOBILE HOME AND LANDLORD PROPERTY INSURANCE: Dwelling Coverage
What it does: The dwelling coverage amount is the maximum amount the insurance company will pay to reconstruct your home or rental property. This is also listed as "Coverage A" on most quotes.
How it should always be quoted: The dwelling coverage should always be equivalent to the estimated reconstruction cost of the home. To determine this, the agent enters specific information about your home into a computer program which calculates this. In this process, the agent will ask numerous questions about the home, i.e. year built, square footage, how many baths and kitchens there are, as well as what the quality of construction is. The quality of construction varies from the basic "builders grade", to "custom" on up to "luxury". As anyone who has remodeled a bathroom or kitchen knows, there is a big difference cost from "builders grade", to "custom", let alone "luxury".
What "they" may do to cut corners: Should an agent under-state the appropriate quality of construction or just happen to leave off a feaure like a second bathroom altogether, the reconstruction cost coverage will come out as much as $25-$75,000 less than their competitor's. With this artificially lower reconstruction cost estimate comes a lower dwelling coverage and thus a lower premium. Heaven help the homeowner if there is a fire and they expect to get their "custom" kitchen and bathrooms rebuilt when the agent rated them as "builders grade" just to get the sale! I actually had one person who owns a mobile home tell me they called a local office for a quote on their mobile home. Without asking any questions, the agent told her it would be $950 a year because they automatically set the dwelling coverage amount at $75,000 for all mobile homes. I did a proper replacement cost valuation of the mobile home and we insured it for $125,000. Sure, the premium was more, but there's actually enough insurance coverage to replace the structure!
Rules of thumb for consumers:
1. Always get at least three quotes from reputable companies, review them closely and compare them.
2. To keep the quotes comparable, sure to be consistent with all information you provide to the agents.
3. Make sure the agents actually take time to patiently go over the coverages, explain them in detail and answer any questions you have. If someone won't invest time to give you enough information to make an educated decision, then they're just trying to sell you a policy based solely on price alone.
4. Have the agents make changes that you want and revise their quotes accordingly.
5. If an agent makes you feel like you're "stupid", then go somewhere where they'll respect you and provide professional service and advice.
Insurance agents should always make it a point to empower consumers. That way, the client can make the best decision for themselves. Even if the customer decides to go with another quote they will always refer back to that one agent who actually gave them true service with integrity. In the long run, agents who do business like this will succeed and their agencies will grow. Remember, trust is always earned.
Want to keep up with the latest information about Tehachapi home, auto, life, business and health insurance? For this and links to my other online resources, visit and "like" my agency Facebook page: http://tinyurl.com/y3egmj4
3. Make sure the agents actually take time to patiently go over the coverages, explain them in detail and answer any questions you have. If someone won't invest time to give you enough information to make an educated decision, then they're just trying to sell you a policy based solely on price alone.
4. Have the agents make changes that you want and revise their quotes accordingly.
5. If an agent makes you feel like you're "stupid", then go somewhere where they'll respect you and provide professional service and advice.
Insurance agents should always make it a point to empower consumers. That way, the client can make the best decision for themselves. Even if the customer decides to go with another quote they will always refer back to that one agent who actually gave them true service with integrity. In the long run, agents who do business like this will succeed and their agencies will grow. Remember, trust is always earned.
Want to keep up with the latest information about Tehachapi home, auto, life, business and health insurance? For this and links to my other online resources, visit and "like" my agency Facebook page: http://tinyurl.com/y3egmj4
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By Carlo Narduzzi
As you can see by my previous posts on this subject, I don’t hold much regard for Health Care Reform in it’s current form. Not only is it Un-Constitutional and infringement on state’s rights, it’s financially impossible to sustain and discriminatory in its enforcement.
The essence of this law guarantees access to healthcare and requires everyone to participate or be fined. It did not, I repeat, did not guarantee the affordability of healthcare for anyone. As it was written, it is fiscally irresponsible and unsustainable. It also exempts union health insurance plans as well as the Congressional health plan. How convenient.
For those people who are twisting the truth, let’s have a short lesson in reality. I’ve read the headlines where they say that repealing this law would hurt people. What a bunch of despicable liars! These people they're talking about were already hurting! Now, this law has compounded their misery! Make no mistake, whoever supported the law gave false hope to the uninsured and uninsurable. This falls squarely on the shoulders of supporters of the health care reform law. They are the ones who put this half-baked roller coaster of unsustainable promise into motion. Do we need heath care reform? Of course we do. However this is not the way to go about it.
Truth be known, not everyone is insurable. Even if they were, because of the way this pile of guano was written, soon very few people will actually be able to afford to participate. Is that why these twisted politicians wrote in the penalties for non-participants?
How many California families can afford $610 a month for health insurance? Surprise! That’s today’s actual cost for a high deductible family plan from a top insurance company. As a direct result of the health care reform law, the cost of their policy leaped by an additional $146 a month (31.4%) from $464 last year. Consumers cannot continue to bear these costs without a severe, negative economic impact, surely crushing any hope of a near-term recovery. Where is the common sense in all this?
Shame on people who support this law and twist the truth to defend it for the sake of political gain. They apparently come from the la-la-land of entitlements and have obviously confused welfare and entitlements with insurance.
I’m an insurance broker, a trusted and experienced professional in the business of insurance. Believe me, it’s all “mafia and gambling”. Okay, let’s just call it “contracts and probabilities” instead. Time for a short lesson on insurance…
THE CONTRACT: The principle of insurance is to contractually pool financial resources to provide funding to reserve for specific, anticipated, future needs of participants in the pool. For health insurance, the idea is to insure a pool of relatively healthy people and build up reserves in the event of illness or injury. The costs of which would be devastating to the individual, but, as a member of the pool, the financial burden is transferred to the resources of the pool, per the contract of service.
THE PROBABILITIES: This is where “actuaries” come into the picture. These people are the odds makers. They know statistically what the chances are of getting ill, the frequency of illness, the costs, everything. This information is used to determine whether or not someone is eligible to participate in the pool. The cost of participation is also based on these statistics. By defining the health qualification standards, the pool limits itself to initially healthy persons that would, over time, contribute enough to the pool to keep it viable.
SUMMARY: Insurance contractually pools and reserves funds to bear the financial load caused by a specific, anticipated, future event or condition that would otherwise financially devastate an individual outside of the pool. Participation in the pool is limited to those who initially qualify based on specific criteria. Persons who are already affected or afflicted by an event or condition specified in the contract are not eligible for participation. Persons who become affected or afflicted by the event or condition specified in the contract after participation receive benefits from the pool as specified in the contract. Rates for participation are based on probability of a claim and the loss history of the pool. Those who cannot afford the premium are also not eligible for participation.
If a person were a member of the pool prior to the onset of their condition, it’s only right that they should have their membership in the pool remain un-affected and receive full benefits up to the limitations of the contract. Long before health care reform, here in California, insurers were already barred from canceling policies of insured people who became ill. That is the right way. The pool takes a hit, perhaps resulting in a rate increase, but it is still viable, sustainable and affordable to the participants. The time of selection is at the time of application for coverage.
Under health care reform, people who are already chronically or seriously ill must be immediately accepted for participation in the pool. This is not sustainable. In this case, this swarm of people are immediately drawing off resources from the pool's reserves and participants premiums must go up to maintain the pool's viability. Thus defeating the aspects of the pool that made it sustainable and affordable. As stated earlier, to make up for these losses, rates are already shooting through the roof. So, how is this a good thing for anyone? Truth is, it isn’t.
Let’s put this in practical, everyday terms: Pretend there’s a new federal auto insurance reform law requiring all auto insurance companies to insure anyone who has a driver license. This means that your “preferred insurance company” who attracted you with low rates because they only insured “safe” drivers must now insure: convicted drunk drivers, drivers with multiple at fault accidents, multiple speeding tickets, prior suspensions, reckless driving convictions and more.
Certainly, your auto insurance company isn’t about to go into debt or out of business. You are now definitely going to be paying through the nose for auto insurance. So what’s the difference between the all-to-real health insurance reform law and this hypothetical auto insurance reform law? None.
We do need reforms, we do need programs for people in need, but this law is so poorly conceived it’s not helping anyone and is bringing our nation to the brink of financial ruin. Please support the immediate repeal of this law before we are dragged over the edge.
Want to keep up with the latest information about Tehachapi home, auto, life, business and health insurance? For this and links to my other online resources, visit and "like" my agency Facebook page: http://tinyurl.com/y3egmj4
As you can see by my previous posts on this subject, I don’t hold much regard for Health Care Reform in it’s current form. Not only is it Un-Constitutional and infringement on state’s rights, it’s financially impossible to sustain and discriminatory in its enforcement.
The essence of this law guarantees access to healthcare and requires everyone to participate or be fined. It did not, I repeat, did not guarantee the affordability of healthcare for anyone. As it was written, it is fiscally irresponsible and unsustainable. It also exempts union health insurance plans as well as the Congressional health plan. How convenient.
For those people who are twisting the truth, let’s have a short lesson in reality. I’ve read the headlines where they say that repealing this law would hurt people. What a bunch of despicable liars! These people they're talking about were already hurting! Now, this law has compounded their misery! Make no mistake, whoever supported the law gave false hope to the uninsured and uninsurable. This falls squarely on the shoulders of supporters of the health care reform law. They are the ones who put this half-baked roller coaster of unsustainable promise into motion. Do we need heath care reform? Of course we do. However this is not the way to go about it.
Truth be known, not everyone is insurable. Even if they were, because of the way this pile of guano was written, soon very few people will actually be able to afford to participate. Is that why these twisted politicians wrote in the penalties for non-participants?
How many California families can afford $610 a month for health insurance? Surprise! That’s today’s actual cost for a high deductible family plan from a top insurance company. As a direct result of the health care reform law, the cost of their policy leaped by an additional $146 a month (31.4%) from $464 last year. Consumers cannot continue to bear these costs without a severe, negative economic impact, surely crushing any hope of a near-term recovery. Where is the common sense in all this?
Shame on people who support this law and twist the truth to defend it for the sake of political gain. They apparently come from the la-la-land of entitlements and have obviously confused welfare and entitlements with insurance.
I’m an insurance broker, a trusted and experienced professional in the business of insurance. Believe me, it’s all “mafia and gambling”. Okay, let’s just call it “contracts and probabilities” instead. Time for a short lesson on insurance…
THE CONTRACT: The principle of insurance is to contractually pool financial resources to provide funding to reserve for specific, anticipated, future needs of participants in the pool. For health insurance, the idea is to insure a pool of relatively healthy people and build up reserves in the event of illness or injury. The costs of which would be devastating to the individual, but, as a member of the pool, the financial burden is transferred to the resources of the pool, per the contract of service.
THE PROBABILITIES: This is where “actuaries” come into the picture. These people are the odds makers. They know statistically what the chances are of getting ill, the frequency of illness, the costs, everything. This information is used to determine whether or not someone is eligible to participate in the pool. The cost of participation is also based on these statistics. By defining the health qualification standards, the pool limits itself to initially healthy persons that would, over time, contribute enough to the pool to keep it viable.
SUMMARY: Insurance contractually pools and reserves funds to bear the financial load caused by a specific, anticipated, future event or condition that would otherwise financially devastate an individual outside of the pool. Participation in the pool is limited to those who initially qualify based on specific criteria. Persons who are already affected or afflicted by an event or condition specified in the contract are not eligible for participation. Persons who become affected or afflicted by the event or condition specified in the contract after participation receive benefits from the pool as specified in the contract. Rates for participation are based on probability of a claim and the loss history of the pool. Those who cannot afford the premium are also not eligible for participation.
If a person were a member of the pool prior to the onset of their condition, it’s only right that they should have their membership in the pool remain un-affected and receive full benefits up to the limitations of the contract. Long before health care reform, here in California, insurers were already barred from canceling policies of insured people who became ill. That is the right way. The pool takes a hit, perhaps resulting in a rate increase, but it is still viable, sustainable and affordable to the participants. The time of selection is at the time of application for coverage.
Under health care reform, people who are already chronically or seriously ill must be immediately accepted for participation in the pool. This is not sustainable. In this case, this swarm of people are immediately drawing off resources from the pool's reserves and participants premiums must go up to maintain the pool's viability. Thus defeating the aspects of the pool that made it sustainable and affordable. As stated earlier, to make up for these losses, rates are already shooting through the roof. So, how is this a good thing for anyone? Truth is, it isn’t.
Let’s put this in practical, everyday terms: Pretend there’s a new federal auto insurance reform law requiring all auto insurance companies to insure anyone who has a driver license. This means that your “preferred insurance company” who attracted you with low rates because they only insured “safe” drivers must now insure: convicted drunk drivers, drivers with multiple at fault accidents, multiple speeding tickets, prior suspensions, reckless driving convictions and more.
Certainly, your auto insurance company isn’t about to go into debt or out of business. You are now definitely going to be paying through the nose for auto insurance. So what’s the difference between the all-to-real health insurance reform law and this hypothetical auto insurance reform law? None.
We do need reforms, we do need programs for people in need, but this law is so poorly conceived it’s not helping anyone and is bringing our nation to the brink of financial ruin. Please support the immediate repeal of this law before we are dragged over the edge.
Want to keep up with the latest information about Tehachapi home, auto, life, business and health insurance? For this and links to my other online resources, visit and "like" my agency Facebook page: http://tinyurl.com/y3egmj4
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By Carlo Narduzzi
This is a very important question. The answer is: it depends. Why’s that? Insurance policies are contracts which specify who/what is covered, who/what is excluded and the conditions under which there is and isn’t coverage. Company “A” will always offer a different contract than company “B”. Plus, policy contracts can also vary within the same company. There are also state laws that apply to vehicle accidents and liability.
Let’s look at an example. You’ve borrowed your friend’s car and have just rear-ended the car in front of you. Of course, your friend expects you and your insurance company to be taking care of the damage to his car, any injuries you’ve caused and damage to the car you’ve just hit. After all you were driving, right?
In California, the liability trail begins with the vehicle, not the driver. So, your friend and his insurance company are first in line, not you. Can the person you hit sue you too? Yes, they can. Will your insurance policy protect you? Surprisingly, not as completely as you might expect.
Before I go any further I need to let you know that this particular subject is a “grey area” of insurance. When researching this, I interviewed claims adjusters and read insurance contracts. Midway through this process, I realized if I provide overly specific detail here, it would be a mistake. You see, there are so many variables, i.e. was your vehicle available and in working order, did the borrowed car have insurance at the time of the accident, etc.
So what did I learn? Suffice it to say, if you can avoid it, don’t borrow anyone else’s car and don’t let anyone borrow yours!
Here are some factors that will help make this a less painful situation: your car should be unavailable or broken down, the car you’re borrowing must be insured, it should have collision coverage and that insurance policy must cover “permissive use” drivers.
If you’re expecting your insurance to pay to repair the vehicle you borrowed, then your vehicle (remember, the one you couldn’t use because it wasn’t available and/or it was broken down?) needed to have collision coverage on it at the time of the accident.
Will your policy pay to repair the vehicle you borrowed if you have an accident? Maybe.
Will the insurance company for the borrowed car try to recover the money (subrogate against you) they paid for the accident you caused? Very likely.
This type of claim is not “cut and dried.” Accidents involving borrowed cars are fortunately not that common. Typically, the adjusters, supervisors and claim managers weigh the mitigating circumstances; policy terms; conditions and limitations; existing coverage; applicable laws and policy exclusions before a decision about coverage is made.
In an ideal situation, here’s how things should work:
For property damage and bodily injury liability, the policy for the borrowed car pays the liability claim up to the policy limits. If it has collision coverage, then that policy pays to repair the borrowed car, less the applicable deductible.
Should the borrowed car’s policy liability limits be exceeded then the driver’s policy would be available to pay what’s left, up to that policy’s limits. If those are exceeded, then the owner of the borrowed car and the driver can be sued for the balance.
If the borrowed car doesn’t have collision, then the driver’s policy most likely won’t pay to fix it. In some cases, if the driver’s car has collision, then that policy may provide collision coverage, less the applicable deductible. That’s a big maybe.
The next question is, if there is collision coverage to repair the borrowed car, then who pays the deductible? Owner of the borrowed car or the driver? If the owner’s policy pays, then as far as the insurance policy is concerned, the deductible is the owner’s responsibility. That’s likely to be a decision made between the borrowed car’s owner and the driver that borrowed it.
One last thing, if the borrowed car isn’t insured at the time of the accident, then the driver’s insurance may not cover anything at all. That’s a scary thought.
In the end, the owner of the borrowed car is first in line to pay for the bodily injury and damages caused by the driver. The driver may also be held responsible. The insurance company for the borrowed car can go after the driver to recover its costs in paying the claim. Coverage can be limited or declined by either company. Both the car owner and the driver can be sued and can conceivably sue each other. What a mess!
Suffice it to say, it’s not a good idea to borrow a car or let anyone borrow yours.
Want to keep up with the latest information about Tehachapi home, auto, life, business and health insurance? For this and links to my other online resources, visit and "like" my agency Facebook page: http://tinyurl.com/y3egmj4
This is a very important question. The answer is: it depends. Why’s that? Insurance policies are contracts which specify who/what is covered, who/what is excluded and the conditions under which there is and isn’t coverage. Company “A” will always offer a different contract than company “B”. Plus, policy contracts can also vary within the same company. There are also state laws that apply to vehicle accidents and liability.
Let’s look at an example. You’ve borrowed your friend’s car and have just rear-ended the car in front of you. Of course, your friend expects you and your insurance company to be taking care of the damage to his car, any injuries you’ve caused and damage to the car you’ve just hit. After all you were driving, right?
In California, the liability trail begins with the vehicle, not the driver. So, your friend and his insurance company are first in line, not you. Can the person you hit sue you too? Yes, they can. Will your insurance policy protect you? Surprisingly, not as completely as you might expect.
Before I go any further I need to let you know that this particular subject is a “grey area” of insurance. When researching this, I interviewed claims adjusters and read insurance contracts. Midway through this process, I realized if I provide overly specific detail here, it would be a mistake. You see, there are so many variables, i.e. was your vehicle available and in working order, did the borrowed car have insurance at the time of the accident, etc.
So what did I learn? Suffice it to say, if you can avoid it, don’t borrow anyone else’s car and don’t let anyone borrow yours!
Here are some factors that will help make this a less painful situation: your car should be unavailable or broken down, the car you’re borrowing must be insured, it should have collision coverage and that insurance policy must cover “permissive use” drivers.
If you’re expecting your insurance to pay to repair the vehicle you borrowed, then your vehicle (remember, the one you couldn’t use because it wasn’t available and/or it was broken down?) needed to have collision coverage on it at the time of the accident.
Will your policy pay to repair the vehicle you borrowed if you have an accident? Maybe.
Will the insurance company for the borrowed car try to recover the money (subrogate against you) they paid for the accident you caused? Very likely.
This type of claim is not “cut and dried.” Accidents involving borrowed cars are fortunately not that common. Typically, the adjusters, supervisors and claim managers weigh the mitigating circumstances; policy terms; conditions and limitations; existing coverage; applicable laws and policy exclusions before a decision about coverage is made.
In an ideal situation, here’s how things should work:
For property damage and bodily injury liability, the policy for the borrowed car pays the liability claim up to the policy limits. If it has collision coverage, then that policy pays to repair the borrowed car, less the applicable deductible.
Should the borrowed car’s policy liability limits be exceeded then the driver’s policy would be available to pay what’s left, up to that policy’s limits. If those are exceeded, then the owner of the borrowed car and the driver can be sued for the balance.
If the borrowed car doesn’t have collision, then the driver’s policy most likely won’t pay to fix it. In some cases, if the driver’s car has collision, then that policy may provide collision coverage, less the applicable deductible. That’s a big maybe.
The next question is, if there is collision coverage to repair the borrowed car, then who pays the deductible? Owner of the borrowed car or the driver? If the owner’s policy pays, then as far as the insurance policy is concerned, the deductible is the owner’s responsibility. That’s likely to be a decision made between the borrowed car’s owner and the driver that borrowed it.
One last thing, if the borrowed car isn’t insured at the time of the accident, then the driver’s insurance may not cover anything at all. That’s a scary thought.
In the end, the owner of the borrowed car is first in line to pay for the bodily injury and damages caused by the driver. The driver may also be held responsible. The insurance company for the borrowed car can go after the driver to recover its costs in paying the claim. Coverage can be limited or declined by either company. Both the car owner and the driver can be sued and can conceivably sue each other. What a mess!
Suffice it to say, it’s not a good idea to borrow a car or let anyone borrow yours.
Want to keep up with the latest information about Tehachapi home, auto, life, business and health insurance? For this and links to my other online resources, visit and "like" my agency Facebook page: http://tinyurl.com/y3egmj4
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By Carlo Narduzzi
We’ve all heard and seen those ads that entice us with: “Save a bundle on auto insurance with one phone call” or, “Get life insurance cheaper online.” Sure you may end up saving a few dollars today, but without the advice of a licensed professional, you could be setting you and your family up for a real financial disaster tomorrow…
Plain and simple, an insurance policy is a contract. You truly get what you pay for. Nothing more, nothing less. For example, one auto insurance contract may include all the bells and whistles in a package, while another is a bare-boned skeleton. Both insurance contracts have restrictions, limitations, exclusions and other language that can severely limit the protection they provide. One gives you broader protection than the other. Yet, regardless of major differences, they’re both auto insurance policies, right?
If you act as your own agent, will you know the difference between the contract that provides the protection you need and the contract that doesn’t? Without proper training or experience, you’re taking a very serious gamble. Without an agent to advise you, will you be sure that the lower cost option will have the protection you and your family actually need?
Plus, all insurance companies are not financially equal. It’s important to know how financially stable an insurance company is. Sure you paid less, but they also made less. Will they be able to pay your claim when the time comes? Or will they go broke beforehand? Where do you look? How will you know? Every insurance company is rated by several independent rating companies to include A.M. Best, Weiss and Standard and Poors. You can access insurance company financial ratings online or at your local public library. Perhaps the single most overlooked aspect of insurance buying is determining how much you have to lose and the correct amount insurance protection you really need. That process is critically important and entails much more than I could ever describe in this blog post.
Good news is, there are people out there ready to help you. Honest, sincere professionals that know how to use these valuable tools to accomplish your goals and save you money. I’ll give you ten guesses to tell me who that could be, and the first nine don’t count! Of course, the answer is to call on a licensed insurance agent to help you through this process. So, be very careful when buying insurance without the help of an agent. You want to be sure the insurance policies you’re counting on are ready to protect you at the worst possible moment, when you need them most.
Want to keep up with the latest information about Tehachapi home, auto, life, business and health insurance? For this and links to my other online resources, visit and "like" my agency Facebook page: http://tinyurl.com/y3egmj4
We’ve all heard and seen those ads that entice us with: “Save a bundle on auto insurance with one phone call” or, “Get life insurance cheaper online.” Sure you may end up saving a few dollars today, but without the advice of a licensed professional, you could be setting you and your family up for a real financial disaster tomorrow…
Plain and simple, an insurance policy is a contract. You truly get what you pay for. Nothing more, nothing less. For example, one auto insurance contract may include all the bells and whistles in a package, while another is a bare-boned skeleton. Both insurance contracts have restrictions, limitations, exclusions and other language that can severely limit the protection they provide. One gives you broader protection than the other. Yet, regardless of major differences, they’re both auto insurance policies, right?
If you act as your own agent, will you know the difference between the contract that provides the protection you need and the contract that doesn’t? Without proper training or experience, you’re taking a very serious gamble. Without an agent to advise you, will you be sure that the lower cost option will have the protection you and your family actually need?
Plus, all insurance companies are not financially equal. It’s important to know how financially stable an insurance company is. Sure you paid less, but they also made less. Will they be able to pay your claim when the time comes? Or will they go broke beforehand? Where do you look? How will you know? Every insurance company is rated by several independent rating companies to include A.M. Best, Weiss and Standard and Poors. You can access insurance company financial ratings online or at your local public library. Perhaps the single most overlooked aspect of insurance buying is determining how much you have to lose and the correct amount insurance protection you really need. That process is critically important and entails much more than I could ever describe in this blog post.
Good news is, there are people out there ready to help you. Honest, sincere professionals that know how to use these valuable tools to accomplish your goals and save you money. I’ll give you ten guesses to tell me who that could be, and the first nine don’t count! Of course, the answer is to call on a licensed insurance agent to help you through this process. So, be very careful when buying insurance without the help of an agent. You want to be sure the insurance policies you’re counting on are ready to protect you at the worst possible moment, when you need them most.
Want to keep up with the latest information about Tehachapi home, auto, life, business and health insurance? For this and links to my other online resources, visit and "like" my agency Facebook page: http://tinyurl.com/y3egmj4
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By Carlo Narduzzi
Has anyone told you they have "full coverage"? Even worse, has your agent or their staff ever said that you have "full coverage"? There should be a grammatical rule that makes it wrong for insurance professionals to use these two words together in a sentence! Why? Because there is no such thing as "full coverage" in any kind of insurance policy! Never has been, never will be.
You see, insurance is gambling, only with a contract attached. That’s right. Just like a casino won’t pay more than what’s in the pot. Don’t believe for one second that any insurer would ever pay more than the policy limits of your contract.
Take it one step further, not only is the contract limited in the amount it will pay, there are limitations as to what it will pay for and the circumstances under which it will pay. So, if you don’t hold a winning hand, then you know why the casino won’t give you the winnings, right? Why would you expect an insurer to do this? Oh, that’s right, your agent told you that you have full coverage.
When someone says you have full coverage, what comes to mind? That your car will be replaced with a new one? Perhaps you believe they’ll pay for a rental while your car is being repaired after an accident. How about this, you run down a bicyclist, who happens to be a doctor, and he can’t work for a year. Your liability limits may "cover" enough to pay for your victim’s first week in the hospital. What about the medical expenses and lost wages for the other 51 weeks? Now you’ll scream, “But my agent told me I had full coverage!”.
Suffice it to say, your insurance agent needs to review your policies with you at least once a year. If they’re not doing this, then you need to make an appointment to see them. Ask them questions and get answers. You’re trusting them to set up an insurance contract that will provide you with the protection you expect, within the limitations of your budget. It is critical that you to understand the realities and limits of your insurance policies.
Remember, if it’s not in the contract, it’s coming out of your back pocket. If an insurance professional ever says, "you have full coverage", ask them, “So, you'll pay whatever my policy won't cover?” Their reaction may surprise you.
As a side note, when you ask to see the agent, insist on seeing the agent. It’s their name on the window and they’re getting the commission from your premiums. You have a right to see them, especially if you’re making an appointment. Some agents believe they’re too busy being important to bigger clients and have a habit of pushing the smaller customers off to their less experienced staff.
I can’t stand this type of business practice and will never allow it to happen in my agency. Every client I have has direct access to me. I’m the agent, I’m their consultant and it’s my experience and knowledge that make the difference for them. You should accept nothing less.
Want to keep up with the latest information about Tehachapi home, auto, life, business and health insurance? For this and links to my other online resources, visit and "like" my agency Facebook page: http://tinyurl.com/y3egmj4
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By Carlo Narduzzi
I was going to write a hugely detailed entry about how you can see through the propaganda and tell for yourself if the economy is truly recovering. In sheer disappointment to those high-brow readers out there, I have to admit, keeping this simple keeps it clear.
Here goes…
The economy will only have recovered when a home can sell for more than what it costs to build, plus the land. There, I said it. It’s that simple. Until this happens, everything the politicians and news are pumping out about economic recovery is hogwash.
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New fire rating standards which include proximity to brush and slope of the terrain have been implemented by the insurance industry. This is having a major impact on homes located in areas of Bear Valley, Cummings Valley, Oak Knolls, Mountain Meadows, Sand Canyon and Alpine Forest.
This is not a result from the West Fire this past summer. It is the culmination of the insurance industry's efforts to limit losses and keep rates down for persons in lower risk areas by reducing their exposure to wildfire loss. Great news for most, bad news for many.
Obviously, this is making it more difficult than ever to obtain insurance. As we all know, noinsurance, no loan, no loan, no sale.
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