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What a Waste of Money! - Part 2<br />
By: Jim Valkenburg / Insurance Insight<br />
Last month I wrote about people who feel<br />
that reporting all home claims is why we<br />
have insurance - even if the claims are small<br />
and insignificant. They feel cheated if they<br />
have coverage and don’t take advantage of getting some money back.<br />
I explained that frequency of claims is often more important to an<br />
insurance company than severity.<br />
The same goes for some auto claims. If you back into a pole and<br />
incur $1,200 damage to your vehicle, would you put in a claim for a<br />
few hundred dollars over your collision deductible? I hope not.<br />
That incident is considered an at-fault accident and you will be<br />
charged for a claim for 5 years with most companies. That few hundred<br />
dollars you received will probably cost you thousands over the next<br />
years.<br />
Just last month a friend called claiming his “garage door hit his<br />
car.” The repair estimate was $2,200. He has a $1,000 deductible and<br />
wondered if he should put in a claim for the difference--$1,200.<br />
I explained since this would probably cost between $3,000-5,000 in<br />
increased insurance over the next few year, he should think about just<br />
getting his car repaired. And if you try to change insurance companies,<br />
all the new companies will also charge you for that accident.<br />
However, never take a chance on paying a claim if another person<br />
is involved and there could be bodily injury – even if they say they are<br />
“fine”!<br />
My pet peeve is the kid at the car wash that wants to fix your<br />
windshield chip. He says to just give him your insurance information<br />
and it won’t cost you anything.<br />
I’ve seen a many as 7-8 windshield claims on one person’s claim<br />
report notwithstanding the charge of only $65 per claim. Why would<br />
a reasonable person give some kid at the car wash their personal<br />
information to fix a chip which may not really be a chip at all?<br />
When the kid tells you it won’t go on your insurance, he is doing<br />
two things: (1) Giving insurance advice without a license (which is<br />
illegal), and (2) lying. Remember, ALL insurance related claims are<br />
reported and filed.<br />
The moral of this article is to THINK before you report a claim for<br />
which you are responsible. Talk to your insurance agent before it is<br />
reported to the company. Get an estimate, subtract your deductible and<br />
see if it is worth the increase you will incur in the future.<br />
What about “accident forgiveness”? Well, it is true that many<br />
insurance companies tout “accident forgiveness” as a benefit of their<br />
product. But do they forgive and not forget? Tune in next month.<br />
Jim Valkenburg is a retired military officer and insurance executive.<br />
He and his wife owned and operated their own insurance agency for<br />
over 16 years. His primary purpose is to give out real information<br />
that can be used to make intelligent insurance decisions.<br />
Members of the Red Rock Canyon Chapter, DAR and Edward Hall.<br />
DAR Honors Pearl Harbor Survivor<br />
Edward Hall, one of the last survivors of the Pearl Harbor attack during<br />
World War II and a Las <strong>Vegas</strong> resident, was recently honored during an<br />
event hosted by Red Rock Canyon Chapter, Daughters of the American<br />
Revolution last month.<br />
At the age of 16, with his parent’s permission, Hall joined the Army Air<br />
Corps, claiming he was 17, so he could enlist. He was on kitchen duty<br />
during the morning hours of December 7, <strong>19</strong>41.<br />
Hall, now 95-years-old, was awarded a certificate to honor his military<br />
service by Red Rock Canyon Chapter, DAR and a quilt by the Quilts of<br />
Valor Foundation at the Durango Hills Golf Club.<br />
The Daughters of the American Revolution is a women’s service<br />
organization dedicated to promoting historic preservation, education,<br />
and patriotism. To learn more about the work of today’s DAR, visit www.<br />
DAR.org. The Quilts of Valor Foundation (https://www.qovf.org/) honors<br />
veterans and current service members with handmade quilts.<br />
Cremation benefits and services available for<br />
United States Veterans and their families.<br />
Call today<br />
for special discounts & promotions<br />
(702) 407-0848<br />
11 South Stephanie Street , Suite 140<br />
Henderson, NV 89012<br />
Peter Prah, Sales Manager<br />
www.NationalCremation.com<br />
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