Insurance policies may seem like they’re written in another language. Yet it’s important to understand the terms so you can get the most out of your coverage. Here’s a quick tutorial on deductibles and what they mean for your auto and home insurance.
What is a deductible?
Simply put, a deductible is the amount of money that you pay out-of-pocket before insurance kicks in. Generally, your insurer deducts the deductible amount from the payment that they make on your claim. You can find the deductible listed on the declarations page, which is the front page of your policy.
Example: If the cost of a repair is $1,500 and your deductible is $500, insurance will cover $1,000.
Unlike health insurance deductibles, you do not have to reach an annual amount in an auto or home policy before insurance will pay. Each time you file a claim, there is a deductible (if it applies). One exception is the state of Florida where hurricane deductibles are once per season.
High vs. Low Deductibles
You select your deductible from a range of choices provided by your insurer. If you choose a lower deductible, that means your insurer will need to cover more in the event of a claim, which will raise the cost of your policy. If you choose a higher deductible, you’re willing to cover more of the cost in a claim, and that will lower your premium.
Lower deductible = Higher insurance premium
Higher deductible = Lower insurance premium
It’s important to note that you will have to pay the deductible if a loss occurs in a car accident, even if you think the other driver is at fault.
You may think twice about filing a claim for a damage amount that is close to your deductible. For example, if your deductible is $1,000 and repairs are $1,250, it may not be worth it. You’d be responsible for the bulk of the repairs, and by filing a claim, your rates may go up when you renew. See our blog about when you need to file a claim and when you don’t.
There are different types of coverage available to you for your vehicle. Some may be mandated by your state or your lender, and others are optional. Not all coverages carry a deductible.
The following coverages include a deductible, and you may choose a different deductible amount for each one:
Collision: This coverage kicks in when you collide with another car or object.
Comprehensive: This coverage is for damage from other causes such as hitting a deer or having a tree fall on your car.
Uninsured motorist property damage (UMPD): This coverage is for property damage from accidents with another driver who is uninsured and at fault. UMPD may or may not have a deductible; it depends on the state and the type of loss. (Uninsured motorist coverage, which is different than UMPD, does not have a deductible.)
Personal injury protection (PIP): This coverage pays for medical expenses regardless of who is at fault.
Pro Tip: Being able to set a deductible for each type of coverage allows you to assess the likelihood of your needing that coverage. For example, if you live in the country and might be more likely to encounter a deer than another car, you can lower the deductible for comprehensive and raise the deductible for collision.
There is auto coverage that does not carry a deductible, and that’s liability coverage. With liability coverage:
If you are at fault: You hit another car and cause property damage and/or driver injuries. Your liability covers the damage to the other driver and his/her car without requiring a deductible. However, your own collision policy pays for damage to your car, which would come with a deductible.
If someone else is at fault: Another driver hits your car and/or injures you. Their insurance will pay for damages and medical expenses. There are no deductibles.
Your insurer can provide quotes for different levels of deductibles and work with you to determine the best coverage for your budget.
Homeowner’s Policies and Deductibles
Whether you’re buying a new home, or you’ve owned yours for years, your homeowner’s policy protects your investment. Costs vary by location, age of home, construction type, number of bathrooms, and many other factors.
With homeowner’s insurance, there are generally three choices for deductibles:
Flat deductibles: You would choose a fixed dollar amount, such as $1,000. That is the amount you would pay out-of-pocket before insurance kicks in.
Percentage deductibles: You would choose percentage of your Coverage A limit. If your policy covers your home at $300,000, and you choose a 2% deductible, you would be responsible for 2% of $300,000 or $6,000.
Peril-specific deductible option: You could have a flat deductible amount and then carry a different one specifically for wind/hail losses.
There are coverages under your home insurance that do not carry a deductible. These include Scheduled Personal Property (SPP) Coverage, Coverage E: Personal Liability, and Coverage F: Medical Payments to Others.
Scheduled personal property (SPP) Coverage is for items that have higher values above your personal property coverage limits. This includes heirlooms, watches, jewelry, instruments, furs, or anything about which you are especially concerned such as a special guitar. (Musical instruments for example do not have a contractual limit but you will want to schedule an instrument that is special to you.) SPP offers much broader coverage for your precious items – if you lose a set of earrings, they are covered; if a diamond falls out of a ring, or if a guitar falls off a shelf and gets stepped on, they’re covered. There is no deductible if the covered items are stolen, lost, or damaged. Insurance pays the lowest of the four options: repair, replace, actual cash value or the amount of insurance.
Personal Liability protects you if a claim is made or a suit brought against you for bodily injury or property damage caused by an occurrence to which coverage applies. These are expenses paid to third parties for their injuries and damages. Liability covers you at your place or anywhere in the world. If you are found liable, the policy will pay up to its limit of liability for damages for which an insured is legally liable. This can include medical expenses, lost wages, pain and suffering, and permanent scarring. The policy also provides a defense in court, if needed, for the policyholder. This is at the insurance company’s own expense.
Insurance may seem complicated, but it doesn’t have to be. Your agent can answer any questions you may have. Contact your insurer to find out more about protecting your most valuable possessions.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
If you haven’t thought about crossing guards, school buses, and kids walking to school for a while, it’s time to refresh your memory. You’ll want to review important safety tips as everyone heads back to class.
From school zones to buses, bikes, and more, this guide shares the basics about back-to-school traffic safety. Read on to find out what you need to know.
Learn where the school zones are.
A school zone is an area on the street near a school where students typically travel on foot or by bike, skateboard, etc. It is typically located one or two blocks around the school.
Look for signs and road markings that indicate a school zone.
Prepare to slow down. School zones have reduced speed limits during certain hours like drop-off and dismissal.
Watch for children, who may cross without looking. Remember that not all students use crosswalks, and not all crosswalks have crossing guards.
Put your phone away. Texting in a school zone carries a big fine.
Be aware of the time of day.
You may drive past the school every day, but you must be extra vigilant when school is in session.
Pay attention to when your local schools start and end the day. Know the times that students typically arrive and leave. Remember that schools sometimes have early dismissal.
During these times, be careful backing out of driveways and traveling through the neighborhood near schools, playgrounds, and parks.
You may even decide to take a different route to avoid the school at busy times.
Navigate school parking lots carefully.
Rushed, distracted parents and children who may not understand traffic rules create safety hazards in school parking lots. Learn and follow your school’s rules for dropping off, picking up and parking.
Go slowly past parked cars. Children can appear out of nowhere.
Don’t make U-turns and don’t pass a vehicle unloading passengers. These are unpredictable moves that other cars and pedestrians will not expect.
Don’t double park as you will block the view, and ability to move, for others.
Don’t honk your horn. You could startle those around you.
Avoid the emergency lanes or handicap spots unless you are authorized to use them.
Know the rules for sharing the road with school buses.
It’s likely you’ll be sharing the road with school buses. These larger vehicles have their own special rules. Check your state’s laws for specifics.
Keep a safe distance behind school buses.
Avoid cutting in front of school buses even if your car can fit. Never pass a stopped school bus in either direction.
Watch for yellow flashing lights that signal a bus is about to stop. By the time the bus flashes red lights, you should be stopped and that’s true for both directions.
Be aware of a bus driver’s blind spots. They are located around the front, sides, and back of the vehicle.
Know the rules for sharing the road with bicycles.
You will likely encounter kids on bicycles as you drive. Be aware that they may or may not understand the traffic rules.
Learn biking hand signals so you will know what a cyclist is communicating. Know that some cyclists will turn without signaling, too.
Watch for bicycles that unexpectedly come from driveways and between parked cars.
Allow plenty of room and slow down when you are passing a bicycle.
Check your mirrors and blind spots before turning. Stay out of bike lanes.
After you park your car, check your side mirrors before you open your door. That way, you hopefully won’t knock into a bicyclist with your door.
Other Safety Tips
You can be proactive to keep everyone safe during back-to-school traffic and year-round. Here are some additional tips.
Expect the unexpected. Children are unpredictable.
Teach your children how to share the road as a bicyclist and on their skateboards.
Consider carpooling to reduce the traffic in the school parking lot.
Give yourself extra time. When you’re not in a rush, it’s easier to make clear headed decisions.
Finally, keep your car insurance up to date for added peace of mind. After all, you’re carrying precious cargo.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
You’re driving along and, suddenly, you notice a puff of smoke. The needle on your dashboard starts inching into the red. There goes your engine warning light. Your car is overheating.
Don’t panic. While overheating can cause permanent damage to your car, your quick action can make a difference. Here’s a guide on why engines overheat, steps to take to prevent it, and what to do if your vehicle overheats this summer.
Why do engines overheat?
An engine naturally generates heat when it runs. The cooling system helps it from getting too hot. Sometimes, however, the system fails. Here are some common reasons an engine overheats.
Low oil or coolant levels
Leak or blockage in the cooling system
Faulty thermostat
Clogged or worn-out hoses or belts
Defective water pump
Radiator failure, damaged radiator cap
Damaged or blown head gaskets, warped cylinder heads
Watch for these signs.
You may not even be aware your engine is getting too hot until it’s too late. That’s why it is important to look for the signs of overheating.
Early signs
Ticking noises in your engine that could be related to a loss of lubrication
Thumping noises from cold coolant mixing with boiling coolant (due to a failed sensor in your thermostat)
An engine that gets hot after short trips
A puddle of coolant on the ground after you’ve parked
Emergency signs
Steam (that looks like smoke) coming from the vehicle’s hood
Spike in your temperature gauge or check engine warning light
Strange smells or odors from the front of your car (Oil produces a burnt smell, coolant smells sweet, and you may also notice the smells of hot metal or burning rubber.)
Reduced engine power
What to do if your car overheats…
Overheating can lead to serious and expensive damage if it’s not addressed quickly. Follow these steps if your car overheats.
Turn on the heater.
It may seem counterintuitive but turning on the heat will draw heat away from your engine. Sometimes that’s enough to move the gauge back into the safe area. Importantly, do not run your air conditioning. That will only make the car heat up more.
Put on your hazard lights and make your way to the side of the road. If you’re on a highway or busy street, do so as soon and safely as possible. Pull over in a place where you can wait it out for a while, and where emergency service vehicles can easily access your vehicle.
Shut off the engine and wait.
It will take at least 15 to 30 minutes for the engine to cool down. There is nothing you can do at this time. Call for assistance if you think you will need it. Importantly, do not try to open the hood. Your car is dangerously hot, and you could be sprayed with boiling water or steam.
Check the pressure of the radiator hose.
Wait until the hood is cool to the touch to open it. Then put on gloves and grab a towel. Locate the radiator hose in the upper side of your engine. Use the towel to squeeze it. If it’s stiff, there’s pressure in the system. Do not remove the radiator cap until the pressure has decreased.
Add coolant.
Locate the radiator cap (see owner’s manual). Cover the cap with a towel and slowly push down to loosen it a quarter of a turn. That will release some of the pressure. Then fully open the cap. Refill the coolant if needed. Also add coolant to the small clear plastic overflow reservoir on the side of the radiator. Replace the cap.
Turn on the engine.
If the gauge is normal or the warning light is off, proceed with caution. Adding coolant doesn’t fix the problem. It just allows you to get somewhere safely to address it. Note that if your car is overheating because of a hose or radiator issue, then coolant will not work.
Drive or get towed to a service station.
If your car has overheated, it needs to be seen by a mechanic. Don’t ignore it. It may be inconvenient to get it fixed, but driving an overheated car will ruin your engine.
Prevent your car from overheating.
Overheating is common in the hot summer weather. There are steps to take to safeguard your car if it is at risk.
Check and maintain your fluid levels. This includes coolant and oil.
Get a coolant flush. This will remove old coolant and chemical buildups.
Perform routine car maintenance. Do regular radiator checkups.
Check under your vehicle for signs of coolant or oil leaks. Get them addressed right away.
Your car is one of your greatest investments. Keep it fully insured for added peace of mind. Safe travels.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
Maybe you got married—or divorced. Perhaps a nanny moved in, or your son or daughter moved out. When major life changes like this happen, it’s time to look at your insurance policy. If you need to add or remove someone, here’s what you need to know.
Who must be listed on your policy?
Car Insurance
For car insurance, you must list all people in your household. Your list will include family members but also a roommate, relative or nanny who lives with you. They are added because they live with you, not because they drive your car. It varies from state to state but you may be able to exclude those individuals who won’t drive your car.
Excluded from rating: If a person meets underwriting guidelines and has coverage elsewhere, they will be listed on the policy but excluded from a rating. That means no premium will be charged for them.
Excluded from coverage: If the person has an unacceptable driving record, they will not meet underwriting guidelines and will be excluded from coverage. A signed document is usually required.
Some states do not allow you to exclude any drivers, and others will not allow exclusions of drivers who are acceptable. Still other states will not allow the exclusion of a family member or spouse. For details on excluding someone from your policy, see the section on removing someone from your policy.
Homeowner’s Insurance
For homeowner’s insurance, the policy must be in the name of the person who owns the home. That person’s name is listed on the title. If another person, spouse or not, has their name on the deed/title and they live in the home, they will be added as a named insured.
Adding someone to a car insurance policy
You can either call your insurance company or log into your account online to add a person to your policy. You will need their:
Name and date of birth
Driver’s license or permit
VIN for the vehicle(s) that they are driving
Number of years that they have been driving
Driving record, including any accidents or violations
Your insurer will then give you a cost quote for the additional driver. Ask your insurer for ways to save money while bundling or with other discounts.
Removing someone from a car insurance policy
If someone on your policy no longer lives with you and/or no longer drives your car, that’s a good time to remove them.
You will need to provide proof that the individual no longer lives with you.
If your loved one has passed away, you will need to provide the death certificate.
If the person still lives with you, your insurer may require you to keep them on the policy or show proof of their own insurance.
Special situation: child away at school
If your child is away at school, and you are expecting that child to return for breaks, this is not the time to remove him/her. If your child has a car that will be kept at home and not driven while he/she is at school, ask your insurance company whether you qualify for a discounted rate. If your child is over 100 miles away without a car, you may receive a discount.
Children away at school are automatically covered by your policy, so you are not able to remove them. However, as your children age and move out, that will change. When should you remove your child from your policy? It really depends upon your unique situation and needs. While there is technically no age limit for children on a policy, many insurance companies require children get their own policy once they are no longer a dependent, even if they are still living with the insured.
Excluding a driver vs. removing a driver:
Some insurance carriers allow you to exclude a driver, even if they live with you. Excluding a driver means that they will not be covered while driving any vehicles. You may be able to exclude a driver for an unacceptable driving record, and therefore reduce your premium. Note that there will be no coverage of that person driving your car even in an emergency, and if that person is discovered to be driving your car, your insurer may decide to increase your premiums or decline to renew your policy. It’s important to note that if the excluded driver does drive and has an accident, you, the insured, will be responsible for paying for all the damages/injuries out-of-pocket. That includes any damages/injuries that occur if they are driving someone else’s car too.
Adding someone to a homeowner’s policy
The homeowner’s policy is held by the person or people whose names are on the title/deed of the home.
You may add your spouse as a named insured on your policy if they are on the title/deed. Depending upon your spouse’s claim history, note that this could raise your rate.
If you’re not married but living together, and the non-married partner’s name is on the deed/title, you may add them as a named insured.
You may want to adjust personal property coverage if your new spouse has items that increase the value above what is currently on your policy.
If you are the primary homeowner listed on the policy, you may remove someone from your policy. Traditionally, this happens during a separation or divorce. A homeowner’s policy can be maintained during a separation, but should be changed as soon as the divorce is finalized. At California Casualty, we typically wait until the divorce is final and/or the policy renewal date to move property policies from one account to another.
Only a named insured on the policy is authorized to make changes. Ideally, the changes should follow the separation agreement.
The effective date the change takes place depends upon your policy.
The spouse who moves out, but is still on the deed, should be named as an additional insured.
Your homeowner’s policy should be listed under whomever keeps the house.
You’re often able to add coverage for a partner or roommate to your renter’s policy if they move in. There are three main ways to do this.
You can add coverage for a roommate for an additional cost. You can do this on a homeowner’s and renter’s endorsement called “Other Member of Your Household.” Some states do not charge a premium for this. You can remove this person at any time, with no notice given to them.
Unless you are married, you cannot add a significant other as a named insured.
You can ask the person to get their own policy. Separate policies mean each of you has the full amount of liability coverage if you cause a loss.
Having the right coverage gives you peace of mind. Make sure you are protecting your greatest investments.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
There’s a puddle underneath your car. Don’t panic. If it’s summer and you’ve just run the air conditioning, you probably don’t need to worry. But there are times when you should be concerned.
We’ve put together a guide to why puddles form under cars, what to look for, and when you need to act.
What is an air conditioning puddle?
Water puddles are common on hot, humid days after we run our car’s air conditioner. That’s because the process of air conditioning produces condensation. There’s a drain tube built into the system that allows that moisture to pass through the floorboard and exit the car. You’ll usually see that puddle under the car on the front passenger side.
Note: A puddle under the car is normal. A puddle inside the car is not.
Check to see if the puddle is water.
Chances are, if it’s a hot day and you just ran the air conditioning, that puddle is water. However, you can easily check that.
Dip a clean rag in the puddle. Do the sniff test. If there’s an odor, it’s not water.
Visually inspect the fluid on the rag. If there’s a color, it’s not water.
Slide some white cardboard under the car to tell what is leaking and where.
What if it’s not water?
If it’s not water, here are some common fluids that could be leaking from your car. Should you see any of these leaks, get them fixed as soon as possible.
Coolant (antifreeze) – Coolant comes in many colors, including green, orange, yellow, blue, greenish blue, pink or red. It may appear clear with a hint of color. It also will have an odor. If your radiator loses too much coolant, your engine can overheat. Leaks also are dangerous to pets. The sweet smell of coolant can attract them and it’s poisonous if consumed.
Gas – A fuel leak may look like water, but it will smell like fuel. It’s also highly flammable so be cautious when handling it. Fuel leaks usually happen due to a crack in the fuel tank.
Oil – If it’s light brown or black, and greasy, it’s probably engine oil. You’ll find this type of leak at the front end of your vehicle. If you suspect an oil leak, check your car’s dipstick. If it’s low, that confirms there is an oil leak.
Brake fluid – This type of fluid ranges from clear to yellow brow in color. You’ll find the leak near the wheels. It’s not safe to drive if you have a brake fluid leak. It may cause the brakes to fail.
Automatic transmission fluid – This fluid is pink to dark brown. It is a lubricant and a coolant. If you have this type of leak, driving your car could cause further damage.
Power steering fluid – Usually yellow or reddish brown in color, a power steering fluid leak will have a slightly sweet, burnt smell. Driving on low levels of steering fluid can cause lasting damage.
Windshield washer fluid – This comes in colors such as blue, purple, green, or orange. You’ll likely find the leak in the reservoir near the windshield. While a windshield washer fluid link won’t affect the car’s operation, it will impact your ability to drive in the rain.
Refrigerant Leaks
There’s also a possibility that the refrigerant from your air conditioning system is leaking. Refrigerant is colorless and can look like water. If refrigerant is leaking, it puts a strain on the compressor and reduces the air conditioner’s ability to cool down air.
Leaks can happen for a variety of reasons. These include a blockage in the drainpipe, the drain not being attached properly, air filters that are dirty or blocked or a broken drain pan.
Here’s how to diagnose a refrigerant leak:
Listen for a clicking sound. With less refrigerant, the compressor shortens its cycle. This creates a clicking sound, which is an early warning sign.
Look for a dashboard When refrigerant levels are low, there may be an early warning light.
The air conditioning stops working. If it’s blowing hot air, the refrigerant level is too low.
Air conditioning leaks inside the car
If your air conditioning drain tube becomes blocked, you may notice a buildup of water on the front carpets and mats of your car. That may mean you need to clean out the tube and remove any debris. This will allow condensation to flow freely. If the tube is deteriorating or damaged, or if the heater core is leaking, it requires a more extensive repair. If you suspect a clogged drain tube, try driving without the air conditioning. See if the dampness continues. If it does not, then you’ll want to get your drain tube checked out.
Your car is one of your greatest investments. Keep it well maintained and fully insured for added peace of mind. Safe travels.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
Getting into a hot car is the last thing you want to do on a scorching summer day. You want to cool that car down fast. We researched the tried-and-true methods to maximize the cool in your car’s air conditioning system. Read on to find out more.
How air conditioning works in your vehicle
Your car’s air conditioning pulls air in from the cabin or outdoors. It takes out the heat and moisture, and then pushes it through the vents so you feel cool air. Importantly, the air conditioner draws energy from the engine. When you put on the air, your engine must work harder, and you burn more fuel. So, you want to cool down, but you don’t necessarily want to do it by burning more than you need to.
Follow these 6 tips to cool your car quickly and efficiently.
#1: Park in a shady spot.
Give your air conditioner some help by parking in a shady spot. While your car will still be hot, it will be cooler than in the direct sun. That way your air conditioning will start with the air at a relatively lower temperature and have less work to do to bring the temperature down.
Pro Tip: If there is no shady spot, create one with a sunshade. Not only does it help with heat, a sunshade protects the inside of your car from damaging UV rays.
#2: Wait to run the AC.
Roll down the windows and let the warm air escape before you get into the car. Open your door and move it back and forth like a fan, to force some cooler air in and hot air out. Then, wait until the car is in motion to turn on the air conditioning. Precooling without driving can reduce the battery life of an electric or hybrid car. Plus, as you’re moving, the air flow will naturally help the AC run more efficiently. The faster you go, the faster the engine turns, and the faster the compressor runs, resulting in cooler air.
Pro Tip: So that the steering wheel and other components aren’t too hot to touch, try wiping them down with a damp cloth prior to driving. In a pinch, wet wipes can work.
#3: Don’t switch to max right away.
When you first get into the car, it’s usually hotter inside than the air outside. You don’t want to pull in that hot air. Instead, turn on the fan to maximum speed and make sure it’s set to outside mode (not recirculate). Leave the AC button off at first. Once you’ve had a chance to force out some of the humid and hot air, then turn on the AC mode and set it to recirculate. Keep it on the coldest setting until it’s the temperature you want.
Pro Tip: Before you shut off your car, turn the air off. That way it won’t go on automatically when you turn it on again.
#4: Install an AC curtain.
It’s faster to cool a smaller space than a larger one. That’s the idea behind an AC curtain. This fan-powered device creates an invisible barrier that keeps cold air in one section. In a larger SUV or minivan, this could reduce the space that needs to be cooled, and it works well if there are just a couple of occupants.
Pro Tip: Amp up the cool with a cooling seat cover with its own temperature control.
#5: Change your air filters.
Your car’s air filters remove dirt, pollen, and dust from the air. When your cabin filters are clogged, they struggle to get the air through. That’s why it’s important to clean them according to the schedule in your owner’s manual. This is usually every year or two, or every 15,000-20,000 miles.
#6: Keep your car well maintained.
A dirty air condenser impacts the performance of your air conditioning system. Have your condenser cleaned with regular maintenance. If your AC is not working well, check the system. It could be a worn-out part, or too little refrigerant in in the system. Note that adding refrigerant is not a normal task. The system is sealed, and so if refrigerant is low, you could have a leak.
Finally, protect your car with the right insurance for added peace of mind this summer.
Safe travels.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
