Latest news with #autoInsurance
Yahoo
28-06-2025
- Business
- Yahoo
What is hurricane insurance, and what does it cover?
Insurance helps you avoid financial catastrophe if a hurricane strikes your home. But you may be surprised to learn there's no such thing as a hurricane insurance policy. Hurricane insurance usually refers to a combination of home, flood, and windstorm coverages that each come into play depending on the type of hurricane damage. If you live somewhere with frequent hurricanes, having home insurance isn't enough. A standard home insurance policy doesn't cover flooding, a common cause of hurricane losses due to storm surge. Your policy may also exclude wind damage, depending on where you live. Hurricane insurance doesn't technically exist, at least as a standalone policy. Usually, hurricane insurance refers to a patchwork of coverages, primarily homeowners insurance, flood insurance, and windstorm insurance (if wind damage is excluded by your policy) that kick in if a storm damages your home or personal property. Most home insurance covers damage from rain and wind, but for protection from flood damage, you usually need separate flood insurance. If you live somewhere vulnerable to hurricanes, you may also need additional coverage for windstorm damage. Hurricane insurance usually refers to policies that protect your home and the belongings inside. But you may need other types of insurance to safeguard your finances against a hurricane. For example, auto insurance only covers damage from a hurricane or tropical storm if you have comprehensive coverage. Hurricane travel insurance is a common benefit in trip cancellation and trip interruption policies, but coverage will only apply if you buy a policy before a storm is named. Learn more: Does car insurance cover flood damage? You can often get quotes for hurricane insurance online, by phone, or through an agent. Once you find coverage that meets your needs, you'll need to review and sign the contract. Below, you'll find specifics on how to shop for each type of hurricane coverage. To get homeowners insurance quotes, you'll need to answer some questions like: Who lives in your household? Have you had previous home insurance claims? How old is your home? What type of roof do you have, and how old is it? How much would it cost to replace your home? What upgrades have you made to the home? A good rule of thumb is to get several quotes to ensure your rate is competitive. Make sure you understand what your homeowners insurance covers, as well as your premiums, deductibles, policy limits, and whether your property is insured at the actual cash value (ACV) or the replacement cost value (RCV). Learn more: Actual cash value vs. replacement cost: Understanding the difference in home insurance Expert tip: In some circumstances, you may want to purchase add-ons called endorsements for additional coverage. For example, hurricanes can cause issues with sewage systems, but most homeowner policies exclude damage from sewer and sump pump backups. Some homeowners add a water backup endorsement or a standalone policy for extra protection. Coverage typically lasts a year. Your carrier is usually required to send you a renewal notice 30 to 60 days in advance. Flooding isn't covered by most home or renters insurance, so you'll need to buy a separate policy or add coverage through a rider or an endorsement. It's possible to buy flood insurance through the private marketplace. However, most policies are issued by the National Flood Insurance Program (NFIP), a federal program managed by the Federal Emergency Management Agency (FEMA). NFIP policies are sold and administered by a network of dozens of insurers and thousands of independent insurance agents. Unlike most types of insurance, it doesn't pay to shop around for NFIP coverage. That's because all insurers and agents use the same formula to calculate premiums. Rates are based on the same three factors that are specific to your home: Where it's built How it's built Estimated cost of replacing it You may be able to lower your flood premium by making various storm upgrades, which we'll discuss in more detail shortly. You can get a flood insurance quote using the NFIP's quoting tool, and then share the quote with an insurance agent or carrier to buy a policy. Learn more: How much does flood insurance cost in every state? NFIP policies last for one year, though there's a 30-day grace period after the policy expires. Coverage will still kick in if you file a claim during this window as long as you renew your policy and pay your full premium before the grace period ends. If you want a private flood insurance quote, you can contact insurers directly or work with an agent. Private flood insurance can be cheaper and offer higher coverage limits, but a private insurer can refuse to renew your policy or raise your rate substantially if it determines your property is at high risk of flooding. Also, forgoing an NFIP policy could mean you lose out on stable rates and cost-saving subsidies. Learn more: How FEMA flood insurance works If you live in a coastal area frequently threatened by hurricanes or a Midwestern region where tornadoes are common, you might need separate windstorm coverage. Otherwise, your homeowners insurance policy likely protects you against damage from high winds. If wind damage isn't covered under your homeowners policy, you may need a windstorm endorsement or a standalone windstorm policy. You can get quotes from several companies, including your home insurance provider, to ensure you get the best rate. However, in some especially high-risk areas, you may need to buy coverage through a Fair Access to Insurance Requirements (FAIR) plan, a state insurance pool for those who can't get coverage through a private carrier. A home insurance deductible is the out-of-pocket cost you pay before coverage kicks in. In the following 19 states plus the District of Columbia, separate and distinct deductibles apply to damage from a named storm: Alabama Connecticut Delaware Florida Georgia Hawaii Louisiana Maine Maryland Massachusetts Mississippi New Jersey New York North Carolina Pennsylvania Rhode Island South Carolina Texas Virginia Washington, D.C. In some other states, home insurance companies are allowed to charge separate hurricane deductibles. Insurers can also charge separate windstorm or wind/hail deductibles. Named storm deductibles are frequently assessed as a percentage of the home's value, often ranging from 1% to 10%, according to the National Association of Insurance Commissioners (NAIC). Suppose you have a 6% named storm deductible and your home is valued at $400,000. You'd be on the hook for $24,000 if a hurricane damaged your home before insurance would kick in. You'll also need to pay a deductible if you file a flood insurance claim. NFIP deductibles are usually between $1,000 and $10,000. Your annual premiums for various types of hurricane coverage depend on a host of factors, but here are some typical costs from various sources: Median cost of homeowners insurance for an HO-5 policy with $300,000 to $324,999 worth of dwelling coverage: $1,243, according to NAIC 2022 data Typical cost of home insurance in states with separate hurricane or windstorm deductibles, according to The Zebra: $349 to $2,000+ Median cost of flood insurance through NFIP: $786 Learn more: How much is homeowners insurance? A guide to lowering costs. You could get significant insurance discounts by making your home more hurricane-resistant. Here are some common ways to save money: Find out if your city or county participates in FEMA's Community Ratings System and nudge them to join, as participation could make you eligible for insurance discounts. Get an elevation certificate to show your home's elevation relative to the estimated height that floodwater could reach in a disaster. Elevate your home above the base flood level. You could earn discounts for each additional foot of elevation. Elevating a home just one foot above the base flood elevation could land you a 30% discount on NFIP coverage. Elevate your utilities, like your air conditioner or water heater, so they'll be less likely to be damaged by storm waters. Install storm shutters and impact-resistant windows to protect your home from storm debris and other wind-related damage. Fill in basements by backfilling them, as the NFIP won't allow or cover most basements. Upgrade your roof covering. Some types of roof covering, like asphalt or fiberglass shingles, concrete or clay tiles, or metal panels, could save you money on windstorm coverage. Add flood openings or vents in ground-floor crawlspaces on two or more exterior walls. Expert tip: Review insurance discounts specific to your home through NFIP's flood insurance mitigation discount tool. Nine of the 10 most costly natural disasters that occurred through the end of 2024 were hurricanes. Below, you'll find the most expensive hurricanes in U.S. history, according to the NAIC and the NOAA. Your home is often your most valuable asset, so maintaining adequate insurance is essential. Follow these tips to make sure your hurricane coverage offers sufficient protection: There's usually a 30-day waiting period before NFIP policies take effect. Most private carriers also put a moratorium on writing new policies in regions threatened by a natural disaster 24 to 48 hours before the expected weather event, so don't wait until a hurricane is on its way to get flood insurance. Remember, a standard home policy doesn't cover flood damage, and you'll need separate wind coverage in some high-risk areas. Review your insurance documents and talk to an insurance agent if you need additional coverage. Most renters insurance policies also exclude flood damage, so you'll need a separate flood policy to cover your personal belongings. Selecting higher deductibles is usually a good way to lower your insurance premium costs. For example, buying an NFIP policy with the maximum $10,000 deductible could lower your premium by up to 40%. But coverage doesn't kick in until you've paid your deductible out of pocket, so consider opting for lower deductibles and higher premiums if you can't afford to pay your deductible with savings. A standard home policy insures your home's structure at its replacement cost value (RCV), or the amount it would cost to rebuild your home. If you're concerned that the cost of rebuilding would exceed your policy limits, look into increasing your potential payout through extended replacement cost coverage or guaranteed replacement cost coverage. Your personal property is protected under a standard home or renter's policy, so make sure you document all your belongings. Taking photos and videos can be helpful. Most policies default to actual cash value (ACV) coverage for personal property, which reimburses you based on its market value, minus depreciation. However, you can usually get RCV coverage for an additional cost. Note that flooding damage to your belongings generally isn't covered by homeowner or renters insurance – you need separate flood insurance for that. Most homeowner and renters policies provide additional living expenses (ALE) coverage (also called loss-of-use coverage), which pays for costs like temporary housing and meals if you have to relocate after your home is damaged or destroyed. Many policies limit ALE reimbursement to a specific amount of time, but you can often buy extra coverage. Keep in mind, though, that loss-of-use coverage kicks in only if the type of damage is covered by the policy. That means you won't get help from your home or renters insurance carrier if you have to relocate due to flood damage. Unfortunately, NFIP policies don't provide ALE coverage, so you'd likely have to pay out of pocket if hurricane flooding forced you to temporarily move. However, some private insurers include loss-of-use coverage in flood policies. Any damage that occurs to the house or building you rent is covered by your landlord's insurance, while renters insurance covers your personal property, like clothing and electronics. Renters insurance will often cover hurricane damage to your belongings if it's caused by something like storm winds, hail or lightning. However, you'll need a separate policy to cover your belongings from hurricane-related flood damage. Your car insurance will only kick in for hurricane damage if you have comprehensive coverage. This type of insurance isn't mandated by law, but most lenders require you to carry it while you have an auto loan. Yes, you can get flood insurance during hurricane season, which runs from May 1 through Nov. 30. However, most NFIP policies have a 30-day waiting period before they take effect. Private insurers often issue a moratorium on writing new policies in an area while it's under threat of severe weather.
Yahoo
25-06-2025
- Automotive
- Yahoo
Car theft in Chicago is declining, despite thieves targeting certain brands — what Illinois's doing to curb it
There's good news and bad news for Chicagoans worried about car thefts. First the good news. With co-ordinated efforts from police, lawmakers and automakers across the country, car thefts are tracking down nationwide. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) As CBS News Chicago reports, last year, the National Insurance Crime Bureau (NICB) observed a 17% reduction in care thefts: the biggest drop in 40 years, with fewer auto insurance claims related to car theft. The sea change is even dramatic in Chicago, which saw a record number of car thefts (31,565 vehicles) in 2023. The tide has turned in the city, as car thefts dropped an impressive 35% between January and May 4 in 2025. Chicago Police Cmdr. Andrew Costello says the numbers are definitely 'trending in the right direction' overall. The bad news? Some numbers are trending in the wrong direction, as thieves change their methods. In 2023, thieves targeted older Kia and Hyundai cars that lacked immobilizers. According to Pinkerton Consulting, thieves could hack into these cars' electronics systems using a USB cable. The hacks proliferated as teen members of the so-called Kia Boyz stole vehicles and shared their exploits on TikTok and YouTube. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it In response, Kia and Hyundai developed a free software upgrade to curb theft. The result was dramatic. In 2024, thefts of Kia and Hyundai vehicles dropped nearly 50% in Chicago. Overall, car thefts in Chicago dropped to 23,135 incidents. Unfortunately, police have a new problem. Now auto thieves are targeting high-end vehicles instead of Kias and Hyundais. They're after sports cars, pickups and Jeep and Dodge SUVs. A CBS News Chicago analysis found that more than 400 luxury Lexus vehicles, 1,700 Jeeps and 1,500 Dodges were stolen in 2024. Glen Brooks, deputy director of community policing for the Chicago Police Department, reports another disturbing trend. Thieves are using these high-end cars to commit bigger crimes. 'We sometimes have the idea that people steal your car, it goes to a chop shop and it's divided up for parts,' he told CBS News Chicago. 'We are seeing something completely different. We're seeing those cars being used in robberies.' Cmdr. Costello said auto theft is 'the gateway to larger thefts, to the robberies, carjackings, shootings,' and other violent crimes. While motor vehicle theft remains a problem, a combination of technology and efforts by law enforcement are helping to drive stats down. As ABC 7 Chicago reports, Illinois has issued $11 million to law enforcement agencies statewide to help prevent carjackings and car thefts. That money went toward the purchase of technology including license plate readers, helicopters, and other tracking devices. Lt. Adam Broshous, who leads the Illinois Statewide Auto Theft Task Force (ISATT), told CBS News the technology 'has been a game changer, especially in Chicago.' License plate readers, installed in police vehicles, use cameras and software to capture plate numbers. Officers can use the data to identify stolen cars and track where they've been and what they've been used for — potentially identifying the criminals involved. So far, his task force has recovered 143 stolen cars and made 85 criminal charges, including 45 felonies and 40 misdemeanors. It has also recovered 16 guns. Meanwhile, prosecutions of those involved in car thefts are also increasing. Glen Brooks, deputy director of community policing, told CBS News that while those efforts are making a difference, so too is educating the community. 'If we can get to our young people, if we can make our property more secure, if we can work with our neighbors to make our neighborhoods better and safer, that will lower the likelihood someone will come to perpetrate harm,' he said. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
CTV News
18-06-2025
- Automotive
- CTV News
Should you add optional benefits when renewing your auto insurance?
Personal Injury Lawyer Brenda Hollingsworth discusses some scenarios that she has encountered and what you can do if you find yourself in these situations. A personal injury lawyer says it is important to accept the optional benefits that your insurance company offers when renewing your auto insurance, citing multiple benefits. Personal injury lawyer Brenda Hollingsworth told CTV Morning Live Wednesday in a worst-case scenario, such as sustaining a spinal injury, the money you'd be getting from the insurance company might not be enough without the optional coverage. 'And even if you have a successful lawsuit because the other person was at fault, the money you get will not be enough,' she said. 'So, you want to make sure that you have the very maximum benefits that you can afford.' The medical rehabilitation coverage is one thing Hollingsworth would upgrade. 'Optional benefits are really important to consider when renewing your car insurance. So, your accident benefits and your no-fault benefits, this is where you get your medical rehabilitation, your attendant care, income replacement benefits, and regardless of who caused the accident, everybody in the household gets benefits based on what you purchased,' she said. On the bright side, she says, optional benefits are not 'that expensive.' 'If you ask your broker for a quote for the optional benefits, you might find out that you get a very significant increase in coverage for not that much more,' Hollingsworth explained. Hollingsworth says right now, there is a lot of mandatory coverages. However, the government has announced that starting next summer, many of the accident benefits are going to become optional. She recommends accepting the optional benefits when the time comes for you to renew. 'It's really important to have that coverage, because really bad things happen,' Hollingsworth said. 'And so many people would say to me 'I wish I had the optional coverage.'' Car insurance is mandatory in Ontario. It operates under a no-fault system, which means after an accident, drivers submit claims from their own insurance company, regardless of who is at fault. This model is meant to reduce litigation and streamline claim processes.
Yahoo
25-05-2025
- Automotive
- Yahoo
Warren Buffett Was Asked If Self-Driving Cars Will Shift Insurance To 'Product Liability' — 'There's No Question... It's Going to Change Dramatically'
As self-driving cars inch closer to the mainstream, one of the biggest unanswered questions isn't just how they'll navigate traffic—but how they'll reshape risk. If there's no driver behind the wheel, is it still "driver error"? And if the software crashes, will the insurer or the carmaker pick up the tab? Earlier this month at the Berkshire Hathaway (NYSE:BRK, BRK.B)) annual shareholders meeting, that question was posed to Warren Buffett and Ajit Jain, the company's vice chairman of insurance. "Wouldn't what we call auto insurance today just become product liability for autonomous vehicles and autonomous software companies?" the attendee asked. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Ajit answered first, laying it out clearly: "There's no question that insurance for automobiles is going to change dramatically once self-driving cars become a reality," he said. "Most of the insurance that is sold and bought revolves around operator errors... To the extent these new self-driving cars are more safe and are involved in fewer accidents, that insurance will be less required. Instead, it'll be substituted by, as you mentioned, product liability." He confirmed that Geico and other insurers are already trying to prepare for the shift—from covering human mistakes to covering technology failures. "We move from providing insurance for operator errors and be more ready to provide protection for product errors and errors and omissions in the construction of these automobiles," he said. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Buffett followed up with a bigger-picture take on how Berkshire thinks about change—across all its businesses. "We expect change in all our businesses," Buffett said. "If the game didn't change at all, it really wouldn't be very interesting." He compared the need for change to sports: if every swing in baseball resulted in a home run, or every golf shot became a hole-in-one, the game wouldn't be worth playing. Challenges keep it engaging—and thinking through those challenges is part of what keeps companies and people sharp. "Your brain would turn to mush if you didn't have a few problems now and then," he added. Buffett acknowledged that while auto insurance will change, it's striking how little it has changed so far. He noted how transportation itself evolved drastically over the last two centuries, and no one really knows how it will look in the next hundred while driving deaths have dropped dramatically—from six per 100 million miles driven to just over one—insurance costs have skyrocketed. He recalled walking into Geico's office in 1950 when the average policy cost was "around 40 bucks a year." Now? It's not unusual to see policies climb into the $2,000+ range—and higher in urban areas. Jain chimed back in with one more important point: autonomous driving might reduce accidents overall, but it doesn't mean insurance will get cheaper. "The number of accidents will drop dramatically because of automatic driving," he said. "But on the other hand, the cost per repair every time there's an accident will go up very significantly because of the amount of technology that's going into the car." So while Geico and others may sell fewer policies for human error, the cost of insuring the tech itself could be just as complex—if not more. Buffett closed the conversation with a philosophical note about change and uncertainty: "You deal with the world as it develops. You never reach an answer in this business—you reach a point of action that you take." Read Next: Maximize saving for your retirement and cut down on taxes: . 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Midjourney UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Warren Buffett Was Asked If Self-Driving Cars Will Shift Insurance To 'Product Liability' — 'There's No Question… It's Going to Change Dramatically' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
17-05-2025
- Automotive
- Yahoo
How tariffs could drive up your auto insurance costs
WICHITA, Kan. (KSNW) — The bill for your insurance premium could be affected in the coming months if more tariffs are implemented. KSN spoke with some insurance experts to understand how your premiums could see a spike. Tariffs and trade wars have the auto insurance industry in a wait-and-see position, bracing for the other shoe to fall. Butler County paramedic dies in the line of duty 'It's just a cyclical; it kind of rolls downhill and affects everything eventually,' said Paul McGuire, Account Executive at Conrade Insurance Group. That eventually could be your personal or business auto insurance, especially if you have an imported car or need repairs with car parts that are imported from various countries. McGuire said, 'If the price of importing a car goes up 25 percent, that means the value of that car is now 25 percent higher. So, you have to insure the car at a higher limit. So, if you have a total loss on that vehicle, insurance is paying out 25 percent more.' McGuire says that in this scenario, the only way for the insurance company to equal that cost rise is by raising the premiums, as they won't be able to pay out more claims without charging more. He also says inflation has already affected this industry in the last five years. 'That puts higher price on cars, higher price on parts and then higher price on service. And the labor, which is all tied into the claims,' said McGuire. Bob Passmore, the Department Vice President, Personal Lines at APCIA, said, 'Currently, we're thinking that all insurance claims costs could rise anywhere between $23 billion and $45 billion over a 12-month period.' This means billions of dollars are paid by auto insurers for vehicle repairs or claims. Passmore added, 'The number one driver of what we pay for auto insurance is the cost of those claims. And when the cost of those claims starts going up, then companies are going to have to be able to keep up.' He also gave some advice on how to keep your costs low with auto insurance. He said every few years, you should shop for the best deal. He also said, 'You can get quotes online, you can make a couple of phone calls, and you can sometimes save yourself quite a bit of money. You can also take a look at your coverages to make sure that you have the coverage that you need should you get into a crash.' The experts also told KSN that six out of ten auto parts that are used in repairs come from Mexico, Canada, and China — all countries the Trump administration is negotiating with. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
