Do I need comprehensive coverage if I have collision

Auto insurance is not just one type of insurance. In most cases, you will need to have liability insurance coverage to protect other drivers from you and any mishap you may have. This is mandated by each state and differs from place to place. When you have a car loan, the lender will make you carry certain other types of insurance to protect them. But after your loan is paid, you can decide what other parts of auto insurance you want to carry. At Vargas & Vargas Insurance in Dorchester, MA we pride ourselves on our ability to help you solve your insurance problems at the most competitive rates available. 

When it comes to the question do I need comprehensive coverage if I have collision coverage it is important to understand the type of coverage both of these types of insurance providers. In some ways, it is like comparing apples and oranges, the things that are covered by both types are really quite different. 

Collision insurance pays for repair or replacement of your vehicle in an accident where you are deemed to be the responsible party or at least partially responsible. This is coverage that usually involves another vehicle but it can also be an inanimate object like a pole or a tree. Comprehensive is often referred to as non-collision coverage. It covers things that are beyond the driver’s control like a large animal running into the road in front of your vehicle. Glass coverage is usually also included. Comprehensive insurance includes weather events that impact your vehicle. If your vehicle is stolen or vandalized comprehensive insurance coverage will kick in. 

As you see, these are both very important types of coverage and there is no overlap in the coverage. For more information about both of these types of auto insurance give the office of Vargas & Vargas Insurance in Dorchester, MA a call. 

The biggest benefit of working with a local independent insurance agent like Vargas & Vargas is that our licensed local agents work with many insurance companies. We will customize your insurance policy to your own specific needs, then we can move forward getting quotes from the best companies for your unique situation

Need some Massachusetts insurance quotes? Let’s talk!

Progressive vs. Geico Insurance

younger couple comparing Progressive and Geico insurance coverages

All insurers are not created equal, nor are all insurance policies. We’re not here to sling mud or speak badly about any insurance provider! But we are going to explain how every insurance company has an ideal customer in mind, and show you some specific differences between Progressive and Geico insurance policies as examples. Our duty at Vargas & Vargas Insurance is to connect every customer with the right insurance policy. We work with many major insurance companies, and we can help take the guesswork out of any of your Massachusetts insurance policies. As always, if you have questions beyond the scope of this article, reach out to us today.

About Progressive

Progressive is a well-respected insurer with an excellent reputation. Their ideal client is a multi-line household — in case you hadn’t noticed “Flo’s” focus on insurance “bundling” in their advertising campaigns. Progressive will insure your home and autos, and the company offers life insurance choices, too. They provide great coverages for adults with multiple insurance needs.

  • Progressive provides homeowners insurance in-house; they don’t farm it out. 

About Geico

Geico began as an insurance provider for government employees and gradually broadened their scope. Geico’s focus is providing economical pricing on auto insurance, though they also insure recreational vehicles like motorcycles and RVs. They usually have somewhat better rates for some riskier drivers, like those who have had many at-fault accidents, those with many speeding tickets, and young inexperienced drivers.

  • Geico does not write their homeowners insurance policies. They can provide you a quote, but they “farm out” the policy to a partner.

Our Perspective

At Vargas & Vargas, we work hard to match the right type of insurance policy to our customers. Both Progressive and Geico homeowners policies, for instance, will provide replacement cost coverage. Still, they offer different bells and whistles, as well as different rates. 

Both Progressive and Geico homeowner’s policies provide medical payments to others in case of injury, liability coverage, and coverage for water or sewer damages. However, Geico and Progressive recommend lower limits of liability and deductibles on glass coverage, where most insurance professionals do not. And both companies offer varying discounts (like paid-in-full discounts, paperless billing discounts, multi-line discounts, and so on).

The biggest benefit of working with an independent insurance agent like Vargas & Vargas is that our licensed, independent insurance agency works with many insurance companies. We know their underwriting criteria and know their ideal customer. Our goal is to spend time with each prospective client to get a feel for your insurance needs. Then we can move forward getting quotes from the best companies for your unique situation

Need some Massachusetts insurance quotes? Let’s talk!

What You Need to Know About Liability Insurance for Your Massachusetts Home

Liability coverage may be the least understood portion of a typical Massachusetts home insurance policy.  Other standard home insurance coverages — like dwellings coverage or personal property coverage — protect you from losses to your own property. In contrast, liability insurance protects you when you’re legally responsible for someone else’s losses.

How the Liability Portion of Your Home Insurance Policy Works

Liability coverage usually extends to you and family members who live in your household. You’re covered if someone sues you or a family member for causing certain injuries or property loss. Liability insurance pays expenses, such as the cost of your legal defense, court costs, and settlement fees (or damage awards). 

Examples of What Liability Insurance Can Cover

Your liability protection typically includes accidental injuries to someone visiting your home.  For instance, you’re covered if your guest gets hurt from falling on your icy porch steps.

You’re also covered for certain property damage and accidental injuries caused by you or a covered family member that happens away from your home. Here’s an example. Your child is playing baseball in a neighbor’s yard. He pitches the ball, and it accidentally hits the neighbor’s child in the head. The neighbor’s child is seriously injured. Your liability coverage takes care of your attorney’s costs and the settlement fee related to that event.

What Homeowners Liability Insurance Does Not Cover

Liability insurance does not cover intentional acts or injuries. Also, homeowners liability insurance does not cover losses related to the operation of a vehicle or business. You need auto insurance or business insurance for those costs.

Deciding How Much Liability Coverage You Need

For any type of insurance, the coverage limit is the maximum amount of money that the policy will pay out. The coverage limit for the liability portion of home insurance can be as little as $100,000. However, since the median home value in Massachusetts is $426,330, $100,000 is not enough coverage for most Massachusetts homeowners. 

You can and should increase your coverage limit to be equal to or more than your home’s value. Losing your home to pay a settlement fee or damage award is a possibility for homeowners who don’t have sufficient coverage. Contact us today so we can help you find a home insurance policy that has the liability coverage that meets your needs.

These Auto Insurance Companies Are Giving Money Back During COVID-19

couple looking at reduced insurance premiums during shelter-in-place orders

It’s no secret that the COVID-19 global pandemic has caused immense strain — physically, mentally, and financially. While the uncertainty of the coming months continues to weigh heavily on everyone’s minds, more and more stories are coming to light every day about individuals and corporations trying to do what they can to help. The insurance industry is among them. Several companies have implemented plans in recent days that will attempt to lessen the monetary burden their customers are facing for car insurance and other policies. Wondering if your company is one of them? Check out the list below. 

Farmers

Customers with Farmers or 21st Century-branded policies will see a 25% reduction on their premium for the month of April. The discount will be applied as a credit to next month’s billing statement. If you paid your premium in full, it will be issued as a check or direct deposit to the account on file. The reduction is being applied automatically and requires no action on your part. 

State Farm

State Farm policyholders will be apportioned part of a $2 billion dividend from the company. While exact percentages for individual customers will vary by state, policyholders will be credited a percentage of their premium from March 20 through May 1. The company estimates that the average will be about 25% of the premium for that time frame, and customers don’t need to take action to receive the credit. 

Progressive

Policies active with Progressive at the end of April or May will receive a 20% premium credit. The company will notify its policyholders when the credit will appear, and it will be automatically credited toward the balance of their next bill. If you’ve paid your policy in full, then either a check will be issued, or the amount will be deposited into the payment account on file.  

Allstate and Esurance

Through the months of April and May, Allstate and their family company Esurance are offering customers a 15% refund based on their premiums for those months. The money will be directly deposited into whatever account their latest payment was made (or credited to their account) – so no action is required by customers to receive the money. The company is also offering payment relief plans upon request, extended coverage for personal vehicles in certain commercial capacities, and the ability to sign up for free identity theft coverage through 2020. 

Nationwide

For policies active as of March 31, 2020, Nationwide will be offering policyholders a one-time premium refund of $50. When you’ll see the money will vary by state regulatory approval. The company is also offering the ability to suspend some cancellations, defer payments for certain policies, and waive some late fees in certain circumstances due to COVID-19 related hardships. While no action is required for the premium refund, you’ll need to reach out to a representative for additional considerations.

USAA

Every member with USAA who has an auto policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums without needing to contact the company. Extended coverage, policy leniency, and special payment arrangements are also available upon request. 

Geico

 A 15% renewal discount is being offered by Geico for auto, motorcycle, and RV policies set to renew between April 8 and October 7, 2020, for 6-month policies and between April 8 and April 7, 2021, for 12-month policies. The credit is also being extended to new business policies written between April 8 and October 7, 2020.

No action is required on the customer’s end; the discount will be credited automatically upon renewal. Cancellations due to nonpayment have also been paused through at least April 30, 2020, for all states, while some states may get longer windows. You can see if your state has a longer grace period here.  

Liberty Mutual

Liberty Mutual customers with personal auto insurance policies will receive a 15% refund on two months of premiums, based on the premium amount as of April 7, 2020. The refund will be automatically deposited into the account used to make your last payment or by check. When the funds will arrive is subject to individual state regulations, but customers do not have to take any action to receive their money. 

Vargas and Vargas Insurance is here to help you. As local independent insurance agents, we represent many local insurance companies that are also offering to lessen the burden when it comes to your automobile insurance premiums. Contact us with your insurance questions or to get a quote. We’re available during business hours at 617-298-0655, or you can reach out through text and online. We take pride in helping you with all of your coverage needs and look forward to taking care of you today.

Jewelry and Gem Valuations: GIA or Bust!

As Massachusetts insurance professionals, the licensed agents at Vargas & Vargas Insurance are here to make sure your risks are covered. Part of that mission is to educate our customers about the importance of credible paperwork. Today, we’re talking specifically about worthless jewelry valuations and fake appraisals.

older woman giving her adult granddaughter heirloom jewelry

In January 2020, Jewelry Insurance Issues published this article, making all of us in the industry aware that AGA, the “Accredited Gemologists Association” logo has been ripped off and is being used on bogus jewelry certifications. The alarming thing is that AGA isn’t even a gemology lab! It’s a non-profit club whose mission is to provide networking between jewelers, gemologists, and material sources.

So which certificates can we trust? 

Diamond & Jewelry Certifications We Can Trust

The most respected diamond or gem appraisal will come from the Gemological Institute of America, or the GIA. Jewelers and investors around the globe trust GIA above any other source. Many investors and insurers will only accept GIA paperwork. There are a few other sources available for certifications, however, including the following:

  • The retailer or manufacturer may provide a gem certificate when you purchase the piece. These are to be taken with a grain of salt. Some insurers will write a personal articles floater (the type of insurance associated with a fine piece of jewelry) based on this certificate. Others will not. 
  • A professional appraisal from a certified gemologist may also appease an insurer.
  • The International Colored Gemstone Association (IGA) also offers gem certifications. Their reputation isn’t illustrious, however, so an insurer or collector might not accept them.

Personal article floaters (PAFs) for jewelry are written on a case-by-case basis. If you believe your ring is worth $25,000, the best thing you can do is send it off to GIA (through a related jeweler) for a genuine lab report. As of 2020, GIA lab inspections cost around $500 for general consumers, but a GIA certified jeweler can have them done at a third of that price.

The process takes three weeks. Afterward, you’ll have irrefutable evidence of your gem’s value.  

Jewelry Scams Happen

Gem and jewelry “fakes” and “cons” have been around for centuries. If you’ve been conned into buying a fake gem, know you’re not alone. Sometimes a gem can be innocently mislabeled, as in the case of the Black Prince’s Ruby, which is a spinel set in the imperial state crown of England. Yes, the highlight of the crown is an imposter! If your lab report comes back describing your gem as a simulant, lab-created, or of much lower quality than you thought, you may have some options. Speaking directly to the jeweler is your first course of action. A good jeweler will do their best to fix the situation. 

If you purchased your piece from an online retailer or auction house (eBay), you might have protections in place via PayPal or your credit card. The good news is that you won’t be paying to insure a fake!

We hope you’ve enjoyed our discussion of bogus gem reports. We sure enjoyed writing it! If you’d like to learn more about insurance for your most cherished heirlooms, email one of our agents today!