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Insurance Myths Busted by Eric Evans of Chrysalis Insurance Agency

eric-evans-5.15.14-sq714-464-8080
3001 Red Hill Ave., Ste 2-226
Costa Mesa, CA, 92626
www.ciaforinsurance.com
eric@ciaforins.com

Eric Evans: Okay. So, let’s talk about red cars. Rush had a song popular about 30-something years ago called the Red Barchetta, which is actually a cool story if you look it up on YouTube, but about red cars, true or false, does it cost more to insure a red car?

Crowd: No.

Eric Evans: No, of course not. The color of the car has nothing to do with it. You could have a lime green car and you’re totally fine. There’s so many factors that go into it. But, no it doesn’t cost more to insure a red car.

Female Voice: You may get more tickets.

Eric Evans: Maybe more tickets.

Female Voice: So it does cost more.

Eric Evans: If it’s like my son’s car, the 1997 Volvo wagon, it doesn’t matter what color it is it’s not going very fast.

[Laughter]

Eric Evans: Good. We like that. Alright, flood damage is not covered under my property insurance.

Crowd: True.

Eric Evans: True, very true. Homeowner’s policies in the state of California will exclude earthquake and flood. Period. No matter how comprehensive they are, it will not have flood or earthquake coverage. Those are extra, and you can always buy flood insurance even if you live on top of a hill. Whether you get coverage or not is another story. Some of you around here, you live in a flood zone, yet across the street your neighbor doesn’t live in a flood zone. It’s sort of wacky. It’s the Fountain Valley zone, part of Huntingon. Three, items stolen from my car are not covered by my car insurance.

Male Voice: It depends.

Female Voice: False.

Eric Evans: False? False? Who says true?

Male Voice: It depends.

Eric Evans: Ah, Ron and Shawn. Those are the smart guys who went to smart boys’ school. So, items . . .

Male Voice: . . . [SS] . . .

Female Voice: . . . depends on what it [Inaudible 00:01:38] is. [Laughs]

Eric Evans: Items stolen from your car, so let’s say you have a bag of laundry over here and a bad guy thinks that it’s full of money. Alright? They break your window, steal your laundry. While it’s worthless to them, to you, it’s like, oh my gosh, it’s my $1200 suit or my whatever dollar suit and six of my $50 shirts and my this and my that and you’re like, ‘Oh my gosh’. It’s like $3000 in laundry in this bag if I go replace it. Well, that’s not covered by car insurance, it’s covered by your home insurance.

Crowd: Oooh.

Eric Evans: Okay? Falls on your home owner’s insurance. So if you’re moving stuff for a friend and you’ve got boxes in your truck or whatever and somebody steals it all, it all falls under homeowner’s insurance. Okay? So that’s where that goes. So here’s one, I get this a lot when people call for just a car quote and people who rent property. I rent and I don’t have a lot of stuff. It is not worth it for me to get tenant’s insurance.

Female Voice: False.

Eric Evans: False. Yes, very false. There’s so many awesome coverages in a renter’s policy and if you don’t care about the coverage for your stuff, you get a policy. It’s like ten to twelve bucks a month, you get a discount on your auto insurance and you have personally liability coverage, if you’re active, in your twenties, you have a dog and it bites somebody. Coverage, let’s say the place burns down or you’ve got smoke damage. Now you’ve got money to go live somewhere for a while while figuring it out, instead of forking over $190 a month or a day at a local hotel or $49 a month if you really want to pay that a day, if you want to pay that little, at the local motel.

So anyway, there’s options. It’s worth it. So if you’re renting or know people who rent and say, ‘I don’t need renter’s insurance.’ Tell them hey, it’s worth it. Just get it. And if you’re a property owner of a landlord sort, I always tell people, I had a meeting with two people yesterday. They’ve been owning property. They have six properties they’ve owned for like 30 years, the mom did. No tenant insurance. Just asking for trouble. You know people who own lots of properties? They need to have their tenants get an insurance policy for themselves and it ultimately will protect the landlord.

Number five, my insurance will cover another driver who gets into an accident with my car?

Female voice: Maybe.

Female Voice: Depends.

Eric Evans: Don’t commit. No, there a little maybe there, thank you Sally. It’s actually true. So how it works, let say, I had a situation just last week. My dad, who has an international license coming in from Korea is driving my car. He’s gonna meet me here for the next couple months. Is he covered? I want him added to the policy. A, he’s not licensed in this state, let alone the country, can’t add them. He’s covered. He’s covered. It’s called permissive use. Just like if you say, ‘Hey neighbor, you can borrow my convertible. I’m gonna take your suburban and my family from Iowa to Disneyland.’ And he wrecks your car, you wreck his car, what happens is, their policy is gonna be primary. So the physical damage is primary, the liability is secondary. So, if you have 100, 300, on your own car and they have 1530 liability limits on their car, you’re gonna be okay. The physical damage always falls on the person’s policy whose car it is, okay? So if they have liability only and you wrap it around a pole, you’re gonna have to go through your own policy if they’ll even cover it. But the net is, yes, you have coverage if you have a friend or a family member coming in from out of town, has no car insurance. Maybe they live in New York City and don’t have a car nor car insurance, they will have coverage.

Number six, I should never admit responsibility when in an accident.

Crowd: True.

Eric Evans: True, yeah.

Male Voice: Oh, come on.

[Laughter]

Eric Evans: And here’s the interesting part about that, there’s like my fault. The interesting part about that, a lot of times I get calls from clients that say, ‘Hey, Eric, I just got into a minor accident.’ And I said well, ‘What happened?’ ‘Well, I was backing out of the parking lot . . .’ And I’m just hearing the tape- and I’m queuing the tape of what I’m about to say, ‘And what happened, you hit in the middle?’ ‘Oh yeah, we hit each other and they said it was their fault’. Mm-hmm. It’s gonna be 50/50 95% of the time. Unless there’s a video camera that you were there and they smash into the side of you. If it’s all possible, if you’re having the presence of mind, roll your little video or audio recorder on your phone. I sure wouldn’t because I’d be all adrenaline. If you can, take a moment, say I need to roll the video. Say, ‘Hey, what’s going on?’ ‘Oh, it’s all my fault, it’s my fault.’ ‘Yeah, yeah, you kind of backed into me while I was . . .’

Male Voice: . . . [SS] . . . kind of illegal in the state of California.

Eric Evans: Yeah, yeah, I guess it is a little illegal.

Male Voice: You could be prosecuted.

Eric Evans: Well. There you go. I don’t know. Okay. Delete that part of the video.

[Laughter]

Male Voice: Wait a minute, what did he say? What did Mark say?

Male Voice: It’s illegal in the state of California to record people without their consent. You can be prosecuted.

Eric Evans: So the footnote. Let them know you’re recording them. Let them know that you’re recording them. If it’s presence of mind. But the net is don’t’ admit responsibility when you have an accident. If you can, take tons of photos at the very least when you are there. Excuse me. Number seven, if the police do not give me a traffic violation after an accident, my insurance premiums will not go up.

Crowd: False.

Eric Evans: This is false. Very false. Yeah, you don’t have to get a ticket to be considered at fault for an accident. Because sometimes it will show up on, it won’t show up in the DMV record, you know, in the motor vehicle report you get from the DMV. It will show up on what’s called Clue and Clue is an acronym. I can never remember what the heck it stands for, but it’s a big C-L-U-E. It’s a home database and it’s an auto database. It’s all the claims you’ve ever had. Glass claims, towing claims, they all show up on this thing called Clue. So, if you don’t get cited by the DMV and the accidents is not on record, it will show up in Clue if you file an accident with your insurance company.

Settling a fending bender out of pocket won’t affect my insurance premiums.

Male Voice: False.

Male Voice: What?

Female Voice: True.

Eric Evans: How many want to say false? This is a good one. How many want to say true? Darn it.

Male Voice: There’s a claim file . . .

Eric Evans: It’s false. And it’s a maybe. Sally, this is the maybe. Alright. Exactly. So here’s the scoop. So I had a situation with a client once and there was a minor little scratch and she and this other guy, basically she parked, got a little wide as she was parking and it was a minor scratch. She said, ‘Oh my gosh, I’m so sorry.’ ‘Oh, it’s okay. We can just settle this out of, no insurance, don’t worry about it.’ Great. And I forget what she paid him, it was completely out of the loop, but she paid him for whatever the damage was, the perceived damage. And then what happened was she called me and she said, ‘Eric, I just had my license suspended.’ I’m thinking, ‘Okay, what’d you do?’ She said, ‘I don’t know what I did.’ She was just not real knowledgeable of the things, insurance, DMV. I said, ‘Fax that to me.’ Apparently, the person she hit filed an SR1 which is an accident report with the DMV. And so, you file the SR1. It takes about 12 months to do this. So the guy takes could his money, he takes his thousand bucks and then wait, file the SR1, the DMV follows up with the other driver and says ‘Hey, other driver. What do you know?’ Well she hadn’t changed her address with the DMV. She never got the letter until way, way down the line. So the SR1 basically nailed her and she didn’t respond and they suspended her driver’s license for not reporting an accident. So, anyway.

So tread carefully if you’re gonna settle things out of pocket with somebody. You’re not chargeable for anything under $1,000 in the state of California for liability stuff. So just, FYI. So, anyhow. So how much time do I have?

Male Voice: That’s it.

Eric Evans: Oh, that’s it. Is there like ten minutes or zero eight?

Male Voice: As in done. Zero ten.

Eric Evans: I have only one brief, quick question please.

Male Voice: Rental cars.

Eric Evans: What’s that?

Male Voice: Do you charge for the rental car or not?

Male Voice. Great question.

Eric Evans: Well, you have, depends on what state. Okay, what state, but basically. Well it does, but your auto policy will cover non-owned autos. Okay? But they can’t be a U-haul truck. Non-owned autos, your policy will cover. Okay, not all policies, but yours, like Michael’s.

Male Voice: The ones you buy from Eric will.

Eric Evans: Yeah, I’ll tell you whether you’re good or not. But you can say no because you’re policy is gonna extend out, but there’s an asterisk there, I can get into if you’re gonna go into Chicago and rent a car. Alright? Deal. Well there’s always an asterisk. Always. Thank you.

[Applause]

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