FACT or FICTION: The Brighter the Color, the Higher the Premium.

Yahoo! Autos writer Nick Kurczewski just had an article that brings up a constant question in the insurance industry: Does the color of your car influence your auto insurance rates?

The Answer: FICTION!

“Henry Ford certainly made things easy when he stipulated that customers for his rugged Model T could have any color they wanted, so long as it was black. Today’s car buyer faces a vastly more complicated decision-making process when choosing the paintjob for his or her new vehicle. [But] can you be charged higher insurance rates for a car with a bright paintjob?"

"It sounds silly, but the idea of paying higher insurance rates for a brightly colored car has been around for years. Let’s finally put it to rest. It’s not true and, according to insurance industry experts, it never has been."

“I’ve never heard of a company that does” charge more for a certain color, says Jeanne Salvatore, Senior Vice President Public Affairs at the Insurance Information Institute. “They’re looking at theft records and safety records…make and model, and expense to repair.”

You can read the entire article here: http://autos.yahoo.com/articles/autos_content_landing_pages/1508/the-truth-about-car-colors/

The Importance of Renters Insurance

This is always an interesting discussion. Most consumers view this as a way to protect their stuff if there is a fire or rowdy friends over. While this is true, the most important reason to carry renters insurance is PERSONAL LIABILITY.

Personal Liability protects you from lawsuits that may arise from anywhere in the world. For example, we had a client, "John Doe", who was golfing in Europe. Standing on the 4th tee box of an absolutely beautiful course, he addresses the ball and takes his swing... It's a terrible shot. The ball flies 2 fairways over and nails another golfer in the head. Knocks him out.

Astonished at his terrible shot and feeling sorry for the golfer crumpled up on the ground, John runs over to see if he is alright. Woozy, the golfer gets up and seeming to be okay, they part ways and continue their rounds. Shortly after John’s return home he received a notice that he is being sued for pain and suffering from the incident.

Luckily, John had a renters policy and an umbrella which provided enough protection to fight and win the lawsuit. Had he not had coverage, John would have been paying his defense out of pocket.

Moral of the story: Take golf lessons… I mean, carry renters insurance.

Just some food for thought…

Introduction

A blog about insurance. Sounds enthralling.

That's what we though too.

But then it hit us. Why can't insurance topics and blog posts be worth reading? Why can't we take a lighthearted approach to serious subjects? Why can't those outside of the insurance world have a desire to hear situations that we have personally been in and that one day they may find themselves in too? Why not?

It is that thought that led Insurance Systems to create this forum. This blog is designed to share examples and situations that we may put ourselves in daily, but have no real sense of consequences.

So, with that said, we hope you enjoy seeing insurance through the eyes of a risk manager...