One Car Accident Can Leave You with a Hefty Remaining Balance

By: Edward L. Blais, JD, CIC

President, Blais Insurance

New car buyers lose thousands of dollars the moment they drive their vehicle off the lot. Financial experts say new cars can lose up to 30 percent of its value in the first year. This depreciation presents a financial vulnerability for a specific segment of consumers, and Blais Insurance would like to highlight a strategy to protect yourself from significant losses.

First, it is important to imagine that you are receiving the keys to a newly leased vehicle fresh off the production line. A week doesn’t even pass by before you are involved in a major car accident. You leave the incident unscathed but the damage to your car is extensive, and your insurance company deems it a complete loss.

At this point, the leasing company will receive a check in the amount of the vehicle’s actual cash value, unless additional coverage was added. A few weeks later, you receive a bill for the remaining amount on your lease contract. Ultimately, this amounts to you continuing to make payments on a car you no longer have.

In recent years, more people have been leasing their vehicles because it is more affordable on a month-to-month basis. Unfortunately, depreciation is the main drawback of a new vehicle, regardless of make or model, and it costs you more if your car is totaled or stolen.

Insurance companies have recognized this financial vulnerability years ago, which is why loan/lease gap coverage is available. Gap insurance covers the amount you could still end up owing in your lease or finance agreement.

Gap insurance does not have to be purchased before leaving a dealership, but the longer you wait, the higher the risk that you might have to pay thousands if something were to happen. Avoid the financial headache that could ensue, and call Blais Insurance at 401-725-0070 to learn more about gap coverage.

Owners of Rental Properties Need to Be Prepared in Today’s Litigious Society

Why you should consider creating an LLC for your rental property

By: Edward L. Blais, JD, CIC

President, Blais Insurance

As we move through life, we all try to accumulate wealth along the way. Possible sources may include investments, retirement funds, and perhaps equity in rental properties. Throughout this process, we need to protect our assets and perhaps even more importantly, contain liability exposures that could result in claims against our life time accumulations.

Rental properties present special concerns since claims for personal injury can result from even the most meticulously maintained properties.  Often times, it is what tenants do or don’t do, that result in a claim against the property owner by persons the tenants invited onto the premises.  If the property is owned in the individual name(s) of the property owner(s), then all of their assets – not just that rental property itself – may be in jeopardy in connection with a lawsuit against the property owner(s). 

Insurance doesn’t have to be the only line of defense against such claims, nor should it be.  Homeowners should consult with an attorney and explore the prospect of transferring their ownership of a rental property to a Limited Liability Company (LLC).

If you are looking to protect your assets through this strategy, after consulting with counsel, consider calling Blais Insurance at 401-725-0070 to make sure you have the proper insurance coverage needed.

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When Should You Delete Comp and Collision?

Relying Solely on Liability Coverage Isn’t Right for Everyone

By: Edward L. Blais, JD, CIC

President, Blais Insurance

Every motorist reaches the point when they are weighing the decision to remove comprehensive and collision coverage from their auto insurance policy. The decision, it turns out, often comes down to the unique financial situation of the policyholder. With people holding on to their vehicles for longer, Blais Insurance would like to share important information that can help you make an informed decision.

Comprehensive coverage and collision coverage are protections that cover the cost of repairs for policyholders’ vehicles for covered causes of loss.   While these coverages are considered optional, policyholders with liens on their vehicles are required to carry comp and collision coverage to protect the lending institutions’ financial interests.

Others without such liens often keep this coverage out of an abundance of caution to nonetheless protect their investment. To illustrate, imagine that you have finally paid off the note on your vehicle and its Kelly Blue Book value is listed at $15,000. If you were to cause an accident or hit a deer, these coverages could operate to pay to restore your vehicle.  In such instances, it might make sense to maintain the comp and collision coverage after the loan is paid off.

Alternatively, if policyholders feel confident they could easily afford to replace their aging vehicle in the event of an accident without the assistance of the insurance coverages, they might be better suited to delete the coverages and save the extra dollars before upgrading to another vehicle. Ultimately, it is up to each policyholder to decide what their tolerance of risk is.

While there is no one rule with regards to when to delete comp and collision, policyholders that are considering a change should contact Blais Insurance at 401-725-0070. Speak with our insurance agents to tailor an insurance policy that makes sense for you and is affordable for your family.

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