Tag: allied brokers insurance agency

What’s the difference between classic car insurance and conventional auto insurance?

Posted on by admin

Many people own old cars, but not every old car qualifies as a conventional classic car. This distinction can sometimes be confusing. At Allied Brokers Insurance Agency Inc., we care about our future and existing Palo Alto, CA, clientele. We’re here to simplify the process of determining the best coverage for your car, whether it’s a conventional classic car or simply an older vehicle. Our agents are ready to take the guesswork out of this question.

What Is a Classic Car?

Every insurance agency has its own definition of what constitutes a classic car, which is an important fact to keep in mind. Generally, classic cars are identified by their age, typically being twenty or more years old. Additionally, classic cars are often iconic, limited edition, or distinguished in some other way. It’s also worth noting that classic cars are usually not driven daily or used as a primary mode of transportation.

What’s the Difference Between Classic Car Insurance and Conventional Auto Insurance?

There are significant differences between classic car insurance and conventional auto insurance. Classic car insurance is specifically designed for vehicles that are not driven daily. One key distinction is how the car’s value is determined. With classic car insurance, the value is agreed upon by both the car owner and the insurance agency. In contrast, conventional auto insurance bases the car’s value on its appraised market value, and coverage is designed for cars that are driven daily or primarily. In conventional insurance, the car owner has no input in determining the car’s value.

At Allied Brokers Insurance Agency Inc., we want our Palo Alto, CA, clientele, both existing and new, to understand the difference between classic car insurance and conventional auto insurance. Please call us today, we’re standing by to assist you.

How umbrella insurance protects from lawsuits?

Posted on by admin

The risk of being sued is often higher than many people expect. Lawsuits can bring significant financial burdens, including the cost of hiring an attorney and paying settlements. Umbrella insurance is designed to provide additional protection in these situations, helping to safeguard your finances and assets.

At Allied Brokers Insurance Agency Inc., we specialize in helping clients in Palo Alto, CA secure robust umbrella insurance policies that offer comprehensive protection against lawsuits and other risks.

How Umbrella Insurance Can Protect You in a Lawsuit

If someone holds you responsible for their injuries or losses, your primary insurance policy may provide financial protection for their claim. However, there are instances where your insurance company may refuse to cover the costs, often due to disputes over the claim’s validity. In such cases, the injured party may pursue a lawsuit.

Umbrella insurance can protect you in several ways during a lawsuit. First, it covers the cost of legal defense, including attorney fees, ensuring you have representation throughout the case. Second, it provides coverage for settlements or judgments that exceed the limits of your primary insurance policy. This additional layer of protection is crucial in cases where significant financial losses could jeopardize your home and other assets.

Coverage You Can Count On Matters

At Allied Brokers Insurance Agency Inc., we work with clients to safeguard their future by providing tailored umbrella insurance policies. If you’re facing risks, let our team help you select coverage with sufficient policy limits to protect against unexpected accidents or lawsuits. Contact us today for a quote and personalized guidance on umbrella insurance in Palo Alto, CA.

Navigating Your Insurance: Replacement Cost vs. Actual Cash Value Explained

Posted on by admin

California led the nation in home insurance claims filed between 2015 and 2019. After the recent wildfires, Palo Alto, CA residents should review their home insurance policy. Understanding replacement cost coverage and actual cash value is crucial right now.

Replacement Cost Coverage

This compensation focuses on replacing damaged belongings with new yet similar items. The replacement is an exact or equivalent brand, design, size, color, shape, and feature. Replacement cost coverage (RCV) is the default for home structure damage and optional for belongings. You pay higher insurance premiums to get it for your belongings, but you pay nothing out of pocket for your insurance claim.

If you choose this route, one of our Allied Brokers Insurance Agency Inc. representatives will send you a check for the current cost of a similar item. You can use that to replace your damaged items. The price could be higher or lower than what you paid initially.

Guaranteed and extended are the two types of replacement cost coverage. Guaranteed coverage pays the full amount to replace damaged homes and belongings. Extended coverage is an add-on policy that covers up to 25% more than the policy limit. It will not cover the entire total, but you pay much less out of pocket.

Actual Cash Value

This compensation focuses on the depreciated value of damaged belongings. You get a check for the item’s current value, not the original cost. Actual cash value (ACV) is the default for belongings and may be an option for home structure damage. Premiums are lower, but you pay more out-of-pocket if you file an insurance claim.

If you choose this route, an appraiser will gather the initial cost, date of purchase, and condition of your damaged belongings. Next, we factor in depreciation and determine the value of your items today. An Allied Brokers Insurance Agency Inc. representative will then send you a check for the depreciated amount. Expect that price to be lower than the initial payment due to wear and tear or product discontinuation.

You must decide whether saving now or saving later is more important. One of our insurance agents will discuss that and more with you. For more information on home insurance compensation, call us or visit our Palo Alto, CA location.