HAL KRESSER AGENCY 18 MIKE KEITH INSURANCE

Big personal insurance companies spend billions each year on TV ads convincing people that price is all that matters when shopping for insurance. In the commercial world, that is horrible advice. Instead of shopping for the cheapest insurance, you should be shopping for the right insurance agent. Just like not all insurance is the same, not all agents are the same. Towing is a niche market for us because

Hal Kresser, the agency principal, is very interested in the industry. He worked for a towing service when he was young and even today he is Wreckmaster Level II certified and can operate your equipment. Can your current agent do that? Hal is also involved in the industry. He is an active, participating member of the Towing and Recovery Association of Ohio. In fact, he is so well respected that he was nominated and elected to be president of the local region and is currently serving his fifth term. Before he was an insurance agent he spent 20 years as a cop. He is certified in accident reconstruction and knows the laws and how to deal with police officers. He’s good to have as an advocate in some of the collision claims that happen when there are disputes as to fault and he can help you decide when to fight traffic tickets and violations and when not. For example, we had one two years ago where a person on a bicycle rode into the side of a rollback that was making a right turn. The police officer listed the driver at fault for violating a crosswalk. After talking to the driver, Hal learned that the bike hit the truck by the back axel. That meant the truck was almost fully through the turn before being struck. That makes it the bicyclist’s fault. He contacted the traffic supervisor and discussed how the report was improperly written and explained why it was not the driver’s fault. The supervisor agreed and got the officer

to re-write the report correctly. This saved the customer from having a chargeable accident on his record and saved the insurance company from paying a personal injury claim. Claim adjustors are trained to take a police report as gospel. Unfortunately, not all crash reports are written correctly. Hal has the experience to know and can help when it happens to keep our clients from being unjustly charged with accidents.

When you choose the right agent, he will be able to place you with an insurance carrier that best suits your needs. As an independent agent we have the ability to add new companies that enter the market. We have seen companies come into the towing market for a few years and then get back out. When that happens, you can lose your insurance through no fault of your own. A good agent is on top of that and can make transitioning to another carrier seamless. You need to build a relationship with your agent. He can help you decide when to file a claim or when to pay out of pocket. He can advise you on ways to keep your rates down as well as help you implement plans to avoid liability claims. We recommend things like putting cameras in the trucks to document crashes. They can be invaluable in situations where fault is in dispute.

Choose the right agent and build the relationship on trust and integrity. The agent should be viewed as a stakeholder in your business. In a recent Google review of our agency, Tiffany Corey of John Wayne Towing wrote “even when we were told there was no hope by everyone else, they didn’t give up and kept pushing forward. I work for John Wayne Towing and we are a small company so something as major as insurance can really make or break a company. So, if you are needing insurance, I would highly recommend giving them a chance.” You need a good, well managed insurance portfolio to help your business be successful and the agent needs your business to be successful to make his business successful. If you are contemplating any big expansion plans such as adding a new building or moving to a larger facility in another part of town, or adding more trucks you should involve your agent during the planning stage to find out in advance what the impact on the insurance will be. Many times, I get the call to add something like a building, a second location, or a 50 ton rotator to the policy after the fact. Then the insured is upset when he sees how much it costs. Now it’s too late.

To learn more call Hal Kresser today! 877-412-3434, email him hal@kresseragency.com or visit www.kresseragency.com.

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$TATED AMOUNT vs CO$T InsuranceNEW

Is your Comprehensive and Collision coverage for your power units and/or trailers written on a Stated Amount or Cost New (ACV) basis? Not knowing the difference could cost you thousands at the time of a loss. Imagine, your prized heavy-duty wrecker was just the subject of an unforeseen accident and your insurance company has deemed it a total loss after identifying the extent of the damages. How and on what basis your full coverage (comprehensive and collision) insurance was written could be the difference between being in an equity or inequity position which could ultimately cost you thousands. According to their contract, the insurance carrier owes the fair market value toward the replacement of the insured power unit regardless of how much is owed to the respective lienholder. If your policy is written on a Stated Amount 18 | Tow Professional | Q3 21 | www.towprofessional.com

basis, that amount is the MOST the insurance company Originally established in 1950, Mike will pay, minus your deductible toward the replacement Keith Insurance has four Missouri locaof your power unit regardless of its fair market value. tions offering a broad range of insurance Conversely, if your policy is written on a Cost New basis, products and services. Throughout these the insurance company will pay the fair market value years, we have taken pride in helping oureven if it is more than what is listed as the COST NEW customers understand and select the amount on the actual policy. right balance between affordability and quality of coverage. MKI focuses on keeping the interest of our client’s first and all employees strive to exceed customer expectations on every level.

A niche agency, MKI has been suc erage in the industry. With a growing base of “A” rated carriers, we are able to offer coverage in most states with no radius restrictions. Our team of Towing & Recovery spe cialists includes Curtis Cooper, CPCU, Amy Berry, CIC, Amy Sockwell, CISR, Jamie Harrelson, CISR, and our claims

Example:

Your insured power unit is listed on the policy for $100,000. At the time of the loss, the market value for your power unit is $120,000. When written on a Stated Amount basis, the insurance company will pay $100,000 minus your deductible.

Given the same example, if the policy is written on a Cost New basis, the insurance carrier would pay $120,000 minus your respective deductible.

Of note, the insurance policy will not pay for the Federal Excise Tax of 12%.

In conclusion, when your insurance policy is written on a Stated Amount basis, you should review the value listed on the policy with your insurance agent to make sure it corresponds with the fair market value. Since power units depreciate, it is vital to adjust these values downward annually with your representation on an annual basis. If your agent sits down with you at renewal, that is the perfect time to work out these fine details. Also, and of note, when a power unit is added by endorsement during the policy term, be certain to let your agent know the value of the power unit or trailer given the current market value in your respective operating territory.

Premium comparisons between polices written on Stated Amount vs Cost New are roughly the same given the overall underwriting criteria on an account-to-account basis. Meaning some policies written on a Stated Amount are more premium dollars than policies written on a Cost New basis…and vice versa.

For additional information on this or any other insurance topic you are dealing with, please email or give us a call! For more information, visit www.mkeithins.com.