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Understanding Roadside Assistance and Best Roadside Assistance Car Insurance USA 2024 

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Understanding Roadside Assistance and Best Roadside Assistance Car Insurance USA 2024 

Roadside assistance is a support service designed to help drivers when they experience unexpected issues with their vehicles. It ensures you are not stranded on the side of the road or left to deal with car trouble alone. By including roadside assistance in your insurance policy, you can have peace of mind knowing that help is just a phone call away if something goes wrong. 

You can mostly get the following services under Roadside Assistance: 

Best Roadside Assistance Insurance Providers in 2024

Some of the prominent and well-regarded companies of 2024 that provide roadside assistance are here below: 

Good Sam 

Good Sam Roadside Assistance is a popular service designed primarily for RV (Recreational Vehicle) owners, though it also covers regular vehicles like cars, trucks, and motorcycles. 

Pros 

  • Provides winching service 
  • Covers 100% of towing costs 
  • No official limit on how many services calls you can make in a year 
  • Covers spouse or domestic partner and children under 25 automatically without any additional costs 

Cons 

  • Costs slightly more than its competitors  

Understanding Roadside Assistance and Best Roadside Assistance Car Insurance USA 2024 

Better World Club 

Better World Club is a unique auto club that provides roadside assistance services, similar to companies like AAA, but with a focus on environmental sustainability. They are known as the only eco-friendly auto club in the U.S. and offer services for drivers, cyclists, and even pedestrians. What sets Better World Club apart is their commitment to promoting environmentally responsible practices and supporting green initiatives. 

Pros  

  • Offers unique bicycle assistance plans to promote biking as an environmentally friendly mode of transportation 
  • Provides discounts on hotels, car rentals and hybrid vehicle insurance  
  • Advocates for sustainable transportation policies and donates 1% of its revenues to environmental causes  
  • Provides special discounts for eco-friendly vehicles 

Cons 

  • You can make only 4 service calls per year 
  • To use premium plan coverages, there is a 30-day waiting period  

 

GEICO 

When looking for the best roadside assistance companies in 2024, GEICO remains a popular choice due to its combination of affordability, reliability, and nationwide coverage. While GEICO is widely known for its car insurance, its roadside assistance services are equally competitive, offering a range of essential features to help drivers in emergency situations. 

Pros 

  • It’s easy to request roadside assistance through their mobile app 
  • Allows you to cover multiple vehicles under one policy 
  • Roadside assistance is available 24& across the US 
  • Even non-policyholders can purchase GEICO roadside assistance through their app for short term use  

Cons 

  • Does not include minor mechanical repairs 

 

Nationwide 

Nationwide’s roadside assistance program is ideal for those who want customizable coverage options and excellent value for their money. With the choice between Basic and Plus plans, drivers can select the level of service that best fits their needs. 

 

Pros 

  • Offers competitive pricing 
  • Has a user-friendly app that can be used to request roadside assistance 
  • Available 24/7 across the country 
  • Their plus plan includes trip interruption coverage 

Cons 

  • Does not include mechanical repairs 

Cost of Roadside Assistance

Here are the costs associated with Roadside Assistance provided by the best companies.  (Source:Forbes)

Company Annual Price
Good Sam $50
Better World Club $63
GEICO $14
Nationwide $22
AAA $59
Allstate $79
Erie $5

Roadside Assistance and Their Impact on Car Insurance Premium

Adding roadside assistance to a car insurance policy typically has a minimal effect on premiums, but several factors can influence the actual cost. Here’s how it works: 

Low Additional Cost 

Roadside assistance is usually considered an optional add-on, and most insurance companies offer it at a relatively low cost. Depending on the provider and coverage, the cost can range from $10 to $30 per year. This is because roadside assistance is not a high-risk or high-cost service compared to collision or comprehensive coverage. 

Factors Affecting Premium Increase 

  • Provider: Different insurance companies price their roadside assistance packages differently, so the cost increase varies. 
  • Coverage Level: Some roadside assistance plans offer basic services like towing up to a certain distance, while others provide more comprehensive coverage (e.g., more frequent service calls, longer towing distances). More extensive coverage may raise your premium slightly more. 
  • Vehicle Type: The type and age of your car might impact the cost. For example, luxury vehicles may incur a higher premium increase due to potentially higher towing costs. 

Bundling Discounts 

Some insurance companies offer discounts when you bundle multiple services together, such as auto insurance, roadside assistance, and rental coverage. In some cases, adding roadside assistance might actually reduce your overall premium if you qualify for bundling discounts. 

Impact on Premium in the Long Run 

Regular use of roadside assistance services may not directly affect your premium, but frequent claims could indirectly impact future insurance rates. If you rely on roadside assistance multiple times a year, your insurance company may view you as a higher-risk customer, which could lead to an increase in your overall premium. 

Standalone vs. Insurance-Provided Roadside Assistance 

It’s important to compare the cost of adding roadside assistance to your car insurance policy versus purchasing it from a third-party provider like AAA. Sometimes, standalone plans may offer more extensive coverage without affecting your car insurance premium at all. 

In summary, adding roadside assistance typically leads to a small increase in your premium, but it’s an affordable way to ensure you have help when you need it. The cost-effectiveness of adding it to your policy depends on your driving habits, vehicle type, and how often you expect to use the service. 

How Much Car Insurance Do I Need?

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How Much Car Insurance Do I Need?

How Much Car Insurance Do I Need?

Determining how much insurance you need to be fully protected and fit into your budget is a tricky task. Many factors come into play with this question. Things like state minimums, lender requirements and the value of your assets are all looked at when determining the answer to this question.

How much car insurance is enough?

The answer to this question is going to vary wildly by a lot of different factors and opinions, one of the major factors being the state minimum auto insurance coverage requirements. Most states require drivers to carry auto insurance, but the coverage minimums that the states require do vary by the state, however.

On average, the most common state coverage minimums are $25,000/$50,000/$25,000. So that means $25,000 bodily injury per person, $50,000 in total per accident and $25,000 property damage per accident. These insurance coverages relate to your liability in an accident and do not cover damage to you or your car.

Some coverages, like personal injury protection and underinsured and uninsured motorist coverages are highly encouraged, but most states do not have these as requirements. Financed and leased vehicles are often required to carry comprehensive and collision coverages by the lenders.

While these are often enough to get you by legally, the state minimums are just that, minimums. They may not be what you truly need.

So then, how much do I need?

Like the above question, this is not a very simple question to answer because it will vary for everyone (and quite frankly, we always encourage you to speak to your agent because they are your local insurance experts. They can help explain exactly what YOU need). However, it is something you can figure out. To better understand this, we’ll break it down by sections of your car insurance policy.

  • Liability Coverage. This coverage protects you from any injuries or damage you may be legally liable for as the result of an accident. To ensure that you have enough, it is recommended that you carry enough to cover any valuable assets you have. Essentially, you want these limits to be higher than your net worth.

    This is calculated by adding up the value of all your assets like your home and vehicle, plus any savings and investments then subtract any debts and you have your net worth.

    So, for example, if your net worth is around $95,000, then a liability of $100,000 would be enough to protect your assets on paper. However, we do encourage considering inflation and other expenses that could change over time, so as a safety net raising that number will offer better future security.

    Liability coverage is broken into two main categories:

    • Bodily Injury. This coverage falls under the liability section of a policy and covers medical bills and other damages that you may be liable for in the event of an accident.
    • Property Damage. Like bodily injury, this one is best measured against your net worth and what you stand to lose. Some states have minimum and maximums for this one, so what you choose is ultimately your decision.
  • Personal Injury Protection. This coverage (exact name can change by state) is also a variable one as many states do not require it and if you have health insurance, it will step in. A good rule of thumb for determining your need is to look at how high of a deductible you have on your health insurance and have enough to cover that. However, you may also wish to raise this limit as it can step in for lost wages, funeral costs or childcare.
  • Uninsured or Underinsured Coverage.This coverage steps in if you are in an accident with someone that either does not have enough insurance or is not insured at all. Generally speaking, it is recommended that this coverage matches your liability limits.
  • Comprehensive and Collision Coverage. These are designed to protect your vehicle in the event of a collision, contact with an animal, storm damage, theft, etc. These limits are generally set on a per vehicle basis and match market value, so they are not adjustable in most cases. However, you can adjust their cost by altering your deductible to higher or lower.

Extra peace of mind to consider.

Now, you meet all the requirements of both the state you live in and the lender you may be working with, but what about fitting your financial situation? In the event of a total loss, do you have the cash flow to replace your vehicle with one that suits your needs?

Bringing that peace of mind is where ERIE comes in. We offer a wide range of endorsements and add-on coverages that can help ensure you have all the coverage you want as well as need. Some additional add-ons you may want to consider are:

  • Rental Car Coverage.1 This coverage, technically named Transportation Expenses, is designed to ensure you receive a rental car to keep you on the road while your car is being repaired. It is completely optional, however many find this coverage to be a bit of a life saver when suddenly facing not having a vehicle for an extended period of time.
  • Roadside Service.2 From lockouts, flat tires and dead batteries all the way to running out of gas, even the most perfectly maintained cars may have an unexpected breakdown that leaves you stranded on the roadside. This helps cover the expense of retrieving you and your vehicle in these situations.
  • Auto Security.3 This auto endorsement ensures you have adequate coverage to replace your new ride should it end up totaled. With this endorsement, if your new car (less than two years old) is totaled, it will be replaced with the newest model year. If your vehicle is older than two years, it will be replaced with a model up to two years newer than your current model. This endorsement also has coverage for if you lease your vehicle and it gets totaled, coverage is provided for the difference between the actual cash value of the auto and the amount due under the terms of your lease or loan.
  • Personal Umbrella Insurance.4Also known as personal catastrophe liability insurance, this is a separate insurance policy that gives you and your family an extra layer of protection above the limits in your auto, homeowners or even boat policy.

Determining how much you need to bring you peace of mind can be a complicated puzzle to piece together and honestly, opinions are going to vary wildly on this question. Luckily, you don’t have to answer it alone. Reach out to your local ERIE agent and let us help you put the pieces together to ensure you get all the protection you need for a price you can afford!

How to leave a legacy

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How to leave a legacy

You don’t need to be a millionaire to leave a meaningful legacy to your loved ones. Here, how to begin thinking of your legacy, and how to begin building it now, in both monetary and value-based ways

by Anna Davies

October 31, 2023  |   Wellness

How to leave a legacy

My 3-year-old daughter has just started to understand the concept of memory, and as a result, nearly every third sentence begins with, “Remember?” as she recites a detail about something she and I shared. As she asks if I remember the dark rollercoaster ride we took in December, the ducks that stole our potato chips in April, and the birthday party I threw for her just last week, I can’t help but wonder, “How will she remember me?”

In this article:

Why think about a legacy now?

My question sounds morbid, but as a mom who lost her own mother, I’m all too aware that life isn’t permanent. Because of my history, I’ve been proactive about my finances. I have life insurance and a will, and I make sure that no matter what the future may bring, my daughter will be provided for.

While finances are an important piece of the legacy puzzle, intangibles are just as important — the memories, experiences, and values. A legacy should include financial and emotional components so that your loved ones can take comfort in both the assets you leave behind and the values you pass down.

Here is a primer on how you can leave a legacy for your loved ones.

Take control of your finances (if you haven’t already)

We all know kids are expensive. Whether you’re expecting your first child or your youngest, managing the budget for a growing family can be tough. According to a recent survey, 53% of millennial parents have less than $5,000 in savings.

It’s tough to save, but don’t stick your head in the sand when it comes to finances. Know what you have, including retirement accounts and investments, and what you owe, including student loans or other debt. Knowledge can help you choose a savings strategy as you figure out what’s going well and what areas may need more attention.

Create a worst-case-scenario plan

If you or your partner were to die unexpectedly, how will you provide for your children?

‘What if’ scenarios may not be pleasant to ponder, but you’ve got to if you want to create a realistic contingency plan to protect and provide for your family.

Life insurance is part of that contingency plan.

The lump sum proceeds from a life insurance policy‘s death benefit can help your loved ones pay for day-to-day expenses, childcare, future education costs and more. The peace of mind you’ll gain from having a policy may be more affordable than you think, especially as you hit your thirties and may be thinking about starting a family or leaving a legacy for future generations.

For example, a 20-year, $500,000 Haven Term policy, issued by MassMutual or its subsidiary C.M. Life, for a healthy 30-year-old woman costs about $15 per month. That’s less than your online TV streaming service or two acai bowls for lunch. A 36-year-old man in excellent health can buy a 20-year, $750,000 term life insurance policy for as little as $30 per month. Your rates will depend on a range of factors including your age and your overall health.

If you’re curious to know how much (or little) your premiums might be, you can get a free life insurance quote online.

Plan for your own future

Of course, you want to give your children everything. One of the smartest ways to provide a long-term financial legacy for them after you’re gone is to put a robust retirement savings strategy in place.

Helping with your children’s education is an admirable goal, but there are no loans for retirement. If you don’t have a financial plan for your future in place, your children may have to provide for you one day. One of the greatest gifts you can give your children is freedom from a future financial burden.

Look through your employer’s IRA or 401(k) offerings, if applicable. Consider contributing at least enough to get the full match if one is offered.

You can also set up your own IRA, either traditional (tax-deferred) or Roth (taxed now).

A healthy retirement portfolio provides two benefits: (1) your ability to draw upon the funds in your portfolio for your financial needs in retirement, and (2) if your children are the beneficiaries, the funds in your portfolio will transfer to them if you pass away before using them. Working with a financial planner can help to find the best path for you.

Create a will

Everyone needs a will, but especially parents. Not only can a will designate the guardian you want to take care of your children, but your will also opens up the door to a valuable conversation with your loved ones. When you put your cards on the table, you’ll eliminate confusion and clarify what things have value to you.

The monetary values of the items in your will are irrelevant. When you leave a vinyl record collection, prized guitar, or collection of journals to a child you make clear how much you honor that person and trust him or her with the things you hold most dear.

Build a legacy with charitable gifts

While drafting your will, you may wish to consider charitable causes to whom you may want to bequeath assets. Although you may not have the means for donations now, legacy gifts are appreciated enormously and keep your name alive far beyond your lifetime.

Naming charities in your will can also help family and friends know where to donate in your name to honor you. My mother was the president of the senior center in our town, and before her death, she asked for donations to the center instead of condolence flowers. I love knowing that her memory lives on in a space that was so important to her, and whenever I drive by the building, I feel connected to her in a small way.

If you’re interested in leaving a charitable gift, find out how to donate assets after your death to a charity, educational institution, or nonprofit and have the conversation now with your loved ones. Be clear about your intentions and get them in your will now.

Build a legacy of values

Your legacy isn’t necessarily the money left to others. It’s the lessons you taught, the memories others have of you, and the life you lived.

My mother’s legacy was her commitment to others, her love of adventure, her belief that life should be fun. When the weather is beautiful if I take the day off from work, sign my daughter out of daycare, and take a spur-of-the-moment trip to the beach, I’m living my mother’s legacy. I even tell my daughter how much her Grandma Gail would have loved this day.

I hope these memories take hold in my daughter’s mind. For me, creating this intangible legacy is essential, so I prioritize family time as much as possible.

Start now

I would much rather take the day off and go to the beach than focus on financial to-dos, especially when I fervently hope that a will or a beneficiary for my IRA won’t be necessary for decades. But I know that if I get these things done now, I can truly enjoy my time with my daughter.

A huge consolation in my mom’s death was that all her paperwork was in order. As my family and I coped with our grief and tried to imagine a future without her in it, we were unburdened by financial confusion or in-fighting over “things.”

I want the same for my daughter. I am building my own legacy to ensure that I can give her that same emotional and financial freedom.

Default author headshot

About Anna Davies

Anna Davies is an innovative copywriter, magazine editor, award-winning essayist. She has written for The New York Times, New York Magazine, Refinery29, Glamour, Elle, and others, and has published 13 young adult novels. She lives in Jersey City, NJ, with her family and loves traveling, running, and trying to find the best cold brew coffee in town.

Read more by Anna Davies

Our editorial policy

Haven Life is a customer-centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.

Our editorial policy

Haven Life is a customer centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.

Our content is created for educational purposes only. Haven Life does not endorse the companies, products, services or strategies discussed here, but we hope they can make your life a little less hard if they are a fit for your situation.

Haven Life is not authorized to give tax, legal or investment advice. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Individuals are encouraged to seed advice from their own tax or legal counsel.

Our disclosures

Haven Term is a Term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a Simplified Issue Term Life Insurance Policy (ICC19PCM-SI 0819 in certain states, including NC) issued by the C.M. Life Insurance Company, Enfield, CT 06082. Policy and rider form numbers and features may vary by state and may not be available in all states. Our Agency license number in California is OK71922 and in Arkansas 100139527.

MassMutual is rated by A.M. Best Company as A++ (Superior; Top category of 15). The rating is as of Aril 1, 2020 and is subject to change. MassMutual has received different ratings from other rating agencies.

Haven Life Plus (Plus) is the marketing name for the Plus rider, which is included as part of the Haven Term policy and offers access to additional services and benefits at no cost or at a discount. The rider is not available in every state and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made accessible under the Plus Rider, which are provided by third party vendors (partners). For more information about Haven Life Plus, please visit: https://havenlife.com/plus

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Affordable Health Insurance for Small Businesses via Covered California

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Affordable Health Insurance for Small Businesses via Covered California

Affordable Health Insurance for Small Businesses via Covered California

Finding
health insurance for your small business can be a daunting task, but Covered California for Small Business (CCSB) offers a solution that is flexible, cost-effective, and easy to manage. This state-sponsored service provides high-quality health and dental coverage options for your employees, helping you
attract top talent to your organization while keeping your budget in check.

 

Why Choose Covered California for Small Business?

Covered California for Small Business (CCSB) is a state-run program designed to connect small businesses with affordable, brand-name health plans. By offering health benefits through CCSB, you can attract great employees and potentially qualify for federal tax credits to offset the cost of these benefits.

 

Flexibility and Options:

CCSB allows small business owners to choose from four tiers of coverage—Bronze, Silver, Gold, and Platinum—provided by three well-known health insurance companies: Blue Shield of California, Kaiser Permanente, and Sharp Health Plan. These tiers offer a range of plans to fit different budgets and employee needs. Your employees can also pick from one of four dental insurance plans that best suits their dental care needs. Partnering with a group health insurance broker can help you better understand these options and select the best plan for your company.

Simplified Billing

One of the key advantages of CCSB is the simplicity it brings to managing health insurance for your employees. You’ll receive a single, consolidated invoice each month, regardless of how many plans or insurance providers are involved. This streamlined billing process helps reduce administrative burdens and makes it easier to keep track of your expenses.

 

Tax Credits and Financial Benefits:

Another advantage of offering health insurance through CCSB is the potential to qualify for federal tax credits. To be eligible, your business must cover at least 50% of the cost of your employees’ health insurance. The amount of credit you receive depends on the size of your business, the average wages of your employees, and the amount you contribute to their premiums.

 

Smaller businesses with fewer than 25 full-time equivalent (FTE) employees and average annual wages below $62,000 typically receive the most significant credits. For-profit businesses can receive a maximum tax credit of up to 50% of monthly premiums, while non-profit organizations can get reimbursed up to 35%.

 

How to Qualify for CCSB

To participate in CCSB, your small business must meet specific criteria:

 

●     Have between 1 and 100 FTE employees.

●     At least one employee must receive a W-2, and most employees must live in California.

●     The employer must contribute at least 50% to the premium of the lowest-cost reference level tier for their employees.

 

If your business meets these requirements, you can start offering health insurance through CCSB. Working with a group health insurance broker can help you navigate the application process so you can begin providing essential healthcare benefits to your employees.

 

Complying with Legal Requirements

For businesses with 50 or more FTE employees, offering health insurance is not just an option—it’s the law. Under the Affordable Care Act (ACA), businesses of this size are required to provide health coverage to their employees or face potential penalties. This makes securing affordable health insurance through CCSB a good option for mid-sized businesses looking to comply with legal requirements.

 

Options for Sole Proprietors and Self-Employed Individuals

For
sole proprietors and self-employed individuals
without W-2 employees, CCSB offers individual and family plans. These plans are also eligible for financial assistance through Covered California, making it easier to find affordable coverage even if you’re running a one-person operation.

 

How CCSB Health Plans Work

CCSB gives both employers and employees a variety of options:

 

●     Employer Contribution: Business owners can define their contribution to health care benefits, allowing them to control costs.

●     Employee Choice: Employees can choose their own plans based on their individual needs, including whether or not to include dental coverage. All health plans cover essential health benefits, such as prescription drugs and emergency services.

 

Employees can select from a range of plans offered by trusted insurance companies. The available metal tiers allow employees to balance their coverage level with their budget, ensuring that they get the best possible plan for their needs.

 

Managing Your Plans with MyCCSB

Once your business is enrolled in CCSB, managing your health and dental plans is straightforward.
MyCCSB, an online management tool, allows you to enroll, compare, and manage plans, make changes, renew policies, and handle billing—all in one place. This streamlined process saves time and reduces administrative burdens, making it easier to focus on running your business.

 

How to Apply for CCSB

Applying for CCSB is simple and can be done at any time of the year. Unlike individual applicants, small businesses are not restricted by enrollment periods. New applications are accepted each month, with the official monthly cutoff for same-month coverage being the first of the month.

 

For assistance, you can contact a CCSB agent free of charge. They will help you navigate the process and provide a quote within two business days, allowing you to quickly secure the benefits your employees need. Once you secure benefits for your employees through CCSB, you can use Sackett Insurance’s
benefits management software to simplify your benefits search and onboarding process for new team members.

 

Making the Most of Your Health Insurance Benefits

Covered California for Small Business offers a practical solution for securing affordable health insurance, with extensive benefits for your company and employees. By exploring CCSB’s offerings, you can ensure that your small business provides competitive and cost-effective health coverage while supporting your employees’ well-being.

 

If you are looking to secure affordable health insurance for your company,
contact us
at Sackett Insurance to speak to one of our insurance agents. We can provide you with more information on the Covered California plan to see if it is the right fit for your small business.

7 things to consider before buying business insurance – Northbridge Insurance

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7 things to consider before buying business insurance – Northbridge Insurance

7 things to consider before buying business insurance – Northbridge Insurance
pen checking off a checklist

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.

What Employers Should Know About Seasonal Employment

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What Employers Should Know About Seasonal Employment

What Employers Should Know About Seasonal Employment

Many organizations rely on seasonal workers to supplement their regular workforce during peak times. Your immediate thought upon reading this might be that this is about determining benefits eligibility under the Affordable Care Act (ACA). Well, that’s only part of the challenge; there is so much more to consider! The ACA addresses implications related to group medical benefits. What about other benefits? What about worker classification? Wage and hour laws?

While similarities exist, there are important differences between seasonal and regular employment. Due to these differences, hiring and reliance on seasonal workers can present significant and unexpected challenges for employers. This HR Compliance Overview provides employers with a broad overview of seasonal employment and compliance strategies for employers.

If you want to know more about what you should be doing to be in compliance, contact one of our Knowledge Brokers – we know!

Continue

What You Need to Know

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What You Need to Know

Whether it’s fixing storm damage, updating a kitchen, or making essential improvements, choosing the right contractor for your home or business is key. But for many residents in Wisconsin, this decision can turn into a nightmare, thanks to one growing problem: contractor fraud.

Wisconsin residents are particularly vulnerable to these scams after severe weather like heavy snowfalls, floods, or windstorms. Last year, there were 28 disastrous climate events across the U.S., totaling nearly $98 billion in losses. Post-disaster fraud accounted for nearly 10 percent of that, impacting individuals and insurance premiums across the industry. Staying safe from storm chasers is important as storms become more common and severe in Wisconsin..

The first step is understanding their tactics. Scammers often pose as legitimate contractors and prey on stressed homeowners who need urgent repairs. They show up unwanted and prey on the sense of urgency. The consequences can be devastating—unfinished work, substandard repairs, or money lost with nothing to show for it.

In this article, we will unpack the common types of contractor fraud that Wisconsin residents face and identify the key warning signs to watch for. Keep reading to learn how to protect yourself from becoming a victim of these all-too-common scams with expert tips from Jeff Lieberman, Director of Anti-Fraud and Recovery at Central Insurance.

Understanding Theft by Contractor Fraud in Wisconsin

In Wisconsin, theft by contractor fraud is when a contractor takes payment for a project but fails to complete the work or misuses the funds. Those who fall victim to this type of serious crime may be able to file a civil lawsuit, but the contractor may also face criminal penalties, including fines and possible jail time.

Under Wisconsin law, contractors are legally required to hold any payments they receive in trust for the project. This means they must use the funds to pay for labor, materials, and services related to the job. If they divert the money for other purposes or fail to complete the work, they can be charged with theft by a contractor, a criminal offense.

Scammers can target Wisconsin residents for contractor fraud following severe weather events, such as hailstorms, flooding, or heavy snowfall. These conditions create an urgent need for repairs, and scammers often exploit this desperation by posing as legitimate contractors.

According to Lieberman, here are some key points to keep in mind after storm damage:

  • Storm Chasers: Many scammers travel to areas hit by severe weather, offering services without a local presence or reputation. They often lack proper licensing and insurance.
  • Urgency and Pressure: Scammers may use high-pressure tactics to push homeowners into making quick decisions, often insisting on immediate payment or signing contracts on the spot.
  • Low Initial Bids: Fraudulent contractors may provide unusually low estimates to win over homeowners, but this often leads to inflated costs later when they claim additional damage or necessary repairs.

Lieberman recommends contacting your insurance carrier after the damage to your home or business and taking the time to research contractors. Let’s look further at some warning signs of a contracting scam.

Six Warning Signs of Contractor Fraud

Knowing the warning signs of contractor fraud is crucial when dealing with home repairs, especially after a major weather event. 

Here are six red flags Wisconsin homeowners should watch for, according to Lieberman:

1. Unsolicited Offers

Be cautious of contractors who show up at your door uninvited, especially after a storm. Legitimate contractors are often booked with ongoing projects and rarely need to go door-to-door for work.

“A scammer may ask to inspect your roof with a promise of finding damage,” Lieberman describes. “From there, they can claim you have damage that you don’t or even manufacture damage to your roof.”

2. Demands for Large Upfront Payments

Scammers often request large deposits or full payment upfront, promising to start work right away. Legitimate contractors typically ask for a reasonable deposit, with the balances due after completion or at key milestones in the project.

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3. Lack of Proper Licensing or Insurance

“Validate and verify are my two favorite words when it comes to fraudulent contractors,” Lieberman says. He recommends asking for proof of licensing and insurance for every contracting job. Scammers will claim they’re licensed but may avoid providing documentation. If your contractor offers an excuse instead of proof, don’t continue business with them.

License Lookup: The Wisconsin Department of Safety and Professional Services website lets you check if your contractor is properly licensed.

4. Pressure to Move Quickly

Fraudulent contractors will pressure you into signing a contract on the spot. Tactics like limited-time offers or discounts for immediate payment are not good signs and are designed to make you act quickly without proper research.

5. Suspiciously Low Bids

If a contractor’s bid seems significantly lower than others, it’s a major red flag. Scammers often lure victims with low prices only to increase costs midway through the job or provide subpar work with cheap materials.

6. High Interest in Insurance Coverage

Lieberman notes that it’s normal for contractors to coordinate with your insurer, particularly in cases involving storm damage. However, excessive probing into your policy can be a sign of trouble.

A fraudulent contractor may ask questions about your past claims and coverage limits or even encourage you to inflate the scope of the damage to maximize the payout. This type of behavior could indicate they plan to manipulate the insurance process for their benefit

What is an AOB and Why to Stay Away

An Assignment of Benefits (AOB) is a legal document that transfers your insurance claim rights to a third party, often a contractor. Signing an AOB gives the contractor the authority to deal directly with your insurance company, including receiving payments for repairs and making decisions about the claim. 

While this may seem convenient to simplify the process, it can open the door to significant risks. “When you sign an AOB, a contractor is now representing you and your claim to the insurance company,” Lieberman explains. “This is where a tremendous amount of fraud can come into play. A $20,000 roof can suddenly become $300,000 because a fraudulent contractor has set the price of your damage. Now, the insurance claim check goes directly to the contractor.”

Why You Should Avoid AOBs

  • Loss of Control: Once you sign an AOB, you lose control over your insurance claim. The contractor can make decisions without your approval, which may not always be in your best interest.
  • Inflated Costs: Some fraudulent contractors may use AOBs to inflate the cost of repairs, billing the insurance company for unnecessary or overpriced work, which could increase your premiums.
  • Delayed Claims: A dispute between the contractor and your insurer could delay your claim, leaving you in a prolonged state of repair or damage without resolution.

Instead, Lieberman urges insureds to keep control of their insurance claim. You can do this by communicating with your insurance company to handle payments, verifying your contractor, and reading contracts carefully.

Theft by Contractor Fraud in Wisconsin: Protecting Yourself

There are plenty of methods to ensure you protect yourself from falling victim to contractor fraud. Below, Lieberman provides some ways to keep your home and wallet safe and resources you can utilize to prevent scams.

Warning Sign How to Stay Protected
Unsolicited Offers Never accept an unsolicited offer. Be especially cautious of contractors who claim to be able to see damage to your roof or home from the street. Research companies and ask for recommendations from trusted sources. 

Check out the company’s reputation with the Better Business Bureau.
Demands for Large Upfront Payments Do not pay for work or materials upfront. Schedule payments tied to project milestones or when work is complete. 

Stay up to date on consumer complaints and popular scams in Wisconsin
Lack of Proper Licensing or Insurance Always request and verify licenses and insurance before work begins. Contact local authorities to confirm their legitimacy.

Check if the company has proper credentials in Wisconsin.
Pressure to Sign Immediately Never rush into signing a contract. Take your time to review offers, get multiple quotes, check with your insurer, and check contractor references.

Check with your insurance agent before signing.
Suspiciously Low Bids Compare bids from multiple contractors. If one seems unusually low, question why and investigate their credentials carefully.

Search sites like Procore or do a quick Google query for contractor consultations.
High Interest in Insurance Coverage Provide only the essential details required for your claim, and let your insurance adjuster handle the rest. Ensure your insurer is aware of any interaction with the contractor and reviews the scope of the work before it begins.

Learn more about who is most at risk for contractor fraud.

What to Do if You’re a Victim of Contractor Fraud in Wisconsin

If you believe you’ve fallen victim to contractor fraud in Wisconsin, there are immediate steps you can take to protect your rights and mitigate further damage. Acting quickly is key to resolving the situation and recovering potential losses.

Contact your insurer immediately. Many insurance companies have fraud prevention teams that can investigate the contractor on your behalf. It is important to gather any documentation possible, including contracts, payment receipts, photos of work, and communications with the contractors.

Once you’ve done this, Lieberman recommends reporting your experience to the following entities:

1. Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP): Investigates claims and can help mediate between you and the contractor or escalate the case if necessary.

2. Federal Trade Commission (FTC): Protects consumers from deceptive and unfair business practices by investigating fraudulent contractors. 

3. National Insurance Crime Bureau (NICB): Helps consumers report insurance fraud, including contractor-related scams, and works with law enforcement to investigate fraud cases.

The Central Difference

At Central, we understand how devastating contractor fraud can be for homeowners. We’re committed to standing by your side throughout the process. Central’s dedicated Anti-Fraud and Recovery Team identifies suspicious activity to ensure repairs are completed properly.

“We have a sophisticated AI and machine learning fraud analytics program that can help us detect a potential fraudulent contractor as soon as they insert themselves into the claim,” Lieberman explains. “If our insured is involved in a scam, we will not only report the acts to all the necessary departments we are mandated to, but we also take a very proactive approach to work with these entities to hold the contractor responsible.”

Learn More: Central’s Industry-Leading Fraud Analytics Program

“We have a strong internal initiative within our fraud team to build strong external relationships with all these entities dedicated to preventing fraud. We foster relationships with various government branches committed to licensing and consumer protection, Attorney General boards, the BBB, the FTC, and more,” Lieberman describes. “These relationships help us present and resolve cases of fraud.”

We constantly innovate and implement new technology to prevent fraud that no other carrier has done before. With cutting-edge analytics systems and partnerships with external organizations, we’re dedicated to protecting your well-being and peace of mind. While Central is keeping you safe from fraud, we’ll deliver exceptional coverage and customer service along the way. 

What You Need to Know

Can I track the progress of my auto insurance claim with Kemper?

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Can I track the progress of my auto insurance claim with Kemper?

Subheading: Track the progress of your auto insurance claim with Kemper by calling the toll-free claims department at 1-866-536-7376 and quote your claim number to follow up. The insurer will also assign a claims representative you can speak with directly if you have questions regarding your claim.

What You Need to Know:

  • It’s possible to track the progress of your Kemper auto insurance claim
  • You’ll get a claim number when you first file a case
  • The company will also assign you a claims representative who you can contact via a toll-free number

When you need to process some accident damage, you must first know how to file an auto insurance claim. But after that, you may wonder: “Can I track the progress of my auto insurance claim with Kemper?” We understand that you may be anxious to get to a resolution, so we’ve answered that question for you.

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Can I track the progress of my auto insurance claim with Kemper?Can I track the progress of my auto insurance claim with Kemper? Secured with SHA-256 Encryption

How to Track the Progress of Your Auto Insurance Claim With Kemper

When you initially file a claim with Kemper, the company will allocate a representative to handle the process from start to finish. They may also get assistance from an appraiser along the way.

You’ll get a claim number, which will be your reference if you need to contact the company to check the status of an auto insurance claim. You can reach your claims representative by calling the toll-free claims department number during business hours.

It Helps to Understand the Kemper Insurance Claims Process

Kemper has a toll-free number that will connect you with a First Notice of Loss (FNOL) adjuster when you initially report a claim. You need to provide the representative with full details about the incident and any other involved parties.

Do you need to file a police report after an accident? Not necessarily, but it may help to provide a police report, especially if there was a dispute about who was at fault.

An adjuster may contact some of the parties, review the policy and determine who was at fault. Sometimes, this process can take some time, depending on the complexity of the claim. However, the adjuster will do their best to expedite and provide the policyholder with their decision as soon as possible.

What to Do When Your Kemper Auto Insurance Claim is Approved

You can choose whether to repair your car or receive the funds instead. However, if you lease your vehicle from a finance company, that company may insist that you repair the car.

You can also choose a repair shop, although it may sometimes be beneficial to go with a facility that’s within the company’s approved network. This can sometimes expedite the process, and you may be able to get a lifetime guarantee from an auto shop within the approved network.

Repairs on your vehicle could often begin as soon as Kemper sends them a referral, but if insurance won’t pay the repair shop’s quoted price, you may have to find a different shop, which can slow down the process.

Compare over 200 auto insurance companies at once!

Can I track the progress of my auto insurance claim with Kemper?Can I track the progress of my auto insurance claim with Kemper? Secured with SHA-256 Encryption

You Can Check the Progress of Your Auto Insurance Claim With Kemper

When you first file an auto insurance claim with Kemper, the company will assign a representative to handle your case. You will also get a claims number at that time.

If you want to check the progress of your case at any point, you can call the company’s toll-free number, quote your case number, and talk to your representative for an update.

Frequently Asked Questions:

How does Kemper figure out how much my claim payment will be?

Kemper will deduct the amount of your deductible from the total repair cost or the cash value if the company declares your vehicle a total loss. However, if the accident was someone else’s fault, the company will aim to cover all your costs, including your deductible.

Will payment be different if the car is financed?

When a finance company is involved, a settlement check may include the lienholder’s name in certain circumstances.

Will my rates or coverage be affected when I file a claim?

You may notice an increase in your insurance rates following a claim. However, an insurance company considers many factors when they set insurance rates, so you may need to talk with your insurance representative for more advice.

SEO Title Tag: Can I track my auto insurance claim with Kemper?

Meta Description: You can track the progress of your auto insurance claim with Kemper, and you’re assigned an adjuster you can reach out to. Read on to learn more.

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Written by:

Laura Kuhl

Insurance Content Team Lead

Laura Kuhl holds a Master’s Degree in Professional Writing from the University of North Carolina at Wilmington. Her career began in healthcare and wellness, creating lifestyle content for doctors, dentists, and other healthcare and holistic professionals.
In 2018, she started writing for the cannabis industry. She curated news articles and insider interviews with investors and small business …

Insurance Content Team Lead

Reviewed by:

Ty Stewart

Licensed Insurance Agent

Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. 
As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl…

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Prepare your property for wildfire, then review plans annually

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Prepare your property for wildfire, then review plans annually

Prepare your property for wildfire, then review plans annually

Be proactive about preparing for the danger of wildfires.

Even if you’ve taken precautions to make your home or business resistant to wildfire, take time each year to review your preparations.

Let’s discuss the why, the what and the how of wildfire preparation for homeowners and business owners. Find additional tips on our Wildfires page.

THE WHY – THE IMPORTANCE OF PREPARATION
  • Do it before the “crazy” time hits. Making preparations in advance can minimize the pressure during an event.
  • When the wildfire is on its way, it is too late.
  • Don’t fear the unknown – embrace it and prepare for it.
THE WHAT – BE PROACTIVE

Develop an emergency preparedness plan with everyone in your home or business.

  • Assess and address your family’s unique situation:
    • Do you have young children, elderly family members, members with special needs or disabilities? Do you own pets or adored collections? Do you employ household staff?
    • Look around the house and make a checklist of important items.
  • Assess and address your business’ unique situation:
    • Do you have employees with children?
    • Are there hazardous or flammable materials on site?
  • Plan for worst-case scenario; if something less than that happens, you will be good to go!
  • Know your evacuation routes. Establish several routes in case roads are blocked or closed.

Build an emergency kit with a 3-day supply of water and food per person.

  • Consider kit locations:
    • Home – keep it in a designated place that everyone knows
    • Work – be prepared to shelter in place at work for at least 24 hours
    • Vehicle – keep a kit in your car in case you get stranded

Assemble individual “go bags” for every member of the family, including pets, as well as for each employee.

  • Label them for easy identification.
  • Make sure they are easy to locate quickly.
  • The bag should be portable; a backpack is ideal.

Prepare your home or business to stand on its own, unattended, during a wildfire.

  • Build with non-combustible materials.
  • Clear brush to create defensible space between your structure and wildland.
  • Trim overhanging trees.
  • Keep roofs clear of pine needles, leaves or other debris.
  • Rake leaves away from under decks or fences or other attachments.
  • Move wood piles at least 30 feet away from the building and cover with a fire-resistant covering.

Make sure your property or business is accessible to first responders.

  • Ensure your home or business has legible and clearly marked street numbers.
  • Driveways should be at least 12 feet wide with a vertical clearance of 15 feet for emergency vehicle access.
  • For gated properties, install a security box for keys or leave your gate propped open if you must evacuate.
THE HOW – MOVE FROM THEORY TO ACTION
  • Obey all evacuation orders by local authorities.
  • Stay aware of the latest news and updates from local media and fire department.
  • Practice your plan to identify gaps and create strategies to fill those gaps.

This loss control information is advisory only. The authors assume no responsibility for management or control of loss control activities. Not all exposures are identified in this article.

Specialty Car Of the Week – 1998 Convertible Corvette

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Specialty Car Of the Week – 1998 Convertible Corvette

img#bf_image-6710ad7753443 {
width: 640px;
}@media screen and (max-width: 768px) {
img#bf_image-6710ad7753443 {
width: 100vw;
}
}Specialty Car Of the Week – 1998 Convertible CorvetteThis week’s featured customer car is a little red Corvette.  This 1998 convertible Corvette is a beautiful example of America’s modern muscle car.  McElhinny Insurance Agency insures all types of specialty cars, from American Muscle to Exotics.  Call us today for a quote.

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