Auto Insurance

By Lorie Ham

According to an NBC News article in July of 2021, as prices of precious metals spiked,thefts of catalytic converters skyrocketed from an average of 108 per month in 2018 to 2,347 in December 2020.

Recently, one of Mennonite Insurance’s customers experienced such a theft. We will call him John for the sake of this article. John woke up one morning to go to work and heard a roar when he started his car. He soon realized the cause was that his catalytic converter had been stolen. Though he didn’t hear anything during the night, he knew it had to have been stolen then. John’s car had been parked on the street, and based on security camera videos it appeared that they had jacked up one side and cut out the converter in just about two minutes time.

Since he hasn’t yet heard back from the claims department, John doesn’t know how much his out of pocket cost will be to replace it, but he does know how much the overall cost was. “It was $674, but my mechanic said it can vary greatly from one vehicle to another. I’ve heard of repairs costing over $2,000.”

Thankfully, John has comprehensive coverage instead of just liability coverage. “If you just have auto liability coverage, you are out the several thousand dollars to replace the converter,” says Jerry Linscheid, Chief Executive Officer with Mennonite Aid Plan/Mennonite Insurance Services.

“In auto insurance, we often think of the property and liability coverages independently,” continues Jerry. “The state requires minimum liability coverage. The liability coverage is the amount the insurance company would pay to someone who you injure or whose property you damage.”

However, the property coverage is the amount the insurance company would pay to you to fix your car. The state does not require that you carry property coverage, but if you have a loan, your lender will require it. “Property coverage has two components: collision (when you run into another car) and comprehensive (other than collision, like theft, hail, etc.) You will almost always have a deductible for comprehensive and collision coverages.”

Hopefully, you will never experience this kind of theft, but if you do, John says that it is important to contact [your insurance claims department] before you get it repaired. “And be sure to take photos to document the damage.”

The City of Garden Grove, one of many cities that have recently noticed a rise in the theft of catalytic converters, shares tips on their website of things you can do to help prevent such a theft, such as parking in a well-lit area, parking in a garage where possible, and attaching a security device to the converter.

If you are unsure of what your auto coverage is, we highly recommend finding out so you aren’t caught unprepared if something like this happens to you. Mennonite Insurance writes auto insurance and would be happy to answer any questions you might have.

While Mennonite Insurance is the actual company (pays the claims) for homeowners coverage, they are just the agent for auto insurance. “We would be able to write for companies like Personal Express, Safeco, Travelers, and others,” shares Jerry.

You can contact Mennonite Insurance by calling 559-638-2327. If you have experienced this kind of theft, we would like to hear about your experiences and if there is any wisdom you can share from the experience. Feel free to share on our Facebook page.

By Lorie Ham

School is back in session! Depending on where your kids go to school, they may have been back for a couple of weeks, or maybe they are just starting up. All throughout the school year it is important to put safety first when dropping off the kids or driving near schools. And it is important for students to put safety first as well.

Sergeant Todd Lowery, who is in charge of the Reedley PD Traffic Unit, offers some safety tips for parents, children, and those driving past a school.

All Drivers: Be sure to obey the speed limit of 25 miles per hour when you are passing a school.

Parents: Be careful where you drop off your children. Many schools have a drive through drop off area that is actually away from the street and on the campus, which is the safest option.

Students:
1. Always be aware of your surroundings when crossing streets instead of looking down at your phone. Don’t text and walk.
2. Use crosswalks where available and make sure vehicle drivers see you before crossing any street.

The Reedley PD also recently offered some tips on their Facebook page for students and drivers:

1. Take off headphones. Headphones or ear buds can prevent you from hearing oncoming hazards.
2. Never assume a driver is going to yield the right of way to a pedestrian. Stop at the curb or crosswalk, make eye contact, and ensure traffic is stopped before crossing the roadway.
3. Remember that RED MEANS STOP. Drivers are required to stop in both directions when a school bus has its red lights flashing or stop sign extended. This indicates students are getting on or off a bus.
For some back to school bike safety, check out this article by Sunnyside Bicycles in Kings River Life.
Sgt. Lowery says, “Teaching your kids safety starts with the parents and continues with educators, Law Enforcement, and others.”

By Lorie Ham

It’s time to take that last family vacation before the kids have to go back to school. You are considering renting a car because you need something bigger to fit the whole family. You’ve looked at the choices available, picked a car, decided to pay for the rental with your credit card, but you can’t decide whether to purchase the Loss Damage Waiver (LDW) offered by the rental company.

Here is a look at coverage you may already have without the LDW:

1. Your own personal auto policy, however it has limits and deductibles (be sure to check your policy for its limits and deductibles, and if you have any questions be sure to call your agent).
2. The credit card company that was used to rent the car may cover loss to the rental vehicle up to ACV (Actual Cash Value-see our past article to learn more about ACV and RCV) and include loss of use of the vehicle. Or, it may not.

Considering all of that, if you do have an accident on your vacation, do you want to take the chance of having to cover the things that aren’t covered out of your own pocket? Or, is it wiser to play it safe and purchase the LDW?

The LDW allows you to not worry about the rental car damage. You can just “walk away” as the folks at the rental desk say, and then you don’t have to let an accident completely ruin your vacation!

So be sure you make an informed decision. The best way to make sure you have all the info you need is to ask questions-so be sure to pick up the phone and give your agent a call. They are always happy to answer any questions you have.

By Lorie Ham

Jim Brandt has been the Chairman of the Board for the Mennonite Aid Plan since 2012, and a board member since 2004. He considers MAP to be more than just an insurance company. “Our mission is to provide support for people in need when catastrophic things happen to them. We can do that because we are a religious organization that uses our finances to care for the needs of our people.”

He and his wife are very involved in their local church, and they enjoy traveling, and spending time with their grandkids. As he enjoys his retirement, Jim also has more time for hobbies. About a year ago, he began restoring a classic car—a 1957 Pontiac Super Chief two-door hardtop. Since hobbies aren’t high on his priority list, he is taking his time with this one and is still in the process of taking the car apart. “Everything has to be documented so I can remember how to put it back together again. Each part needs to be cleaned and restored to like new condition.”

Jim chose this particular type of car because it is the same type that he drove when he was young. “There are a lot of memories with that first car, so I guess it’s somewhat of a nostalgic trip for me to restore the one that I have now.”

One of the things he enjoys about this project is that he is using his hands to make something better. The experience takes him back to a more carefree time in his life and he sometimes listens to ‘50s music while working on the car. One of the more challenging aspects has been finding the proper parts, which being a member of a nationwide Pontiac Club has helped with.

Jim doesn’t have a time frame for getting the car completed, but he hopes it will be done in time that he and his wife can take it on some short trips and to car shows. “My intention is not that it be a showpiece, but something that we can just enjoy. I suggested to my wife that we may need to find some ‘50s vintage clothing to wear while we are driving it…I suppose the ultimate dream would be to drive it down Route 66 and take in all the nostalgia from those times back then.”

If you too have a classic car that you are working on and wonder what would be involved in getting it insured when you are ready to hit the road, contact Mennonite Insurance and we will be happy to help!