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Who Are Insurance Brokers?

Prokop Team · March 16, 2023 ·

As you step into the world of insurance, you might encounter two key professionals: insurance brokers and insurance agents. While they both play vital roles in helping you secure coverage, they differ in fundamental ways.

The Role of Insurance Agents

Insurance agents act as representatives of one or more insurance companies. They have contractual agreements with these insurers to sell their products. There are two types of agents: captive agents, who represent a single insurer, and independent agents, who sell policies from several companies. The primary loyalty of an insurance agent lies with the insurance company they work for. Captive agents can offer in-depth knowledge of their specific company’s products, while independent agents provide a broader view with options from multiple insurers.

Agents earn a commission based on the policies they sell, and they handle the administrative work of maintaining your policy. They can be your point of contact for making changes to your policy or filing a claim.

The Expertise of Insurance Brokers

Insurance brokers, on the other hand, represent you, the insurance buyer. They do not have an allegiance to a specific insurance company. Instead, they use their professional knowledge to survey the insurance market to find the most suitable policy for your needs, taking into account coverage options and price.

Brokers are particularly valuable for individuals and businesses with more complex insurance needs, such as requiring bespoke or high-level coverage that isn’t readily available off-the-shelf. A broker’s duty is to their clients, offering tailored advice, advocating on their behalf, and ensuring their interests are protected.

Key Takeaways

The crucial difference lies in representation: agents represent insurers, and brokers represent clients. This distinction matters when you’re seeking personalized advice and solutions for your insurance needs. Whether you choose an agent or a broker, ensure they are licensed, reputable, and understand your requirements.

As your insurance professional, I am committed to guiding you through these choices, ensuring you have all the information to make the best decision for your coverage needs. Need help deciphering which path to take? Let’s talk and find the right protection for you.

Get in touch today, and let’s ensure your future is well-protected.

Will It Pay to Buy Travel Insurance This Summer?

Prokop Team · March 9, 2023 ·

With summer quickly approaching, you may ask yourself which expenses are worth the investment when planning vacations. Especially when it comes to travel insurance, you want to make sure you are not overpaying for protection that may not be 100 percent necessary. Depending on where you’re traveling and how long you’ll be there, taking a trip can eat up a substantial amount of your budget as it is. Add travel insurance, and you could quickly acquire more costs than planned.

6 Tips To Clean Up Your Driving Record

Prokop Team · January 21, 2023 ·

These are our 6 tips to clean up your driving record as auto insurance pros, essential for maintaining affordable insurance rates in Minnesota and avoiding legal consequences. A clean driving record means that you have not been involved in any accidents or received any traffic violations. However, if you have a less than perfect driving record, don’t worry; there are ways to improve it. Below are some tips for improving your driving record in Minnesota.

Follow Traffic Laws
The first step in improving your driving record is to follow traffic laws. This means obeying posted speed limits, stop signs, and other traffic signals. Avoid reckless driving behaviors like tailgating, weaving in and out of traffic, and running red lights.
Avoid Distracted Driving
Distracted driving is one of the leading causes of accidents on the road. To improve your driving record, keep your eyes on the road and avoid distractions like texting, eating, or adjusting the radio while driving. It only takes a split second for an accident to occur, so it’s important to stay focused and alert.
Practice Defensive Driving
Defensive driving is a technique that involves staying alert and aware of your surroundings, anticipating potential hazards, and maintaining a safe following distance from other vehicles. By practicing defensive driving, you can avoid accidents and traffic violations that can negatively impact your driving record.
Maintain Your Vehicle
Regular vehicle maintenance can help prevent accidents and keep your driving record clean. This includes checking your brakes, tires, oil, and other parts the car that can fail. We also suggest making sure your brake lights, headlights, taillights, blinkers, and even license plate lights all work properly. Keeping your vehicle in good working condition can reduce your risk of accidents and traffic violations.
Avoid Alcohol and Drugs
Driving under the influence of drugs or alcohol is illegal and dangerous. It puts yourself and others on the road at risk. If you want to improve your driving record, avoid alcohol and drugs when you are behind the wheel.

DWI or DUI How They Impact Your Car Insurance Rates
Another way to improve your driving record is to take a defensive driving course. These courses can help you learn safe driving techniques, reduce the number of points on your driving record, and potentially qualify for insurance discounts. In Minnesota, you can take a state-approved course either in-person or online.

Minnesota Safety Council, St. Paul
minnesotasafetycouncil.org

AARP Driver Safety Program
aarp.org/drive
click on “Find a class near you”

Improving your driving record takes time and effort, but it is well worth it in the long run. By following these tips and staying focused on safe driving, you can protect yourself, your passengers, and other drivers on the road. If you need help finding affordable car insurance, contact Prokop Insurance. We can help you find the right coverage at an affordable price.

DWI or DUI: How They Impact Your Car Insurance Rates

Prokop Team · November 14, 2022 ·

At Prokop Insurance we never like to explain DWI or DUI: How They Impact Your Car Insurance Rates. Driving while intoxicated (DWI) or Driving Under the Influence (DUI) is a serious offense that can increase your car insurance rates. DWI and DUI are often used interchangeably but refer to different crimes. A DWI or DUI conviction can result in fines, license suspension or revocation, and even jail time.

In Minnesota, DWI stands for “Driving While Intoxicated.” This offense occurs when a person operates a motor vehicle with a blood alcohol concentration (BAC) of 0.08 or higher or under the influence of drugs or alcohol.

On the other hand, DUI stands for “Driving Under the Influence.” This offense typically refers to driving under the influence of drugs, illegal, prescription, and even over-the-counter medications that can impair driving.

What Types of Vehicles Can Result in a DWI or DUI Charge in Minnesota?

What are the consequences?

If you get a DWI, your car insurance company may think you are a high-risk driver. This means that you are more likely to get into an accident and make a claim. Because of this, you may have to buy high-risk car insurance. This kind of insurance is more expensive than regular car insurance. It’s for people who have a history of bad driving, like getting into accidents, getting traffic tickets, or getting a DWI. High-risk car insurance can be very expensive, so it’s important to try to avoid it if you can.
If you get a DWI, you may also lose your driver’s license. This means you won’t be able to drive your car for a while. It can be hard to get around without a car, and you may have to rely on other people to take you places. Your rates can go up by at least 50%, which is a lot of money.
If you get your license back after a DWI, you may need to get an SR-22 certificate of insurance. This is a document that proves you have car insurance. It’s used for people who have had problems with their driving record. Having an SR-22 can make your car insurance rates go up even more.

It’s important you think twice about getting intoxicated by alcohol or taking drugs anytime before driving. If you need to go somewhere, ask someone to drive you or use a taxi or ride-sharing service.

If you have questions about your car insurance rates after a DWI, contact the Pros at Prokop Insurance. We can help you understand what you need to do to get your rates back down.

Understanding Minnesota’s No-Fault Accident System: What it Means for Auto Insurance Holders

Prokop Team · November 10, 2022 ·

Understanding Minnesota’s No-Fault Accident System: What it Means for Auto Insurance Holders. As an independent insurance agent specializing in auto insurance, it is important to educate clients on the unique aspects of their state’s laws and regulations. In Minnesota, one of the most important aspects of auto insurance is the state’s no-fault accident system. Understanding how this system works and how it affects insurance holders is crucial for protecting oneself and one’s assets.

What is a No-Fault Accident State?

In a no-fault accident state, each driver’s own insurance company is responsible for covering their medical expenses and lost wages in the event of an accident, regardless of who was at fault. This means that even if you were not responsible for the accident, your insurance company will still be responsible for covering your expenses.

Minnesota is one of a handful of states that have adopted a no-fault accident system. This system was put in place to reduce the number of lawsuits resulting from auto accidents and to ensure that everyone involved in an accident receives the medical care they need, regardless of who was at fault.

How Does No-Fault Insurance Work in Minnesota?

In Minnesota, the medical benefit falls under personal injury protection (PIP) coverage. This coverage will pay for medical expenses, lost wages, and other expenses or essential services related to injuries you sustain in association with a motor vehicle, up to the policy limit, regardless of who was at fault.

You can be a driver, a passenger, a pedestrian, working on a car, getting in or out of a vehicle, and the coverage applies from your policy first.

The standard PIP coverage for medical expenses is $20,000, but it can be increased up to $50,000 and can be stacked or multiplied based on the number of vehicles insured. For example, if you insure three cars, the medical coverage can be up to $150,000 if stacked. Additionally, uninsured and underinsured motorist coverage is mandatory in Minnesota and can match the bodily injury coverage or liability limit.

While PIP coverage is mandatory, it is important to note that it pays first or is primary if you are injured. It also extends to other household members related by blood or marriage. If you injure another person, their PIP coverage will cover their expenses until the medical bills get to a certain threshold, and at that point, the other party can access your bodily injury coverages.

Protecting Yourself with Proper Coverage

While PIP coverage is required in Minnesota, it is important to consider additional coverage options to protect yourself and your assets in the event of an accident. One important coverage option to consider is liability coverage. Liability coverage will help to cover the costs of damages and injuries you may cause to others in an accident for which you are found to be at fault.

Another coverage option to consider is uninsured and underinsured motorist coverage. This coverage will protect you in the event you are involved in an accident with a driver who does not have enough insurance to cover your damages or who does not have insurance at all.

It is imperative you carry enough coverage to pay for potential damages to vehicles and persons because if you exhaust your coverages, then you are still liable for the excess damages.

As an independent insurance agent, we can work with you to assess your individual needs and find the right coverage options to protect you and your assets. By taking the time to understand how Minnesota’s no-fault accident system works and by having the right insurance coverage in place, you can rest assured that you are protected in the event of an accident.