Important Things to Know About Auto Insurance

by jasong November 25, 2021

So, you just bought a new car and you’re excited to get on the road and drive it and get the feel of it. It costs quite a bit, but the metallic red, two-door sports car will suit your needs perfectly and it caters to your sporty image. Surely you’ll need auto insurance, right?

Now, what to do about insuring your prized automobile. You might think you can forego insuring your car. After all, you’re a good driver and who wants to contend with the expense of monthly premiums?

But you might want to reconsider the thought of not having car insurance. Auto insurance is necessary as it provides drivers with compensation for damage to their vehicle caused by an accident, or by other dangers that include falling objects, theft, and vandalism.

Whether you have a fancy high-end car or a family sedan, you still have the same chance of getting into an accident. And you will discover that accidents can be quite costly, especially if you are without auto insurance. They can also lead to major injuries or worse. Without auto insurance, you could be looking at paying thousands of dollars in damages and you might have your driver’s license revoked by the DMV.

Purchasing car insurance can be a complicated and confusing process. But if you know what the insurance companies are looking for when it comes to setting costs, you’ll probably be in a better position to afford your insurance.

Factors that Impact Your Auto Insurance Premiums

Auto insurance companies utilize various criteria when assessing your insurance application. This process is known as underwriting. You’ll discover that auto insurance companies defer to guidelines for whose applications they accept and how much they will charge groups of people considered at risk.

Vehicle Considerations: Insurance companies will evaluate the following aspects of your car when setting the insurance premium –

Make and model
Age of the car
Body type
Engine size
Cost to repair your car
Likelihood of being stolen

Your Age, Gender, Marital Status: According to statistics, if you have less driving experience and you are a male, insurance companies consider you more at risk for having an accident. They also have a more favorable view of married drivers, because they believe they are not as likely to file an accident claim.

Where You Reside: If you live in an urban area – a city – with a high crime rate, you are considered a bigger risk than a policyholder who resides in a rural area where there is less traffic and usually fewer car thefts and break-ins.

Your Credit Score: Insurance companies will factor in your credit score when calculating your premium amount. That is the case in most states. According to auto insurance industry statistics, drivers with better credit scores tend to have fewer accidents. However, consumer advocacy groups argue that this practice by insurance companies unfairly penalizes lower-income car owners and that it should be abolished.

Also, during the underwriting process, insurance companies will look at motor vehicle records to determine how many accidents or tickets you have. The majority of insurance companies will use an insurance history report to see if you have made car insurance claims, in addition to how much money was paid.

There are certain insurance companies that will investigate your driving record for five or more years – even though accidents and violations only affect your rates for three years – in deciding if they want to offer you insurance.

Comprehensive versus Collision Insurance

Most confusion about car insurance is centered around these two types of insurances. It is important you know what you are purchasing when it comes to coverage for your vehicle.

Nearly 70 percent of Americans mistakenly believe that the comprehensive part of their policy covers damage to their car from a collision, according to a recent survey by InsuranceQuotes.

Comprehensive Insurance: This insurance provides protection against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, falling rocks or trees, hail, or running into a deer.

Collision Insurance: This type of insurance reimburses you for damage to your vehicle that happens as a result of a collision with another car or other object — like a tree or guardrail – when you are at fault. It also protects you from damage from potholes or from rolling your car.

It is worth noting that comprehensive and collision are optional insurances that do protect your car. Conversely, liability insurance is legally mandated as it covers the costs related to injuries, death, or damage caused to another vehicle or property that you or another driver causes while driving your car.

Myth — A More Expensive Vehicle Costs More to Insure

“An expensive SUV might have better claim rates for accidents or thefts than a lower-priced car, so the premiums end up costing less,” said Penny Gusner, consumer analyst for Insurance.com.

How You Can Pay Less for Auto Insurance

You might be surprised to find out that there are ways you can decrease the cost of your auto insurance. One option is dropping comprehensive coverage for an older vehicle.

You can also increase your deductible, which is what you pay before insurance kicks in, as another method for realizing cost-savings. This is only helpful if you can afford to cover the possible higher out-of-pocket costs.

Here are some examples of how you can lower your premium as you raise your deductible:

Increase your deductible from $200 to $500 and you could reduce your collision and comprehensive coverage cost by 15 percent to 30 percent, according to the Insurance Information Institute.
Switching to a $1,000 deductible could save you 40 percent or more on your premium, according to the Insurance Information Institute.

Take advantage of more savings as insurance companies offer discounts for low-mileage, multiple cars, safe drivers – defined as no moving violations for the past three years – and for students with good grades. You might be able to capture additional savings if you bundle auto and homeowner’s coverage with the same company.

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff. With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland, and Forage, and Farm & Ranch.

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.

Tips for Buying Life Insurance for the First Time

by jasong November 11, 2021

The decision to purchase life insurance is for many people shrouded in confusion and uncertainty. In fact, it can seem an overwhelming task given the numerous choices you can make. Confusion typically centers around how much and what type of insurance to buy. This is one of the primary reasons people give for not having life insurance, according to a survey by Life Happens and LIMRA for the annual insurance Barometer Study.

But, purchasing life insurance is one of the most important financial decisions you will ever make. The purpose of life insurance is to protect your loved ones that you leave behind. And the COVID pandemic has served as a wake-up call for many Americans and has spurred scores of people to buy life insurance for the first time, according to another Life Happens survey.

Seven Tips for Purchasing Life Insurance:

The process for buying life insurance becomes much easier to navigate once you become informed of specific considerations that are involved in choosing the appropriate policy for you and your loved ones.

Here are some simple tips that should prove helpful when setting out to purchase life insurance for the first time.

Evaluate Your Financial Situation

In order to intelligently purchase life insurance, you need to have a firm grasp of your financial picture. For example, think about what you have available to support family members and other loved ones who depend on you financially. This should encompass retirement savings, any emergency funds, and life insurance coverage you have through your employer.

You overarching goal is to be as prepared for the unexpected as you can possibly be. Work

closely with a financial advisor to talk about the needs you should include with your life insurance policy. This could include the mortgage that will need to be paid, children who will still need to be financially supported, and a maybe a legacy you want to leave.

Be Informed About How Much Coverage You Require

Too often it is the case that people underestimate the amount of life insurance they will need, according to Adam Winslow, CEO of Life Insurance at AIG Life & Retirement. They are focused on their major debt, like a mortgage, when they should also be aware of how much assistance will be necessary to support a spouse to pay bills or to support their children.

One guiding principle is having a policy with a death benefit equal to 10 times your annual salary. Keep in mind that your specific situation may require more than that.

Consider Enhancing Your Life Insurance With Riders

When choosing a life insurance policy, inquire with your company representative about the types of policy riders that are available. Riders or endorsements allow you to customize your policy to cater to your unique needs and budget.

Determine How Long You Will Need Coverage

Life insurance is meant to either last a certain amount of time – known as term life – or a lifetime. If you just require insurance for a certain period of time, such as when your children are growing up or for the duration of your mortgage, then you could be better off with term insurance. However; if you need insurance for as long as you live, such as for burial expenses or income replacement for a partner, think about permanent coverage.

Know What Can Impact Your Insurance Rate

There are two main considerations that life insurance companies refer to when deciding what rate you will pay for coverage. They are your health and age. For example, the younger you are, the less expensive it usually is, as people, as a rule, are healthier when they are younger. This makes younger people less risky to insure.

What’s more, your policy rate also is contingent on the type of policy you have, as well as how large the death benefit is. If you obtain a term life insurance policy, the duration of the term you choose will affect your premium.

If you can only afford a term life policy for the short term but you eventually want permanent life insurance, most term policies provide the option to convert to permanent life insurance. You are able to secure a low rate with term life now and switch to a permanent policy if you experience an increase in income.

Don’t Limit Your Focus to Just the Premium

Although the rate you pay for life insurance is relevant to your budget and what you can afford, the price should not be the sole factor that you consider when purchasing life insurance.

For example, if you are buying a cash value life insurance policy, the policy’s internal costs can be just as important as the premium you are paying. If you are thinking about indexed universal life insurance, be aware of the guaranteed vs. non-guaranteed parts of the policy illustration. Consumer advocates have expressed concern about dishonest sales practices for indexed universal life insurance.

Seek out life insurance companies that have strong financial ratings in the A range from independent rating agencies such as A.M. Best, Moody’s, and Standard & Poor’s. Insurance companies should offer ratings on their websites. You also have the option of inquiring with your insurance agent for companies’ ratings.

Lock in Temporary Coverage

If you discover that the underwriting process will take a few weeks or longer for the policy you are purchasing, you can normally lock in temporary coverage by attaching a check with your initial premium payment to your application. This provides you with coverage, as well as peace of mind, while you wait for the application to be processed.

Inquire with your insurance agent about this option.

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.

Ranch and Home Property Insurance Beginners Guide

by jasong October 28, 2021

graybeal group ranch home farm insurance

Standard Homeowners Policy Covers Select Farming/Ranching Activities

Do you treat your ranching or small farm as a hobby, with no intention of running a commerce operation? If so, then there is a chance that your standard homeowner’s insurance policy covers some of your farming or ranching activities. You need to understand, however, that homeowners insurance policies usually do not cover things such as farm equipment and farm outbuildings.

We encourage you to speak with one of our insurance agents at Graybeal Group, Inc. to determine exactly what coverage your homeowner’s policy provides.

Farming for a Profit Requires a Different Type of Policy

Hobby farming for a profit necessitates different coverage than a basic homeowners insurance policy. For example, if you are selling farmed goods at an area farmers market, you should consider a hobby farm policy.

You should be aware that there are guidelines that must be adhered to in order for a farm to be considered a hobby farm. They include the following:

There must be no employees
Your ranch or farm must be less than 500 acres

Coverage is limited to a single farm location
Total annual farm receipts are restricted to a maximum of $10,000

Minimum coverage of $125,000 on the main dwelling (mobile homes are not eligible)

Livestock Requires Special Coverage

Livestock insurance is similar to crop insurance and is partially subsidized by the U.S. Department of Agriculture. Based on the types of animals that are on your farm, you probably will require special coverage for livestock.

Some options to think about include individual coverage and blanket coverage:

Individual Coverage (Scheduled) — Scheduling animals individually will likely be the right option if you have higher-valued animals that you want to insure up to a specific dollar amount.

Blanket Coverage (Unscheduled) — With a blanket policy, all of your farm property that includes livestock, equipment, and structures is insured in one lump sum amount. When using blanket insurance, make sure to insure to adequate values. Being under-insured might result in a lower claim payment than you need or anticipate.

You should know that the maximum amount payable per head is based on your choice of insurance – individual or blanket.

Again, you will want to talk with your helpful and knowledgeable insurance agent at Graybeal Group, Inc.

Farm Owner’s Policy Required if Farming is Your Full-Time Occupation

If you are farming as a full-time occupation, you will need farm or ranch owner’s insurance coverage. A basic farm owner’s policy typically includes property coverage, liability coverage, and more.

In order to adequately protect your livelihood, the basic coverage will need to be adjusted with endorsements based on your farm’s specific needs. Your insurance agent with Graybeal Group, Inc. can help you determine what types of endorsements will best suit your farm’s needs.

Farm/Ranch Insurance Coverage is Not Standard

Despite the misconception about a policy being one large bundle of predetermined coverages, farm/ranch insurance policies have numerous aspects to them, which means there is no standard policy.

Because every farming operation is unique, a policy needs to be custom built to accommodate each farmer’s needs.

Coverage Limitations on Commercial Structures

Homeowners’ policies, as a rule, restrict coverage on commercial buildings. Conversely, hobby farming policies and farm owner’s policies do not. An example of this is if a building is being used in a way that surpasses the special limits established in the policy conditions – normally in the form of gross annual revenue generated – the building is considered a commercial structure and cannot be covered under a homeowners insurance policy. This also applies to all of the owner’s activities.

Fair Rental Value Coverage

This coverage is designed to pay for the fair rental value of your farm or ranch home if it turns out to be uninhabitable because of a covered loss. You will have coverage to pay for rent elsewhere during the time your home is being repaired.

If you happen to be renting space to tenants on your farm, and that space incurs a covered loss that leaves the space uninhabitable, you will have coverage that can assist in paying the fair rental value of the rental.

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff. With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch.

For more information, we invite you to call Graybeal Group, Inc.

Why You Need Powersports Insurance

by jasong October 14, 2021

You have an ATV and you’re enjoying how powerful and fast it is. It is more thrilling than anything you’ve ridden before.

Being a winter sports enthusiast, you can’t wait to hit the slopes and battle the snow drifts on your snowmobile.

Summer comes and all you can think about is getting on the water with your jet skis. There’s nothing like the charge you get when you test your athletic skills on the rough waters.

While all these outdoor adventures give you an adrenaline rush and offer you a break from the mundane, these endeavors also pose a risk to you and others. With each of these powersports comes the possibility of accidents and injuries to you and others around you.

That is why it is worth considering acquiring powersports insurance.

No matter how confident you feel when you’re riding your ATV or other powersports vehicles, you could run into poor conditions on the road, or you could be jet skiing and hit someone, or experience loss control of your snowmobile. These are all realistic events that can happen when you’re maneuvering these powerful machines.
What is Powersports Insurance?

Powersports insurance will cover your motorcycles, ATVs, boat, personal watercrafts, recreational vehicles, and travel trailers.

Do you have homeowners insurance? You should know that homeowner or auto policies provide little, if any, coverage for these types of vehicles.

Why You Should Carry Powersports Insurance

In essence, powersports insurance is necessary to cover physical damage to your vehicle as well as liability bespoke toward your vehicle of choice. What’s more, you will also be insured against other uninsured parties.

ATV Liability Insurance is mandatory for any ATV driver who takes their vehicle on public streets or highways or rides it on public land. Personal liability coverage protects you in the event you unintentionally injure someone. It also covers you if you damage someone’s property.

Types of Powersports Insurance

For the purpose of simplicity, let’s focus on powersports insurance as it pertains to ATVs. Insurance policies for other powersports vehicles are very similar.

ATV insurance may protect you and your ATV if you are involved in an accident. Your insurer could offer coverage for your ATV as part of an off-road vehicle insurance policy.

Here are some coverages that may be available in an insurance policy that covers ATVs:

Liability Coverage

In just 2014, approximately 93,700 ATV-related injuries were treated in U.S. emergency rooms, according to the Consumer Product Safety Commission. This is one powersports vehicle that has its share of accidents.

If you cause an accident that leads to someone being hurt or it causes damage to another person’s property, this coverage will assist you in paying for the other person’s medical expenses or the costs to repair damage to their property.

Liability coverage usually includes two types of protection:

Bodily Injury: This is liability coverage that takes effect if you cause an accident that harms another person. It usually assists in covering the individual’s medical bills.

Property Damage: This coverage becomes relevant when you are responsible for an accident that damages another person’s property. For example, it could be helpful in covering the cost to repair damage to a building or fence after a collision.

Collision Coverage

If your ATV is damaged after you struck another vehicle or another object, like a wall or fence, collision coverage will help cover the cost of repairing your ATV.

Collision insurance helps to pay to repair or replace your vehicle if it is damaged from the following scenarios:

A collision with another vehicle
A collision with an object, like a tree or a fence
A single-car accident that involves rolling or falling over

Comprehensive Coverage

This coverage kicks in if your ATV is damaged by something other than a collision, such as a fire or hail.

Comprehensive insurance also takes effect and helps to pay to replace or repair your vehicle if it is stolen. Sometimes called “other than collision,” comprehensive coverage normally covers damage from vandalism or falling objects, which can include hail and trees.

Comprehensive insurance will also cover damage to your car in the following events:

Natural disasters, such as a hurricane or a tornado
Damage done to your car by animals
Theft
A civil disturbance like a riot that leads to damage or destruction of your car

Personal Watercraft Insurance (PWC)

PWC coverage encompasses the same types of coverages that are relevant to an ATV and a snowboard.

Most PWC policies are “all risk” policies. Another words, unless something is specifically excluded, it is covered.

The following scenarios are not covered by PWC:

Operating watercraft when it is dark
A PWC modified to enhance performance
Operation of powersport vehicle by anyone without a driver’s license – however, that could be modified with an endorsement

Snowmobile Insurance

Similar to ATVs, the main coverages for snowmobiles are liability, collision, comprehensive, and medical payments. Other protection includes trailer coverage, increased liability limits, and optional equipment, such as towable sleds and custom parts.

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.

Property and Casualty Insurance

by jasong September 23, 2021

When you have property and casualty insurance, your personal items such as home, cars, and even pets are covered from negative occurrences that could involve injury or damage. Having property and casualty insurance protects you if you are found legally responsible for an accident that leads to injuries to another person or damage to another person’s stuff.

You can also think of it this way: Property and casualty (P&C) insurers are companies that offer coverage on assets, and these could include a house or car, in addition to liability insurance for accidents, injuries, and damage to other people and their belongings.

What is Property and Casualty Insurance?

There are various types of things that P&C insurers cover that encompass auto insurance, home insurance, marine insurance, and professional liability insurance. You, as a customer, pay P&C insurers an insurance premium for the coverage you choose to carry.

Other types of P&C insurance are condo insurance, co-op insurance, HO4 insurance, liability insurance, pet insurance, etc.

What P&C insurance coverage does not include are life insurance, health insurance, and fire insurance.

Property Insurance

In a general sense, property insurance refers to your personal belongings – everything that you own. Depending on the type of insurance you acquire, property insurance can be defined in various ways. For instance, when it comes to a renters policy, your property is referred to as personal property. It applies to your personal belongings in the event of a covered loss.

Business owners will typically view property insurance as a necessity to protect their property in the event of vandalism and theft. In these instances, property insurance will also cover the business structure and its contents.

Insurance can also apply to pets. Because your insurance reimburses you for the costs of your dog’s or cat’s care, it is considered property insurance.

Personal property coverage – contents insurance – is included as a standard renters or homeowners insurance policy. This insurance policy makes it possible to recover the cost of your lost or damaged stuff for many different situations.

Types of Coverage for Property and Casualty Insurers

Property and casualty insurers focus on risks that result in property losses and losses of possessions.

Here are what the different types of insurance will cover:

Home Insurance – Covers losses to residences and property stemming from unusual weather, fire, theft, or other similar incidents. What’s more, this type of insurance applies to third parties from actions by the insured individual.

Auto Insurance – This covers losses to individuals and properties in the event of car accidents and other unexpected auto events.

Marine Insurance – This coverage applies to losses to shipping vehicles.

Professional Liability Insurance – This insurance policy covers losses to professional clients as a result of negligence.

Casualty Insurance

In essence, casualty insurance is insurance that covers the legal responsibility for losses emanating from damage to another person’s property or an injury to another individual. For homeowners or renters insurance, you can find this coverage type in your liability coverage amounts section of your policy.

Small business owners tend to carry casualty insurance as it protects their company from liabilities in the event of an employee being injured on company property.

How Property and Casualty Insurance Are Applied in Real-Life Situations

Property and casualty insurance companies provide insurance to customers for risks, up to a certain amount of coverage. Insurance customers pay an insurance premium to receive these insurance coverage services.

When property and casualty insurance companies provide coverage to someone, they must set an insurance premium. They determine the amount of the insurance premium based on the riskiness of the customer. In most cases, the insurer will evaluate the likelihood of the customer making a claim, and the potential amount of that claim, when an insurance company calculates the insurance premium amount.

Learn more about P&C Insurance.

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff. With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp,
Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.

Crop Insurance 101

by jasong September 15, 2021

While it might not make for stimulating conversation at the table over a meal, crop insurance may be a more relevant and important topic than you might think.

Consider this: Look down at your plate that might include a burger, green beans, cucumbers, mashed potatoes, tomatoes. If crop coverage did not exist, you could be looking down at an empty plate.

The same idea applies to the clothes you are wearing. If your shirt is made of cotton, you can attribute that to crop insurance.

Crop insurance serves a vital role in our society. That is because crop insurance in Oregon and elsewhere ensures that the people who put those products on your table and on your body can do so year after year. As opposed to other livelihoods, crop and livestock producers are completely susceptible to the weather. They work no matter what type of weather is occurring. The weather also plays a strong role in the amount of production that crop producers realize. As a result, the weather has a very real indirect effect on their income.

Crop coverage limits the risk of adverse conditions for crop producers, in addition to the risk of bankers who invest in them.

What is Crop Insurance?

You can trace the origin of crop insurance in the U.S. way back to 1880. That was the year when private insurance companies began to sell policies to protect farmers against the impact of hailstorms. The so-called “Crop-Hail” policies are still in existence today. 1n 2017, farmers paid $956 million on Crop-Hail insurance to safeguard $36 billion worth of crops.

Farmers in Oregon also have the option of buying Federal Crop Insurance, which is also referred to as multi-peril crop insurance. This is a risk management tool that protects against the loss of their crops as a result of natural disasters like freezes, floods, fire, insects, drought, disease and wildlife, or the loss of revenue due to a drop in price. This type of crop coverage is supported and regulated by the federal government and is sold and serviced by
private-sector crop insurance companies and agents.

The private sector began providing multi-peril crop coverage in 1981, and participation has skyrocketed ever since. During the early 1980s, just 45 million acres and $6 billion worth of crops were insured. As of 2017, 1.1 million policies were sold that protected in excess of 130 different crops, covering 311 million acres, with an insured value of $106 billion.

Now-a-days, crop insurance is considered the foundation of U.S. farm policy.

How Crop Insurance Compares to Other Types of Insurance

As with all types of insurance, crop coverage is most effective when more people participate. This idea is known as the “risk pool.” The more people participate in crop insurance, the more risk is distributed. When you spread the potential loss among a varied group of people who are insured, insurance premiums tend to be more affordable for all participants.

The burden of paying insurance premiums is shared by people who carry many types of insurance, including crop insurance. However, crop insurance is somewhat distinct as agriculture is a unique type of industry that can sustain specific kinds of losses exclusive to agriculture. What sets agriculture apart is that losses that occur in this industry are normally geographically based and quite harsh.

For example, it is very unlikely that all motorists in a particular area will experience serious accidents or that everyone in a specific county will require medical services simultaneously. When it comes to crop producers, however, one incident of extreme weather has the potential to result in a devastating loss for all farming entities in a county or region. This phenomenon makes it more problematic to insure.

This is why government support is so needed for the agricultural sector. All agricultural workers, including crop producers – with the potential for a cataclysmic event that can cause widespread destruction – are at higher risk for insurance companies. This translates into crop insurance policies being extremely expensive to buy, and very limited if it were not for the federal government’s subsidies.

As a result, the U.S. has a crop insurance system that is established on a public-private partnership built on an arrangement between private insurance providers and the U.S. Department of Agriculture.

This arrangement is outlined in a contract that is referred to as the Standard Reinsurance Agreement. Companies that sell crop coverage have to sell a policy to any qualifying farmer at the premium rate established ahead of time by the federal government. What’s more, insurance companies are not permitted to decline protection, increase the premium rate, or impose special underwriting standards on any specific eligible farmer, no matter the risk.

People & Entities Who Benefit from Crop Insurance

Farmers look to crop insurance to recover financially from severe events such as natural disasters and volatile market fluctuations. Crop insurance also pays the bankers, fertilizer suppliers, equipment providers and landlords, as well as being used to purchase their production inputs for the following season. It also gives crop producers the confidence to make long-term investments that are designed to increase their production efficiency.

Other people and entities who also benefit from crop insurance include the following:

Rural Economy: The rural economy is very reliant on farmers’ ability to be resilient subsequent to significant setbacks. The Farm Credit Services of America commissioned a study that described this relationship after the devastating 2012 drought. Crop coverage was credited with salvaging more than 20,000 jobs, with an annual labor income of $721 million in Iowa, Nebraska, South Dakota, and Wyoming alone.

Savings to U.S. Taxpayers: Without crop coverage, the cost of natural disasters that impact farmers would be left to U.S. taxpayers to pay, which was the case prior the availability of crop insurance. An example of this is 42 emergency bills in agriculture costing taxpayers
$70 billion from 1989 to 2012. This is according to the Congressional Research Service. Now, thanks to crop insurance, farmers bear some responsibility for the risk, in addition to private-sector crop insurance companies, and the federal government.

Agriculture is Integral to the Health of the U.S. Economy: We all look to agriculture for our food and clothing. In fact, agriculture alone makes up approximately 5 percent of this country’s economy and about 10 percent of U.S. employment. This supports the argument for why it is in all of our interest to ensure the agricultural sector is financially stable and able to bounce back from natural disasters and be allowed to continue to produce. Crop producers are also contending with unfair competition from foreign countries that choose to subsidize heavily and violate international trade rules. Without crop insurance, crop producers would be out of business.

Learn about insurance coverage options and how Graybeal Group Inc. can help you!

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.

Liability Coverage for Business Auto Insurance Policies in Oregon

by jasong August 30, 2021

commercial liability auto insurance oregon

WHAT’S COVERED, WHAT’S NOT ON MY BUSINESS AUTO POLICY

Liability has to do with bodily injury and property damage. Just think of an accident, where someone gets hurt and there is damage to the vehicle. Liability literally means: the state of being responsible for something, especially by law. So, we are referring to someone being named at fault for an accident/damage that results in someone getting hurt (bodily injury) or property damage (dented vehicle).

Liability coverage ensures that the insurance company will pay money, up to the limit you are covered, that you must legally pay due to bodily injury (someone is hurt as a result of your/insured’s actions) or property damage (property damaged due to your/insured’s actions). These injuries- to body or property must come from using, maintaining, or by owning a covered (by liability insurance) vehicle.

Also, if somehow pollution does bodily harm or damage to property as a result of maintaining, using, or owning a covered vehicle, the insurance company will cover that as well- the cost/expense necessary.

EXCLUSIONS FOR LIABILITY SECTION OF COMMERCIAL AUTO- WHAT’S NOT COVERED…

The following instances are not covered:

Intended or Expected Injury: This includes property damage or bodily injury that is expected or intended (on purpose)
Contractual Liability- This is when liability is assumed under a contract/agreement
Workers Compensation- If someone is covered by workers compensation insurance, disability benefits, unemployment compensation law, or any other similar law- it is not covered by the liability portion of this policy. Also, any bodily injury to an employee caused by another employee is not covered.
Property that is owned by, transported by or property in the care, custody, or control of the person insured.
If there is bodily injury or property damage that comes from handling of the property either- before it is moved from the place where it’s accepted by the insured person to move it into a covered auto, or onto the covered auto. Also, after it’s moved from the covered vehicle to the place where it’s finally delivered.
If bodily injury or property damage results from movement of property by mechanical device (other than hand truck) unless the device is attached to a covered auto.
Mobile equipment – If damage (bodily/property) comes from mobile equipment, it is not covered.
Injury (bodily/property) that happens after you’ve completed work or abandoned it.
Pollution damage is excluded, except as you see above as provided in the policy.
Injury (bodily/property) that is a result of war, or any act or condition incident to war. This includes war, civil war, rebellion, revolution, etc.
If a covered auto is used in pro racing/organized racing/demolition contest/stunting, or practicing/preparing for an event of this type.

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing in Oregon

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff. With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch.

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523.

Do I Need Inland Marine Coverage in Oregon?

by jasong August 28, 2021

Inland marine IS related to Ocean Marine Insurance, they both cover goods traveling from one place to another. The basic difference is Inland Marine Insurance covers goods traveling overland, and Ocean Marine, covers them traveling over water. Over the years, the National Association of Insurance Commissioners has changed the definition to Marine Insurance with parts of it such as Inland Marine, Ocean Marine, and Transportation.

There are six categories of risk identified in the definition of Marine Insurance:

Exports
Imports
Instrumentalities of Transportation and Communication
Domestic Shipments
Commercial Property Floater Risks
Personal Property Floater Risks

Imports and exports have to do with Ocean Marine; they are a category of Ocean Marine. Both cover property anywhere, with no time restrictions, as long as it addresses and includes the hazards of transportation. It is also important to say that Ocean Marine insurance is not eligible to be included in a Commercial Package Policy. Every Ocean Marine contract is written as a stand-a-lone specific to the issue at hand.

Commercial Property Floater risks covers property pertaining to business, occupation, or profession. Focusing on things like Equipment forms, business floaters, dealers policies, and bailee’s customer forms.

Personal Property Floater risks are things such as personal articles, personal property, and personal effects that fall under Personal Inland Marine insurance.

Domestic Shipments provides a variety of transportation forms covering property while in the custody of others and while in transit. The goods may be shipped by a common carrier, such as a trucking company, railroad, airline, or by the company’s own trucks, or by mail or parcel post.

Instrumentalities or means of Transportation and Communication- includes forms that cover property related to transportation; not necessarily mobile in and of itself, but dealing with transportation of something, for example:

Pipelines, tunnels, and bridges
Wharves, docks, and piers
Telephone and telegraph lines, radio and tv communication equipment, power transmission
Outdoor cranes, loading bridges, and any similar equipment used to load, unload, and transport.

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing in Oregon

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523.

The Cost of Crop Insurance

by jasong August 26, 2021

“Crop insurance premiums are going to be substantially higher this year,” said Jim Mintert, a Purdue University Agricultural Economist. “There’s really two big factors driving those premiums up. One is the dollars of revenue that you’re covering, and as the dollars of coverage goes up, those premiums go up. The second factor is volatility. Prices this year in February were more volatile than they were in February a year ago, so those two factors are driving premiums up.”

That is why Mintert, and fellow Purdue University Agricultural Economist Michael Langemeier, urged farmers to think carefully about their crop insurance decisions. Langemeier said farmers should be prepared for some “sticker shock” when they make their crop insurance selections this year.

However, there is good news regarding crop prices and government payments in 2020, as they were quite strong. Grain farm also tallied robust incomes. It was the first time in many years that net returns to land met or exceeded cash rental rates. This is likely to happen again in 2021, Langemeier said in a recent webinar.

Crop Insurance Projected Prices

These crop insurance projected prices were calculated in February of 2021:

Corn – $4.58

Soybeans – $11.87

These Projected Prices are higher than the past few years.

Corn

2021 – $4.58

2020 – $3.88

2019 – $4.00

2018 – $3.96

Soybeans

2021 – $11.87

2020 – $9.17

2019 – $9.54

2018 – $10.16

Higher Projected Prices means more revenue coverage in 2021.

For a 200 bushel APH corn farmer, 85% Revenue Protection means $119 more coverage per acre in 2021 compared to 2020.

For a 55 bushel APH soybean farmer, 85% Revenue Protection means $127 more coverage per acre in 2021 compared to 2020.

Click here for a quick and easy cost estimator!

General Advice for Farmers:

Langemeier and Mintert offered the following advice to farmers –

Revenue Projection: Put much of your focus on revenue projection. While there are several types of yield protection products, revenue projection protects against a reduction in prices as well as yields. In the past few years, farmers have been inclined to buy higher levels of coverage, although it differs regionally.

“Even though premiums are higher this year, we do not recommend that you reduce coverage this year to try and save on premium,” Langemeier said. “I think there’s enough downside risks this year, and you will want that protection that you get with the coverage level you’ve been using in the past.”

Harvest Prices: Harvest prices matter. Several years ago, the Risk Management Agency modified the rules regarding harvest prices. Rather than having to opt-in to have harvest prices considered in coverage, farmers now have to opt-out. Basically, revenue calculations will be issued based on whichever is higher – the average price during February or the average price during October.

Langemeirer suggests buying revenue protection with the harvest price exclusion is not worth the lower premium. “The projected price versus the harvest price is extremely powerful. If the harvest price increases, you get a higher revenue guarantee as you’re protecting those more expensive bushels,” he said. When harvest prices are higher, it tends to be by a sizeable margin.

Consider what type of unit you purchase carefully: Enterprise units, which combine all basic units of one crop in one county together, are typically the most affordable because they are subsidized at approximately 80 percent. Optional or basic units will be more expensive, however they are more likely to pay overtime. They could be a good option for farms located within a county that has considerable variation in yield potential.

Supplemental Products: Supplemental products are not for everyone. However, they can be useful. Farmers have two choices, the Supplemental Coverage Option (SCO) and the Enhanced Coverage Option (ECO). ECO is new this year, and delivers an extremely high level of coverage, from your choice of 95 percent or 90 percent to as low as 86 percent.

Both coverage products pay out based on county-level guarantees, which poses challenges when it comes to having a clear understanding of the type of coverage you have. Mintert and Langemeier are opposed to lowering your revenue protection if you are thinking about buying these products.

“It’s certainly not a no-brainer on whether it’s worth it,” said Mintert. “This is something for individual farms to look carefully at to determine if the additional revenue guarantee is worth the additional premium.”

Farms that have yield histories that closely monitor their county averages may very well have an easier time assessing ECO. What’s more, Langemeier said that farms that have tight working capital and cannot afford a small loss should consider ECO.

To learn more about how Graybeal Group Inc. can assist with your crop insurance needs, click here!

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.

Do I Need Worker’s Compensation Insurance in Oregon?

by jasong August 23, 2021

WORKER’S COMPENSATION- WHAT IS IT? WHY WAS IT CREATED?

Worker’s Compensation Insurance was developed to make sure workers are protected on the job, from illness or injury- as long as the illness/injury was caused due to work-related activities while at work. Because these laws were developed, an employee cannot sue their employer that has Worker’s Compensation Insurance. Why? Because the insurance will pay out according to a schedule mandated by the law.

DOES OREGON REQUIRE ME TO HAVE WORKERS COMP INSURANCE?

Oregon law states that employers are required to carry Worker’s Compensation Insurance. The employer does have the choice to purchase this insurance through a private commercial insurance company, they do not have to purchase through the state, or they may self-insure for Worker’s Compensation. Self-insured means the company must show they have the financial ability to make prompt payment of all compensation and any other payments as well. They also must have staff on hand to process the claims within a timely manner. Most companies purchase Worker’s Compensation Insurance through a Commercial Carrier, rather than self-insure.

WHAT ARE THE BENEFITS OF DISABILITY INCOME IN OREGON?

The Average Weekly Wage is the maximum benefit you can receive from Worker’s Compensation in Oregon. The weekly benefit payable is 66 2/3% of your earnings, subject to the max benefit (Average Weekly Wage). The state figures this number out by taking the average weekly wage of workers in covered employment during the last calendar quarter of the prior fiscal year. Also, the Oregon waiting period to begin receiving pay, is three days.

THE SURVIVOR/DEATH BENEFITS FOR AN EMPLOYEE’S SPOUSE/CHILDREN IN OREGON:

Dependent child’s benefit (if no surviving spouse): Each child receives a monthly benefit equal to 4.35 times 25% of the average weekly wage until they’re 18 unless for some reason their entitlement goes past the age of 18. If the child is in high school full time, they are entitled to these benefits until they are 19.

Dependent child (college-higher education): If the child is attending higher education or begins within 6 months of graduation from high school, benefits will be continued until the child is 23. The benefits will cease at the earliest of: child stops attending or they graduate. They also must be enrolled part-time at school (half) to be eligible for these benefits.

The maximum family benefit payable for a surviving family can not exceed 4.35 times 133 1/3% of the average weekly wage. If the sum of the benefits is above the maximum, each child’s share is reduced proportionately.

If the surviving spouse remarries, they will be paid a lump sum payment equal to 36 times the monthly benefit which will then be considered settlement of the account. However, this does not affect children’s benefits- they will continue.

Monthly benefits are paid 4.35 times 66 2/3% of the average weekly wage until remarriage. The surviving spouse also receives a benefit equal to 4.35 times 10% of the average weekly wage for each dependent child, until the child is 18.

The cost of burial, transportation of the body cannot exceed 10x the average weekly wage.

For more on the benefits of a worker’s compensation insurance policy, click here!

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing in Oregon

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523.

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