What is the one thing that consumers do that causes auto insurance prices to go WAY up? You may be surprised to know that it is NOT necessarily a ticket or violation but rather a lapse in coverage. [Read more…]
Best ways to prevent a big increase in Auto Insurance rates
Auto Insurance Myths and Realities
There are some things that you may have heard about Auto Insurance, continue reading and you may find something new out about your Auto Insurance!
Myths
Red cars cost more to insure.
Color is not a factor used to calculate car insurance rates — we don’t even ask you what color your car is when you get a quote from us. Factors that do matter are the year, make, model, body type, engine size and age of your car, as well as drivers on your policy.
One speeding ticket will make my car insurance rates go up.
Sometimes this is true, but in many cases, you have to get two tickets before your rate goes up. Your driving history, the length of time you’ve been insured with a company and how fast you were going when you were cited can affect whether your rate increases or not. Keep in mind that a speeding ticket may not be the sole reason your rate increases, as several factors are considered when reviewing them.
Auto insurance rates aren’t regulated, so auto insurance companies can charge what they want.
Each state requires auto insurance companies to file how they calculate customer rates, and insurers cannot deviate from these filed rates. Each state also has regulators who review that information and the rates companies charge.
I only need the bare minimum amount of car insurance.
Many states have minimum car insurance requirements, but the minimum amount of required insurance may not cover all of your costs. If you cause an accident that results in a lawsuit and your insurance limits don’t cover all of the damages, your assets could be pursued.
Cheaper cars cost less to insure.
If your cheaper car has a large engine, weighs a lot or is an unusual model, it might cost more to insure than a more expensive small car. However, if you have a cheaper car, you will pay less for Comprehensive coverage, which covers damage caused by vandalism, hail, fire or animal accidents.
If someone driving my car causes an accident, I won’t be held responsible.
It’s possible you’ll be financially responsible for an accident — even if someone else is driving your car. In most states, the car insurance policy covering the vehicle is considered the primary insurance, which means that the insurance company for the vehicle must pay for damages caused by an accident. Even so, it’s still possible that the driver’s insurance company could be responsible for some of the damages. Why? If the vehicle’s insurance limits are too low and don’t cover all the damages, the driver’s insurance may be next in line to pay for the remainder of the damages.
Since policies and laws differ by state, knowing how your state’s insurance system works could influence who drives your car.
Older cars are cheaper to insure.
Car insurance rates for all vehicles vary depending on several factors, such as who drives a vehicle and its annual mileage. For older vehicles, many drivers choose to carry only Liability (BI/PD) coverage, which covers injury or damage to other people or property, not damage to the insured person or vehicle. Liability only coverage may be cheaper than insuring a vehicle with Liability, Comprehensive and Collision coverage.
My car insurance rates will be higher if I’m a smoker.
Your car insurance rates will not be higher if you smoke — we don’t even ask you if you’re a smoker when you get a quote from us.
My car insurance rates will be similar to my neighbor’s rates.
Car insurance rates are individually determined, so factors such as age, driving record, type of vehicle and marital status are considered. Each person’s situation is unique, and car insurance rates will vary because of this.
Car insurance rates go down dramatically when drivers turn 25.
Younger and older drivers typically have the most car crashes, and customers of different car insurance companies have different claims experiences. When determining auto insurance rates, insurers generally consider a variety of information about you, including age, vehicle information, claims history and the claims experience of other customers like you.
While it’s generally true that rates will go down when you turn 25 if all information about you and your vehicle remains the same, changes in one or more of the other pieces of information used to calculate a rate could lead to you getting a higher, lower or the same rate when you turn 25.
Comprehensive coverage protects drivers in all situations.
Comprehensive coverage is one type of protection available on an auto insurance policy (others being Collision, Uninsured Motorist, etc.). Comprehensive coverage pays only for damage caused by an event other than a collision, including:
- Fire
- Theft
- Vandalism
- Weather (hail, floods, etc.)
- Vehicle collisions with animals
I can use Rental Reimbursement coverage to rent a car for my vacation.
Unless your insured car is in the shop as the result of an accident, you won’t be able to use Rental Reimbursement to rent a car for vacation. Depending on the limits you selected when you bought your policy, Rental Reimbursement coverage pays for some or all of the cost of a rental car — but only when your insured car is in the repair shop because of a car accident.
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Realities
People who live in the city pay more to insure their cars than people outside the city.
Within a state, city dwellers usually pay more for car insurance than rural residents. Cities have a higher risk for claims due to more traffic, more people and more theft, which generally means higher car insurance rates.
An accident can make my rates go up, even if it’s not my fault.
Accidents that are your fault have a direct effect on your car insurance rate. Depending on the circumstances, you also may be placed in a group of customers who receive higher rates, even if an accident isn’t your fault.
Anyone who drives my car with my permission is covered if I have insurance.
If you allow someone to drive your car, that person is covered by your insurance policy. Keep in mind that if the person who drives your car doesn’t have insurance and causes an accident, you could be held responsible for the damage, which could make your car insurance rate go up.
Information from my credit report is used when determining my car insurance rate.
Most auto Insurance companies in Florida use what is called an insurance score — this score is used when determining your car insurance rate. We use credit because numerous studies have shown that credit is a very powerful and independent predictor of the likelihood of future accidents or insurance claims. In fact, one company’s data shows that consumers with the worst insurance scores are twice as likely to have an accident or insurance claim as those with the best scores.
“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”
Some information courtesy of Progressive.
Do I buy a Personal or Commercial Auto policy?
Everyone agrees that selecting the appropriate tool for a job is the difference between success and failure in any profession. So why should it be any different when managing the risk associated with your commercial insurance policies. While price should always be considered, having the appropriate coverage (tools) can also mean the difference between staying in business or folding up shop because you are under or not even insured. Having the proper coverage for you, your business, and your employees could give you the needed protection in the unfortunate event that one of your vehicles is involved in an accident.
So, if you own a business and you or your employees use a vehicle for any business-related activities, you may need a commercial auto insurance policy that’s tailored to more closely suit the needs of your business instead of just a personal auto policy. Sit with an independent insurance agent to determine your exposures and solutions.
Asking yourself the four questions below will help you determine if you might need a commercial auto policy instead of a personal auto policy:
1) Do you need higher liability limits than your personal auto policy (PAP) provides? Most of the time, commercial auto policies provide significant higher limits of liability, but may be lacking in areas that are not associated with commercial auto risks.
2) Do you need any special coverages while conducting business? Commercial auto policies usually offer additional coverages not found in the PAP—such as hired and non-owned auto or coverage for towing a trailer that is used for business
3) Do you need to list any employees as drivers? This is a big difference, and this is easily done with a commercial auto insurance policy.
4) Do you use your vehicle for business purposes? If you use your vehicle in the course of doing business, you might need a commercial auto policy.
Making good and informed decisions about your insurance needs will help you manage all of your risks, and allow you to sleep better at night. Make sure you consult an independent insurance agent before engaging in a new business or taking on new roles as a business. They represent multiple carriers and can help you find the right commercial policies that will fit not only your business, but your budget as well
How to protect your business commercial auto risks in three easy steps
Your business is only as safe as the tools you use. One of the best tools your business can use to protect your assets is a commercial auto insurance policy.
Understanding insurance can be tricky. That is why you should consult an independent insurance agent since one of the first steps toward making informed decisions is to understand your coverage and service options. Here are some easy steps to help you figure out your commercial auto insurance risks and needs:
1. Make sure you choose an insurer with the right combination of price and service options to suite your needs. Insurance isn’t just about price. It’s about the service, too. How are claims handled? How fast are they settled? How long will it take to get your vehicle back on the road? Do you have access to someone to assist you outside of business hours or online, and do they know the answers to your questions?
2. Research all of your policy options. Having the correct coverage is important. Most standard commercial auto policy generally includes coverage for the following:
•Injuries or damage that you create or cause.
•Your driver’s injuries.
•Injuries and damages caused by uninsured or underinsured drivers.
•Damage to, or theft of, your vehicle(s).
When it comes to the damage that you may cause, you may be required by your carrier to purchase certain limits based on who you work for. For instance, if you work for a certain company, you may be required to carry $2 million in liability limits. You will need to consider how much you are willing to pay out of pocket if your liability in an accident is more than your policy limits.
3. Know how your policy is underwritten and priced. You most certainly can control your insurance costs. To get the best rates, run MVRs (motor vehicle reports) on your potential drivers. If you let your insurance lapse (expire), you’ll probably pay more for your next policy. Ask about discounts, including paid-in-full and renewal discounts.
Just like your customers rely on your professional skills, call an independent insurance agent who will be your trusted advisor who will research your options and recommend the best options for your business!
“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”
Cheap Auto Insurance: The Hazards of Choosing Cheap Car Insurance
Dangers of cheap auto insurance: pitfalls of choosing a cheap car insurance provider.
If you own a car, truck or other motor vehicle, most states require you to purchase Auto Liability insurance, which can protect you and your passengers in the event of a covered loss.
Auto insurance rates are based on many factors and quotes can vary widely. Among the factors that insurance companies often consider when setting rates are age, gender, driving history, and the year, make and model of the vehicle. Additionally, in some states insurers can consider credit histories when providing rate quotes.
If your car is financed, your lender will likely require you carry some form of Comprehensive insurance (sometimes known as “Other than Collision Coverage”). This type of insurance protects you against damage caused by things other than a vehicle collision such as fire, hail, flood, vandalism or theft. Collision insurance is coverage that applies to your vehicle if it is damaged as a result of colliding with another object—another vehicle, for example, or a tree.
Here are some tips to consider while shopping for a quality provider and affordable rates:
- Check with an Independent Insurance Agent. They can provide you with more than just one quote from several companies. And the best part is they work for you, not the insurance company.
- Maintain a clean record: A good driving history is your best defense towards obtaining and maintaining affordable insurance. Obey traffic laws, keep a light foot on the accelerator, and—if you choose an insurer that uses credit scoring in their evaluations—pay your bills on time.
- Bundle your insurance: Many insurance companies sell other types of insurance, such as homeowners, renters or condo insurance, or mechanical breakdown protection. Consolidating your insurance policies with a single provider can create a substantial discount on your premiums.
- Drive an economical car: Insurance rates are partially based on the type of car you drive. If your vehicle has low safety ratings, a high theft rate or a high incidence of vandalism, you may pay a higher premium.
- Don’t give inaccurate answers or try to mislead. Most of the time consumers “think” they know the correct answers in order to keep prices low. In most cases they are costing themselves money instead of saving and it will likely lead to an uncovered claim if you lie about anything on an application. Be honest and your agent will have your back. If you choose to buy coverage directly from a website or 800 phone number, you have no agent to assist you.
- Listen to your agent. If you don’t know the difference between Bodily injury and Personal Injury, how do you know how much coverage to buy? Your agent is there to help you make an informed decision about proper and adequate insurance protection. If you don’t understand what they are saying, ask for clarification. If you don’t purchase what they suggest you cannot blame them for not having enough coverage when you have a claim.
“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”
Finding the Right Commercial Auto Policy
We all know that price is a big consideration when looking for a commercial auto policy, but keep in mind; you also need to find the best all-around coverage to suit your company’s needs.
First and foremost, you need to understand what coverage and service options are available for your risks. This will help you make a more informed decision so that you and your business are properly protected. Here are some tips that you should consider when researching the right coverage for your company.
- Know the insurance company you’re dealing with. What is their reputation for handling claims. It does you no good to get “cheap” coverage if in fact they don’t pay claims, and this could cost you more in the long run. Also, make sure the company specializes in commercial coverage. An independent insurance agent will generally have several choices of insurance companies.
- Look for discounts. Before seeing an agent for a quote on your commercial auto policy, get your company’s loss and financial records together. It may help you save quite a bit of money. There are a lot of discounts for things like increased liability limits in the past, if your employees consist of experienced drivers, or if your company’s credit rating is good.
- Don’t let your coverage lapse. If you have continuous coverage, your costs will be lower than if you let your policy laps, so never let your insurance policy lapse.
- Check driving records before hiring. Make sure you request a Motor Vehicle Report (MVR) for every potential hire if they will be driving company vehicles.
As your independent agent, we can help you find the right coverage through the right company, and know the discounts that each of these companies offer. Call us at 239.656.5551 or visit our site: www.lciquotes.com
Why is My Neighbor’s Insurance Cheaper than Mine? Differences in Homeowner and Auto Policies
Why is my neighbors insurance cheaper than mine? That might be a question you’re asking yourself after finding your neighbor is paying less on their car or homeowners insurance than you are. [Read more…]
What Listing as a Driver does and doesn’t do
When analyzing coverage under an auto policy it’s very common to hear someone say, “Just list them as a driver and that way they are always covered.” [Read more…]
Cell phone distraction affects and impedes driving for all but a few of us.
A recent study out of the University of Utah found that there are very few, a whopping 2.5% of those studied, who can actually multitask by driving safely and talking on their cell phone. Most of the rest of us, 97.5%, could not stand up to the challenge of chatting on our cell phones and driving in a simulated test. It those 97.5% of people, about 20% percent longer to brake when they needed to, compared to how quickly they could brake without the distractions of their cell phone.
So when you are talking on your cell phone and driving, you might think you are one of the few, the proud, the 2.5%, and can do it safely, but there is a 97.5% chance you can’t. A lot of people don’t realize the damage that this can cause to not only property, but to individuals as well, and just because you may be insured, the consequences of cell phone or PDA (personal digital assistant) distractions could be a life changing event and not just damage to property…think about it!
Basic Understanding of Business Auto
Many people don’t know that Business Auto Coverage (BAC) provides protection against a broad range of hazards arising out of “autos”. This is different than “mobile equipment” Which is generally defined as automotive equipment designed for use on public roads.
You will find in the BAC two types of coverage, Liability and Physical Damage. You can also get other coverages which are basic to business auto exposures, and added by an endorsement to the policy. Each state may have different kinds of coverage, but some may be Personal Injury Protection, Medical Payments or Uninsured Motorists.
LIABILITY COVERAGE.
Liability coverage protects those who are “insured” from legal liability for bodily injury, property damage to others, or caused by auto accidents. Generally the insurer also agrees to defend insured against all liability claims for which coverage is afforded.
PHYSICAL DAMAGE COVERAGES.
Coverage for accidental damage to those designated as “covered autos,” in your policy without regard to fault, is available through Physical Damage coverage. Physical Damage is generally broken up into subsections
The first section, collision or overturn and the second section, causes other than collision or overturn, which may be either “all-risk”, (Comprehensive) or for named perils (Specified Causes of Loss).
