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
Why Do My Auto Insurance Rates Keep Going Up Even Though My Car Keeps Getting Older?
Why do my auto insurance rates keep going up even though my car is getting older? At the Lee County Insurance Agency, many of our clients ask this question so I would like to address it from a couple of angles. [Read more…]
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.”
Diminished Value and Automobile Physical Damage Coverage
If a person has a car accident and has coverage for an automobile’s physical damage, the insured expects the insurance company to pay for the damage and “return the auto to its previous state”; a state in which the car was before the accident in question. The insurance company does in fact pay; however, the actions taken by the car owner after the repairs are made, such as the sale of the car, are typically impeded by diminished value caused by the repairs.
This car owner suffers monetarily because the car is not worth as much as it was before the damage happened and repairs made. For example, a car’s valued market price is $10,000 and the owner has an accident of which repairs cost $4,000. The owner decides to sell after repairs are made, but because the car was in an accident, the seller only receives $8,000 for the car, which leaves the owner out of pocket for $2,000.
Because of the various interpretations of the statement “previous state,” insurance companies usually will not pay for that $2,000 the car owner lost during its sale because they did return the car to its previous state, according to the repairs made. The insurance companies argue that the car has experienced a diminished value and there is nothing they can do. However, diminished value insurance can be added to a Physical Damage auto policy in some states. This form of coverage will pay out the difference between the original sale price and the diminished value price, should there in fact be a difference.
Automobile physical damage and diminished value insurance coverage protects an automobile owner for when damage to the car through the event of fire, theft, or other such loss suffered to the car, including diminished value in some cases, such as a third-party 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.”
Will my credit rating change my insurance rates?
I was recently asked this question by one of our Lee County Insurance clients, and thought I would share the answer here for our readers.
There are a lot of things that go into homeowners and auto insurance rates, one of them being credit. I’ve heard a lot of complaints from people who don’t like the fact that insurance companies use credit in their underwriting. [Read more…]
How to save money on your car insurance
In these times, saving a little extra here and there can mean a lot to all of us so here are some tips when purchasing auto insurance that you could discuss with your independent agent.
Since auto insurance rates differ from insurance company to insurance company, it pays to shop around for the best coverage that suites your needs, and honestly cheaper does not always mean better! Independent insurance agents represent several insurance companies, so they have the ability to compare multiple insurance companies and policies to find the one that’s right for you and your family.
In addition to having your independent agent shop around, there are other steps you can discuss with them to possibly lower your insurance premiums.
Make sure your policy info up to date? Moving, getting married, kids with good grades, or if it has been at least three years since your last driving violation may offer you a reduction in your auto premium. Have your independent insurance agent check with the companies. You may be eligible for lower premium.
Are you carrying the appropriate coverage for your car? Some times the age of your car and the cost associated with extra coverage may not be worth the expense. If you own an older or inexpensive car you may want to consider dropping comprehensive and collision coverage. That can often save hundreds of dollars each year. Discuss this with your independent insurance agent.
Know the costs ahead of time. If you are in the market for a new car, you may want to bounce a few cars off your independent insurance agent for some estimates in premiums. Generally economy cars that are not considered “Sports Cars” are less expensive to insure.
Are you carrying too much coverage? Some times there are add-ons associated with your auto insurance that are not necessary like possibly rental car reimbursement. This may be a part of your warrantee with the dealer, and you may be duplicating coverage. There could be other little items you may want to look at too that will reduce costs. Discuss these with your independent insurance agent
Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your Collision and Comprehensive costs by 15 to 20 percent. Your independent insurance agent can show you how raising your deductible can lower your premium.
Discounts? Ask your independent agent what are all of the possible discounts associated with buying a policy from a particular carrier they represent. Each carrier has some different features so you will want to discuss the best solution for you and your family.
Do you have more than one policy with the same company? Some times this is good and other times it may not be. Your independent agent is uniquely qualified to quote your policies with the appropriate carriers that may offer specialized coverages and services. “Bundling” or “Unbundling” your policies might save you a bundle!
