Brainless Tips to Saving on Car Insurance
March 19, 2010
With over 10 years in the insurance industry, I notice that everyone wants to save money on the things they have to buy like car insurance. In fact, companies like GEICO, Allstate, and Progressive, have made the term, you can save money on your car insurance, a household phrase. As an insurance agent, I can say with all certainty that everyone that drives a care falls into two following categories:
A. People that think they pay too much for their insurance.
B. People that think their rates are just fine.
So if you fall into one of these two categories, I’ve come up with 10 brainless tipsi that will help you save money on your car insurance.
1. Shop Early. Most people don’t realize it, but shopping at the last minute actually costs you about 10% on the average. Typically, insurance companies give lower rates to people who shop at least 7 to 10 days ahead of their policy start date. In car insurance, the early bird really gets the worm!
2. Know Your Coverage. Generally, insurance companies offer lower rates based on the type of coverage you carry with your current insurance company. Also, that shows a level of responsibility.
3. Compare Rates with an independent agent. Independent insurance agents can shop several insurance companies for you.
4. Tell the whole truth. Really? Did you think you could get away with hiding a ticket or an accident? Now insurance agents and insurance companies can run your driving record as soon as you talk to them, but that costs time and money. Giving the agent your driving record up front will save the agent time and you money.
5. Keep a Clean Record. Face it. The better your driving record, the better quotes you’ll get. This goes for everyone. Drivers that require SR-22 filings are typically classified as high risk drivers. So slow down and stopping drinking you speed demon!
6. Carry higher coverage now for lower prices later. Many insurance companies give better rates for people with higher liability limits because they are grouped with good drivers. With these same companies bad drivers typically carry minimum coverage. Which do you prefer, the good driver group rates or the bad driver group rates?
7. Give the whole story. If you have more than one car, make sure and get a quote on ALL of your cars. Insurance companies always like numbers higher than 1. It will save you money with the multi-car and package discounts when you insure your 2 cars and your home with your 2 policies.
8. Ask for Education and Occupation discounts. Everyone knows that if a young student earns a B average in school, he can get a discount. Did you know that adults with college degrees can get discounts, and teachers get really good rates too?
9. Carpool. If you have a long drive to work, it might pay to carpool. By lowering the number of miles you put on your car, you also lower your insurance. Generally, if you drive less than 7500 miles per year you will get a lower rate.
10. If all else fails, get a horse. If none of these ideas work, then you may be a good candidate for a horse. Typically most people can save money with these tips. If none of them help you, then you may need a little intensive work.
Get connected to an independent insurance agent online by visiting Texas Insurance Pro.
David Berry is a freelance writer and licensed Texas Insurance agent. Visit him at http://www.txinsurancepro.com.
Should I purchase an umbrella liability policy?
December 10, 2009
f you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney’s fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That’s what a personal umbrella liability policy provides.
An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.
For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.
Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.
Should I purchase an umbrella liability policy?
December 10, 2009
If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney’s fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That’s what a personal umbrella liability policy provides.
An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.
For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.
Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.
What information do I need to give to my agent or company?
December 10, 2009
Your agent will ask you what make and model cars you own, roughly how many miles you drive each year, and what kind of liability coverage you will need. The agent will also want to know how many people drive the cars, how old the drivers are, where you live, and driving records of each household member.
The agent will then ask more detailed questions about your cars, such as their Vehicle Identification Numbers (VIN), whether they have passive restraint systems or air bags, anti-lock brakes or anti-theft devices. If you already have another insurance policy with the company for home or life insurance, you might receive a discount on your auto policy. You should also mention if you or other drivers in your household have completed safe-driving courses and if student drivers in your home are getting good grades—both of these may qualify you for discounts on your auto policy.
Once the agent has assembled all of the information, he or she will quote you a premium. The premium will depend on all the factors above and on the deductibles you choose.
What is covered by a basic auto policy?
December 10, 2009
Your auto policy may include six coverages. Each coverage is priced separately.
1. Bodily Injury Liability
This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.
It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.
2. Medical Payments or Personal Injury Protection (PIP)
This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
3. Property Damage Liability
This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.
4. Collision
This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you’re not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you’ll also be reimbursed for the deductible.
5. Comprehensive
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.
Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.
Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.
6. Uninsured and Underinsured Motorist Coverage
This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.
Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.
Quality Auto Insurance
December 3, 2009
Quality auto insurance is a key component of a good financial plan. The right coverage can help safeguard your assets from loss, damage and lawsuits when the unexpected happens. We can help you create an affordable auto policy that provides financial security and gives you peace of mind.
Get the right coverage for your RV
December 3, 2009
Imagine leaving your RV set up at a campsite and returning to find that a family of bears has moved in and torn your RV apart. Or accidentally flooding your neighbor’s coach with “black water” by mistakenly hooking your water connections up to the trailer next door. Sounds far-fetched, but these things actually happened to Progressive customers. Fortunately, the damage was covered because they had specialized RV insurance, but a lot of RVers wouldn’t be.
“Some people make the mistake of adding their RV on to their car insurance policy, only to find out too late that the car policy doesn’t cover a lot of things that can go wrong in an RV,” said Cathy Pelfrey, RV product manager, Progressive. “An RV is much more than a car—it’s a house on wheels. So an RVer really needs a specialized policy that covers more than what standard car insurance covers.”
As the No. 1 brand of RV insurance sold through independent insurance agents in the country, Progressive has seen its share of oddball claims over the years, as well as everyday mishaps that may be excluded from standard auto coverage.
For example, if your RV is damaged during a trip, an auto policy could leave you out in the cold. Progressive’s RV insurance would pay up to $2,000 for lodging and transportation so you could still enjoy your vacation.
RV
Similarly, expensive items like outdoor gear, laptops or other electronics stolen from inside your RV would be covered by an RV policy but typically would not be covered by an auto policy.
Specialized RV coverage can also protect you against depreciation if your RV is totaled. A car insurance policy would only pay the RV’ss actual cash value, but an RV Agreed Value policy would pay the amount that you and the insurance company agreed the RV was worth when you bought the policy, regardless of the RV’s value at the time of the loss.
To learn more about Progressive’s RV coverages, talk to your independent insurance agent or visit www.rv.progressiveagent.com.
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