Blog: Letting it be know

It’s not only about which coverages you select. Many other factors can also impact your car insurance premium – here are seven of them.

1. Driving history: If you’ve been involved in a lot of accidents and received more than your fair share of traffic tickets within a 5 year period, the result is almost certain to be higher car insurance costs. The good news, however, is that the inverse is typically true as well. So, watching the speed limits and not driving distracted are two ways to not only stay safe but to potentially lower your car insurance rates, too.

2. Deductible and discounts: Don’t forget these two factors if you’re trying to keep your car insurance costs low. Oftentimes, a higher deductible results in a lower premium, so select the highest deductible you can manage. Remember, you’ll need to pay the amount of your deductible out of your own pocket in the event of a covered loss. You also may save on car insurance by taking advantage of special discounts. These can vary depending on your carrier but are typically available if you insure both your home and car with the same carrier, if you take an accident prevention course or if you drive your car infrequently.

3. Your vehicle and how you use it: The more time you spend on the road, the higher the chance of something happening. So, if you have a long daily commute, you should expect to pay more for your car insurance. Your vehicle makes a difference in your car insurance rates, too. If you drive a vehicle with solid safety ratings or one that has a high likelihood of theft, your rates may go down or up, respectively.

4. Your home: What does your home have to do with car insurance rates? Where you live can oftentimes either increase or decrease your chance of an accident or other incident. For example, metropolitan areas have more traffic, so there’s likely a higher chance of being involved in an accident than a rural area with less traffic. So, those who live in a high-density area may pay more for auto insurance. Drivers in any area, however, may pay less if they own their homes. Many carriers offer a car insurance discount if you own a home, townhouse or condo.

5. Age, marital status and gender: Believe it or not, married drivers typically have fewer auto accidents than non-married drivers, so the former may pay less for their car insurance. Young, inexperienced drivers especially 16-23 year olds typically pay more, so keep this in mind if your kids are nearing driving age. And, finally, female drivers often experience fewer accidents, so they may receive lower rates than males.

6. Credit history: Data has shown that those with higher credit-based insurance scores typically have fewer claims over time. So, keep your credit in check if you want to keep your car insurance costs in check, too. Though, in some states, carriers are not allowed to use your credit history in determining your car insurance rate.

When it comes to selecting home insurance, it's essential to carefully consider the details because all policies are not alike. Every policy is different and can have various features and terms. For home insurance, there are often instances of exclusions. These are specific components of the policy that state what incidents will not be covered. It is never safe to assume your policy provides protection for all of your potential risks. Rather, it may be necessary to seek out a policy that does offer more protection or one that allows for additional, supplemental coverage instead.

There are some types of risk that are not commonly a part of a basic home insurance policy. If you are looking for a new policy or you want to ensure that your current one meets your needs, be sure to consider the supplemental need for these components:

Earthquakes: This type of natural disaster, especially in high risk areas, tends to not be included in a typical home insurance plan. However, you can purchase earthquake insurance separately to help minimize your financial risks.

Floods: The cause of the flood tends to be a key factor in determining coverage. If your water heater bursts, this may be covered by a standard home insurance policy. But flooding from torrential rain storms (and other external sources) probably will not be included. You can find out if you live in a flood zone by talking to your agent.

High-value items: It is possible that your jewelry, collectibles and art will be covered by your home insurance policy. However, if these items are very valuable, you may need extra contents coverage to protect those belongings that exceed the value of your policy.

Take a look at what risks you face in owning a home, and spend a bit of extra time ensuring your home insurance plan is comprehensive enough to cover all of your risks. If not, supplement it with an additional layer of coverage to further reduce your risks and protect your family's finances in the event of a significant loss.

Keeping monthly expenses low is a priority for many homeowners. From utilities to the cost of homeowner’s insurance, the less you pay, the more money you have for the things you love to do. There are many ways to save money on your premiums without reducing your coverage options; however, you should avoid the common pitfalls many homeowners experience in their quest to save money.

1. Accepting a Higher Deductible That is Too Expensive for Your Savings

Most articles about reducing the costs of your home insurance suggest you choose an expensive deductible. This is a great strategy if you can afford the deductible, but if not, it sets you up to be under a lot of financial pressure if you ever experience a loss. You should choose a deductible that is higher, yet affordable for the right balance between lower premiums and affordable claims.

2. Failing to Partner with an Independent Insurance Agent

There are two types of insurance agents that provide insurance for consumers. Captive agents are those agents who work with only one brand of insurance, while independent insurance agents work with many different insurance companies to provide you with competitive rates and an array of products. When you work with an independent agent you get more than an insurance product. You get value, a partnership and peace of mind knowing that the coverage you select will protect your home.

3. Making Unnecessary Claims

The number of insurance claims you make on your homeowner’s insurance policy affects how much you pay for your insurance. Individuals who constantly bombard their insurance companies with claims may find that they pay significantly more for their insurance. To avoid this problem, minor damage to your property should be fixed without involving your insurance company. Hiring a professional who is appropriately licensed to fix the problem remedies the problem quicker than filing a claim and it may cost you less in the long run.

Homeowner’s insurance exists to protect your property from damage or lawsuits resulting from people injured on your property. To ensure you consistently have this coverage, you should avoid typical pitfalls others make that result in their homeowner’s insurance premiums increasing year after year.

Effective July of 2015 getting caught driving uninsured in Tennessee will costs you more money. The fine can be up to $300.00 a day for driving without insurance coverage. The new law states if you fail to provide proof of insurance during a traffic stop you have 15 days to provide it. If the driver does not submit proof of insurance they will be fined $25. If the driver does not pay the fine they will be sent a second notice and the fine will be raised to $300. 

"If you can't afford insurance, then you don't deserve to be on the road," said Rep. Rick Womick, R-Rockvale, recounting his daughter being "rear-ended by a single mom who was on a cellphone, late to work. "If that woman could afford "$600 a year for a cellphone," Womick said, she could afford $300 for insurance — and his daughter's own insurance "skyrocketed" because of a claim made under the uninsured motorist provision of her insurance policy.

Am I Covered or Not?

Do I really need to purchase it?

What Coverage Does the Rental Car Company Offer?

Let’s first address the fact that most rental car “coverage” is not actually insurance at all, rather a selection of waivers and “additional coverage” that may supplement your current car insurance policy or provide front-line coverage where you have none in place. Here are the basic offerings:

Collision Damage Waiver – waives your liability for damages to the rental car caused by collision while you are responsible for it. Think of this as the “collision” coverage on your car insurance policy.

Loss Damage Waiver – waives your liability for damages to the rental car caused by something other than a collision. This is the equivalent of comprehensive coverage (also known as “other than collision”) on your car insurance policy.

[What is the difference between collision and comprehensive coverage?]

Personal Accident Insurance – this is similar to medical payments or personal injury protection on an auto insurance policy. This would cover medical and ambulance expenses that may result for you or your passengers in the event of an auto accident.

Roadside Assistance – Again, similar to roadside assistance offered by most insurers. We’re talking flats, running out of gas and locking your keys in the car.

Supplemental Liability – Don’t fall for this one. While TTAI usually never instructs our readers NOT to purchase liability car insurance coverage, your best bet is to maximize the liability on your current auto policy, which may cost less per year than you’ll pay for a few days coverage in the rental car.

Theft Prevention – This is coverage for your personal items while they are in your car. This is not necessary if you have a homeowners or renters insurance policy, as your personal items are covered by both of those policies if insured properly. Believing the contents of your car are insured by your auto insurance policy is a common insurance myth.

As you can see, most of these options are unnecessary if you already have proper insurance. The rental car company simply rakes in cash by offering ultra-expensive “add-ons.”

Which is the best choice? 

IIHS says many teens aren't driving the safest cars.

Safety is certainly on the mind of any parent of a new teen driver.

Besides learning the right way to drive, it’s also important to have the right kind of car. The Insurance Institute for Highway Safety (IIHS) recently examined the cars teens most commonly drive. The results show that 83 percent of parents buy a used car.That’s an issue because older, used cars often lack the important safety technology that newer cars beginning in 2006.

To help parents of teen drivers, the IIHS recently compiled a list of the top cars for teens. Each of the selections includes important safety features such as standard electronic stability control (ESC), air bags and good protection for moderate front crashes

The recommendations on teen vehicle choice are guided by four main principles:

Young drivers should stay away from high horsepower. 

Bigger, heavier vehicles protect better in a crash. 

ESC is a must. 

Vehicles should have the best safety ratings possible. 

Read the source article at iihs.org to learn which vehicles are among the top cars for teens.

The What and Why of Replacement Policies

If you are lucky enough to find one of the rare companies out there willing to offer Guaranteed Replacement cost for your house, that means the insurance company will replace your home no matter how much it costs to rebuild in today’s economy. Say, you bought your house for $100,000 in 2010 and lost it completely due to a fire 2015, it may cost $150,000 to rebuild it to the exact specifications of your old house. A guaranteed replacement cost policy would shell out the $150,000. This means there is no cap on the amount the company is willing to spend to rebuild your home in the event of a covered loss; thus, depreciation is not a factor.  http://budgeting.thenest.com/guaranteed-replacement-cost-homeowners-insurance-policy-mean-33620.html

So what is  'Extended Replacement Cost' Coverage

Insurors use three mechanisms to determine the Fair Market Value

Computerized vendor quotes, a values book and market search of the local area.

What should the check include?

When an insurance company declares a car a total loss or write off, the settlement it pays should be based on the Fair Market Value of the car before the accident.

From that Fair Market Value they will subtract your deductible and any costs related to disposing of the wreck. To the settlement total they may add the estimated sales tax, as well as the registration and title costs of a replacement car.

Each year, auto insurance companies declare millions of vehicles to be "totaled," meaning it's not worth the cost to repair them. It doesn't matter whether the car was damaged in a collision, during a flood or after a thief's joyride went bad.

It's hard to argue with such an assessment if your car was wrapped around a telephone pole or the gas tank exploded. But what if the damage was more cosmetic, such as major dents on the roof and hood from a hailstorm?

Your car is considered a 'total loss' if the insurance company determines that the total cost to repair your car to pre-accident condition, plus fees for storage, salvage and a replacement rental car (if included in your policy), is more than a certain percentage of car's retail value. Insurers set their own allowable percentage, within state-mandated guidelines (typically around 60 to 75 percent), and use their own formulas to determine a car's value and estimated repair costs.

Click here for more details.

Knowing what to do in the aftermath of a car accident can make things easier for you - and your claims adjuster. When it happens, take a deep breath, make sure your 'ok' as well as the other party. Then,

Lesson 1: Make some calls

Call the Police, ALWAYS. The officer proves who's at fault!

Lesson 2: Get all of the other driver's contact information

Insurance company (dates of coverage), Policy Number, License Plate, Name, Address, Phone Number, email address

Lesson 3: Flag down any witnesses

Get their contact information. They can provide objective accounts of the accident. 

Lesson 4: Take pictures, video from nearby stores.

Take lots of pictures from a distance, up close, wide angle, road signs, skid marks, weather conditions, debris, license plates and VIN's.

In most cases, you don't add your teenager to your policy until they have their driver's license. I always recommend contacting your agent to verify. You are not required to add your teenager to your policy just because he or she has reached driving age!