Why Does My Auto Insurance Seem to Always Go Up?

February 22nd, 2012

While it may seem like your insurance premiums are always going up, that’s not necessarily true.  Generally speaking, we only notice when things go awry, not when they are going well.  For example, we usually do not tell anyone when we are feeling healthy, but everyone knows when we have a cold.  While auto insurance premiums don’t always go up, occasionally they do.  Below are some reasons car insurance premiums could go up.

1.  Accidents.  If you have an accident your premium could go up.  If you are at fault, your premium will probably go up, unless you have some type of accident-forgiveness program.  Occasionally your premium will increase even if you are not at fault.  Some companies give a “no accident” discount, which would be eliminated if you are in any type of accident, causing the premium to increase.

2.  Violations.  If you have moving violation, the premiums on your insurance will likely increase.

3.  Credit.  Your credit score does affect the premiums on your auto insurance.  If your credit were to worsen, your insurance premiums could increase.  On the other hand, if you improve your credit score, your premiums could decrease.

4.  Claim experience of the company.  This may have nothing to do with anything you may have done.  If the company you use for car insurance experiences higher than anticipated claims in a given year, they could increase the rates for everyone to compensate for those loses.

Auto insurance rates can fluctuate from year-to-year.  It’s important to understand why they are fluctuating and if there is anything you can do to make sure your rates stay low.  Get a free rate quote today to make sure you are getting a fair price for your auto insurance.

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All Property Insurance Is Not Created Equal

February 21st, 2012

Occasionally we have clients that decide to move out of their home and rent it out without informing us of the change.  This can be a problem.  An owner-occupied residence poses different risks than a rental property and, thus, the insurance is rated differently.  If a home is insured as owner-occupied when it is not owner-occupied, the insurance company can deny paying claims on that home.  It is extremely important to insure the home correctly to avoid having your claims denied.  Below are some of the different types of property insurance and when it is appropriate to us them.

Homeowner’s Insurance – This type of insurance is used for homes where the owner lives in the home more than 51% of the time.  These are usually referred to as owner – occupied homes.

Rental Property Insurance – Also known as investment property insurance; this type of insurance covers the home while the owner is renting it to someone else.

Second Home Insurance – Because the owner is living elsewhere most of the time, there is a different rating scale for homes not occupied for most of the year. 

Vacant Home Insurance – If no one is living in the home for an extended period of time a different type of insurance policy is required.  Coverages are limited on vacant home policies so make sure you read your policy to better understand what is covered.

Other factors also play a role in what type of insurance you need for your property, including, but not limited to, the type of property and how much coverage you desire.  While the above list is not all-inclusive, it does give you a basic understanding that different properties require different insurance policies.  Consult us today on what type of property insurance is best suited for your needs.

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Five Random Facts for Friday

February 17th, 2012

Random bits of knowledge are always fun to talk about.  And though reading about insurance is definitely a fun way to spend your Friday, I thought we’d change it up a bit.  Below are five fun facts that I found on factropolis.com.  They may or may not be true, but factropolis.com claims they are and it’s on the internet so it must be true, right?

1.  In a very early draft of Raiders of the Lost Ark, Indiana Jones carried brass knuckles instead of a bullwhip.

2.  The lion used in the original MGM movie logo killed its trainer and two assistants the day after the logo was filmed.

3.  In 2004, a lab at a university in Texas received a $6 million federal grant to breed radioactive armadillos for possible use in warfare.

4.  Sesame seeds were so prized during the Middle Ages that in some parts of the world they were worth their weight in gold.

5.  The face of Uncle Sam, the fictional personification of the United States, was modeled after a door-to-door salesman from Canada.

 

 

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Hidden Costs of Purchasing A Brand New Car

February 15th, 2012

Ahhh the smell of a new car.  There’s nothing quite like it.  And the feeling of driving away with a brand new vehicle that no one else has ever owned is like none other.  At least, that’s what they tell me.  I have never purchased a brand new vehicle and I don’t think I ever will.  There is nothing wrong with spending your money in the way you see fit to spend your money.  In fact, buying new may even make financial sense depending on the tax law and other factors.  I just think, generally speaking, a brand new car has hidden costs that I’d rather not incur.  Below are 3 hidden costs that you may not know about.

1.  According to Edmunds.com, “a new car loses 11% of its value the moment you leave the lot.”  If you just purchased a car worth 30K, you lost $3,300 in value by just driving it home.  During the first five years, it loses 15% – 25% of value each year.  Wait a year on that same vehicle and you could potentially save $7,500.  The excitement of being the first owner is not worth $7,500 or even $3,300 to me.

2.  Generally speaking, newer cars are more expensive to insure than older cars.  This is not a hard fast rule, but on the whole this is the case because newer parts are more expensive to replace than older parts.  It’s a good idea to see how much it would cost to insure the vehicle you are looking to purchase to see how much extra you’ll need to pay for car insurance.

3.  Buying new usually means buying on credit.  While interest rates are extremely low for car loans right now, you’ll still end up paying thousands of dollars more than what the car is worth.  The old fashioned way of buying things – saving until you have enough money to buy cash – still has value.  In fact, buying cash can save you thousands of dollars every year.  Credit has its place in our economy, but if you can wait to purchase a car with cash, it will save you quite a bit of money.

While purchasing a brand new car may be exciting and fun, it may not be the most practical thing to do.  Especially in tough economic times, a penny saved is a penny earned.  And resisting the urge to buy new will save you plenty of pennies!

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Happy Valentine’s Day!

February 14th, 2012

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Fact vs. Fiction: Uncovering auto insurance myths

February 10th, 2012

Like a teenager eager to try a new video game, playing before reading the rules, many drivers buy insurance without really understanding what they’re buying.

In the rush to feel “covered,” they can skip the details. That can lead to frustration.

Following are five insurance myths heard by some of the more than 13,000 claims people at Progressive, one of the country’s largest auto insurance companies: 

Myth: I bought “full coverage” so everything’s paid for.

Reality: There is no such thing as “full coverage.” In most states, only liability insurance is mandatory. There are a lot of other coverage options out there, so select what you need and can afford based on your personal situation.

Myth: I need three estimates before my wrecked vehicle can be repaired.

Reality: Not necessarily. Very few insurers actually require this, although some might. If you decide to use a shop that’s in an insurance company’s “network” of pre-approved shops you may just have to get an estimate from that shop. 

Myth: My insurance premium always increases if I’m involved in an accident.

Reality: It depends. Your rate can increase, decrease or stay the same. The information about your accident is combined with other information about you, your car and your driving history to determine your rate. 

Myth: If I lend my car to someone and he/she crashes it, I’m covered.

Reality: Not so fast. If you or your friend don’t have optional physical damage coverages, damage to your vehicle generally won’t be covered.

Myth: If I buy a new car, my auto insurance company automatically knows; and my new car is covered.

Reality: No. Most insurance companies require that you notify them or your agent within a specified number of days. Generally, you have 30 days to add the new vehicle to your policy.

“Insurance can be complicated,” says Chuck Crist of Progressive. “It’s not something people deal with every day. So the more informed you are, the better choices you’ll make.”

To learn more, contact us today!

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Fun Facts About Nevada

February 2nd, 2012

Home means Nevada for me and my family for many years now. There is lots of misinformation out there about what it is like living in our great state. Many are confused by what is legal here and what is not legal. Many are confused when I tell them that I live in Las Vegas, but not in a casino. Nevada actually has a rich history. Check out the link below to learn some more factoids provided by insiderlv.com.
http://www.insidervlv.com/didyouknow.html

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Cutting New-Car Costs

February 1st, 2012

(NAPS)—One way to avoid sticker shock or buyer’s remorse when purchasing a new car is to consider expenses you may encounter down the road.

For instance, experts say that while most people anticipate the purchase price, taxes and registration fees associated with a vehicle, many forget that the insurance they need to protect their vehicle could come with a hefty price tag. Fortunately, there are ways to keep insurance costs down while maintaining the type and amount of coverage a new car typically requires.

To help consumers control car costs—from sticker price to insurance premiums—The Progressive Group of Insurance Companies offers these tips:

Decide ahead of time how much money you can spend and what type of vehicle best suits your needs.

Research crash test and acci-dent data. You can see crash test video and analysis from the Insurance Institute for Highway Safety online at progressive.com.

Check with several dealerships and get firm quotes in writing. Having quotes from several places can help you negotiate your best deal.

Shop around for financing. Rates vary between institutions.

 Insurance Costs

Before you buy a car, you should check into how much it would cost to insure. Try talking with an independent insurance agent—it may save you some money. Unlike “captive” agents who represent only one company, independent agents and brokers offer products from many different insurance companies. That means more choice and more opportunities for you to find the best coverage and service at the right price.

 Here are a few questions to ask an independent agent or broker.

Can I get any discounts for my car’s safety features? Your auto insurance premium is based in part on the car’s value, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for safety features that reduce the risk of injuries or theft.

How does this insurance company handle claims? Price isn’t the only factor to consider. It’s a good idea to deal with a company that will be there for you when you need it around the clock.

What coverage do I need? Your specific needs may vary by the age of the car, your personal situation and other factors.

 Select an agent or broker who takes the time to answer your questions and who can help you find the combination of price, service and coverages that you need.

Did You Know?

Unlike “captive” auto insurance agents who represent only one company, inde-pendent agents and brokers offer products from many different insurance companies. That means more opportunities to find the best coverage and service at the right price.  Western Pacific Insurance is an independent agency that will find you the coverage you need at a price you’ll love!

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Could Payment Plans Cost You Hundreds?

January 31st, 2012

Most insurance policies come with a variety of payment options.  For example, many car insurance companies will allow you to pay monthly, quarterly, bi-annually, or even annually.  Many will also accept payment via mail, online, or automatic payments.  There are some policy holders that like to receive monthly bills in order to make sure enough money is available for payment.  Others like the ease of the automatic payments.  Whatever your preference, it’s important to understand the cost associated with each option. 

The cost difference between payment plans can be quite dramatic.  Generally speaking, the easier it is for the insurance company to get paid, the less expensive it will be for you.  As an illustration, we’ll review a basic car insurance policy that I recently quoted and the different costs with each payment option.  

Automatic Payments:

1.  Annual Payment:  $445 (Total Annual Premium $445)

2.  2-Pay:  $222.50 (Total Annual Premium $445)

3.  4-Pay:  $113.25 (Total Annual Premium $453)

4.  Monthly Pay:  39.08 Total Annual Premium $468.96)

 Bill By Mail:

1.  Annual Payment:  $445 (Total Annual Premium

2.  2-Pay:  $222.50 (Total Annual Premium $445)

3.  4-Pay:  $116.25 (Total Annual Premium $465)

4.  Monthly Pay:  39.56 (Total Annual Premium $474.72)

 As you can see, the annual and bi-annual payments are less expensive than any other option.  The cost difference in this example is not huge, but a larger policy can have over a hundred dollars of difference between the payment plans.  It’s important to look at all your options when deciding on how to pay for any insurance policy.  After all, a penny saved is a penny earned.

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2012 10 Best Cars

January 30th, 2012

Car and Driver comes out with their 10Best cars every year and this year’s list may surprise you. And if you think you can’t afford any of the top ten you are mistaken. All of the top ten are under 80K. Follow the link below to read more.
http://www.caranddriver.com/features/2012-10best-cars-feature

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