Why are my auto insurance rates going up?

I get asked this question every day. Here are some of the factors that may effect your premium.

1. Credit - Thinking is that the better you handle your credit, the less likely you are to have an accident. (I am not a real believer in this one);
2. Driving History - The more tickets or accident claims you have over a 5 year period, the higher your rates. The assumption is that that make you a higher risk for more ticket and accidents and so you have to pay higher rates;
3. Type of vehicle you drive - The more expensive car you drive and/or the smaller car you drive (usually less crash worthy), the higher the rates;
4. Location -  Insurers usually rate zip codes by the number of accidents and claims that happen in a zip code. If you live in a zip code that has fewer accidents or claims, your rates may be lower;
5. Drivers - Your age and driving experience make a major difference in rates. Younger drivers between the ages of 16 to about 25 tend to have more accidents/tickets due to their lack of driving experience;
6. How you drive your vehicle - Many auto insurers believe that "pleasure driving" is more risky than driving your vehicle to work every day, (I am not a believer in this one).

How do you help reduce your existing auto insurance rates?

Discounts          Discounts          Discounts

1. Auto Pay - Many insurers will give you a discount if you set your payments to be debited from your checking account or credit card;
2. Pay in Full -  Some insurers will give you a discount if you pay your premium in full at every renewal;
3. Multiple Policies - Most companies will give you a discount if you have your auto or home with them;
4. Good Pay -  Some companies will give you a discount if you pay your premium on time every period;
5. Accident / Ticket Free -  Many insurers will give you better rates the longer you are accident or ticket free.

These are just a few ways to save on your insurance. It is ALWAYS best to contact your insurance agent at least 30 days before your renewal to discuss any discounts that you can get or any changes to your policy. Agents are here to give you the correct coverage for the best price. There should not be a "cookie cutter" approach to insurance.

Car Rental Coverage and Additional Insurance

As an insurance agent, it is my job to make sure you have the proper coverage, just in case of an accident. Please review your auto policy to make sure that, if needed, you have rental car coverage on your policy.

The cost for $30 per day rental (small size vehicle) coverage on your policy should be about $29.45 every 6 months per vehicle. This means if you are involved in an accident and need to rent a car while your vehicle is being repaired on a covered claim, you can rent a car for $30 per day up to 30 days and it should be paid by your insurance company.

Many of my customers that have two or more vehicles have chosen to refuse this rental coverage, believing that if they were involved in a car accident, they could car pool for a short time, if needed.

I have also been asked the following questions by my clients:

1. Do I need to purchase the "extra coverage" that is offered at all care rental companies? If you have "full coverage" on your existing policy ( collision and comprehensive coverage ), then you do not need to purchase the additional coverage. Most insurance companies (check with your agent) extend the same coverage on your rental car that you have on your own vehicle. In my opinion, the only time you should consider purchasing the extra coverage is if you are going to a place that has icy or snow covered roads.
2. Does it matter how I pay for a rental car while I am on vacation? Many credit card companies will cover your collision and comprehensive deductibles on your rental car due to a claim if you place the bill on their credit card. Check with your credit card company before you rent your vehicle.
3. Does my car insurance policy offer me any discounts if I have to rent a car for a vacation? Some insurance companies offer discounts from some car rental facilities. Don't be afraid to ask. My insurance carrier offers me discounts and also would pick up the cost of your rental vehicle while it was unusable due to an accident when you had it rented. This is called "loss of use" but for me to get this benefit, I have to choose from specific car rental carrier . Be aware, this could be an expensive fee you you do not have that coverage. It could range from $200+ per week.

AZ Dust Storms

It's getting to be Monsoon season here in AZ. Remember, dust storms while intense, only last for between 10 and 20 minutes.

You’re driving, not a care in the world, when your car suddenly enters an AZ Dust Storm. No matter when and where, it’s an unnerving experience, especially if it happens on a busy highway. Do you know what to do if you find yourself stranded? Read on for some general tips that can help you stay safe if your car breaks down.

• Slow down and pull off the road:  Ease your foot off the gas pedal, signal and carefully steer your vehicle toward the right shoulder as far as you can. Put the car in park, shut off your lights, engage the emergency brake and turn the steering wheel away from the road. That way, your car can’t roll into oncoming traffic.

• Stay in your vehicle: Getting out of your car can put you in danger of being hit by oncoming traffic. Sitting in an immobile vehicle with traffic all around you is unnerving, but it is the right thing to do.

• Wait for the dust storm to end: Play it safe and avoid the temptation to drive your vehicle when the visibility is bad..

Just remember to stay calm, exercise caution and everything will be alright.
 

Top Driver Distractions

Every day, distracted driving kills more than nine people and injures more than 1,100 and, according to the National Highway Traffic Safety Administration, accounts for more than 1.5 million collisions a year. Stay safe and help ensure the safety of others by recognizing the most frequent causes of driver distraction and taking steps to avoid them.
 

• Talking or Texting: Did you know that driving while using a cell phone (handheld or hands-free) impairs driver reaction to the same level at the legal limit for impaired driving with a blood alcohol content of .08? The Traffic Safety Administration also states that texting while driving makes you 23 times more likely to crash. Put aside your electronics! Pull over on the side of the road to use your phone if it’s an emergency.

• Adjusting the Radio/GPS: These are all distractions that take your eyes off the road. Adjust these devices before you put your car in gear. 

• Personal Maintenance: We’re increasingly busy people, but our vehicles are not the place to take care of life’s daily tasks, such as applying makeup or eating. The vast majority of us experience a noticeable decline in performance when we try to do multiple things at once. Don’t gamble with your ability to multi-task – take care of yourself before you hit the road.

• Roadside Diversions: Looking at a roadside accident, landmarks or a billboard, even for a few seconds, takes your mind and eyes off the road. Consider that, at 55 mph, your car will travel the length of a football field in about five seconds. That’s plenty of time for traffic conditions to change radically. Always focus fully on driving.
  
  Multi-tasking is something to avoid when you’re behind the wheel. When driving, keep your attention focused on the road. If you must address another concern, pull off the road and stop your vehicle in a safe place. Eliminate driver distractions, and you can help make the roads safer for everyone.

ABC's of Renters Insurance in AZ

Ever wonder exactly what the different coverage are for on your policy? Here is a helpful description that is easy to understand. If you have questions about your policy, just give me a call and I will be happy to go over it with you. 

BASIC COVERAGE


Personal Property Protection.  Coverage includes the loss of furniture, clothing and other contents if stolen or damaged. Minimum coverage usually starts at $20,000. There are limits on certain personal property such as jewelry, computers, guns and cash.



Additional Living Expenses.  Coverage that reimburses you for reasonable increases in living expenses when a loss occurs that is covered which makes your condo uninhabitable. This may include payments for the cost of rent, hotel, food and other expenses.


Guest Medical Payments.  Coverage payments for necessary medical expenses including surgery, x-rays and dental work if a guest is injured on your property.


Family Liability Coverage.  Coverage to protect you if you are sued for damages after someone is injured on your property. Most apartment complexes require $100,000 in coverage.


Scheduled Personal Property.   Coverage that protects certain personal property such as jewelry you have itemized on your policy in case of loss, theft or mysterious disappearance.


Deductibles.   The amount of co-insurance you have on your policy that you are responsible for any claim.


Hope this information is helpful.