Monday, February 25, 2013

Knowing What Affects Your Rate

Several factors affect the price you pay for auto insurance — your age, driving record, type of vehicle, etc. — but did you know where you live also affects your premium?
It's true: Your location directly impacts your insurance rate. In fact, most insurance companies, including Progressive, consider where you live when they price policies.
Generally, city dwellers pay more for auto insurance than rural dwellers. Why? Because auto premiums are largely determined by factors related to the frequency and amount of a claim payout. Logically, cities have much denser populations than the country, so the risk for an accident is much higher in urban areas than it is in rural areas. Because of this, you most likely will pay more if you live in the city than if you live in the country.
Let's look at some of the locational factors that may come into play when determining how much you pay for auto insurance.
Frequency of Loss
As mentioned already, living in an area with a higher population increases the risk of an accident. Since cities have more people, they generally have more accidents, too. Therefore, if accidents happen more often in a specified area, the price for insurance will be higher since the chance for a claim is higher.
Density
Alongside frequency of loss comes density. The more people in a given area, the higher the risk of human error that can cause accidents. Fewer people travel country roads, so the accident risk factor is lower in rural areas. Hence, those who live in the country most likely will pay less for insurance than those in the city.
Safety Services
The availability of safety services influences locational considerations, too. Safety services include:
· Response times for police, fire departments and ambulances
· Road maintenance in inclement weather
· Enforcement patterns, such as how well laws are implemented by municipalities and law enforcement
· How roads are designed
· Number of intersections in a given area
 
Areas that have fast response times, aggressive enforcement of laws, well-designed roads and intersections, and other positive safety services will be considered safer areas than those whose safety services aren't as available.
Weather
If you live in an area where snow or other inclement weather is a common occurrence, your insurance premium may be higher. Treacherous road conditions can raise your chances of being involved in an accident while driving, which means the risk for a claim is higher.
Theft/Vandalism Rates
In areas that suffer from high crime rates, the risk of a vehicle theft or vandalism is greater. If break-ins occur frequently in your neighborhood, you can expect that you'll be paying more for insurance.
Litigation Climate
Another factor is the litigation climate in your area. Is there a higher propensity to sue after an accident? Insurance companies may look at this — and they may even examine the number of lawyers per square mile — to help gauge the litigation risk in your area.
Though many factors are considered when pricing insurance policies, location is an important one that can directly impact what you pay for auto insurance.

Monday, February 18, 2013

Know How To Make A Storm Claim

Know what to do before you have to make a claim because of a hurricane or heavy storm.
Storms abound in the summer months, and hurricanes or tropical storms can appear on the radar well into this time of the year. Since it's the heart of hurricane season, take precautions — if you haven't already — to protect your belongings, including boats and other vehicles, from damage caused by hurricanes or other heavy storms. Here are a few things you can do ahead of time to help you plan for an evacuation. That way, if you have to evacuate, you can focus on the safety of you and your loved ones during that time.
 Take Vehicles With You if You Can
 
Cars, motorcycles, RVs — no matter what you own, bring it with you if you have the means.
 
Not only can RVs serve as a comfortable shelter, they can accommodate several people. Don't forget to keep safety in mind while you stay in your RV: Remember to have safety accessories, such as fire alarms and carbon monoxide detectors, installed and checked first.
Boats and motorcycles can be trailered behind your car or RV, too.
Secure Your Boat, RV or Other Vehicles Staying Behind
If you're not able to bring your car, boat, RV, motorcycle or other type of vehicle with you, follow these measures to secure them:
· Park vehicles indoors when possible.
· If it's not possible to park inside, choose higher ground that's located close to a sturdy building for more protection. Make sure your vehicle is secured away from trees, poles or other large objects that could fall on it.
· Secure RV awnings so the wind won't tear them away.
· It's best to remove your boat from the water and move it inland before a storm hits. Boats left unsecured can not only be damaged by wind or flying objects from hurricane forces, but they can float away if waters rise. If it's secured properly, your boat is much more likely to survive a storm inland than on water. To secure it, have extra lines, chafe protection, fenders, anchors, port plus, duct tape and extra batteries.
 
Remember this simple tip: If you can't take it with you, make sure you secure it as safely as possible. Prepare for a claim, too regardless of whether you have a car, motorcycle or luxury RV, these tips can prepare you — and help expedite — any claims you might have to make after a hurricane or heavy storm.
· Verify what kind of insurance coverage you have.
If you've taken all the precautions but still find yourself in a situation where you have to make a claim after a storm, it’s vital that you have Comprehensive coverage. Comprehensive coverage covers damages resulting from high winds, flooding or other weather-related factors. With this coverage, you'll likely have to pay a deductible out of pocket, but deductibles often start as low as $50.
 
· Don't just take important documents with you. Waterproof them, too.
If you have to evacuate, you should take documents — including your insurance papers — with you in a waterproof bag or container. Even if you don't have to evacuate, it’s a good idea to keep these documents in a waterproof container, to help minimize time spent on the phone or working through a claim if you have to make one after the storm. With select insurance companies, you can also access important documents online. So, if you don't have your papers on hand, you can find them online by logging in to your policy any time.
 
· Report damage as soon as possible.
If any of your vehicles are damaged, report the damage as soon as you can. The sooner your insurance company knows about it, the sooner it can begin resolving your claim. Some insurance companies offer 24-hour claims reporting by phone or online, so you can access your company and your claim at any time. If you're not sure whether your company has 24/7 service, make sure you have a phone number for your agent or your company on hand to report the claim during business hours.
 
· Take pictures of everything.
Pictures can help your insurance company identify and find your vehicles if they've floated or flow away during a storm. They also can provide insight on items attached to your vehicle that may have been lost or damaged during a hurricane or heavy storm.
 
Make Safety Your Top Priority
Your safety should always be your major concern when preparing for and evacuating because of a hurricane. Remember to give yourself plenty of time to implement your evacuation plan, and make sure your family members or others who plan to leave with you also know the drill. You may even want to practice a couple of times to ensure things run as smoothly as possible.
Following these tips well before a storm hits your area can help you stay calm during an evacuation. Plus, knowing you've done what you can to prepare for a storm, as well as for any claims you might have to make afterward, can provide much-needed peace of mind during turbulent times.

Monday, February 11, 2013

See How Your Current Auto Insurance Policy Extends To Your New Vehicle

Shopping for a new car to replace your 10-year-old model can generate the kind of excitement that few other tasks do. When you're ready to sign the papers, you'll need to show the dealership you have insurance before you drive away. Does this mean you should notify your insurance company before buying a new car, or will your current auto insurance policy suffice?
While the safest bet is to check with your insurance company before you buy a car, here are a few things to remember about auto insurance and how it transfers from your current vehicle to a new one.
 
 
How Far Does Your Current Insurance Policy Go?
The first thing you should know is that your current auto insurance policy will temporarily cover a new car, regardless of whether you're replacing an older vehicle in your household or simply adding another one. So, you don't need to purchase new insurance before you buy a new vehicle. However, your current policy only goes so far.
Even though you may not be required to tell your insurance company before you buy a new car, you should keep the following points in mind:
· Your insurance policy transfers exactly as is to the new car. If you only have Liability coverage with minimum limits for your old car, you'll only have Liability with minimum limits for your new one — until you notify your insurance company to change them. If you're financing your vehicle, banks won't loan you money for the car without adding at least Comprehensive and Collision coverage to your policy first. So, in this case, you may need to add coverage to your policy before you can complete your car purchase.
· Certain coverages may become ineffective if you don't contact your insurance company within a specific period of time. If you fail to notify your insurer within the proper amount of time, certain coverages may no longer protect you and your new vehicle. The amount of coverage you carry over after your grace period has elapsed may depend on whether you're replacing a vehicle in your household or simply adding another one.
If you replace your old car with a new one and you have Comprehensive and Collision on your policy, some carriers will extend these coverages to your new car for 30 days without notification of the purchase. After 30 days, Comprehensive and Collision will not apply to your new vehicle, even though you may still be paying for them. If this happens, you'll be driving around without protection for damage to your own vehicle — a recipe for a bad financial predicament if you're at fault for an accident.
If you add a car that's not replacing another vehicle on your policy but you forget to call Boccarossa Insurance within 30 days to notify us about the purchase, none of the coverages on your current policy will apply to your new vehicle.
Every insurance company has different restrictions involving replacement or additional vehicles, so make sure you discuss them with your insurance company if you have questions.
Bottom Line: Update Your Policy as Soon as Possible
To continue uninterrupted auto insurance coverage, your best option is to notify your insurance company of your new car purchase as soon as possible. It's not a requirement, but it can help you drive comfortably knowing your new car is properly covered.
Plus, when you update your policy, you can tailor it specifically to your new vehicle, whether it's increasing your Liability limits because you purchased a larger vehicle or adding Loan/Lease Payoff coverage for added peace of mind.

Monday, February 4, 2013

Progressive and Snapshot

When you are a market leader, why not press your bet? That appears to be what Progressive Insurance is doing through its new program that allows drivers not currently insured by Progressive to try out the carrier’s usage-based personal auto insurance program —known as Snapshot— for a month to determine if the potential customer is eligible for a good-driving discount.
 
Progressive doesn’t need anyone else to praise their marketing skills; they’ve done quite well for themselves over the last decade promoting the company with a style that makes their name match the kind of company they strive to be.
 
This is also another warning shot for the mid-tier personal auto carriers that are not equipped to do battle with giants such as Progressive and State Farm, particularly when it comes to the use of telematics technology to determine if a driver is a good risk or not.
 
We are seeing more examples of insurers using telematics on a regular basis, particularly on the commercial lines side. Indeed, fleet insurance may be the perfect use for telematics because it allows carriers to offer customers a variety of benefits —not just the quality of the person behind the wheel.
 
But make no mistake, the money is in personal auto and the mad rush to gain more market share in the personal auto field continues unabated. In an interview recently conducted with Novarica’s Matt Josefowicz, he brought up an important point pertaining to the pricing battles that are going on. The tier-one insurers in the personal auto market are battling hard for their competitors’ customers, but eventually there has to be a point reached where carriers can no longer lower their prices. What then?
 
The good risks are going to be gobbled up by a handful of insurers and the rest of the personal auto market will be fighting over the scraps. It also appears likely that those scraps will contain a lot of bad risks.
 
Trying to determine which risks are worse than others will be the next battleground for the mid-tier insurers. Can old underwriting methods make it worthwhile for carriers to stay in the market? The difference between risks and gambles will cause a continued battle, one the mid-tier and smaller insurers may not want to take part in.