How can I lower my rates?

There are many things you can do to lower your auto insurance rates. This is something your agent should definitely cover with you. Lets look at just a few of the most basic things you can do

1. Drive defensively and legally to maintain a good driving record. This will keep you safe and help you out come time for renewal!


2. Comparison shop for insurance. Be sure youre comparing apples with apples for coverage types and costs. There are a lot of insurers who show you great rates but get there by lowering your liability so that you may not be adequately covered!

Obtain higher insurance deductibles. Take a look at how much your saving and how long youd have to go without an accident to make this cost effective.

Get discounts whenever they apply to you. This is where your agent should be helping you to make sure you are getting all the discounts available to you.

How much coverage do I need?

Almost every state requires you to buy a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires because accidents cost more than the minimum limits. If youre found legally responsible for bills that are more than your insurance covers, you will have to pay the difference out of your own pocket. These costs could wipe you out!

We would recommend that you have $100,000 of bodily injury protection per person and $300,000 per accident. Increasing these limits does not add that much cost to the policy. Especially considering how much extra protection you will receive!

If your net worth is more than $300,000, you may want to consider buying additional liability insurance. You may also consider purchasing an umbrella or excess liability policy. These policies pay when your underlying coverages are exhausted. These policies are relatively inexpensive usually costing around $200 per year for a million dollars in coverage.

Make sure you really look into your coverage amounts. Unfortunately many people get so wrapped up in the unbelievable rate of an online or relatively unknown insurance company that they dont pay attention to the fact that the rates are often unbelievable because the limits are the bare-bones minimum!

What discounts are available?

This will depend on your insurance company. Here are a few of the more generic ones

1. Own your home. If you were renting make sure you let your agent know if you buy a house. He obviously does if you insure it with him/her as well, but make sure he reflects the added discount to your auto policy.


2. Pay in full or through electronic funds transfer. This makes it easy and most insurance companies will eliminate a pay fee if you select this option.


3. Have homeowners and car insurance through the same company. You may find better rates with different companies for your home and autos, but the discount you lose with having one with the other usually outweighs the benefit.


4. Good student discount. This is a big one, so if you or your child is a full-time student with a grade point average "B" or higher, make sure you are getting it!

There are many more, so make sure you discuss all your options with your agent. DONT JUST ASSUME HE OR SHE IS GIVING YOU ALL THE DISCOUNTS YOU DESERVE!

I've just been in an accident...what now?

PAY SPECIAL ATTENTION TO THIS ONE!!! More issues arise from this one than you can imagine! If you have teenage drivers in the home it is especially important to make sure they fully understand what to do in this situation!

The first step is to be prepared. Make sure you have your current insurance card and registration in the glove compartment. Confession timehow many of us have been in an accident or pulled over and have had to look through 20 expired copies before finding the current documentation? A camera is a good idea as well as a cell phone. ALWAYS CALL THE POLICE! Don't think it's not needed if its a little fender bender. The police may not show up, but you should always dial 911 to speak with an operator and let them know you've been in an accident and approximately where the car accident took place. Its amazing how many people get amnesia after an accident! You may agree that it was the other drivers fault and your both ok, but on the drive home all too often the other driver forgets it was him that ran the stop sign and his neck all of the sudden starts hurting!

Be sure to stay in your vehicle if you're on a busy street or highway. Never get out of the car in these situations as you may get struck by other vehicles in the vicinity.

Tell the Police Officer the sequence of events and exchange pertinent contact information with the driver(s) that were involved in the accident. Be sure to get the other driver(s) full name, address, phone number, make of the car, their insurance company, their insurance policy number, their insurance agent contact, license plate number and driver's license number.

Once the Police have concluded their reporting you can leave depending on the shape of your vehicle. If your car is too beat up to drive contact a tow truck service to remove the car.

Tip: I would always recommend you have towing on your insurance policy. Its usually a couple of bucks a month and many people arent aware, but it covers towing, tire changes, unlocking the keys from your car, jumping your battery and other valuable services.

Make sure that you understand your policy and how your insurance company handles claims. Find out how long it will take to resolve or review the claim. Find out how long it will take to receive your settlement to repair your damages and any rental car information. Your Insurance agent deals with this stuff all the time so they will have answers for you.

I wrecked someone else's car. Whose insurance pays?

In most all cases the car carries the insurance. Be careful who you give permission to drive your car! It would be a nightmare if settlements were partially on the vehicle and partially on insurance carried by the driver. If your car is involved in an accident while being driven a person who does not have your permission that may be a different story.

Your insurance would usually be excess. This means that if the person you borrowed it from did not have enough liability for the damage you caused your insurance would kick in after theres was exhausted.

How much will my insurance go up when I add my teen?

It will definitely depend on your insurance carrier. Far too many accidents are caused by teenagers who drive too fast and with not enough experience. Your rate will probably go up substantially. However, it wont be as expensive as if they were on their own insurance policy. Make sure you talk to them and that they take their responsibility seriously. If they have an accident or two the cost of the insurance will really start hurting you!

Tip: I would suggest you have your child attend a teen safety driving course. Not only will this help them understand the importance of safety, but it is a big discount on your policy. Trust meit will more than pay for itself! The good student discount is a big one too. This can be a great incentive if your teenager wants the car on Friday night!

Do I need insurance when I rent a car?

When renting a car, you need insurance. If you have adequate insurance on your own car, including collision and comprehensive, this may be enough.

Before you rent a car:

1. Contact your insurance company. Find out how much coverage you have on your own car. In most cases, the coverage and deductibles you have on your personal auto policy would apply to a rental car, providing it's used for pleasure and not business. If you don't have comprehensive and collision coverage on your own car, you will not be covered if your rental car is stolen or if it is damaged in an accident.
2. 
   
3. Call your credit card company. Find out what insurance your card provides. Levels of coverage vary.


If you do elect the coverage from the rental car company the coverage will be very similar to your personal auto insurance. It will include coverage for collision, liability and personal effects. The cost of insurance at the rental car counter will vary depending on the rental car company, state, and location of the dealer and the type of car you rent.

Tip: Keep in mind that in almost all cases if you have purchased rental insurance and you are in an accident it will not show-up on your driving record. This can be an attractive incentive if you're driving around downtown New York!