Insurance Basics - How To Choose A Deductible

Deductibles are a big part of your insurance policy and it’s important to know what they mean and to choose the right amount. Let’s talk about the basics!

The collision and comprehensive coverage on your vehicle will each have a deductible listed. The deductible is the amount YOU will pay out of pocket before your insurance kicks in.

So if you choose a $500 deductible and have an accident, then you will pay $500 and your insurance will cover the rest (up to your policy limits. Ask us about your particular policy for specifics.) Deductible options vary from $1000, $500, $250, even as low as $50 in some cases.

So how do you choose the right one for you?

First it’s important to see how your deductible affects your rate. The lower amount you pay out of pocket after an accident, the higher your insurance premium. This means you’ll pay more each month for insurance if you choose to pay less after a claim. We can quote your policy with different deductibles to give you an idea of the cost.

Second, you want to look at your savings. If you have a good amount of emergency savings and could easily pay out $1000 after a claim, then you would probably want to look at a higher deductible in order to save on premiums. On the other hand, if you have very little savings and couldn’t pay out that much after a claim, you might want to look at a slightly lower deductible that stills fits in your budget.

And finally the best option - ask your agent for help! We can sit down and explain ALL the options, rates, and discuss your personal situation in detail. This way you know that you’ve got the best coverage at the best possible rate. Call us today at 508-347-9343 to start your quote.

How To Choose An Auto Insurance Deductible

When quoting auto insurance for clients, we frequently discuss how to choose the right deductible.  I thought I’d take a few minutes to share this information here on our website too!

A deductible is the amount you pay out of pocket when you have a claim.  If you have a $500 collision deductible and have an accident, then you would pay $500 towards repairing your vehicle and insurance would cover the rest. 

The deductible you choose directly relates to the amount of money you spend on premiums each month.  The higher the deductible ($250, $500, $1000), the lower your monthly cost. 

So how do you choose?  Cheaper price or lower out of pocket expense?

First, look at your emergency savings.  Do you have enough cash available to cover a higher deductible if you had to pay it?  If the answer is no, then you’re better off paying a little extra each month.

Compare the cost savings.  When we run a quote, we can show you several different options.  Ask your agent to run the premium based on several different deductibles so you can see the actual dollar cost savings.

You can always change your mind.  If you’re short on cash now, but know you could afford more out of pocket next year, you’re always able to change.  Keep your deductible in a comfortable range and you’ll always be well protected! 

Call us for more information and a personalized quote! 

How Long Does An Accident Stay On Your Record?

I hear questions like this a lot.  Tickets and accidents can cause spikes in your car insurance rates and no one wants that.  

The good news is that they eventually drop off and your rate goes back down.  The bad news is that it typically takes 3 years for that to happen.

If you get a ticket, you may be able to avoid having a surcharge on your policy by taking a defensive driving course and getting the ticket removed.  This will depend on your past record and what the court offers, but it is a good option!

If your rates do go up, make sure you are taking advantage of all other discounts to offset the increase.  Bring all of your insurance to one company so you take advantage of multi-policy discounts.  Raise your deductible for a while so you pay more out of pocket in an accident, but a lower monthly rate.  

Have questions?  We're always available to help!  Just give us a call and schedule a free review to see what is available and how we can keep your rates manageable even after an accident.

Protect Your Family During Severe Weather

Protect Your Family During Severe Weather

Did you know that March is Severe Weather Preparation Month? 

While it may still feel like winter outside, it won’t be long until spring arrives.  And with it comes spring storms!  Is your family prepared?

First things first, make sure you have designated a safe place to go to if the weather gets bad.  It could be a basement, closet, or room with no windows or outside walls.  Make sure this space is cleared out enough that you could easily get your family inside if needed.  (You don’t want to be clearing out the closet if there is a tornado!)

Next, put together a small emergency kit.  What would you need if the power was out?  Consider putting in flashlights, extra batteries, canned food, and plenty of water.  (Don’t forget supplies for your pets too!)

Keep emergency phone numbers in your cell phone contacts, including the phone number for your insurance company!  You could even save a note in your phone with your policy numbers too.

While we can’t prevent bad weather, it’s always great to be as prepared as possible.  Take care of your family first and know that we’ll be there to protect your belongings.  

Car-deer collisions are surprisingly more frequent than you might think. Nationally, about 1.5 million people are involved in deer collisions each year and more than a hundred people die as a result.

According to AAA, almost seventy percent of car-deer accidents occur during October through December when deer are most active, but this doesn’t mean that motorists can let down their defenses in other seasons. Historically, the majority of the car-deer accidents happen between 5:30 and 7:30 a.m. or between 5:30 and 8 p.m.—the hours that coincide with dawn and dusk as well as the times that most cars are on the road.

SAFETY TIPS:

·If you see one deer, slow down. Chances are there is another close behind. Be especially careful in heavily wooded areas, where deer are more prone to dart out in front of the car.

·Also, use your high beams whenever possible. It will give you a larger field of vision and you’ll have more time to react to animals in the road ahead. It might also help you spot deer at the side of the road before they run across the highway.

·The best defense is to be prepared. Wear your safety belts.

·Be extra alert on two lane roads near dawn and dusk. Be particularly alert near deer-warning signs.They are placed at known crossing areas.

Police departments say swerving to avoid a deer is sometimes more dangerous than hitting one. Severe collisions with trees or other cars—or rollover accidents—might result. If you swerve, or skid to a stop, there’s a chance the deer might panic and dart into the path of another vehicle, or back into the path of yours.

So what should you do if a crash with a deer is unavoidable? Brake firmly, keep both hands on the steering wheel, stay in your lane, and sound your horn. In the case of the ’Cuda driver, a firm foot on the brake pedal as soon as the deer was in sight might have given the animal that extra bit of time to get out of the way.

The jury is out on deer whistles, which claim to alert animals that a car is nearby. Some drivers swear by them, claiming they stop deer in their tracks. Others swear at them, asserting they do nothing but panic the deer into stampeding across the road. Then there are yet others who doubt they work at all, saying that the deer don’t hear the whistles until it’s too late.

In the event of a car-deer collision, you will find, as this client did, that such accidents are covered under the comprehensive portion of an automobile policy. Some insurance carriers claim up to one third of all comprehensive losses result from deer collisions.

In instances where you swerve and avoid the animal but end up colliding with something else, such as the ditch, the collision portion of your policy would also apply. Keep this in mind when you set your collision deductible.

And watch out for moose! They usually inflict five times the amount of damage to the vehicle than a deer does. In 1985, the winter in Alaska was particularly bad. By March 13th, 1985, there had been 165 train-killed moose, and on that night, a single moose on the tracks derailed a train, engine, and five coal cars.

Essential tips to avoiding deer car collisions

·Watch out at dawn and dusk

·High beams on when possible

·Slow down!

·Brake, don’t swerve

·Honk the horn

Driving Safety

One in three children and young adults that are in auto accidents are seriously injured or killed every year in America. It doesn’t matter how good a driver you are, no one can predict an accident. If you have children, make sure that they are properly restrained.

For infants and children eight years old and younger or at least fifty-seven inches tall should be in a federally approved child safety seat. Anyone over eight years old and fifty-seven inches tall should be wearing a seat belt. In Massachusetts, the fine for not complying with the safety seat rule could be fined $25 and their insurance will increase but more importantly it could save a life.

-Check Your Car Seat. Did you know that 73 percent of car seats are not used or installed correctly? Before you hit the road, please take 15 minutes for an at-home car seat checkup using the Safe Kids downloadable checklist (http://www.safekids.org/sites/default/files/car-seat-checklist.pdf). The checklist offers ways to make sure your car seat is right for your child and that the seat is installed properly. These tips are important because we know that when used correctly, child safety seats can reduce the risk of death by as much as 71 percent.

-Use Booster Seats. Safety in the car goes beyond your little ones. Kids who have outgrown a forward-facing harness seat are not ready for a seat belt or front seat yet. They are safest in a booster seat that enables the adult seat belt to fit properly. Even when children have outgrown booster seats, they are safest in the backseat until the age of 13.

- See more at: http://www.safekids.org/blog/what-parents-need-know-safe-summer-travel#sthash.bKsa52Nx.dpuf

Safe Distance Around Other Vehicles

Did you ever wonder what the safe distance is between your car and the one in front of you? Well, according to the Massachusetts Registry of Motor Vehicles, it’s the 2 second rule. 

The rule goes as follows: Pick an object in front of you, like a sign post or a tree. When the vehicle in front of you reaches that object, count out "one one-thousand, two one-thousand…..". If you reach the object before you count two, you are too close. Slow down until you’ve put enough distance between you and the other vehicle.

The two-second rule is a minimum safe distance for good road conditions and moderate traffic. Count three or four seconds for added safety and when traffic allows. Keep more space behind a motorcycle and heavy equipment (for example, dump trucks, tractors) than you would for another vehicle.  You never know when someone is going to stop abruptly, so it’s a good habit to make sure you’re not following another vehicle too closely.

Disability Insurance, Who Needs It?

Have you ever thought that you'll never need disability insurance?  According to the Social Security Administration, one in four 20-year olds will become disabled and unable to work before they reach the age of 67. In 2012 alone, 650,000 workers became disabled. I don’t know about you but those figures astound me. You may think that Worker's Compensation will cover you if you become disabled, but did you know that 90% of long-term disability claims are due to illnesses and not work-related accidents? You’re never too young to be concerned about disability insurance; if you work, you need it. Long-term disability payments may not replace your income 100% (it’s typically around 60% of your income) but can you imagine if you’re disabled and you have no money coming in?  Even if you have coverage through your employer, you should talk to your Financial Advisor to make sure that you have the appropriate coverage to help protect your future.

Aggressive Drivers

We’ve all seen them.  They cut people off, run red lights, tailgate, weave through traffic, make rude gestures, and are dangerous to everyone around them.

What can you do when confronted by an Aggressive Driver?

• Attempt to get out of his/her way.
• Do not challenge that person.
• Avoid eye contact.
• Ignore rude gestures.
• Wear your safety belt. It will  protect you in a crash.
• If you simply cannot get away from the aggressor, attempt to drive to the closest police station

Even if someone else is being aggressive towards you, do not react to them so that you can get home safely in the end.

Air Bag Safety

Air bags and seat belts save lives every day and here are a few things you should know to make sure they work properly. Their purpose is to cushion occupants during a crash and provide protection to their bodies when they strike interior objects such as the steering wheel or a window. Modern vehicles may contain multiple airbag modules in various side and frontal locations of the passenger seating positions; the airbag is designed to only inflate in moderate to severe frontal crashes. 

Airbags are normally designed with the intention of supplementing the protection of an occupant who is correctly restrained with a seat belt. Be sure to use your shoulder and lap seat belt; air bags are not a substitute for seat belts. 

According to research conducted by Children’s Hospital of Philadelphia, children exposed to air bags during a crash are twice as likely to suffer a serious injury.  Children younger than 13 years are safest when placed in the back seat of a vehicle, according to the American Academy of Pediatrics (AAP). Other air bag safety rules to follow include:

• Never place an infant in a rear-facing child safety seat in the front seat with an air bag. In a crash, the air bag comes out of the dashboard with its force directed at the back of the infant's head if riding in the front passenger seat.
• The rear seat is the safest place in the car for children younger than 13 years. If you don’t have enough room in the back of your car to safely transport the number of children who need to travel safely, please visit a car seat check in your area where a trained expert will help evaluate your situation. You may need to arrange to use a safer vehicle with enough back seat positions to keep all the kids safe.
• All passengers ages 13 and older need to wear a lap and shoulder belt when riding in the front seat. Air bags are designed to work with the lap and shoulder belt to protect the occupant in the event of a crash.
• To keep your older child (age 13 and older) safe in the front seat:
• Move the front seat as far back as possible from the dashboard
• Teach your child not to lean forward to change the radio dial or to insert CDs
• Insist that your child sit upright against the seatback, with the seat belt snug at all times

What If You Disagree With a Claims Adjustor?

If you’ve had a claim and disagree with the claims adjustor, you have the right to discuss your concerns with the adjustor.  You need to be prepared to show the adjustor why you disagree with them; you can’t just say that you think you should get paid more for your claim. If you have an auto accident, for example, and think that the adjustor’s figure is not enough to replace your vehicle, research the book value on Kelly Blue Book at kbb.com.  Make sure that you input all of the correct information on your vehicle. If the book value is different from what the adjustor is offering, provide that documentation to them. Sometimes you may have better information than the adjustor.

If you have a homeowners claim, get estimates from 2 or 3 licensed contractors for comparison. When you’re in the middle of a claim, you may be upset and may not realize the true value of your home or vehicle.  Taking these steps can reassure you that what you’re being offered is fair and correct but if not, make sure you have the necessary documentation to back up your position.

Have You Paid Off Your Home or Auto?

If you’ve paid off your mortgage or car loan, did you know that you should inform your insurance agent? Most people don’t know to do that until they have a claim and have to deal with the insurance company and bank to rectify the situation. If you have a loss and the bank is still listed on your home or auto policy, the claim check has to be written out to you AND the bank which leads to more work for you at a time that you don’t need the extra hassle. Once you receive the documentation that you have paid off the bank loan, get a copy to your Insurance Agent so that they can have the bank or lender removed from your policy to avoid having to deal with this at the time of a claim.

Snow Blower Safety

It’s just the beginning of the snow season and we New Englanders must prepare to take on Old Man Winter. Here are some important things to remember when using a snow blower:

• Turn it OFF!
• Disengage clutch.
• Wait five seconds after shutting machine off to allow impeller blades to stop rotating.
• ALWAYS use a stick or broom handle to clear impacted snow.
• NEVER put your hand down chute or around blades.
• Keep all shields in place. DO NOT REMOVE the safety devices on the machine.
• Keep hands and feet away from all moving parts.
• Keep a clear head, concentrate, and slow down.
• DO NOT DRINK before using your snow blower!

According to the American Society for Surgery of the Hand, hundreds of people are maimed or have amputations of their finger or hands each year due to improperly handling snow blowers. Remember that snow blowers can be dangerous if not handled properly so take your time and play it safe.

Winter Travel Safety Tips

Winter in New England can be beautiful (depending on who you ask) but it can also be very dangerous. Here are some tips that you should follow before you head out in the winter weather:

• Keep your gas tank full to avoid running out of gas and also to prevent ice in the gas tank or fuel lines.
• If you're traveling to an unfamiliar place, try to avoid traveling alone if at all possible.
• Let someone know where you’re going, which route you’ll be taking, and what time you expect to arrive.
• Winterize your car BEFORE bad weather arrives, preferably in the fall to avoid any surprise storms (remember October 2011?) and to beat the rush. Make sure that your tires always have good traction, no matter what the season.
• Have an auto safety kit in all cars.  Purchase a ready-made kit or make your own.

When is the Speed Limit NOT the Speed Limit?

Did you know that even though a speed limit is posted, you could actually get a speeding ticket if you follow that limit? You ask yourself “how can that be?” The answer to that question is that the speed limits that are posted are for when driving conditions are favorable and there are no obstructions or hazards on the road. It's important to remember that if the weather and visibility are bad and/or road conditions are hazardous due to construction, traffic, weather conditions, bicyclists and pedestrians, you need to adjust your speeds accordingly. If you drive 40 mph in a heavy rainstorm on a highway with a speed limit of 50 mph, you can get a ticket for driving too fast. Always be patient and mindful of your speed when the road conditions are not favorable to not only avoid a speeding ticket but also for everyone’s safety.

Driving Defensively

You may be a skilled driver but at one point or another you may run into equipment failures, bad weather, inexperienced drivers, unpredictable pedestrians, and drivers who ignore traffic laws. Here are some tips from the Registry of Motor Vehicles that could save you and your family’s lives.

To prepare for unpredictable events, you should always drive defensively.

• Always have clear visibility in front and around your vehicle.  Clean your windows and remove all snow.

• Stay alert and prepared for the unexpected.

• Keep a safe distance around your vehicle.

• Drive at the right speed and know when to slow down and stop.

• Always wear your safety belt.

• Do not drive if you have been drinking, are on medication, or are very tired.

• Keep your vehicle in good working order.

• Obey the rules of the road and give the right-of-way when appropriate.

Always look ahead of and around you, and check your mirrors often. Be aware of road

conditions and possible hazards in front, to the sides, and behind you.

• Look at everything in front of you. Look for vehicles stopping and watch for people

getting in or out of parked vehicles. Pay close attention to pedestrians or bicyclists

sharing the road with you.

• Expect mistakes from other drivers.

• Watch for back-up lights of vehicles ahead of you.

• Pay close attention to crosswalks. Don’t rely on traffic signals. Other drivers, bicyclists,

and pedestrians may ignore traffic signals.

• Always pay close attention near playgrounds, schoolyards, and shopping centers.

Children, pedestrians, and bicyclists may be hidden from sight.

• A big part of driving defensively is giving the right-of-way to prevent unsafe traffic situations.

Consider Rental Reimbursement Coverage

Under the best circumstances, having an auto accident is really annoying. It can be equally disturbing to realize you didn't buy rental car coverage on your auto insurance policy. So you could be faced with having no car while it's being repaired, paying the $500 deductible and another $300 to $500 for the rental car. If you've got the money, fine; but if you don't, rental coverage could be something you'd like to consider.

People may say "Hey, if the accident isn't my fault, I can collect from the other person's insurance carrier." That's true -- as long as the other person was at fault, they have insurance, and you get their name, plate number, license number, etc. If they don't have insurance, lots of luck taking them to small claims court for the rental car money.

I find that most of the time, it's better to take care of Number One and get the extra coverage. The cost is reasonable, ranging from $40 to around $100.

Car Breakdown Safety

If you are involved in an accident or your car breaks down, safety should be your first concern. Getting out of the car at a busy intersection or on a highway to change a tire or check for damage are probably two of the worst things you can do. The Insurance Information Institute recommends the following precautions when these situations occur:

• Never get out of the vehicle to make a repair or examine the damage on a busy highway. If possible, drive the vehicle to a safe place before getting out. If you've had an accident, motion the other driver to pull up to a safe spot ahead.
• If you can't drive the vehicle, it may be safer to stay in the vehicle and wait for help. Use a cell phone to summon help. Under most circumstances, standing outside the vehicle in the flow of traffic is a bad idea. If you must leave your vehicle, be sure to stay behind any guardrails or well off the side of the road.
• Carry flares or triangles to alert other drivers once you get to the side of the road. Marking the location of your vehicle to give other drivers advance warning can be critical. Remember to put on your hazard lights!
• In the event of a blowout or flat tire, move the vehicle to a safer place before attempting a repair - even if it means destroying the wheel getting there. The cost of a tire, rim or wheel is minor compared to endangering your safety.