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.

Are Your Christmas Gifts Covered?

This time of year, most of us are doing a lot of shopping!  Christmas gifts and holiday sales mean that everyone is buying a little bit more than normal.  So what does that have to do with insurance?

 

Let’s look at some common purchases and how you can make sure they’re protected!

 

Electronics - Did you purchase a new flat screen TV or Xbox on Black Friday?  Maybe a new laptop or some high dollar headphones? 

 

All of these items are covered for theft or fire (or any other covered peril) by your Homeowners or Renters Insurance, but they are subject to your deductible. 

 

However the BIG problem is that when someone has a major fire or burglary, they FORGET what they have!  It’s hard to remember every item in your home. 

 

That’s why we recommend that you keep a Home Inventory of high-dollar items.  Save your receipts, take photos, or just keep a list.  Keep this info in a safe place (like a file backed up in the cloud), so that you can access it in case of a claim.  Our agency recommends knowyourstuff.org, a great free Home Inventory site provided by the Insurance Information Institute. This isn’t required, but you’ll be glad you have it! 

 

Guns, Jewelry, & Art - If you purchase high dollar, custom, one-of-a-kind, or collectors items, you need to contact us as soon as possible!  These items will be covered by your policy, but may be limited to an amount much less than what they’re worth.  If you contact us, we can review your policy and tell you exactly how much coverage is available and if you need to add these specific items to your policy.

 

And what about all of those gifts sitting in your car trunk?  Yes, it’s a great place to hide presents from the kids but here is the bad news - your auto insurance DOES NOT cover the contents of your vehicle.  That means that if someone breaks in and steals everything, it’s only covered by your Home or Renters policy.  And if you have a large deductible, you could be out of luck!  Get those presents into a safe location quickly and don’t keep them stored in your vehicles. 

 

’Tis the season for lots of shopping!  Call us to make sure all of your possessions are properly protected! 

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.

5 Ways To Save On Auto Insurance

Are you tired of paying too much for auto insurance?  No one wants to pay more than they have to!  That’s why it’s important to know what savings and discounts are available.  Here are a few things to discuss with your agent at your next review.

Is Your Driving Record Accurate? 

Tickets, accidents, and claims will raise your rates!  That’s why it’s important to make sure your motor vehicle report is accurate.  Ask your agent if anything showed on your record and make sure that the information is correct.  

Take A Defensive Driving Class

 Have you taken a defensive driving course in the past?  Let us know.  You may qualify for a discount!  

Don’t forget about driver’s ed classes for your teenagers too.  Just get a copy of the completion certificate for your records.  Many of these discounts apply for several years and give substantial savings.  

Increase Your Deductibles

 The deductible is the amount you pay out of pocket after an accident (or for hail damage, etc.)

The higher that out-of-pocket amount, the lower your monthly premium!  

So if you are currently carrying $100 or $250 deductibles, consider raising them to $500 and keeping a little extra in your savings account.  You could save a lot each month while still being protected from any major damage.  We can give you prices for a range of deductibles to help you decide.

Find The Best Payment Options

 Depending on your individual policy, we may be able to offer various discounts for paying your policy premium in full or putting it on a monthly bank draft.

While $3-4 a month might not seem like much, over time it really adds up!  Ask us about payment options for your policy and see where you can save.

Keep Your Insurance In One Place

 And one of the largest, and most overlooked, savings opportunities is to have multiple polices with one company!  

If you carry homeowners or renters insurance with a different company, let us quote it!  Many times our clients will save several hundred dollars per year just by having their policies in one place.  It’s a no-brainer!  

And remember, getting these savings isn’t difficult.  In fact, with one short phone call we can review your policy, look for discount opportunities, and discover your coverage.  Give us a call today to get started!

P.S. Our open house is coming up on May 8th at 4:00 p.m. There will be BT's smokehouse, Rapscallion beer, Rob Adams, raffles, and other surprises! I hope to see you all there!