5 Essentials To Consider Before Switching Your Insurance Policy

Saving money on your insurance policy is an appealing prospect, potentially putting hundreds of dollars back in your pocket each year. However, before you decide to switch, it’s crucial to keep these factors in mind. By following these tips, you can make a well-informed decision about switching your insurance policy.

Tip #1: Compare Policies Properly

Advertisements often promise significant savings when switching insurance providers. While these savings are possible, it’s important to ensure that the new quote you receive compares your current policy with the prospective one. Pay attention to coverages, driving records, and vehicles insured. Even a minor difference in these factors can have a substantial impact. Beware of online companies that entice you with enticing savings, as they may only complete a comprehensive loss underwriting exchange (CLUE) report after you’ve submitted your application.

Tip #2: Update Your Policy

If you’ve recently experienced changes such as receiving a ticket or being involved in an accident, moving to a new location, or purchasing a new vehicle, it’s advisable to update your current policy before shopping around. Such changes can influence your premium, either resulting in savings or a price increase. Additionally, if a ticket has recently been removed from your driving record, it’s worth contacting your insurance company to explore the possibility of reducing your premium for the remaining policy term. Remember to refer back to Tip #1 whenever there are changes to your circumstances.

Tip #3: Seek Assistance from an Independent Insurance Agent

Engaging with an independent insurance agent can be highly beneficial. These professionals possess a wealth of knowledge, having access to multiple insurance companies. They take into account your unique situation, history, and requirements, providing recommendations from a range of insurers. By comparing rates across various carriers, they can help you choose the policy that offers the best benefits for your specific needs.

Tip #4: Consider Multi-Policy Discounts

While you may primarily focus on your auto insurance, it’s essential to consider all your insurance policies as a whole. If you have a package policy with the same insurance carrier, you likely receive discounts. If you decide to move your auto insurance policy to another provider, your home insurance premium might increase by up to 20%, negating any savings you obtained. Take into account all your policies when evaluating your options. Furthermore, if you have an umbrella policy, it typically must be aligned with your home insurance policy. Some carriers may require bundling the home and auto policies with the umbrella policy. Consult your agent regarding your specific circumstances.

Tip #5: Value Your Relationship with Your Agent

Establishing a strong relationship with your insurance agent is invaluable. They are your advocates in the event of a claim or accident, supporting you throughout the process. They can assist you in filing a claim or recommend reputable local companies to address your needs. When your insurance is directly handled by the company, you may not benefit from this personalized representation. Opting for a local independent insurance agent ensures you have a trusted professional by your side.

By considering these essential tips before making a switch, you can make an informed decision regarding your insurance policy. Remember, saving money is important, but it’s equally crucial to ensure you have the coverage and support you need when the unexpected occurs.

Do Rock Chip Claims Impact My Insurance Premiums?

We’ve all come across those tents offering “Free rock chip repair!” but it’s clear that there must be a catch somewhere. While insurance companies do cover the cost of injecting epoxy into the chip to prevent it from turning into an irreparable crack, there may be consequences to consider. After all, insurance companies prefer to pay $40 for a repair rather than $250 for a windshield replacement.

So, the question arises: Can filing a rock chip claim affect my insurance rates? The short answer is yes, it is possible.

Depending on your insurance company, multiple glass claims can upset the delicate balance of claims loss. Insurance companies typically factor in various rating criteria, including age, zip code, and previous claims when determining rates. Some insurers argue that individuals who frequently file glass claims have a higher overall loss rate, which translates into increased costs for the company.

Additionally, the number of claims you file within a specific time frame can play a role. For example, if you submit a theft claim and then file a rock chip claim the following week, it could raise a red flag on your policy due to excessive claim activity, potentially leading to a rate increase. This occurs because when you visit a rock chip repair tent, they ask for your policy number and file an insurance claim to receive payment (if you have comprehensive insurance).

It’s important to note that not all insurance companies follow this practice, and determining which ones do and which ones don’t can be challenging. It’s wise to rely on your local insurance agent to guide you to the best options for your insurance needs. For instance, if you commute frequently and find yourself needing a new windshield every year, your agent can help identify a company that may be more lenient regarding multiple claims. Some insurers even offer zero deductible glass replacement.

Regardless of your situation, it’s always advisable to discuss your insurance options with a licensed insurance agent who can provide personalized guidance.

In conclusion, filing rock chip claims can potentially impact your insurance rates. The decision to file a claim depends on various factors, and it’s essential to understand the policies of your specific insurance company. By consulting with your insurance agent, you can navigate the options available to find the best coverage for your needs. Let us help you with your auto insurance. We represent multiple companies and can find you the coverage and pricing you want.

8 Situations Requiring Umbrella Insurance: Protecting Your Assets

Having an umbrella insurance policy can provide valuable protection in various scenarios that exceed the limits of your standard coverage. Here, we highlight eight examples where an umbrella policy proves useful:

Babysitting Mishap:

Imagine your teenage daughter is babysitting the neighbor’s children. She briefly leaves the house to run an errand, and unfortunately, one of the kids gets seriously injured and requires expensive surgery. The parents of the child sue you for the medical bills, which exceed $300,000.

Defamatory Social Media Posts:

Your son expresses his discontent with his gym teacher on social media, making derogatory comments that result in a defamation lawsuit. The court awards the teacher $500,000 in damages.

Reckless Driving:

Your 17-year-old child takes friends for a joyride in your car, losing control and causing severe injuries to all occupants. Your umbrella policy helps cover the substantial medical expenses resulting from the accident.

Alcohol-Related Liability:

Hosting a 4th of July celebration, you provide alcohol to your guests. One friend, who consumes excessively, causes a fatal car accident. The victim’s family sues you for serving alcohol irresponsibly, and you are found liable. The consequences include significant legal expenses and potential damages.

Rental Property Accident:

A rotting deck on your rental property collapses, causing a tenant to suffer a severe leg injury requiring extensive surgery. A jury awards the tenant $750,000 in damages.

Negligence with Rental Equipment:

Renting a bouncy house for a wedding held on your property, you fail to secure it properly, leading to the house blowing away with children inside. Although the children are unharmed, the families sue you for negligence, resulting in a $100,000 award for each family due to mental and post-traumatic stress.

Dog Attack:

Your dog escapes and attacks a neighbor’s show dog, causing permanent scars and a limp, rendering it unable to participate in shows. The dog owner sues you for loss of income, resulting in a jury awarding $450,000.

Social Host Liability:

As the “cool parent,” you agree to provide alcohol to your kids and their friends as long as they stay at your house. Unfortunately, one of the friends leaves and is involved in a fatal accident while intoxicated. The parents of the deceased child sue you for providing alcohol to minors, leading to a jury awarding $2 million in damages.

These situations highlight the importance of umbrella insurance coverage when your existing liability limits on home or auto policies are exceeded. The good news is that umbrella policies are relatively affordable. To determine the best options for your needs, contact our office and request a personalized umbrella insurance quote today.

Ensure you have the necessary protection in place by considering an umbrella insurance policy. These examples illustrate the potential risks and the need for additional coverage. Reach out to us to explore our competitive rates for umbrella insurance and secure your financial well-being.