Author: Steve G

Insurance blog, articles, and news written by Stephen Gebhardt, founder and CEO of Gebhardt Insurance Group an Insurance agency in Casa Grande, Arizona.

Commercial Surety in Arizona

September 5, 2019 by Steve Gebhardt

A surety bond is a contract that is made between an obligee, surety, and principal. Bonds are established for the financial protection of a party in case the principal fails to satisfy an obligation. A surety is another party that pledges to assume this responsibility. Experienced insurance agents or other professionals can best assist you with buying surety bonds.

Understanding Surety Bonds

The National Association of Surety Bond Producers (NASBP) defines a surety bond as a “promise to be liable for a debt, default, or failure” of another party. The obligee is the party that establishes the bond requirement. The surety is the third-party that is assuming financial responsibility for the principal. The two general categories of these agreements include contract and commercial (miscellaneous) surety bonds.

Contract Bonds

A contract bond is also commonly referred to as a construction bond. These ensure a contractor will satisfy their obligations for a project, such as completing the work according to the specifications. This type of bond may serve to ensure subcontractors or those who supply materials are paid.

In Arizona, surety bonds of this type are referred to as “bid bonds” or “performance bonds.” Contractors who wish to bid or make a proposal to complete a government project will need to meet certain requirements. The State of Arizona’s Procurement Code outlines these provisions under Bid Security. They require contractors to obtain a bond from a surety company “holding a certificate of authority” to conduct business in Arizona.

Commercial Surety Bonds

A commercial bond or “business bond” ensures protection for businesses. These bonds may be required by government entities at any level. Many of these bonds are specific to an industry or occupation. The following are some of the most common categories.

License and permit bonds: These are typically a requirement for licensing such as by a state agency. Examples include bonds for automobile dealers and mortgage brokers.
Judicial bonds: These may also be referred to as court bonds. They may be required by any party involved in judicial proceedings. Some examples include injunction bonds and appeal bonds.
Fiduciary bonds: A fiduciary is a party that assumes a duty to handle the financial affairs of another individual or entity. This may apply in probate such as when a party is responsible for the administration of a trust. They are often referred to as trustee bonds or executor bonds.
Public official bonds: These may be needed for compliance with statutory requirements. The bond may serve to protect the public in case a public official was to commit acts of wrongdoing.
Miscellaneous: There are dozens of other types of bonds. Some examples include fuel tax bonds, utility bonds, and more.

Arizona Surety Bond Cash Deposits (§ 32-1152(D))

In Arizona, the state allows contractors to make cash deposits in place of bonds. These funds are held by the state treasury. The deposit may not be withdrawn until two years after the “termination of the license in connection” with the bond requirement. This two-year requirement also applies when using a “commercial surety bond as a replacement” to an existing cash deposit.

Established Provider of Commercial Insurance and Bonds for Arizona Businesses

The Gebhardt Insurance Group has been providing solutions for the business community here in Arizona for many years. Our agency professionals can review many options for you to find a custom solution while offering excellent protection at a great value. Contact our office today at (520) 836-3244 for more information.

Best Car Insurance Deals

August 15, 2019 by Steve Gebhardt

Why is it important to shop and compare various deals available for your car insurance? One reason is that car insurance rates risen significantly. In the United States, premiums have risen by an estimated 23% since 2011. This rise stems from factors such as higher costs of repairing vehicles involved in a car accident and an increase in distracted driving accidents.

U.S. Auto Insurance	2015	2016	2017	2018
% Annual Increase	4.2%	6.9%	5.0%	2.3%

Finding Affordable Car Insurance

Car insurance is a required expense for all drivers. It is important to protect you in case your car is damaged, you are involved in an accident, or you your car is stolen. You want to find coverage that provides adequate coverage.

In this post, we will discuss some terms to know and trends to understand as you look for auto insurance and provide some of the best car insurance deals.

Ways to Find Great Deals

There are various ways to shop and compare your car insurance options. You may directly visit insurance company websites or call them to obtain a price quote. One uncommon approach is one you have probably seen in ads from Progressive: they show the rates of their competitors when you obtain a quote.

Shopping directly through the insurance company’s website can be time-consuming, as the process of visiting multiple sites or calling them and repeatedly entering or providing your information is redundant. When you shop directly through the insurer, they will likely have various policies for you to consider. The drawback is that the presented options are all from that carrier.

Shopping Through a Captive Insurance Agent

Many large national auto insurance companies sell their policies through captive agents. These are professional, local agents that may offer various types of insurance, but only represent one carrier.

Many people choose a captive insurance agent because they prefer personal service and support from a local agent. The drawback with a captive agent is they are unable to shop multiple carriers to find you the best rate.

Finding Deals Using Comparison Sites

There are various websites such as QuoteWizard that specialize in comparing options from multiple insurers in your area. Many shoppers find these sites to be an efficient way to shop. Oftentimes, these sites only represent the large national carriers, limiting your ability to consider policies from many local or regional insurers.

The Minimum Coverage Requirements in Arizona

All Arizona motorists are required to maintain the state minimum levels of liability coverage. This does apply to those operating a motorcycle, moped, and even a golf cart. The mandatory insurance requirement, which is often abbreviated as “15/30/10,” is as follows:

Bodily injury insurance coverage of $15,000 per person
Bodily injury insurance coverage of $30,000 per accident involving multiple people
Property damage liability coverage of $10,000

Bodily injury liability insurance is used when you are found to be responsible for causing an accident that injures someone else. The property damage coverage applies when you are responsible for causing an accident that damages someone else’s car or other property. It is important to recognize that liability insurance does not pay for your injuries or damage to your vehicle.

Recently passed legislation will raise the required minimum levels of liability insurance in Arizona. This is the first increase in decades and it will take effect in July of 2020. The new minimums will be as follows: bodily injury insurance of $25,000 per person and $50,000 per accident. The property damage liability coverage minimum is increasing to $15,000.

Collision Insurance

This type of coverage will pay for repairs or replacement of your vehicle when in an accident. If you cause an accident, your liability coverage covers injuries and property damages that other motorists incur. Meanwhile, your collision coverage would be used for your vehicle repairs. Collision coverage is also for situations such as a collision with a pole or tree.

Rising Costs of Collision Insurance

The cost of the average brand new car today exceeds $37,000. This potential replacement cost significantly increases the cost of insurance coverage because the insurer knows that if the vehicle were totaled, they would be paying upwards of $30,000 to replace it. Aside from the overall replacement cost, the price of repairing a newer vehicle involved in a collision is higher than an older vehicle.

Data from the U.S. Bureau of Labor Statistics indicates that vehicle repair costs rose by more than 61% between 2000 and 2017. The way that car manufacturers are building newer vehicles contributes to the increase in repair costs.

The days when cars had a sturdy steel bumper on the front and rear are gone. Instead, the body panel materials tend to be some form of lighter-weight, composite material. After a moderate collision, these exterior body materials generally need replacement rather than repairs.

Newer vehicles today also contain sensors, cameras, and other safety features that are integrated into the exterior body. For example, regulators now require that all new vehicles have a rear backup camera. If these vehicles are in a rear-end collision, the repairs will likely involve replacing these electronic systems in addition to the body panel.

Insurers deem a vehicle that is involved in a collision to be “totaled” when the repair costs plus the scrap value exceed the current value of the vehicle.

Comprehensive Insurance

Comprehensive coverage is similar to collision because it is used to repair or replace your vehicle. The difference is that this coverage applies when the damage is incurred in some way that does not involve a collision while operating. For example, comprehensive coverage is used to replace your vehicle if it were stolen. Keep in mind that certain types of vehicles are more likely to be stolen and insurers adjust their rates accordingly.

Other examples of when comprehensive coverage would apply include hail damage or vandalism. Those who have auto loans are required by the lender to maintain full insurance coverage for their protection. The financial institution that you are making payments to is using the vehicle as collateral if you default on the loan.

Are You Shopping for “Full” Coverage Insurance?

Those with a car of moderate value will generally obtain “full” coverage insurance. This term refers to having at least liability, collision, and comprehensive policies.

Those with a vehicle that is only worth a couple of thousand dollars may consider maintaining only liability insurance coverage. Lenders require full coverage in the event that something happens to the vehicle, so you have to have paid off your loans in full to decline comprehensive coverage.

How Deductibles Impact Insurance Costs

If you are comparing potential auto insurance options, it is important to consider the deductible amount. A deductible is the amount that the insured party must pay “out of pocket” when an insurance claim is made. The auto insurance deductible applies to your comprehensive and collision coverage.

Failing to consider the deductible amount would result in an inability to do an “apples to apples” comparison, as common deductible amounts range from $500 to $2,500. Those seeking to save money on the cost of their insurance premiums may choose a higher deductible amount.

We will consider the following example to illustrate how this works. You are driving a car valued at $10,000 and have a $1,000 insurance deductible. When your insurer deems your car totaled after an accident that results in tremendous damage, you must pay the $1,000 deductible amount and then your insurer will pay the remaining $9,000.

Uninsured and Underinsured Motorist Coverage

Uninsured motorist coverage is used to repair or replace your vehicle if involved in an accident with a motorist without liability insurance. This coverage may apply if you were involved in an accident with a “hit-and-run” driver that flees the scene.

Underinsured coverage commonly occurs if you are involved in an accident with a motorist who has state-minimum liability insurance coverage. If the other motorist is determined to be responsible for the accident, you will file a claim with their insurer. Underinsured coverage will pay any amount necessary to repair or replace your vehicle beyond the limits of their liability coverage.

What Factors Do Insurers Consider to Calculate Rates?

Demographics: Insurers use data such as your age, gender, and marital status to determine their rates. For example, teenage males pay among the highest premiums based on their lack of driving experience and potential for risky behavior.
Location: Your zip code provides insurers with insight into whether you are likely to be driving in urban or rural areas. They also may consider the rates of automobile theft in your area for calculating comprehensive coverage premiums.
Credit: Data suggests that those with a poor credit history are more likely to file an insurance claim, so insurers would raise their premiums.
Claims history: There is a central database called CLUE that contains any insurance claims individuals has filed in the prior seven years. Insurers generally consider a driver’s history of insurance claims as an indicator of their likelihood to have future claims. Similar to your credit report, consumers are eligible to receive one copy for review each year.
Your vehicle: Insurance companies may consider that those driving high-performance or sports cars as more likely to drive recklessly. The value of your specific vehicle is critical to insurers, as they may potentially have to pay to replace higher-priced vehicles. Certain models are also most likely to be stolen; often this results from known security flaws that thieves are aware of.

Most Common Car Insurance Discounts Offered

Those who are members of certain organizations may be eligible for discounts. Examples include those who are employees of a certain company, active military members, or those in certain professional organizations.

Insurance companies typically will offer discounts for those who “bundle” multiple types of insurance. For example, if you purchase both your auto insurance and home insurance from the same company, the premiums for both will be slightly less expensive than they would be otherwise.

Some insurers may offer loyalty discounts. An example would be for young drivers that are added to their parent’s existing auto insurance policy. “Safe driver” discounts, such as offered by Liberty Mutual, may be available for those with an excellent driving record.

Best Car Insurance Deals Available from Insurers in Arizona

Here are some examples of current special offers that are available for Arizona motorists that qualify.

Progressive: They are offering a 10% discount on car insurance for those who also purchase home insurance.
Foremost: The company is promoting discounts for those who will be switching from another insurer
Travelers: Those who have no accidents, traffic violations, or insurance claims for the past three years may save 10%
Safeco: Recent promotions include a Low Mileage Discount for those who drive less than 8,000 miles per year.

Usage-Based Insurance Deals

Car insurance companies such as Progressive are now offering auto insurance that is often referred to as being “usage-based.” The company may have some type of application or device that tracks your driving habits for a period of time. Progressive’s Snapshot Program is one popular example. The company claims that many drivers can save $130 annually on premiums.

Shopping for Insurance Deals With a Local Independent Agent

Consumers who are exploring their options for car insurance should consider a local independent agency. Unlike a captive agent that exclusively represents a single carrier, an independent agent can consider options from multiple insurers. They will shop on your behalf to find a competitively priced policy that is suited for your specific needs.

Established Automobile Insurance Provider in Pinal County

The Gebhardt Insurance Group began operations in 2005 in Casa Grande. Over the years, we have witnessed the population of the county nearly double in size. We are proud to offer affordable insurance products from the leading carriers and excellent customer service. We encourage you to contact our team of professionals today at (520) 836-3244.

Life Insurance as an Investment Tool

August 8, 2019 by Steve Gebhardt

What is life insurance? It is an insurance contract that is established between the policyholder and the insurer that will pay a benefit upon death. There are various types of life insurance products on the market today. One type of life insurance is called permanent life insurance. Permanent life insurance pays a death benefit to the named beneficiaries and can be a great investment.

Facts Regarding Life Insurance

According to a study by LIMRA titled “Life Insurance Ownership in Focus” more than 87 million Americans have a life insurance policy. The number of Americans that have life insurance is trending upward; however, the average amount of coverage has decreased. Approximately 70% of U.S. households have life insurance.

The Difference Between Term and Permanent Life Insurance

Term life insurance is much simpler than permanent or whole life insurance policies. The buyer agrees to make premium payments for a specific term or period. These policies are commonly purchased for terms of 10, 20, or 30 years. Term policies are fairly affordable and are most popular among households that have dependent children.

Term policies pay a specified death benefit if the insured party dies during the term of the policy. Buyers often choose a term based on when certain milestones are likely to occur. For example, parents may choose a term policy that extends to the estimated time their children will be graduating from college. A term policy can be very important so that dependent loved ones have financial support if you pass away.

A permanent life insurance policy also pays an amount to the beneficiary when the insured party dies. There is no other defined term or length for a permanent life policy. A whole life policy typically has a fixed premium amount. These types of policies often contain clauses preventing an insurer from revoking or otherwise terminating the policy unless premiums go unpaid.

Permanent life policies also have a savings component that builds cash value that the policyholder may borrow or withdraw from. As funds accumulate, they are invested in a tax-protected account. The investment portion of the policy may be subject to stock market fluctuations and the invested funds may generate dividends. Common types of permanent life policies include variable and universal life insurance.

Why Purchase Permanent Life Insurance?

Each consumer has a unique set of individual circumstances. Life insurance policies are fortunately not a “one size fits all” product. Many lower-income individuals immediately recognize that permanent policy premiums are beyond their financial means. These policies tend to be more expensive than term policies.

It is critical that consumers considering a whole life policy are prepared to maintain it. Those with a need for a life policy that exceeds 30 years often find it difficult to find a term policy. Those with a considerably younger spouse who want to ensure that they will have financial support should seek a permanent life policy. Children with permanent disabilities should also be considered when choosing a life insurance policy.

Variable Life Insurance

Variable life is a type of permanent life policy where the cash value and death benefit fluctuate based on the performance of invested funds. When the investments perform well, the earnings may be used to pay premiums or added to the death benefit amount. Variable policies may or may not have a guaranteed return rate. Keep in mind that the cash value may decline in years where investments perform poorly.

Universal Life Insurance

A universal life policy is a type of permanent policy that invests funds. The key aspect that differentiates universal policies is that they generally have a fixed rate of interest. The policies are quite flexible. The policyholder may choose to skip premium payments as long as the minimum required premium is paid during that year. Policyholder’s may have the option to tailor the amount of premium allocated toward the death benefit or cash value.

Indexed Universal Life Insurance

An indexed universal life policy allows the policyholder to maintain cash value in a “fixed account or equity index account.” The investment component is considered to be less risky than variable universal policies. The policyholder can typically pay a premium between a set minimum and maximum range. The cash value of the policy is usually accessible at any time without penalties.

Tax Benefits of Permanent Life Insurance

The cash value of a policy will increase tax-deferred as a retirement account would.
Withdraws from the cash value will usually be tax-free up to the amount you have already paid in premiums.
Life insurance policy beneficiaries can receive the death benefit without having to pay taxes.
Life insurance policy premiums are typically paid with “after-tax” dollars.

Medical Examination Requirements

A life insurance company often will have applicants undergo a medical examination performed by a professional. You may be asked to complete a questionnaire. A full medical exam may include taking blood or urine samples and other various tests. This is part of the underwriting process that insurers complete when issuing policies.

There are “guaranteed acceptance” life policies available in the market as well. The premiums tend to be comparatively expensive and the death benefit may be restricted to a low amount. These policies are often viewed as being a poor overall value except for those with serious medical conditions.

Policy Waiting Periods

Some policies may have a waiting period. This is an amount of time that must elapse before the policyholder is eligible for the full benefits of coverage. These are commonly referred to as “elimination periods” or “qualification periods” during which you are paying premiums. For example, consider a policy with a two-year waiting period. If the policyholder dies during that time they may only be able to recover the amount already paid in premiums.

Comparing Life Insurance to Other Types of Investments

A permanent life policy is not the best option to choose exclusively for investment purposes. Although there are clear tax advantages, life insurance does not offer an employer match like a 401(k) or other retirement accounts. Those who qualify for Roth IRA’s may find these to be a superior option for investment purposes. It is recommended that you always consult a financial advisor or other professional.

Advantages to Purchasing Insurance Through an Independent Agency

If you have shopped around for insurance recently you have likely encountered an overwhelming number of options. Trying to compare policy options can be time-consuming. Unlike a captive insurance agent, an independent agent can offer policies from various insurance companies. These professionals are positioned to efficiently evaluate and identify the best options for your unique set of circumstances and goals.

Independent Agency Provides Life Insurance in Casa Grande

The Gebhardt Insurance Group is a well-established provider of insurance solutions and is locally based. We can help you save money on insuring your home, vehicles, business, and much more. Contact our team of professionals today at (520) 836-3244.

Cancel State Farm Car Insurance

May 23, 2019 by Steve Gebhardt

Arizona law requires drivers to maintain liability insurance to cover the potential for financial liability if involved in a car accident. This mandate also applies to motorcycles, mopeds, and golf carts. The current minimum levels of coverage required for bodily injury is $15,000 per person and $30,000 per accident. A minimum of $10,000 in coverage specifically for property damages is also required.

Need for Car Insurance

Why does the law require you to have insurance? One reason is that driving is dangerous. In 2017, there were about 1,000 fatalities and 55,000 injuries incurred on Arizona roadways. The total number of crashes in 2017 was estimated as 127,064.

Auto Insurance: Expensive and Volatile

Across the U.S., there are more than 600 auto insurance companies serving the market of roughly 250 million drivers. According to a 2018 State of Auto Insurance report, the national average annual car insurance premium is $1,427. Since 2011, the price has risen nationally by about 20%. Rates have changed in some states in one-year by as much as 60%.

Average Annual Rates Among Neighboring States

Arizona		Utah		New Mexico		California		Nevada
$1,247		$1,112		$1,331		$1,713		$1,802

Avoiding Lapses in Car Insurance Coverage

The Arizona Department of Transportation has a Motor Vehicle Division (MVD) that enforces the laws pertaining to the liability insurance requirement. If you are canceling your auto insurance and will still be driving, it is critical that your coverage does not lapse. If involved in a traffic stop or accident, members of law enforcement will ask you to provide evidence of current coverage. In addition, insurers are required to notify the MVD when a policy is canceled or not renewed.

If you are caught operating a vehicle without the required coverage, your vehicle registration and driver’s license could be suspended. In order to restore your driving privileges, the state will require you to maintain an SR22. An SR22 is a certification of Proof of Future Financial Responsibility. This certification must be maintained for a three-year period.

Lapse of Coverage Impact on Rates

One of the many factors that may have an effect on car insurance rates involves prior coverage. Insurers tend to look favorably on those who have a history of continuous (uninterrupted) coverage. California is the only state that prohibits this from factoring into rate calculations.

Out-of-State Coverage

All those who register a vehicle are required to have liability coverage from a licensed insurer in Arizona. The MVD requires that proof of legal coverage is received no later than 30 days after registration.

Updating Changes to Your Car Insurance in Arizona

Earlier we mentioned that insurers are required to notify the MVD when a motorist’s policy is terminated. The same requirement applies when an insurer issues a new policy. It is possible that your new insurer may not send this MVD notification in a timely manner. This could trigger an alert that suggests you do not have the mandated insurance requirements.

To prevent potential headaches from failures in communication, the state has implemented ServiceArizona.com. This is a website that allows direct access to your MVD record. Those who are canceling or otherwise changing their vehicle insurance to visit the site and enter your new policy details.

Temporarily Discontinuing Vehicle Insurance

What if you will be out of state for an extended period or otherwise not driving your vehicle? If you discontinue your insurance coverage for any reason the insurer will notify the MVD. If no new insurance policy information is received, your registration and driver’s license may be suspended. In this situation, you must complete a De-insured Certificate, a form that can be easily completed online.

Ways of Cancelling an Auto Insurance Policy

Over the phone: You may call your insurance company’s customer service department or your insurance agent. This tends to be a quick and easy way to cancel unless they require your signature.
By mail: You may simply send your cancellation request in writing through the mail. It will be important to properly reference your policy number and the effective date of the cancellation.
Visiting a local office: If your insurer or agent has a local office location you could stop there for cancellation. They will likely have you complete a form to finalize the process.
Assistance from a new insurer or agent: They may be able to assist with canceling your existing policy by sending a fax. Make sure that you provide the policy number to avoid any confusion.

Cancellation for Non-Payment

It is possible that your policy is expiring and you simply allow it to lapse. Keep in mind that some companies have a grace period that automatically extends coverage beyond the policy termination date. It is possible that you could be responsible to pay for this period of coverage. Keep in mind that if your policy is set up for automatic electronic billing you should formally make contact to cancel.

Obtaining a Refund for Remaining Period

If you have paid in advance for your insurance you will be eligible for a refund on the unused premium amount. If you pay monthly it may be easiest to simply make your new policy effective date at the month’s end. If eligible for a refund, you can expect a check by mail in several weeks or electronic refund to your bank account.

Established Independent Insurance Agency in Casa Grande

The Gebhardt Insurance Group has been a trusted source for insurance among those in the greater Pinal County area for years. We are an independent agency that represents dozens of insurance companies and maintains a commitment to customer service. You benefit because we have the options available to ensure you obtain affordable coverage that is well-suited for your individual needs. Contact a member of our team of insurance professionals today to get started at (520) 836-3244.

What Does Collision Insurance Cover?

March 28, 2019 by Steve Gebhardt

All motorists are required to maintain state-minimum liability insurance coverage for bodily injury and property damage that you may cause. Liability coverage is used to pay for damage incurred by others. Drivers have the option of adding comprehensive and collision coverage to pay for damages to your car. Serious car accidents are a reality for motorists. In 2017, there were over 37,000 people fatally injured—roughly 1,000 in Arizona alone. Collision coverage allows for the repair costs or replacement of your vehicle following a collision. Collision coverage applies regardless of fault.

When Does Collision Coverage Apply?

Among the many types of auto insurance, collision coverage is used in various scenarios. One example is if you crash into another car or object such as a tree or light post. This coverage would also be used if you drove off the road into a ditch. It is also commonly confused with comprehensive auto insurance coverage.

Differentiating Collision and Comprehensive Coverage

The primary difference between collision and comprehensive auto insurance is whether the vehicle was under the driver’s control at the time. Comprehensive is generally thought of as being applicable following “acts of God” or nature. Examples would include damage from a hailstorm, vandalism, or theft. Both types of coverage are usually sold together and make up what is referred to as “full” coverage.

Collision Coverage Required

Those financing or leasing their vehicle are going to be required to maintain full coverage. The lender that you are making payments to implements this requirement for their protection. If the vehicle became severely damaged, the lender wants to know their asset is covered.

Collision Coverage	Pricing	Average	2012-2016 [1]
State	Collision \|	Liability \|	Comprehensive
Arizona	290.88	539.68	191.86
California	423.75	520.81	99.73
Colorado	307.27	570.10	194.65
New Mexico	290.17	495.33	178.38
Utah	276.41	523.73	113.49

Factors That May Impact Collision Insurance Rates

There are a host of reasons why a motorist may see increased premium pricing for collision coverage some of which include:

Traffic violations or infractions
Other drivers within your household
A recent history of insurance claims
The type or value of the vehicle being insured
The location of your residence

Policy Deductible

The majority of collision and comprehensive policies have a deductible amount. This is an amount that the policyholder must “pay out of pocket” in an insurance claim. Collision deductible amounts are commonly $250, $500, or $1,000.

We will use an example where your car incurred $5,000 in damage and your policy has a $500 deductible. You would pay the initial $500 toward the repair and your insurer would then pay the remaining $4,500. Choosing a higher deductible amount will generally lower the amount of your premium.

Stacking and Indemnity in Collision Coverage

It is possible that multiple insurance policies could potentially be used to cover the same damages from a single accident. This could create an opportunity for abuse if the insured filed a claim with both policies. The insurance industry implemented provisions to prevent this problem where the insured may potentially profit from a claim. The principle of indemnity seeks to prevent this practice. If more than one insurance policy could potentially cover a loss coverage is limited to the amount of the highest single policy limit. These measures are often called “anti-stacking” protections.

Actual Cash Value

In situations such as when a vehicle is damaged beyond repair, your collision coverage will pay for a replacement. If the vehicle is “totaled”, the amount the insurer pays is generally based on the actual cash value. Keep in mind that your vehicle begins depreciating in value it is purchased. Actual cash value can be summarized as the replacement cost minus the estimated depreciation.

Replacement Cost Value

Some auto insurers recently have been advertising “guaranteed better vehicle replacement” or “full new vehicle replacement” policies. Keep in mind that these policies are likely to have some extra costs factored into the premium. Motorists now have many online resources for quickly and accurately estimating their car’s current value. Sites including Edmunds and Kelley Blue Book are two of the more popular options.

Should I Maintain Collision Coverage on an Older Car?

Cars over 10 years old with a value of less than $3,000 may not be worth maintaining collision coverage on. This evaluation needs to be made on a case-by-case basis. You should analyze the cost of the collision policy premium compared to how much the car is worth.

Coverage for Rental Cars

Traditionally, those who rent a car are covered by their collision rental coverage provided by their credit card. Your existing auto insurance policy would provide liability coverage. In recent years, many credit card companies have started no longer including this form of coverage in the card user agreement. It is critical that when renting a car you check your credit card agreement and auto insurance policy. If coverage is not provided or insufficient, you will want to purchase added coverage options from the rental car company.

Coverage for an Interim Rental Car

Another potential coverage benefit within your collision policy is for a rental car to use while your vehicle is being repaired. Often these policy provisions are called “loss of use” coverage and usually specify a daily rate of rental reimbursement. For example, your policy may provide $35 per day for a rental car with a maximum limit of $500.

Independent Insurance Agency in Arizona

Finding auto insurance that provides a combination of superior coverage and excellent value can be a challenge. Often key policy features and benefits are buried in paragraphs of fine print making it difficult to truly compare competing policies. At the Gebhardt Insurance Group, we will properly evaluate your needs and identify the best options from dozens of insurance carriers. Contact our team of professionals today in Casa Grande at (520) 836-3244.

[1] Auto insurance Facts & Statistics

Life Insurance for Seniors Over 65

March 21, 2019 by Steve Gebhardt

It should come as no surprise that the costs of life insurance typically increase with age. Seniors should expect fewer coverage options and higher monthly premium prices. Life insurance companies view those ages 60 and over as a much greater risk. What are the best life insurance plans for people age 65 and over? The answer varies according to your individual circumstances and what benefits you are seeking.

What is Life Insurance?

A life insurance policy is a contractual agreement between the holder of the policy and an insurer. The insured makes premium payments in exchange for some lump sum death benefit payable to the beneficiary named by the deceased. There are dozens of types of life insurance policies. Term and permanent are the two primary types of life coverage.

Life Insurance Considerations

There are a host of considerations that seniors may factor into their policy selection as follows:

Whether there is a living spouse or not
Other assets that the individual has such as a home, retirement account(s), etc.
Any current debt and the amount(s) owed
If any children are still dependent financially
Any estate taxes that would apply upon death
Whether elderly parents or adult children who are disabled are relying on support financially

Term Life vs Whole (Permanent) Life Insurance

A term life policy lasts for a specified time period of up to 30 years. Compared to whole life insurance, it may be seen as a temporary policy. Term policies are generally more affordable. The insurer may not ultimately have to pay a death benefit if the insured outlives the policy term.

A whole (permanent) life insurance policy remains in effect as long as the premium is paid and usually builds cash value. The insured party may use this cash according to the terms of the contract. These are typically much more costly than term policies.

Annual Premium for	$500,000, 10-Year	Term Policy	(Healthy/	Non-Smoker)
	Age 40	Age 50	Age 60	Age 70
Male	$242	$547	$1,476	$4,523
Fe,ale	$211	$449	$986	$2,807

The above chart shows the large disparity in prices based on gender. Premiums for females ranged from roughly 13% to 38% less costly.

Age Limitations on Life Insurance Products

As you advance in age, there are fewer options available for term policies. These age-related limitations vary by company. Generally, the maximum term available for those 70 years of age is 20 years. At ages 75 and 80, the maximum terms decline to 15 and 10 years. Whole life policies for this age range are quite costly and are rarely offered beyond age 75. Seniors are also likely to encounter a requirement that they submit to a medical examination.

Concerns Regarding Medical Conditions

Seniors in their early 60s who are in good health may qualify for a term policy with a monthly premium of roughly $100. Being in good health allows access to better rates. This is partly due to the chance that the policyholder will live beyond the term of the policy. These healthy individuals may find that submitting to a medical exam lowers their rates.

MetLife typically requires applicants over the age of 50 to submit to an electrocardiogram and both blood and urine tests. New York Life often requires those over the age of 70 to undergo cognitive and physical testing. Prudential Insurance may reference a database showing any prescription drugs applicants take.

Avoid Buying Cash Value Policies Over Age 65

Universal life insurance policies are a form of whole life policies that accumulate cash. Policyholders can obtain a loan from their policy while still alive. These types of policies are generally not recommended for seniors. The premium tends to be high due to the cash value feature of these policies. In addition, they tend to have administrative or management fees that can approach 3%. The policies are often best for those focused on longer-term goals.

Burial or Final Expense Policies

Those well into their 70s will likely have few options. Those over 80 years of age may only be eligible for a burial policy. Burial insurance is a form of whole life coverage that exclusively pays “final” expenses. The death benefit in the policy is unlikely to exceed $40,000, with many in the $10,000 to $15,000 range. Typically they do not require a thorough medical exam. These policies are useful for seniors with health concerns who want ensure their family does not have to pay for funeral expenses.

Evaluating the Insurance Carrier

You may recall seeing advertisements, such as those with celebrity spokesmen, discussing life insurance policies with “guaranteed” acceptance. They commonly promote that no medical exam is required. The insurer knows that these policies are particularly appealing to those with health concerns. As a result, the policy premium is typically inflated and death benefits are generally limited.

You should feel comfortable that a life insurance company is stable and legitimate before purchasing a policy. It is often advisable to check their Standard and Poor rating or AM Best standing. Avoid purchasing policies that have extremely confusing terms and conditions. You should have a firm understanding of what the agreement entails.

The Advantage of Purchasing Through an Independent Agent

There are many types of life insurance products on the market from many carriers. A smart way to consider your options is by consulting with an independent agent. These insurance professionals are able to identify your needs and find policies that are suitable. An independent agent is not “captive”, meaning that they may offer policies from more than one carrier. This allows seniors more life insurance options and will help with finding an affordable solution.

Life Insurance Agency in Casa Grande

Our team of insurance professionals at the Gebhardt Insurance Group has provided life insurance to those of all ages for years. We also assist those locally with auto, homeowners, business insurance and much more. We encourage you to contact us today at (520) 836-5244.

Tips for Avoiding a Collision

February 28, 2019 by Steve Gebhardt

The National Highway Traffic Safety Administration (NHTSA) reports there are over 1,400 vehicle collisions each day. Many of these auto accidents lead to injuries and sometimes fatalities. Many crashes result from problems such as speeding, distracted driving, and drunk driving. Because of the high number of vehicle collisions, it is critical to maintain your car insurance. The Gebhardt Insurance Group has provided auto insurance to Arizona residents for many years and encourages you to contact them for all your insurance needs.

State-to-State Accident Fatality Comparison

State[1]	Fatal Crashes	Deaths per 100,000 people
Arizona	919	14.3
California	3,304	9.1
Colorado	600	11.6
New Mexico	340	18.2

Visibility and Posture

Drivers should assess their positioning and posture upon entering the vehicle. Properly adjust your mirrors to maximize visibility and minimize blind-spots. You should be able to see the ground in front of the vehicle for at least 12 feet. Position yourself comfortably with a good upright posture.

Vehicle Maintenance

Another key to accident avoidance is properly maintaining your vehicle. Regularly inspect your tires for proper inflation and remaining tread depth. “Bald” tires may cause you to lose control of the vehicle in wet conditions. Your brakes should be responsive and should function without any sounds that may indicate excessive wear. Check that your headlights, taillights, and turn signals are all operable.

Speed is a Key

According to the Governor’s Office of Highway Safety, 32% of fatal accidents in Arizona happen when a driver is traveling above the speed limit. Increases in speed reduce reaction time and braking distance and heighten crash severity.

Defensive Driving

Some of the best practices for driving defensively are as follows:

Remain alert when making left-hand turns at intersections. Many “t-bone” (side-impact) car accidents are caused by a driver who is still exiting the intersection when you turn.
Pay attention to signs and signals. For example, many drivers disregard signs to yield and fail to exercise proper caution at pedestrian crossings.
Usage of high beam lights in rural areas may allow you to see if a large animal may be crossing.
Look out for those who may be racing through red lights at intersections as a practice for avoiding collisions.
Remember that large trucks (semis) have a large blind spot toward their right rear.
Allow for plenty of space between your car and the car in front. Avoid “tailgating” to allow for a safe braking distance.

Avoiding Distractions

Distracted driving is now a major safety concern, largely due to mobile device usage. Too many drivers are making phone calls and text messaging that leads to vehicle accidents. Many car collisions are also caused by driver’s who are eating, using in-car electronics, and applying makeup.

Auto Insurance Agency in Casa Grande

Auto accidents are clearly a problem on our roadways. It is critical to have sufficient levels of auto insurance coverage. The Gephardt Insurance Group can research policies from dozens of insurance companies on your behalf. We will find you coverage that is both affordable and provides you with maximum protection. Contact the office today at (520) 836-3244 to speak with a member of our team!

Types of Life Insurance

February 14, 2019 by Steve Gebhardt

Those who buy a life insurance policy generally do so as a means of financial protection for their families. The beneficiary of the deceased will receive a lump sum benefit if the death occurs while the policy is active. Funds are commonly used for funeral and burial costs, debts such as a home mortgage, and future educational expenses of children. Life insurance coverage is broadly categorized as either term life or whole life (permanent life) insurance. Whole life policies make up approximately 60% of those sold within the market.

Overview of Types of Life Insurance Policies [1]
Term Life	Whole Life (Permanent)
Level Term	Traditional
Decreasing Term	Universal
Renewable	Variable
Non-Renewable	Variable Universal

Term Life Insurance

These policies offer financial security for the beneficiary of the policyholder for a defined “term” or time period. In comparison to a whole life policy, they are considered a temporary option. It is the most simplistic and least costly option that may extend up to a 30-year-period. Those with minor children may maintain these policies until their kids have grown and no longer depend on them. Term insurance products are typically purchased exclusively for death benefit coverage. Unlike other forms of life insurance, they generally do not have a cash value component that may accumulate funds.

Renewable vs Non-Renewable

Most term policies extend over a multi-year period. A term of 20 years is quite common, after the time period has passed, the policy may be renewable. Establishing a long-term policy generally provides you with a stable premium cost that will not increase over time. Another advantage is if the insured party begins experiencing health concerns they already have existing coverage in place. Older adults and those will health issues are viewed as a greater risk and will have difficulty obtaining a new policy. Non-renewable policies end after the term and buyers will then have to shop for a new policy. When a term policy is renewed, the new premium is likely to be higher. This increase is likely because the insured party is now older. Renewals also may account for inflation and the rising cost of living.

Level vs Decreasing Term

Another distinction between types of policies involves whether they are level or decreasing. Most term policies have a level premium, but policies may or may not have a level death benefit. A level death benefit amount is clearly established when the policy is purchased and will remain unchanged throughout. Over 90% of term life policies issued are level. A policy with a decreasing level has a death benefit amount that is reduced at some interval over the policy term.

We will consider a scenario of a decreasing term policy that has an initial $250,000 death benefit with a 20-year term. This example has a 2% annual (yearly) decrease. We will track it at five-year intervals thus realizing a 10% decrease every five years.

Years	Level Death Benefit	Decreasing Death Benefit
0	$250,000	$250,000
5	$250,000	$225,000
10	$250,000	$202,500
15	$250,000	$182,250
20	$250,000	$164,025

Why Would Someone Select a Decreasing Term Policy?

Policyholders may consider a decreasing term policy if their primary concern is paying off a long-term loan upon death. One example is a home mortgage that is being paid off and the balance is steadily falling. The insured may have teenage children entering college soon and progressing into the workforce; therefore, their financial dependency is also diminishing. A decreasing policy is likely a more affordable option in most cases.

Whole (Permanent) Life Insurance

A whole or permanent life insurance policy also provides a death benefit as long as the premium is paid. It will also allow you to accumulate cash value depending on the type of permanent policy. A certain portion of the premium payments is invested. These funds may be invested in the stock market and potentially diversified similar to a mutual fund. If the investments perform well, the life insurance company may then pay you dividends based on earnings. These cash value arrangements often have great tax advantages. Many types of permanent life policies allow you access to the funds for purposes such as:

To make your premium payments
To extend yourself a loan at a lower interest rate than you could obtain in the market
As funding for other investment opportunities
For use as supplemental income in retirement

Whole Life vs Universal Life

Whole and universal life fall under the category of cash value policies. The distinction is primarily related to how premiums are paid and how cash accumulates. Whole life policies make the schedule of premium payments more simplified by using a set schedule. Whole life policies also generate a fixed return that “guarantees” you some cash value.

With universal life, the policyholder has some degree of flexibility in making their premium payments. The cash value component of the policy is more volatile and is dictated by short-term interest rates. Although a universal life policy may also have some “guaranteed” cash value, it is subject to changes in the investment markets. A possible disadvantage is that death benefits could decrease and policy premiums may increase in response to market conditions.

Variable vs Non-Variable

Variable life policies are highly volatile because premium funds are heavily invested in stocks, bonds, and other market funds. If these investments perform poorly the death benefit and cash value will decline. When investment performance is good there is a significant upside with strong increases in cash value. Policies deemed as non-variable are more conservative and not subject to the sizable extremes found in variable policies. They typically guarantee a minimum interest or cash value; however, lack the potential for large cash value gains from investment performance.

Variable universal life insurance coverage is a hybrid product. These policies use a variable cash value approach that has the investment-based risks and rewards. They also offer policyholders flexibility in their premium payments and death benefits that are typically associated with universal models.

Employer Plans

Larger employers often provide basic group life insurance policies to all employees. Many are paid entirely by the employer or have a small amount of employee contribution. These are generally small policies that rarely have a death benefit greater than $100,000. Usually medical exams and health inquiries are not required. Most of these policies are not sufficient for individuals with dependents. Many do offer the employee the option to add supplemental life coverage that is sometimes available at a good value. We will take a look at a couple standard plans offered by large Arizona employers.

The City of Mesa: Their standard program provides full-time employees with life coverage equal to their annual salary at zero cost.
The University of Arizona: Offers an Employer-Paid Life Insurance benefit with automatic enrollment for those eligible for benefits. It contains a $15,000 term policy that includes an additional $15,000 “seat belt incentive”. Also included is a $15,000 policy for Accidental Death and Dismemberment.
Hexcel Corporation: They have an office in Casa Grande that employs roughly 500 people. They provide a group life policy to employees at zero cost that has a $50,000 maximum benefit.

Buyer Considerations & Premium Allocation

Those considering life insurance obviously have many options to consider. You should consult with an experienced insurance agent who will help you find an appropriate plan that reflects your specific goals. Those looking to accumulate cash within the policy may choose a minimum level death benefit plan.

Enrollment Details & Tips

Depending on the policy that you are applying for, you may be subjected to a medical examination. This is more likely if your policy will provide significant benefits. All types of life policies will have a named person that is the beneficiary. You will need this individual’s social security number or other tax identification information. If the beneficiary is a minor child, you may establish a trust account for benefit distribution. Your policy premium should be an amount that is fairly affordable. This is particularly important if you choose a policy that may have rising premiums.

Independent Life Insurance Agency in Casa Grande

Would your family be faced with severe financial difficulties in the event of your death? Life insurance is a critical means of protection. At Gebhardt Insurance Group, we can help you secure a policy based on your current and long-term needs and goals. We represent many of the best life insurance carriers in the market and understand potential concerns about affordability. If you have an existing life insurance policy that has not been reviewed recently, we encourage you to contact us as well. It is very important to do so if you have had life changes involving dependents, marital status, income, or employee benefits. We can be reached at our office by calling (520) 836-3244.

Renter Insurance Coverage

February 7, 2019 by Steve Gebhardt

Across the country, there are approximately 43 million households who rent, which equates to about 37% of all households. Among homeowners, roughly 95% maintain a homeowner’s insurance policy; however, merely 40% of renters have rental insurance coverage. These policies provide coverage for incidents of theft, vandalism, fire, and other adverse events.

Renters insurance provides compensation to replace possessions, protect you from liability for injuries, and for temporary accommodations if the property needs repair. Renters insurance is among the most affordable types of insurance. Renters in the Casa Grande area are encouraged to contact the Gebhardt Insurance Group for assistance with rental insurance. We can also provide you with a comprehensive review of homeowners insurance and any other insurance needs you may have.

Current Market Trends (U.S.)

Many younger people (“millennials”) are choosing not to buy a home in the early years of their career. Homeownership among those under age 35 is now approximately 34%. This trend is attributed to several factors including increasing levels of student debt and stricter lending requirements regarding down payments. Approximately 56% of renters under the age of 35 do not maintain rental insurance. Roughly 40% of these individuals do not perceive a need for renters insurance.

Renters Insurance in Arizona

Arizona’s Department of Housing is responsible for the rights and obligations involving rental housing. These are contained in the Arizona Residential Landlord and Tenant Act. The provisions do not impose any mandates regarding renters insurance. A provision in the Arizona Association of Realtors template for lease agreements states they “strongly recommend tenants obtain and keep” this coverage. Landlords may require that their tenants have renters insurance.

Personal Property Protection

One key aspect of renters insurance is to protect your personal possessions in case they are damaged or stolen. Some examples may include electronics, furniture, and clothing. Some policies may also provide coverage for property items in off-site storage units. It is critical to gather an inventory of the items that you own for two reasons. First, to calculate the value of your property in order to be sure you select an adequate amount of insurance coverage. In addition, it is important to have documentation to support the existence of your belongings. This evidence may be proofs of purchase, receipts, and serial numbers. This information should be kept outside the home so that it is not potentially destroyed in a fire or other event.

Replacement Cost Coverage vs Actual Cash Value

A rental insurance policy will specify how compensation will be calculated for losses of property. Actual cash value is the most commonly used. It pays an amount that reflects the value of the item at the time of loss or damage. This calculation accounts for any potential depreciation of an item’s value since it was originally obtained. The replacement cost value is simply based on the original cost when the property was purchased. You should expect to pay at least an additional 10% to have replacement cost value coverage for your possessions.

Additional Coverage for Expensive Items

A rental policy will have a maximum amount of coverage available specifically for personal property. For items with significant value, such as jewelry, artwork, or firearms, you will need to address these individually with your insurance company. Typically, an “add-on” or endorsement is necessary and is available for an additional cost. Be sure to consult with your insurance professional for details regarding these types of coverage.

Certain Exclusions

Basic rental coverage is applicable to events such as fire, water damage, wind, hail, or lightning. Two natural disasters that are usually excluded from this coverage are earthquakes and floods. Those with a home office should also be aware that business-related property may not be covered. Other potential exclusions include if you accidentally misplaced an item or something is damaged by a pet. Carefully review the provisions of your policy agreement to verify these concerns.

Personal Liability

Rental insurance may also provide coverage in the event that someone is injured on your premises and you are liable. For example, if your dog were to bite a person. Some of the potential expenses that your policy may cover include the following:

Medical bills from diagnostics or X-rays
Emergency medical response and transportation
Medical payments from surgical procedures
Rehabilitation such as physical therapy
Compensation for lost wages due to an inability to work
Property damage that the party incurred

Interim Housing & Expenses

If an event renders your home uninhabitable a rental policy will afford you some benefit. For example, if a severe weather event were to severely damage the roof. Your insurance will compensate you for temporary alternative accommodations. This may include a hotel stay and daily living expenses while the property is undergoing repairs.

Premium Costs

The cost of a renter’s insurance policy is referred to as the annual premium. There are a host of potential factors that an insurer may consider when calculating renters insurance quotes. The value of the property that is being insured will generally be a primary factor. Some rental insurance policies may simply provide $5,000 to $10,000 in personal property coverage. Those in need of more coverage may extend to $40,000 or more. Insurers may consider your past claims history. Those who have filed an insurance claim in recent years are likely to pay higher rates. The credit history of the insured party may also be used in the formula for rate calculation. Data suggests that those with poor credit are more likely to file an insurance claim. Another element is the deductible selected for the policy.

Policy Deductible

The deductible amount is what the insured party must pay toward a claim. Deductibles are common in other areas of insurance including automobile and homeowners. Once this amount is paid “out-of-pocket”, the insurance coverage pays the remainder up to the policy’s coverage limits. Common rental insurance deductibles range from $500 to $1,000. Choosing a higher deductible will generally lower the policy premium.

Renters Insurance Premium[1]	Annual Average
National (U.S.)	$187
Arizona	$195
California	$207
New Mexico	$183

Potential Discounts

Rental insurance providers may offer discounts to attract potential buyers. Those serving in the military or who are over 65-years-old may qualify for special discounts. Many insurers offer a discount when the policy is “bundled” with another form of insurance from the same company. Those who implement safety measures such as by adding deadbolt locks or a fire suppression system may also qualify for discounts.

Agency Provides Renters Insurance in Casa Grande

Are you aware of the importance of maintaining renter’s insurance coverage? This form of coverage will compensate you if your possessions are lost due to theft, fire, and other adverse events. Renters insurance may be critical when facing a potential lawsuit if someone is injured while on your property. Our team of professionals at the Gebhardt Insurance Group has been providing renters insurance for many years in the local community. Contact our office today at (520) 836-3244 to obtain a quote that is properly tailored for your protection.

What is My Car Insurance Deductible?

January 16, 2019 by Steve Gebhardt

Insurance deductibles explained

When shopping around for the right car insurance, the term “deductible” is bound to come up quite frequently. This is the amount you will be responsible to pay “out of pocket” before your insurance kicks in to cover additional costs.

Your car insurance deductible will likely impact your insurance rate and your overall ability to afford any damage done to your vehicle.

Understanding deductibles is critical. Auto insurance coverage mandatory for all drivers and everything from insurance premiums to the cost of damage repair is skyrocketing.

Keep reading to learn more about deductibles and what the best option might be for you.

Do All Policies Have a Deductible?

Whether or not your auto insurance policy includes a deductible depends on the type of policy you purchase.

While Arizona mandates all drivers maintain a minimum of liability insurance, these policies do not include deductibles. Such minimal coverage is only meant to provide property and personal injury protection in the event you are financially responsible for an accident.

If you are interested in having a deductible included in your policy, they are generally present in collision and comprehensive coverage. In these policies, the following benefits are available:

Collision coverage repairs or replaces your vehicle if you strike another car or object
Comprehensive coverage repairs or replaces your vehicle in the event of circumstances such as theft, vandalism, fire, etc.
When a driver adds collision and comprehensive coverage together, they are considered to have “full coverage”

If you have a policy with a deductible, the next step is understanding what you have to pay if you file a claim and how those claims will affect your overall insurance rates.

When Do You Pay Deductible Car Insurance?

Let’s work with an example scenario.

We will assume that while parking your vehicle you struck a fire hydrant. After the accident, you will file a claim with your insurance company to and get an estimate on your car to assess the amount of money needed to cover the damages. In this scenario, the damage to your car is around $5,000.

If you have a $500 deductible on your collision policy, you will need to pay $500 toward fixing your car. Your insurance covers the remaining $4,500 needed for the repair.

The Financial Impact of Having Deductibles

When looking for a deductible plan or after paying your rate after filing a claim, there are many situations to consider to ensure your rates stay affordable.

1. Deductible Affordability

Many individuals will opt for high-deductible plants to minimize premiums, however, it is critical to choose a deductible amount that you can realistically afford. If your deductible is too high and you suffer an accident, you could be in an even worse financial position. This is especially true if your policy coverage is less than the overall value of your car as, in the event of a crash, you will be responsible for an even bigger sum of money.

2. Deductible Impact on Premium

There is an inverse relationship between your car insurance deductible and your premium. This means that raising your deductible actually lowers your insurance rate. So, if you can afford either rate of auto insurance deductibles, $500 or $1000, choosing the $1000 option will save you money on your premium in the long run.

3. How Claims Impact Premiums

Those with a recent history of filing an insurance claim generally pay higher rates. Claims made through a collision policy in 2017 led to a 43% average premium increase. For this reason, many people prefer to pay for minor damage out of pocket.

What about claims you file that are not truly your fault? The Arizona legislature has addressed this concern. Arizona’s 20-263 provisions prohibit insurers from increasing rates when an accident is “not caused or significantly contributed to” by the insured.

4. Deductibles When Financing a Car

When you are leasing or making payments toward purchasing your car, there may be deductible restrictions. Lenders need to ensure their investments are protected and often require that the deductible be no greater than $500. Similarly, agreements on leased vehicles may also require a higher grade of insurance to cover any unexpected damage.

5. No Deductible Options

Arizona Title 20 (under 20-264) requires insurers to offer an option for coverage of commonly damaged parts without a deductible. While this statute requires that insurers make a zero deductible option available for purchase, coverage only applies only to windshield, exterior glass, and exterior light damage.

Calculating Your Premium

While having a higher or lower deductible will alter your insurance costs, there are several other factors that are used to calculate your final rate.

Your insurer may consider your age, past driving history, history of insurance claims, the replacement value of the vehicle and more. Where you live is also a critical factor. Rates tend to rise in larger urban areas for reasons such as increased traffic volume and likelihood of theft.

Arizona Locality[1]	Average Rate (Full Coverage)
Phoenix	$4801.15
Tucson	$4027.41
Casa Grande	$3747.34
Flagstaff	$3442.05
Prescott	$3286.79
Lake Havasu City	$2955.72

Agency Provides Auto Insurance in Casa Grande

Recent data from Arizona insurers shows the average annual premium for full coverage ranges from roughly $2,264 to nearly $5,000 annually.

When shopping for car insurance, it is recommended that you seek help from a professional insurance agent to keep these costs as low as possible.

The Gebhardt Insurance Group in Casa Grande will be sure you save money and help you fully understand your insurance coverages.
As an independent agency, we are deeply rooted in the local community. Our agents are experts at identifying policy options that offer tremendous savings and excellent coverage. We encourage you to contact our office today at (520) 836-3244).

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