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.

Misfuelling: What to Do if You Put in the Wrong Fuel

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Misfuelled car

“Putting the wrong type of fuel in the car costs British motorists at least £150 million a year.  Somebody puts diesel in a petrol tank or vice versa every one minute and 45 seconds, meaning 300,000 vehicles a year need to be repaired.” Life is hurried and mistakes are easy to make.  Along with locking your keys in the car and ignoring your check engine light for a little too long, using the wrong fuel is an all too common accident.  This mistake doesn’t have to be a financial disaster.  A good game plan and well put together insurance policy can save the day.

READ MORE: 10 Frequently Asked Questions About Auto Insurance

What to do if this happens to you:

Your next action depends on when you notice your mistake.  If you are at the gas station and catch the error at the pump, that’s the best case scenario.  Whatever you do, do not turn on the car’s ignition.  If you have not started the car, the wrong fuel has not yet made it to the engine.  You will need to have the tank drained and replace the fuel with the correct type.  Some road side assistance companies like AAA may offer this service.  There are also companies that offer this specific service such as Wrong Fuel Angels in the U.K.  For a flat price this company will come to your location and drain and replace your fuel.

If you don’t notice your refueling mistake until you are on the road, your car will likely sputter and stop working.  If you put diesel fuel in a regular gas tank the car will run until the gas runs out.  When the diesel fuel reaches the engine, the car will stop.  If you put regular gas into a diesel tank serious damage can occur.  Diesel gas acts as a lubricant while regular gas acts as a solvent.  The solvent action of regular gas can destroy a diesel engine.  In either case, once the wrong fuel reaches the engine it can cause extensive and expensive damage.  As your car tries to run without the necessary fuel, the various parts can become damaged.  If it reaches this point you may be forced to replace the fuel injector, filters and maybe even the engine itself.

What can you do to protect yourself?

First and foremost, don’t assume this can’t happen to you.  Many people find themselves in this predicament, as it is an easy mistake to make.  Colored handles are not a guarantee of gas type.  Some diesel handles will be green but this is not true every time.  Misfuelling can happen and not be the car owner’s fault.  At a gas station in Buckeye, Arizona a delivery driver actually filled the regular gas storage with diesel fuel.  This created a situation where unsuspecting drivers were using the wrong fuel without even realizing it. Whether it is through your actions or a gas station employee’s, filling up with the wrong fuel is more common than you may think.

Secondly, be proactive.  Reach out to your insurance agent and your roadside assistance carrier and see what coverage you have.  Your roadside assistance provider may be able to offer courtesy draining and replacement fuel or extend this service for a charge.  Or, it may not be offered at all.  You should call your provider and ask for service details and pricing.  Have a plan with either your current roadside carrier or a third party servicer in place, just in case.

Insurance policies vary drastically so work with an experienced agent to understand your coverage.  Policies in any form may have various levels of coverage: many may only cover the draining and replacing and the wrong fuel.  Any damage from driving might either fall under the accidental damage portion of your policy or not be covered at all.. Many companies are tightening their standards and writing policies to expressly exclude damage from misfuelling.  Ask your agent to review your documents and look for wrong fuel coverage.  It is unlikely that your existing policy will pay for the cost of draining and replacing the wrong fuel and all car damage such as a new engine and parts.  The good news is you have additional options to help you obtain more coverage.

While it’s unlikely to have all of the damage of misfuelling covered under your existing policy, there may be a rider available that could extend your existing coverage. Your standard policy does not usually allow for a lot of customization.  A rider is an addition to your policy that provides additional coverage for an increased premium.  You should work with your agent to see if the cost of coverage is worth the additional peace of mind.

If a rider is not available, you may purchase misfuelling coverage as a stand-alone policy.  Going this route will probably cost you more in premiums but could save you a bundle in the long run.  Using a stand-alone policy you can probably get all your family vehicles covered.  If you have multiple vehicles that take different types of fuel you may be more likely to put the wrong type of fuel in the wrong car.  Review your Casa Grande auto insurance policy options and see if there is a cost effective stand-alone policy available.

Using the wrong fuel in your vehicle is a common accident.  A little prior planning can help you save money and know exactly who to call if this unfortunate event happens to you.  Work with your Casa Grande insurance agent to make sure that your coverage is exactly what you need in the event of a misfuelling mistake.

25 Leading Causes Of Car Accidents in America

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Total wreck white car

Accidents happen without a warning, so it’s best to be insured. Aside from knowing the frequently asked questions about auto insurance, it is also important to know the common car accidents leading causes. We cannot always prevent accidents from happening. But preventive measures are still important. We listed the 25 leading causes of car accidents in the country.

  1. Distraction While Driving

    distracted car driver

This is one of the car accidents leading causes that most people tend to neglect. One must not drive distracted. One must give his or her full attention or focus on the road when driving. Distraction comes in the form of texting, eating food, calling or other activities.

  1. Speeding

We must all know this. Speeding kills. The faster one drives, the higher the chance that you will get into accident. Don’t ignore the speed limit. Stick to it and be a law-abiding driver. It’s for your own and other motorists’ safety.

  1. Drunk While Driving

Drunk driving or driving under the influence is one of the car accidents leading causes that we hear of each day. Alcohol affects one’s ability to function and focus fully when driving. If you have had drinks, do not drive. Better have someone drive you home.

  1. Reckless Driving

Recklessness is very dangerous to one’s safety. Tailgating, changing lanes abruptly and speeding are considered forms of reckless driving. Drivers who are reckless are often aggressive and impatient. So be careful when you’re around them.

  1. Rainy Weather

    blurry car windshield

Rain does not only affect road visibility. It also makes the road slippery and slick, making it dangerous for cars, motorcycles, trucks and other vehicles to drive through. It can make the vehicles skid when braking or spin out of control. It is advised that you take extra care when driving in the rain.

  1. Running Through Stop Signs

    car stopping at stop sign

Traffic rules are rules. When it says stop, stop. Do not beat the red light. When you do, it can cause serious accidents. You may cause side-impact collisions, especially if you’re driving at a high speed. Red means stop, so do not drive when it says so. Wait for the go signal.  

  1. Ignoring Red Lights

This is one of the car accidents leading causes that people often ignore. When the car in front of you turns its red lights on, it means that it’s stopping. Be responsive and stop. It is also always important to keep your distance.

  1. Driving Teenagers

Being teenagers does not mean being bad drivers. But statistics shows that teenagers are more careless than adults. Aside from being careless, they are also inexperienced. Unfortunately, they are among the main causes of accidents in the country.

  1. Driving at Night

Night driving is riskier than driving at day. This is because of poor road visibility. You might run into cars that don’t have lights on or you may have weak lights too. You must be extra careful and more focused when driving at night. Better yet, acquire auto insurance in casa grande, AZ if you’re from the area.

  1. Bad Design

Many may not know or believe this, but defective car design is among the car accidents leading causes. Defective parts or design can sometimes lead to acceleration crashes, rollover accidents and others. So always check the credibility of the car you purchase. Safety is more important than looks.

  1. Lane Changing

Sudden lane changing can lead to accidents. One changes lane when making a U-turn or exiting a freeway.  In order to prevent an accident, take extra precaution before you change lanes. Check all the blind spots and make appropriate signals.

  1. Wrong-Way

The biggest mistake a driver can commit is driving through a wrong-way. It is pretty obvious why you shouldn’t drive the opposite direction. Make sure that you’re not driving against a one-way street. This is perhaps one of the car accidents leading causes that can be easily avoided.

  1. Tailgating

Tailgating is very careless. It is the most common habit of reckless and impatient drivers. You must not drive too close to the car in front of you, especially when you’re driving at high speed. You must keep a certain distance between you and the nearest car.

  1. DUI

Driving under the influence of drugs is wrong, no matter how you look at it. Drugs can impair your capacity to function fully and be attentive when driving. You need to have a clear mind when you drive. Drugs can alter your senses, which can lead to serious accidents.

  1. Making Improper Turns

When you turn left or right, make proper signals so the cars near you can adjust. It is always advised that before you make a turn, you must follow proper right of way. Be a responsible driver and follow traffic rules. Not following is one of root car accidents leading causes.

  1. Icy Road

Ice on the road is even more dangerous than rain. It can be very hard to drive when the road is icy. Your car is prone to spinning out of control or skidding. When the weather is cold and you think there’s ice, drive more carefully and tone down your speed.

  1. Driving in the Snow

Snow is even more dangerous than rain and ice combined, simply because it’s a combination of both. Car accidents are frequent during the winter, especially when there’s a storm. It is very difficult to drive in the snow. Keep safe when driving. Better yet, refrain from driving under such weather conditions.

  1. Road Rage

Road rage can lead to dangerous accidents and physical injuries. This can happen when the other driver is speeding or being reckless. It’s best to keep your “cool” during such situations. Temper will only bring in more troubles. This is why road rage is listed as one of the car accidents leading causes in America. There are angry drivers everywhere.

  1. Potholes

Potholes are a real bummer. They can be very dangerous especially if there are no warning signs. You must focus your eyes on the road when driving. Make sure the wheels of your car won’t drive on one of these holes.

  1. Driving When Sleepy

Driving at night, lack of sleep and fatigue are the main reasons why a person becomes sleepy when driving. If you’re really too drowsy to drive, ask another person to drive. If you’re alone, it’s best to take a power nap or a short coffee break before driving back.

  1. Tire Blowouts

Always check your tires before driving. Also, be careful of any sharp objects like shards of glass or nails when you’re driving. Tire blowouts can really be dangerous to you especially when it happens at a curve. This is really one of the most unexpected car accidents leading causes that you must prepare for.

  1. Driving Through Fog

Fog can affect road visibility. Seeing is very important when driving. When your visibility is poor due to fog, accidents are really bound to happen. Remember that when there’s fog, the other drivers also have poor road visibility. Use your headlights so that the other cars can see you approaching.

  1. Blind Curves

Blind curves are really deadly. Slow down and be more careful when you’re approaching a curve. And don’t overtake. When you’re driving at high speed, you may lose your control and you’ll spin out of control at the curve. Caution is the key.

  1. Animal Crossings

Animal crossing is one of the most taken for granted car accidents leading causes. When you’re driving through the woods or in a rural road, there are chances of animal crossings. Wild animals sometimes cross the streets. You should be mindful of them. Keep your senses up.

  1. Racing

Street racing may seem “cool” but it is illegal and dangerous. Racing means driving at really high speeds. It is not only dangerous to you, but to other motorists as well, especially those who are not involved in the race.

Now that you know the 25 car accidents leading causes¸ you can already more or less plan for some preventive measures. But if you really want to be extra sure, get an auto insurance. It’s always the best way to protect yourself, your car, and your other assets. You’ll never go wrong if you dial this number, (520) 836-3244. The professionals at Gebhardt Insruance are always ready to help you with whatever insurance concerns you have. Just give us a call and we’ll be there in a flash to get you insured.

Auto Accidents With No Auto Insurance: What Should I Do?

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Auto Accident With No Auto Insurance

When we’re on the road, we are always at risk of getting into accidents. There’s no way of knowing when or if it will happen, which is why knowing the answers to auto insurance questions is very helpful. Accident is already a big problem by itself. But it becomes an even bigger, more complicated problem if you drive with no auto insurance.

A lot of people don’t get auto insurance because they think it’s very costly. But they don’t bear in mind that getting in an accident uninsured is even more expensive. Statistics shows that one in seven people that are involved in accidents has no auto insurance. If you are one of those who drive uninsured or if the other person doesn’t have insurance, here are the things that you can do in the event that you get into an accident:

What to Do After the Accident

            The first thing you need to do shortly after the accident is to take note of important information regarding the other person. These include registration number, car model, name, and address, if at all possible. You can also take photos of your and the other person’s car to assess the damage, road markings, weather conditions and other helpful clues. If there are any witnesses, you can also get information from them. These are very helpful if the other person has no auto insurance.

Contact Your Insurance Company

 If you have insurance, immediately call the company to check the coverage of your policy. If you don’t have one, better contact a reliable, professional company that provides auto insurance in casa grande, AZ.

If you have insurance, you are in luck if your own policy’s coverage includes those for uninsured drivers. This is mandatory in some states. You can directly contact the insurance company or call a lawyer to review your options and to check if you are covered. This is because you might have difficulty recouping from the other person with no auto insurance, who might not have enough money to pay for the damages because in the first place he or she did not insure because of lack of money. Even if you file a legal action, it still doesn’t change the fact that he or she can’t pay you.

Aside from the insurance company, you must also contact the police. This will ensure that the driver will not run away from the scene. The police will ask you to write a written report and they will conduct their investigation regarding the accident.

If You’re the Uninsured Driver

            What if you are the one with no insurance policy? If you think you are not at fault, you should still contact the police to protect your rights. A written report will increase your chances against the other driver, even if he or she is insured. You can have the driver’s policy cover for the damages.

If ever you caused the accident, getting a written statement is still important. You can use this as your defense if ever the opposing driver sues for damages. It is best to contact an attorney so that your rights and assets will be protected.

Check if the type of accident can be covered by the other driver’s insurance. As a gesture of good faith, the payment can be negotiated through the insurance company. If the driver’s policy covers a rider for uninsured drivers, then you will only be paying the deductible.

It is always best to be the insured driver. You can never foresee an accident coming. You may think that having no auto insurance is the more economical choice. But you’re wrong. Getting into an accident uninsured is even more costly. Don’t wait for an accident to happen. Get auto insurance now at Gebhardt Insruance Group. They are experts when it comes to these things. They can make it easy and less costly for you in the event that you get involved in an accident. Just simply call this number (520) 836-3244.

10 Frequently Asked Questions About Auto Insurance

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Couple with their car and car insurance

Are you interested to get auto insurance? Before you avail of it, it is advisable that you know the basic auto insurance questions and the answers thereto. Knowing these will help you on how you want to go about the insurance and how you will utilize it better to your advantage.

The following are the top 10 auto insurance questions that are frequently asked, listed in no particular order:

  1. What Coverage Do I Really Need?

    There is no particular answer to this. It will depend on your State and your needs. Each state requires a minimum amount of liability insurance. This minimum amount varies from State to State. The coverage also depends on the assets you want to protect, your needs, and how much you can afford. But it’s always advisable that you increase the amount of your liability coverage, whenever you can.

  2. What Should I Consider to Purchase?

    This is among the useful auto insurance questions you must find answers to. If you want to protect your vehicle from theft or any damage, consider getting Collision and Comprehensive coverage. If you have the money, you can purchase other coverage such as SUM and additional PIP. Regarding these things, it is always best to consult with your insurer.

  3. What Usually Determines Auto Insurance Price?

    What determines auto insurance price. This is among the most important and useful auto insurance questions you should know. There are various factors that affect and determine the insurance price. The most common are location, age and gender, credit, previous claim history, the car you drive, how much you drive, coverage amount, and type of insurance.

  4. Am I Protected from Possible Lawsuit Resulting From Injury or Death of Spouse?

General or standard auto insurance does not cover this. But if you want to insure your liability against a possible injury or death of a spouse, you can get a supplemental insurance.

  1. Can My Insurance Be Affected by My Credit History?

    Generally, yes. The insurers will look into your credit history and based their premium charge on it. But, under the law, insurers are prohibited to reject an application or terminate a renewal policy based on your credit history alone.

  2. What Happens If I Get Pulled Over Without Insurance?

    Driving without insurance is illegal, particularly in Arizona. The penalty depends from State to State. You will face serious repercussions if you get pulled over without insurance after being involved in an accident. The following are the most common penalties if you’re uninsured: fines, vehicle registration suspension, driver’s license suspension, and increased insurance costs. Of all the auto insurance questions, you must take note of this one the most.

  1. Are There Available Discounts?

    Yes, there are. This is because there are mandatory discounts imposed on all insurers. These include discounts for vehicles with anti-lock brakes, running lights and air bags. Aside from this, certain insurers also offer other discounts. You simply have to check them out.

  1. Can Youthful Drivers Qualify For Reduced Premium?

    Yes, there are insurers that offer discounts to youthful drivers. There are certain requirements in order for a youthful driver to qualify for reduced premium. The common requirements are driver’s education course, academic morale, and being a resident student.

  2. Can I Still Renew My Policy If I Got Involved in an Accident?

    The general answer is yes. However, it would still depend on the guidelines of the insurers. Normally, if you’re convicted of certain violations involving accidents or traffic, your premium will be increased for a certain period. In case of non-renewal, the insurers are required to give you a notice, containing the reasons or grounds.

  1. Does Purchasing a New Car Affect the Cost of Policy?

    This may be the least of all the auto insurance questions, but it’s still equally important. The answer depends on the type and price of your newly purchased car. In general, the higher the price or value of the vehicle, the bigger the insurance. There are vehicles that are costly and difficult to insure. It’s best if you check this first before purchasing.

Check out Gebhardt Insurance if you have concerns regarding auto insurance. We do not only provide answers to the common auto insurance questions, we also guide you throughout the process and make sure that you are well covered. We do more than what’s necessary. Just simply dial (520) 836-3244 and we will listen to your concerns and then get you insured.

 

Can You Save Money by Bundling All Insurance in the Same Company?

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Can your Casa Grande insurance agent really save you money by bundling your policies?  The short answer is yes, and here’s how to “Bang for Your Buck“:

  1. Discounts, discounts, discounts. An insurance company is anxious to earn your business and will want to earn as much of it as possible.  To that end, many insurers will offer discounts if you bundle multiple policies.  Some Casa Grande insurance companies can offer you homeowners, business insurance bundles, vehicle and umbrella insurance all in the same place.  The more insurance policies you bundle, the deeper the discounts.  Bundling is an easy way to be fully insured and save money on your insurance premiums.  It is far more expensive for an insurance company to earn new business then to keep an existing customer.  This encourages them to offer you deep discounts to bring all of your business to them and stay with them.  Once a customer has moved his/her policies to an insurance company he or she is less likely to go elsewhere.  The eagerness of the Casa Grande insurance companies to earn your business, and as much of it as possible, is your opportunity for big savings.
  2. Convenience: There is something incredibly simple about having all your insurance policies with one carrier. If you have multiple policies with different carriers you can look forward to multiple bills in the mail every month, different policy cards to keep track of and multiple phone numbers and calls that have to be made.  When you bundle your policies you can streamline all of that.  Your many different monthly bills can be consolidated into one.  If you only have one payment to keep track of you are much more likely to pay your bill on time, avoiding any late fees and penalties.  You also get to limit yourself to working with one company, one insurance card and one system of filing a claim.  Working with your Casa Grande insurance company to bundle your policies can make your life simpler and your insurance premium easier to pay and manage.
  3. Coverage: There are instances where your insurance policies can either overlap or have gaping holes.  Bundling your insurance with the same company allows an agent to review your coverage comprehensively and identify any gaps.  That same agent can review all your policies to see if you have any overlapping coverage and make adjustments to save you money.  The key to successful coverage, whether you choose to bundle policies or not, is to understand your insurance policies and coverage benefits.  Work with your Casa Grande insurance company and agent to thoroughly review your coverage and identify any overlapping items that can be reduced to save you money.
  4. Deductibles: When you bundle policies you may only be required to pay one deductible when you would otherwise have to pay multiple deductibles with different carriers. com gives an example, “But what if…, your car is damaged by the same hailstorm? If you don’t bundle, you might have to pay the $1,000 home insurance deductible and a $500 auto insurance deductible before you received help from your policies. Some providers, when you bundle coverages, have a single deductible requirement – though usually you have to pay the larger of the two deductibles. Even if your Casa Grande insurance company requires you to pay the higher of any applicable deductibles, it could still be more cost effective than paying multiple deductibles to multiple carriers.  In this instance, if you have bundled your policies, the claim process is also simplified.  You only have to pay one carrier and you only have to file one claim.  When dealing with an unexpected accident or property damage, the least amount of work and inconvenience the better.

Bundling is usually, but not always, a good idea.  If you need specialized coverage, you may not get the best deal bundling.  It may be most cost effective to separate out your policies so that you can obtain the best rate for your specialized needs.  Bundled policy rates will vary by insurers so even if you are bundling you will want to shop around.  Also, an insurer may require a long term commitment from you to qualify for the savings, so make sure you are getting the best deal possible before committing.

The savings of time, money and headaches can be reflected in a study published by Insurance Journal.com  as they studied Generation Y and their satisfaction with their insurance.  This article demonstrates that, “Members of the Gen Y generation, who were born between 1977 and 1994, are less satisfied with their homeowner’s insurers than others.  One reason may be because Gen Y home owners are less likely than older or younger customers to bundle their insurance policies with a single insurer….Satisfaction among bundlers averages 810 vs. 741 among non-bundlers.”  This report reflects higher satisfaction rates for those customers that bundle their insurance.  The financial and logistical savings make bundling a great option for most.  Your Casa Grande insurance company can review your specific circumstances and make sure that the advantages to bundling are a good fit for you.

Casa Grande’s Worst Disasters

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Casa Grande Insurance

The reason you need a Casa Grande Insurance!

“You’re gonna need a bigger boat”. Picture yourself living in the desert during monsoon season and the storms haven’t let up.  Before you know it, your home and town are flooding.  You’re being evacuated from the area.  You might suddenly feel like you need a bigger boat.  This line from the movie Jaws is typically used when a situation is too big to manage.  Natural disasters and the loss and devastation caused by them could make anyone feel like they need a bigger boat.  When it comes to the unexpected, you rely on your insurance to cover your property and unexpected damages.  Let’s take a walk back through time and revisit Casa Grande’s worst disasters in history.  Ask yourself if you lived through these disasters, would your insurance be enough?

  1. The flood of October 1983: While Arizona is not known for its annual rainfall, it can suffer from flooding.  The worst flood in Arizona history to-date happened in October 1983.  It rained for days and flooded low lying ground primarily in the South and Eastern parts of Arizona. The disaster and devastation that followed, “When the damage was tallied, 14 people across Arizona drowned, nearly 1,000 more were injured, and the damage to homes and property was nearly $1 billion when adjusted for inflation in today’s dollars”.  While flooding is not common to the area, when it does happen, it can have dire consequences.  Most homeowners’ standard insurance policies do not cover flooding.  Do you live in a floodplain?  Could your home fall victim to a flood?  According to this article, “25-30 percent of all flood insurance claims are paid on homes in low to moderate risk flood zones…Recovering personal belongings after a flood is often impossible. ..Flood victims often have to start from scratch, which can be a huge financial burden if paid entirely out of pocket.”  Talk to an experienced insurance agent and carefully weigh the cost of flood insurance versus what it could cost you out of pocket without flood insurance.
  2. Dust Storms: Dust storms are fairly common to Arizona.  They happen with such frequency and intensity that they have their own name, “haboob”.  A historic dust storm hit July 9, 2011 and created zero visibility with winds greater than 50 mph.  According to accuweather.com on their article “Phoenix Dust Storm a “100-Year Event”, “The dust storm was estimated to reach a peak height of at least 5.000 to 6,000 feet with an aerial coverage on the leading edge stretching nearly 100 miles, according to the National weather Service.”  This storm created dust and debris, left thousands of customers without power and temporarily grounded the Phoenix airport.

The dust storm of August 1950, while smaller, created a dangerous situation that led to a fatality.  A woman stopped her car due to severe dust and a large truck crashed into her car.  The car caught on fire and she was not able to be saved.  Additional accidents and injuries were caused by the same storm.  Dust storms limit visibility creating dangerous road conditions.  They can also bring strong winds that can take down trees and create property damage.  Are you insured against haboobs and the havoc they bring?  This is a great question for your insurance agent.  Some companies will cover damage caused by a dust storm under a standard property policy.  However, not all policies are created equal.  If you are a Casa Grande resident, make sure that you review your policy with an experienced agent and discuss your coverage in the event of damage due to a dust storm.

  1. Tornadoes. There have been 5 historical tornado events in or near Casa Grande.  In June 1972 there was a tornado 13.5 miles long that caused 3 injuries and 25 million dollars’ worth of property damage.  In August 1971 there was a tornado that caused 41 injuries and 2.5 million dollars’ worth of property damage.  Tornadoes themselves are incredibly dangerous but they also tend to bring winds, rain and flying debris.  The winds can pick up items such as appliances and throw them through your homes weak points such as windows and doors.  Because tornadoes can cause so much destruction FEMA does not recommend attempting to tornado proof your home; instead urging homeowners to have a safe room within the home that can offer you and your family protection from the storm.  If your home or vehicle were to be hit by a tornado would you be covered?  Are you insured for repairs or replacement costs?

It is a good rule of thumb to review your home insurance, auto insurance, and life insurance  coverage at least every year.  Your insurance agent should take the time to explain your policy and coverages.  Your location might not be a high risk flood plain or see as many tornadoes as the Midwest but it is always wise to hope for the best and prepare for the worst.  Ask your agent if any of these natural disasters are already covered under your existing policy and if they aren’t ask if they should be.  A nominal increase in your monthly premium could be a small price to pay compared to the potential out of pocket costs should you ever face one of these disasters.

What Determines the Price of My Auto Insurance?

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Auto insurance price determination

Auto insurance price is determined by many factors. Rates can be an expensive part of your monthly budget.  It is important to strike a balance between the amount of coverage you need versus the amount of coverage you can afford.  Part of making informed decisions about your coverage is understanding what the insurance companies take into account when deciding on your rates.  If you are a Casa Grande, AZ resident shopping for auto insurance, make sure you know the items insurance companies may be looking at when determining the your premium rates.

  1. Location, location, location: Where you live can impact your auto insurance rates. If the area you reside in has high rates of crime such as property damage, vandalism and car theft your rates will be much higher than if you reside in a relatively crime free area. The insurance companies look at statistics and percentages, and if you live in a high risk area you are statistically more likely to file a claim.  To protect themselves financially from this risk the insurance companies will increase your premiums to cover their potential losses.
  2. Previous claim history: Insurance companies can and often do lookup our previous claim history using a database called CLUE. CLUE stands for Comprehensive Loss Underwriting Exchange.  A CLUE report, “provides a seven year history of losses associated with an individual and his/her personal property. The following data will be identified for each loss: date of loss, loss type, and amount paid along with general information such as policy number, claim number and insurance company name.”  The CLUE report shows all claims filed regardless of your insurance carrier at the time of the claim.  Insurance companies can use this information to see if you have filed multiple claims and if the claims were paid or denied.  You are far more likely to receive lower auto insurance rates if you do not have any claims.  If you are unsure of what might be on your CLUE report you are entitled to receive 1 free copy annually.  Casa Grande residents can request a copy of this report by completing the necessary form and sending it by mail to:

C.L.U.E. Inc. Consumer Center
P.O. Box 105295
Atlanta, GA 30348-52

  1. Credit: While your credit score typically demonstrates your credit worthiness and ability to pay your bills on time, this information is also being used by auto insurance companies. One car insurance company might weigh your credit score differently than another or not at all; but it is quite common for your credit score to be taken into account when determining your insurance rates. While this is not the only factor taken into account, a low credit score can certainly increase your premiums.  If you are shopping around for car insurance consider what you may be able to do to raise your FICO score.
  2. Age and gender: Those pesky insurance companies rely heavily on statistics to determine the cost of your car insurance. DMV.ORG, explains in detail how your gender can directly affect your auto insurance rates, “Starting from the time they begin driving, women generally pay less than men do for car insurance. This pricing gap is influenced by:
  • The types of cars typically chosen by men.
  • The frequency of accidents among women versus men.
  • Gender-based statistics on risky driving behavior.
  • The average number of miles driven by women vs. men.”

All these factors are taken into account; and generally speaking women will simply pay less than men in insurance premiums.  Also, if you are a very young driver your rates will be affected negatively.  The statistics show that young drivers are involved in more accidents and consequently they pay much higher insurance rates. If you are a male Casa Grande driver under the age of 25 you are probably paying higher rates than your female counterpart.

  1. How much you drive: How many miles you drive is another statistical factor insurance companies may take into account. According to Obrella.com, Casa Grande is #13 in overall best commuter cities and, “Roughly six out of 10 Casa Grande residents enjoy a drive to the office that’s less than 15, and eight in 10 get there in less than 29 minutes.” There are many employers with jobs for local residents available in Casa Grande.  This helps keep the total commute time short for many.  However, if you are a Casa Grande resident and you are commuting to downtown Phoenix or Tempe, expect your car insurance rates to be higher than your neighbors who work locally.  The more time you are on the road, the higher the likelihood of an accident.
  2. The car you drive: The type of car you drive can directly affect your insurance rates. If you drive a car that is frequently stolen, this may increase your premiums. Luxury vehicles and sports cars can also increase your rates.  Luxury vehicles are typically more expensive to repair while sport car owners are more likely to be in accidents.
  3. The type of insurance and coverage amount: The more comprehensive insurance you have the more you will have to pay for it. Some people have only liability insurance and that will generally be significantly less than someone who has full coverage.  (Consult with your insurance expert before opting for only liability insurance).  Also, if you opt for higher coverage amounts it will probably increase your rates.  The more money that the insurance company could potentially have to pay, the more they will charge you in premiums.

Auto insurance is, at its core, based on statistics and numbers.  If you need auto insurance be sure you know how the numbers likely affect you and work with an agent to get the best rate possible and the coverage that you need.

 

How to Protect Your Home Against Break Ins

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It goes without saying that your home serves as possibly the single most valuable asset in your life – it represents all of the hard work that went into purchasing the house, the work that you’ve put into making it your own, and the place that you and your family call home. The thought of an unwanted person making their way into your home and rummaging through you and your family’s belongings makes your stomach turn. After the burglar has left, chances are that you’ll find their mess, some signs of entry, and many other things, but what you won’t find is a large amount of your valuable possessions. As awful as this scenario might sound, it happens once every 13 seconds. With homes being intruded so frequently, you are going to want to take steps in order to prevent you from becoming a victim.

Understanding the burglar

If you want to stop the burglar, you have to think like the burglar, that is, you have to understand their motives, triggers, and desires. Some burglars will break into a house on a moment’s notice if they see you drive off without locking the door or if they spot an open window. Some will force their way into your property if they have reason to believe something inside is worth their time. Others will be well-experienced in the act of breaking and entering, and have ways of bypassing general security systems. Realizing that there are numerous types of burglars and burglaries and that your home may be at risk to any of them (on-the-spot, forceful, and experienced) is essential to protecting you and your wealth.

Remember to use common sense

The easiest burglars to keep out are those that act in the moment, that is, when they see an opportunity to easily make their way into a house and act. To avoid these, it is best to remember to keep your windows locked at all times if possible, and to remember to check that all doors are locked whenever you get ready to leave your house. These actions seem obvious, but it becomes very easy to forget when you are running late and are trying to get into your car and on your way as soon as possible. All it takes is receiving a reminder text that sends you running out the door with your keys and coat for you to forget to check the back door, and other possible entries which may have been opened recently. This is when the spontaneous burglar strikes. Remembering that it is better to be safe than sorry may mean being a few minutes late to an important meeting, but may also mean the difference between coming home relieved and coming home to find that you are missing thousands of dollars of jewelry, electronics, cash, and so forth.

In addition to checking that all doors and windows are locked prior to leaving the house, it is best to get motion-sensing lights for your front and back porch which are activated and turn on when they detect movement. Similarly, it is smart to use light timers in and around your house. Seeing a light turn off may dissuade a burglar from wanting to break in, thinking there’s someone there.

It is also smart to make sure that all of the doors leading into your home have heavy duty locks, such as inch thick deadbolts.

Putting up curtains or shades of some sort may also keep curious thieves from seeing what’s inside your property. If the thieve doesn’t have a strong enough reason for wanting to break in, then they probably won’t. Keeping your home private with shades or curtains might dissuade someone from wanting to break in.

If you are on a tight budget, and are currently unable to afford an advanced security system for your home, these simple steps can save you from the spontaneous burglar. Although it is in your best interest to think about making an investment in a security system, as these tips may not protect you against other types of burglars.

Fighting off the experienced burglars

Unfortunately, simply keeping your doors and windows locked isn’t always enough to keep some intruders out. Some will go as far as breaking in doors or windows if they believe that your home is holding some very valuable items. Often times, these thieves are triggered when they see cardboard boxes that once held electronics and other expensive items outside near a trash bin. Make sure to break apart your boxes and fold them so as not to advertise what is inside your home.
An experienced intruder will look for a home that is shielded from its neighbors (either by trees or shrubs) and that has an easy escape route (broken backyard fence). To make your home a less likely target, keep your trees and shrubs trimmed, and make sure you keep your backyard well-secured.
Investing in a home security camera that syncs to your phone is the best way to keep these experienced intruders away. If someone manages to make their way into your home without having to force their way or trigger someone’s attention, then a motion sensing camera will notify you, wherever you are.

To remain safe

The most efficient way to keep your home from being burglarized is to, of course, purchase a home security system. In today’s technology, these systems can alert your local police of an intrusion and have someone dispatched in minutes. Though this may not necessarily keep burglars from getting in, it will definitely scare them off, or keep them from taking much.

It’s best to obtain a homeowner’s policy to ensure that if your home is broken into, you will receive some type of recuperation. If your home is vandalized or damaged during the break-in, the typical policy will cover the cost of repairs. In addition, having homeowner’s insurance may help you pay for the cost of replacing your stolen items. Though your insurance may not cover the cost up to 100 percent, there may be caps on certain items or amounts depending on the insurance company and your premium. Regardless, receiving any amount of aid from your insurance will help offset the total cost, and that means you won’t have to pay as much. To learn more about obtaining an insurance premium, or to speak to an agent, visit our home insurance page.

Having a security system or homeowner’s insurance does not eliminate the need to lock all doors and windows while away. Having these, however, adds a secondary layer of protection to your home.

How Driverless Cars will Affect your Car Insurance

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Driverless cars and driverless car insurance will seem determined to be part of our future. Google is building prototype vehicles that don’t require a human driver and would put all of us in the passenger seat. Other car manufacturers are doing the same. Volkswagen expects to put out their first driverless car by 2019. Audi is even more aggressive, predicting they will have models available by 2017. Other manufacturers such as Ford, Toyota and Nissan all have estimated production dates by 2020. Driverless, or fully autonomous, vehicles could be a reality in a relatively short amount of time.

Driverless cars raise a number of issues such as the future of car insurance and how it is assigned, billed, and processed. Some people such as Noah Buhayar and Peter Robison, published on Bloomberg.com at are asking the question, “Can the Insurance Industry Survive Driverless Cars?”

Car insurance rates could drop dramatically. Driverless cars could mean significantly fewer accidents. While a significant decrease in accidents could mean fewer payouts it could also mean much lower premiums for the insurance companies. If your driverless car is as safe as the manufacturer hopes, your coverage needs will go down as well, meaning even further lowered premiums. The insurance companies are aware of the financial implications of this new technology. According to the Bloomberg article referenced above, “Auto insurance has long been a lucrative business. The industry collected about $195 billion in premiums last year from U.S. drivers. New customers are the source of so much profit that Geico alone spends more than $1 billion a year on ads to pitch its policies with a talking lizard and other characters. Yet even Warren Buffett, whose company, Berkshire Hathaway, owns Geico, is talking about the long-term risks to the business model. “If you could come up with anything involved in driving that cut accidents by 30 percent, 40 percent, 50 percent, that would be wonderful,” he said at a conference in March. “But we would not be holding a party at our insurance company.”

The importance of being a safe and responsible driver becomes unimportant in a driverless car. If your car can operate without you behind the wheel AND prevent you from being in an accident at the same time, much less importance will be focused on the car owner. Instead, insurance companies might look at outside factors to determine coverage levels and prices. Instead of examining the driver’s age, driving record and history, the company may look at weather conditions where you live and the potential for damage to the vehicle from other elements.

Car insurance companies are already exploring other sources of revenue. The insurance companies are well aware of the financial implications of the driverless car technology. The loss in revenue is projected to be significant. To combat this financial loss some companies are already working on alternative revenue streams. For instance, per “Tom Wilson, CEO of Allstate, wrote on his post “Can the car insurance business survive driverless cars?” is thinking about selling coverage for other products, such as mobile phones. He’s also considering using data that the company is already collecting about its customers. For example, they track their customers’ driving behaviors so they can offer rewards for safe driving; they could also potentially use that information to send customers coupons as they drive by retailers.” Your insurance company is not sitting idly by and waiting for the collapse of the industry. These companies are actively strategizing to find additional income and mitigate losses.

The focus of car insurance could shift to the car manufacturer. While accident rates will go down significantly and premium rates could plummet as well, the car manufacturers could have a much larger liability. If you are not driving your self-automated car, how could an accident be your fault? While this means a much smaller liability for you, it places the burden squarely on the manufacturer. If the driverless cars technology fails and causes an accident, it could be costly for the manufacturer and that will give the insurance company an opportunity to recoup lost premium revenue.

Driverless cars can impact the number of cars on the road. Driverless cars could be so convenient that everyone will want one. You and everyone you know may send your self-automated vehicles out to run errands and perhaps even drive around the block while you finish a few quick errands. On the other hand, if driverless cars start out at a high price point it may price some people out of the market. If driverless cars are not readily available to everyone it could encourage ride sharing and put fewer cars on the road. If there are fewer cars on the road, there are fewer accidents and premiums and again the insurance companies face a financial loss.

Imagine riding to work with 2 of your coworkers and everyone being able to talk, read or work instead of driving. Imagine being able to send your car out to pick up your dry cleaning or your laundry. This may be a reality in the near future. While the incredible leaps and bounds of technology bring with them exciting opportunities they also have the potential to bring a staggering drop in revenue for the insurance industry. The driverless car will not be in every driveway tomorrow and the transition period could be lengthy but as we get closer to the self-automated car being the norm, there will be substantial changes to the insurance industry and how your car insurance and rates are applied.

How to Effectively Insure Your Mobile Home

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effective mobile home insurance

A mobile home is a prefabricated home, built in a factory and then moved to a location to be used as a permanent home. It is important to effectively insure your mobile home just as you would any other home. You want to make sure that your home, property, and liability costs are protected. Mobile homes are also called pre-fab homes or manufactured homes.

Mobile home insurance coverage can vary from a standard built structure. Some insurance carriers will not insure a mobile home if it is older than a certain age. Another consideration is how is your mobile home used? Some insurers may not insure homes that are only used seasonally or rented out. Different insurance carriers will have different coverage options and the same option might include different things depending on the carrier. It is important that you have enough coverage for your mobile home that works with your budget.

There are some many insurance coverage options for your mobile home to consider

Personal Property:

Personal property insurance is exactly what it sounds like. Generally, this insurance is purchased to cover the cost of replacing your personal belongings in case something should happen. When deciding on the amount of personal property insurance you need think about how much it would cost to replace all of your belongings; your jewelry, home furnishings, clothes, etc. Depending on the policy expensive items may or may not be covered and if they are covered you might have reimbursement limits. If you have valuable items you would like covered in case you ever had to replace them you may want to look at extended coverage on high ticket items such as jewelry, furs or watches. Including your high value personal items is an important step in making sure you are effectively insuring your mobile home.

Liability:

Liability insurance is needed to insure you against the cost of injury to yourself or a guest in your home. This insurance will cover you in case you are sued for an injury or damage to property. Liability insurance will generally have two categories included: personal liability and medical coverage. Personal liability covers situations where you are liable for injury to someone or property damage. The medical portion of liability insurance would pay any associated medical bills up to your limit and minus any required deductibles. There can be exclusions included in your liability insurance. Work with an experienced agent to understand your options and determine the amount of liability coverage you need. You want to be sure to have enough to cover any lawsuit expenses and amounts awarded to the injured party. You should consider your finances and assets and ask yourself what you could afford in the worst case scenario. Liability insurance can be increased or supplemented with additional coverage if your situation warrants it.

Other Structures:

Other structures insurance is also exactly what it sounds like. If you have an additional structure that is not attached to your primary home, this coverage would extend to that structure. If you have a tool shed or standalone garage that you would like to insure this additional coverage might be a good fit for you. You should also note that even if the structure is connected to the mobile home by wire or other loose connection you may need other structure coverage for the other structure.

Fire Department coverage:

Some insurance companies offer fire department coverage for your mobile home. Investopedia defined fire insurance as “Fire insurance is insurance that is used to cover damage to a property caused by fire“. Fire insurance is a specialized form of insurance beyond property insurance, and is designed to cover the cost of replacement, reconstruction or repair beyond what is covered by the property insurance policy. Policies cover damage to the building itself, and may also cover damage to nearby structures, personal property and expenses associated with not being able to live in or use the property if it is damaged.” Mobile homes face particular challenges when it comes to fire hazards due to the way they are constructed. Due to the size and structure of many mobile homes a fire can be difficult to put out and dangerous to responding firefighters. Owner modifications such as a pitched rood and undercarrier storage can also present a challenge to putting out a fire. The addition of fire department coverage would help with any costs charged to you by the fire department if they came to your home in the event of a fire emergency.

Optional Replacement Coverage:

This coverage would allow you to replace your damaged property with new property that is a similar material and quality without deducting amounts for depreciation.

Flood Insurance:

Most mobile home insurance policies will not include flood insurance. Pinal County has a website devoted to helping home owners determine the flood plain for their properties. Even if your mobile home is not located in a high flood plain it is important to consider flood insurance. While mobile home owners in Casa Grande, Arizona may not worry about floods as much as people living on the coast, in 2013 there was enough summer rain to cause some area flooding. Desert monsoons can come quickly and bring heavy, unexpected amounts of rain. Consider your location and if flood insurance is appropriate for you.

Being able to own your own home is a tremendous gift and typically your greatest asset. Be sure you are protecting your asset by effectively insuring your mobile home. With so many options available, consult an expert to make sure you have a budget conscious policy in place that addresses all of your insurance needs.