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.

When is the Best Time to Get a Life Insurance Policy?

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When to get a life insurance policy

When you move into adulthood, you quickly learn that there is insurance for just about everything. Cars, homes, health, and belongings are just a few important areas of life where it’s essential to secure a quality and affordable insurance policy. But are you aware that you can and should also obtain insurance for a person? Specifically, for yourself or your loved ones.

It may be uncomfortable or upsetting to think about yourself or a loved one dying, but buying life insurance coverage is a great way to secure financial protection and peace of mind in the event of an untimely death.

Before purchasing life insurance, though, it’s important to assess your needs, options, and financial situation. It is also important to address a few questions such as: How does life insurance work? Is all life insurance the same? Should everyone have life insurance? When is the best time to get a life insurance policy?

Below we’ve given a few answers to these questions.

What is Life Insurance?

Understanding what life insurance is and how it works is the first step in securing a life insurance policy. Life insurance is a contract between an individual and a life insurance company. This contract specifies that the policyholder will pay a premium for the duration of the life insurance term, and in turn, the insurance company will pay a financial sum to the policyholder’s named beneficiary upon the death of the policyholder. This sum is referred to as the death benefit.

Types of Life Insurance

Life insurance is not one-size-fits-all. You get to choose how much life insurance to carry and what type of coverage you need. There are two types of life insurance policies: Term and Permanent.

Term Life Insurance

Term life insurance is life insurance designated for a specific term. Usually 10, 20, or 30 years. With a term policy, you agree to pay the premium for life insurance coverage and if you die during the specified term, then your beneficiary receives the agreed-upon sum. Though, once the term expires, the contract expires. If you are still living when the term expires, you will either need to secure a new policy if you wish for your beneficiary to receive a death benefit.

Term life insurance policies are the most commonly selected type of policy. This is typical because term life insurance rates are the most affordable and can often be secured for a minimal monthly premium.

Permanent Life Insurance

Permanent life insurance is just that, permanent. These policies are designed to pay a sum to your beneficiary regardless of when you pass away. Another benefit to permanent life insurance is that the cash value grows with tax benefits and can even potentially be used during your lifetime. The two types of permanent life insurance are Whole and Universal. Each has different specifications and benefits.

Because the insurance company has a guaranteed payout at the end of a permanent policy, premiums are more expensive, though they carry a guarantee.

When Should You Get Life Insurance?

The basic rule of thumb is that younger is always better because it is more likely that you can lock in a lower rate when you are younger and healthier. But, the best time to buy life insurance will vary from person to person depending on their life circumstances, needs, and age.

Life Events

Below is an explanation of how different life events can affect your need for life insurance coverage.

When You Get Married

Marriage is a major life change. Securing a life insurance policy when you get married is a good idea because it can give you peace of mind that your spouse will be taken care of in the event of an untimely death. Likewise, your spouse will have a safety net to take care of themselves when you are gone.

When You Have a Baby

Starting a family is one of the most important reasons to secure a solid life insurance policy. Minor children cannot provide for themselves, therefore losing a parent can be detrimental emotionally and physically. Ensuring that your children are provided for when you pass on is a major responsibility that is provided by carrying life insurance.

When You Accumulate Debt

When you take on debt to go to school or to buy a house and other personal belongings, you of course, fully intend to pay that back. But if you die before you can pay, your family may be left with the burden of paying the debt. Carrying a life insurance policy large enough to cover all of your debt expenses is a great way to ensure that your family is not left with that burden.

Age Brackets

If you are alive, healthy, and under age 85, then it is never too late to get a life insurance policy. But, your age will determine your insurance needs and costs.

20s and 30s

Finding an insurance policy to lock in your 20s and 30s is typically going to be your most affordable option. Especially if your medical exam reveals that you do not have any concerning health conditions. This stage of life is when your insurance company assumes the least amount of risk because an early death is the least likely. Though, if you have young children at this time, it is likely one of the most important age brackets to ensure that you have coverage.

40s and 50s

Securing an insurance policy during your 40s and 50s is still affordable, though more expensive than in previous decades. During this time is when there is an increased risk that health concerns will arise, and therefore, more risk for the insurance company. Once you have reached this stage of life, you likely have accumulated assets and financial obligations that require coverage if something were to happen to you, therefore life insurance coverage is still a wise purchase.

60s and Older

Though being 60 and older seems like the most important stage to have a life insurance policy because the probability of passing away is getting closer, it may actually be the stage where you deem life insurance unnecessary. Your children are likely grown, and you may have significant savings and retirement accounts that can provide for your family members that are left behind. But it is still vital to assess your situation because if you do have outstanding debt and responsibilities when you pass, you want to ensure that your family members are taken care of.

Speak with an Agent

Hopefully, this information has helped you to understand the importance of carrying a proper life insurance policy. Are you ready to find the right policy for you and your loved ones? Or perhaps you have more questions that pertain to your specific circumstances.

At Gebhardt Insurance Group, our team specializes in finding the best policy for you. Our expert agents are well-versed in the specifics of each type of life insurance as well as which companies offer policies that will fit your needs and lifestyle the best.

Call us today to speak to an agent about your life insurance needs.

State Farm vs Progressive Insurance

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State Farm vs Progressive Insurance

Are you in the process of shopping for car insurance? Shopping around to compare car insurance quotes is wise because not all insurance companies are equal. But it’s quite impossible to simply name the best car insurance company. They all differ greatly and offer a wide range of coverages, discounts, policies, and more. So, your specific insurance needs and life circumstances will determine which car insurance company is the best choice for you. Finding the right fit takes some time and research into your options.

When researching your options, you’ll find that two of the leading providers of automobile insurance, both locally and nationally, are State Farm and Progressive. Though both companies have decent rates and high customer satisfaction ratings, one of these choices may be a better pick for you than the other.

To help you narrow down if Progressive or State Farm Car Insurance is the right choice for you, we’ve put together a brief overview with some information.

Arizona Auto Insurance Overview

Arizona state law requires that all 5.1 million Arizona motorists maintain auto insurance. If you do not carry insurance, and in the proper amount, you are breaking the law. The state requires that all drivers carry at least the state minimum level of automobile liability insurance. Required coverage for bodily injury must be $25,000 per person and $50,000 total per accident. The coverage minimum that applies to property damage is $15,000. It is important to note that these required minimums are new as of July 2020, therefore if you have not reviewed your policy since then, it would be wise to do so and ensure that you are in compliance. 

Overview of Both Companies

Both Progressive and State Farm offer a wide variety of coverage options and are well-established insurance companies that insure millions of drivers across the nation. They each have competitive car insurance rates, as well as offer different types of insurance through non-affiliated insurers such as home and life insurance. 

Both companies are known for offering significant discounts, including a safe driving discount through the use of monitoring software. This software is connected to your vehicle or mobile phone and monitors driving habits directly and adjusts your premium accordingly. 

Both companies are suitable selections for most drivers but they have noteworthy differences, therefore a more in-depth look is necessary to determine your choice when comparing Progressive vs. State Farm. 

State Farm in Arizona

The State Farm Mutual Automobile Insurance Company is the largest auto insurance company in the United States. They have roughly 18% of the total market share nationally and have been a “household name” for years. Accordingly, they have a strong presence in Arizona’s market. In 2019, they made headlines by implementing a 3% rate reduction in the state for roughly 700,000 motorists. In that same year, they purchased the naming rights for what was known as the University of Phoenix Stadium, renaming it State Farm Stadium. This is the home of the NFL’s Arizona Cardinals. 

Progressive in Arizona

The Progressive Automobile Insurance Company, based in Ohio, moved into the third position nationally in terms of market share—nearly 10%. They are well-known for their advertisements featuring “Flo” and for offering competitive rates. Progressive is a car insurer that is still growing rapidly and is highly rated. In 2019, they announced plans to hire over 10,000 new employees across six U.S. cities due to 50% growth. With Phoenix being one of these cities, they added roughly 375 new positions. Therefore, Progressive has a strong presence in Arizona. 

Optional Types of Coverage

All automobile insurance companies offer basic forms of coverage. These include liability, comprehensive, collision, uninsured and underinsured motorist coverage. Most companies will begin with these coverages, most of which you can opt in or out of, and then will offer plan-specific policies. Both State Farm and Progressive offer additional and unique policies as well. 

State Farm

Some of the more unique forms of coverage offered by State Farm include:

Rideshare driver insurance: This is insurance coverage designed for professional drivers that contract with rideshare companies such as Uber and Lyft. This coverage will cover rideshare work-related insurance needs while your basic plan will cover personal driving.

Car rental and travel expense coverage: If your vehicle is being repaired, your coverage will pay for a rental car. If involved in an accident more than 50 miles from your home or zip code, travel expense coverage will pay for a hotel and meals.

Emergency road service: If your vehicle suddenly becomes disabled due to an accident, flat tire, engine overheating, or another source, this coverage ensures that you receive the help you need quickly.

Progressive

Some of the more unique forms of coverage Progressive offers are as follows:

Loan or lease payoff: Coverage is sometimes referred to as “gap” insurance that applies If your vehicle is “totaled.” This covers any difference between the value of the vehicle and any excess debt still owed.

Rental car reimbursement: Pays for rental car costs while your vehicle is being repaired.

Custom parts and equipment: Provides coverage for aftermarket or upgraded parts or accessories. Examples include custom wheels, additional audio equipment that was added, etc. This is especially popular coverage with motorcycle owners.

Deductible savings: For each policy period completed without a claim, you are credited with a reduction in your deductible. This is the initial “out-of-pocket” amount that the driver must pay for comprehensive or collision claims.

State Farm: Discounts

Drive Safe and Save: Customers receive initial and ongoing discounts based on how much they drive. When the vehicle is driven sparingly and operated safely, ongoing discounts apply.

Driver training: Those under the age of 21 may complete certain driving safety courses to receive discounted rates. 

Good student: Applicable to full-time students in high school or college under the age of 25 as a reward for proven responsibility and achievements.

Progressive: Discounts

Snapshot: The innovative Snapshot program discount works by an app on your phone. It monitors actual driving practices and rewards good drivers based on their usage. Savings average roughly $130 annually.

Sign online and online quote: Getting a quote online and signing up online can save you money. These discounts range from 7-8%. They are very easy to obtain—just process your new policy online!

Continuous coverage: A “customer loyalty” program. Discounts may accrue as you continue to maintain a Progressive policy without interruption (gaps or cancellations).

Teen driver: Though young drivers usually carry insurance at a higher rate, Progressive offers a discount to teen drivers under the age of 18 who have been consistently insured for 12 months. 

Customer Feedback

Both State Farm and Progressive have been in the Top 10 Best Car Insurance Companies each year. Customer satisfaction is typically high for each, though the reasons differ. 

State Farm rates highly for customer service due to its 18,000 insurance agents nationwide. Customers were “least satisfied” with the perceived value of their car insurance after a claim was filed though, due to the claims handling process. 

Progressive customers are most satisfied with the simplicity involved in filing a claim and the excellent customer service offered. The majority of customers were likely to renew their policy with Progressive. 

One demographic category that is different between the two is those with poor credit. Progressive was found to have nearly 10% lower rates for those with a lower credit score. Additionally, those who have riskier driving records, such as younger drivers and those with speeding tickets, typically see lower rates with Progressive than with State Farm.

Assistance Shopping Car Insurance in Casa Grande

The Gebhardt Insurance Group has been providing personal and affordable insurance products in Arizona for years. In the realm of car insurance, we offer insurance options from Progressive and several other leading carriers that may be great options for you. Progressive has shown to be an innovator in the auto insurance market in many ways and we are pleased to answer any questions you may have. 

Additionally, we are also a source of insurance to cover your home, life, motorcycle, business, and more. Contact our local agents today for a quote or to discuss your questions at (520) 836-3244.

When to Switch Auto Insurance

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when to switch auto insurance

Car insurance coverage can be a Catch-22. Sometimes you can’t afford it, but you definitely can’t afford to live without it. Car insurance premiums are often in a state of change. Sometimes up and sometimes down, it can be challenging to keep track of your rate and if it is the best around.

Whether you are the one who makes a change, something happens to you, or your current provider simply increases their car insurance rates, it is always a good idea to review your coverage to see if you can save money by making a switch.

Here are several instances where it is likely that switching car insurance companies can benefit you:

When You Move

Where you live affects your insurance rate. This is because living in a highly populated area puts you at higher risk for filing a car insurance claim than living in a less populated area. Therefore, your insurance company will charge you more or less depending on that risk.

When you have a change of address, you have to notify your car insurance carrier so they know where your vehicle is typically parked and so they know where to send your mail. Notifying them may trigger a rate decrease, but it could also trigger an increase if you are moving further into the city. If this is the case, it is wise to compare car insurance quotes to see if a new company might offer you a lower rate at your new address.

When Your Credit Improves

Have you recently made great strides at paying down debt? If so, your credit score may have gone up, and that could decrease your insurance rate significantly. Studies have shown that a person’s credit score correlates to how likely they are to use their car insurance. The lower the score, the more likely a company will have to pay out on a claim. Therefore, many insurance companies pass that risk on to the driver by charging higher premiums to those with lower scores. And though your lower credit score may have nothing to do with your car or driving habits, most insurance companies won’t take the chance.

But the good news is that this means a higher score indicates a lower chance that you will file a claim, and therefore insurance companies will often offer lower rates to those with good or excellent credit scores. A few points can make a big difference to your wallet, therefore, if your score has improved any, you should compare rates.

When There’s a Change in Driving Records

If you have recently gotten married, celebrated a teenager getting their license, been in a car accident, gotten a speeding ticket, or other life circumstance that affects your insurance policy, this can trigger a change in your insurance rate. In some cases, these changes may benefit your rates, such as getting married. But changes, such as adding an inexperienced driver, or being involved in a car accident that required you to open a claim, can drive up your costs.

If you are unhappy with the rates of your current coverage options, you can look around and compare auto insurers’ policies for these types of changes. A switch could bring down your premium or at least keep it the same. But, sometimes, loyalty discounts can offset an increase, so it is smart to evaluate all your options.

When You Can Bundle

Did you just buy a house? If so, this is a great time to check out the cost of your insurance! Many companies will give a discount if you bundle your home insurance with auto insurance, and the savings can be significant. That may mean insuring with your current insurance company, but it could also mean switching to a new company with the best rates for both.

When You Have Special Circumstances

Do you collect classic cars? Or perhaps you enjoy cruising down the highway on two wheels? If so, your insurance costs could be more than that of your neighbor who drives a mini-van. Claims involving expensive cars, specialty vehicles, and vehicles where potential accidents are likely to involve higher hospital bills will be more costly for the insurance company. Therefore they charge you more. But, if these vehicles are only used as a secondary source of transportation, some insurance companies may have particular policies for these special cases that actually cost less than standard insurance. Therefore, with each purchase of any new vehicle type, it’s wise to check available rates and policies.

Tips for the Switch

If you switch to a new insurance provider, there are a few steps you should take to ensure the process runs smoothly.

Call Your Provider

It’s wise to call your current insurance provider before making any decisions. Some insurance companies have an early cancellation fee that you can avoid paying by waiting until it is time to renew. Additionally, sometimes a company may offer a discount or extra benefits to keep your business.

Dont Cancel Yet

If you’re set on switching, it’s crucial to ensure that you don’t cancel your current coverage until your new coverage kicks in to avoid a lapse in coverage. Even a few days of a gap in coverage can make a costly mistake if you happen to need your insurance sometime within that gap.

Notify Your Lender

Most leasing agents require proof of insurance coverage. To avoid a penalty with your lender, it’s best to let them know as soon as possible that you are making a switch in coverage. Typically, your current lender will send a notification letter if you cancel a policy, but it is always smart to confirm.

Get Documentation

Ensure that the new insurance and the previous insurance companies both send you proper notification of the start of service and cancellation. Having these in hand will help you if you run into issues such as incorrect charges, breaches of contract, or other scenarios where having proof in writing is helpful.

Don’t have Time to Shop Around for Better Rates?

Let our team at Gebhardt do it for you! We know it can be time-consuming to research all of your options, especially when you have abnormal circumstances. Our team has insider information and relationships with many different insurance providers. We can do the work to find out if a popular option such as Progressive, AAA, State Farm, or another provider is best for you!

Call us today to begin the process of switching insurance providers.

Can I Get Personal Property Coverage from Home Insurance?

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personal property coverage from home insurance

Owning a home comes with so many perks and benefits. Namely, building your own wealth rather than putting wealth in a landlord’s pocket. But it also comes with more responsibility and frustration if problems arise. Therefore, one of the most important aspects of homeownership is ensuring that if damage or disaster occurs, you are not on your own to fix or replace the destruction. You can do this by carrying insurance.

You’ve bought a homeowners insurance policy with an insurance company. But are you positive that you have the correct policies in place to protect your belongings? Are you protected against all kinds of damage? These are essential questions to answer before disaster strikes. Let’s take a look at how personal property coverage works.

Are Personal Property and Homeowners Insurance the same thing?

If you are a homeowner with dwelling coverage or if you are a renter with a landlord who has insurance, you likely think that your belongings are insured if something bad happens. But not all coverage is the same.

For homeowners, carrying a home insurance policy ensures that the structure of your house and the permanent fixtures are covered if certain perils occur. Typically, your homeowner’s insurance coverage most likely includes a personal property policy that protects your personal belongings. In many cases, your personal belongings are also covered if they are outside of the home, such as in a vehicle or a vacation rental as well. But it is not wise to just assume this is the case. If your policy does not clearly state and explain the coverage of your belongings, then you should speak to your provider. You may need to purchase a separate personal property policy that covers your belongings inside the home.

For renters, your landlord’s coverage or condo insurance covers the structure of the home and, potentially, the belongings that the landlord owns inside. Their policy does not cover your belongings inside the home. Therefore, you must carry renters insurance to ensure that your personal belongings and valuable items are insured. Many landlords will require proof of this coverage before signing a lease, but if not, it is your responsibility to acquire your own coverage. Additionally, if you are traveling, your renters’ insurance may extend to your items that are outside of the home as well because this policy is about your belongings, not the house structure itself.

Types of Coverage

With homeowners insurance and personal property insurance, there are two different ways your items may be insured. The policy type you select will affect the cost of your monthly premiums. Your policy should expressly state the kind of coverage you’ve selected.

Replacement Cost Coverage

When selecting a replacement cost coverage policy, your personal property insurance covers the cost of replacing the item at the current price. This means that if the price of buying the item is now more expensive than the original price, or even if your current item is worn out and depreciated, your policy will cover the cost of a new one in full. This type of policy is better for you when filing a claim because you will not have to pay for any portion of replacement out of pocket, but it typically does mean you will pay a higher premium.

Actual Cash Value

If you choose an actual cash value policy, your monthly premiums may be lower, but you do run the risk of having to pay for a portion of a replacement. Actual cash value coverage accounts for depreciation which means that your insurance will pay for the covered loss at the price the item costs now. In this case, the item is covered, and you will recoup some of the cost, but if you intend to fix or replace the item, you may have to pay the difference out of pocket.

Personal Property Coverage Limits

Most personal property insurance policies have coverage limits to protect insurance companies from having to pay out high claims for high-value items. Your general policy will cover items up to a specified amount, which is usually determined by your deductible. It is essential to take a home inventory of all of your belongings to ensure that your policy limit is high enough to cover your general items. This includes electronics and appliances. It is wise to revisit your inventory periodically if you have made purchases and update your limits if necessary.

If you have more expensive or high-value items you would like to insure, your basic coverage most likely will not cover these items, and you may need to purchase additional policies.

Scheduled Personal Property Coverage

If you have items of particularly high value, then you should speak with your provider about adding a scheduled personal property endorsement to your policy. This endorsement specifically names the item being covered and the value it is appraised for. You may have to get a professional appraisal with certifications for specific items, such as artwork or jewelry, to prove their worth.

Most insurance coverage operates under a named peril policy, meaning that your items are only covered under specifically named incidents such as fire, lightning, windstorms, and more. With a scheduled endorsement, items may be covered for extended coverage, such as mold or wear and tear. Each company has different policies in place, though, so you should be thorough in researching and understanding your specific policy.

Does Your Home Insurance Cover Your Personal Property?

To answer the question of whether your home insurance includes personal property coverage, the answer is most likely yes. But it is not wise to assume your property is covered. You should be certain that your items are protected before an incident occurs. To be sure, it is best to work with experienced agents who understand insurance coverage.

At Gebhardt Insurance Group, our team knows insurance. Our experts are well-versed in insurance policies from national and local carriers and can help to find you a policy that meets all of your insurance needs. We are also available to assess your current policies. This enables us to explain your current coverage and find any gaps in your coverage that could leave you vulnerable if damage or disaster occurs.

Let us help you. Contact our team today to find out if your home insurance policy includes personal property coverage and to ensure that you are getting the best insurance quote available.

Who Needs Ordinance or Law Coverage?

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ordinance or law coverage

Picture this: A storm sweeps through your area and damages your home significantly. When you file a claim with your insurance company, you find that the damage is covered, so though it is a hassle to live through repairs, it won’t hurt your wallet. But, when getting quotes from contractors, you find that your current home is not up to code and needs extensive changes to comply with local building codes. There is an increased cost of complying. Will your insurance cover the cost?

Unfortunately, if you only carry a standard homeowners insurance policy with minimum coverage, then no. The increased costs of construction to comply with building or ordinance law will have to come directly out of your own pocket. How can you avoid this unnecessary burden? By ensuring that your homeowner’s policy includes ordinance or law insurance.

But how much ordinance or law coverage should you carry? And do you need it if you have a brand new home? Here are a few of your questions answered.

How Does Ordinance or Law Coverage Work?

Every state, city, and county has building code laws in place to ensure that construction occurs in a way that is safe. Because new and innovative materials and practices are continually developing, ordinances and codes often change. Many codes require updates every three to five years, but some updates can be made as frequently as every six months. Therefore, the likelihood of your home needing code updates is relatively high.

Your dwelling coverage or property insurance typically only replaces and repairs the materials and contents of your home as is. This means that if you have an outdated system or materials, insurance only covers the cost to repair the old lower-priced system, not the increased prices of new updates.

Therefore, insurance companies offer Ordinance or Law Coverage to make up for the difference. If your home sustains a covered loss and requires code updates, then your ordinance or law coverage will cover the cost up to the percentage you carry. Most ordinance or law coverage limits are low at around 10% of your home insurance policy, but this can be increased upon request in many cases.

What is Covered Under Ordinance or Law Coverage?

If your home sustains damage and needs updates to comply with city ordinances or building laws, then your added policy will cover the added cost of the repair. This includes demolition, debris removal, repair, replacement, and reconstruction. Fortunately, this also includes undamaged parts of the home. For instance, if you have an older home with an outdated HVAC system that does not meet current standards, even if it was in an undamaged portion of the building, your insurance should pay to replace the system if it is deemed necessary for an update.

It is essential to review how much ordinance or law coverage you should insure for because in a case where your home is deemed a total loss, you could need many upgrades.

Need to Review Your Homeowners Insurance Policy?

Does your current homeowner’s insurance policy have ordinance or law coverage? Or perhaps you’ve just built a new home and don’t think you need this type of coverage? Before taking a chance, it is best to discuss your circumstances with an experienced agent so that you do not have the unnecessary burden of paying for repairs out of pocket.

At Gebhardt Insurance Group, our team of experts knows exactly what type and how much coverage you should carry for your area. Give us a call today to ensure you’re up to date and taken care of should disaster strike.

What is the Best Insurance for Teen Drivers?

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best insurance for teen drivers

Are you a parent with a child who is fast approaching the ability to drive on their own? Teaching your teen how to drive a car is a huge milestone, probably one that you did not realize you would reach so quickly. You may be eager and excited to take on this task. But more often than not, the excitement is met with anxiety and fear because trusting your baby alone on the road behind a giant machine is extremely nerve-wracking. It is nerve-wracking because you fear for their safety, and you may also fear for your wallet.

Rumor has it that insuring your teen driver can be pretty expensive. And unfortunately for you as the parent, that rumor is true. Teen drivers are some of the most expensive people to insure on the road. But the good news is that you are not simply stuck with a specific rate and at the whim of a single auto insurance company. You have options when searching car insurance rates for your teen driver.

To help you take some of the sting out of reaching the milestone of being the parent of a teenage driver, we have put together some information to help you find an affordable car insurance quote. Read more to find out what information you need to find the best car insurance company for your teen driver.

What Affects Car Insurance Rates?

Before looking at what it costs to insure a teenage driver, it’s important to take a look at the factors that many insurance companies use to determine insurance rates. This will help you to know better what kinds of questions to ask when looking for quotes. It will also give you a better understanding of areas where you may be able to make decisions to increase or decrease your rate versus areas where your actions simply have no effect.

Coverage

The most significant factor that affects your car insurance rate is the type of coverage you choose to carry. Every state has insurance requirements that you must meet to drive on the road legally. In Arizona, the only state requirement is that you must carry liability insurance in the amounts:

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $15,000 for property damage per accident

Beyond liability, there are many options for additional coverage, such as comprehensive coverage and collision coverage, underinsured/uninsured motorist coverage, and additions such as roadside coverage, gap insurance, medical payment coverage, and more. Each coverage you choose to add to your policy will increase your rates. While some coverages may only increase your payments by a few dollars each month, others can add significant costs, therefore, it is vital to choose wisely when selecting coverage.

Driving Record

The driving record of drivers on your policy plays a significant role in the type of insurance rate you are offered. Do you have multiple at-fault accidents on record? Has an insurance company had to pay total replacement costs for vehicle damage? Do you have several claims on your policy? If so, each claim can cause your rates to rise. This is because if you have a history of accidents or traffic tickets, you are an increased risk to insure, therefore your insurance company will offset their potential costs by charging you more for your coverage since there is a higher chance that they will have to pay out on your policy due to your driving habits.

Location

The location of where you do the majority of your driving will play a role in your car insurance rates. If you live and work in a rural area, you are typically at lower risk of being involved in an accident, therefore, your rates will be lower. Likewise, if you live in a populous city with more drivers, you are at an increased risk of having a car accident and, therefore more expensive to insure.

Age

Statistics show that age plays a role in the likelihood of being in a car accident. This is largely due to the length of experience and the decision-making process. For instance, seasoned drivers are less likely to make risky or reckless decisions when driving as opposed to young drivers who are nervous drivers or who do not have the life experience to draw on when making choices on the road. Therefore, insurance companies take the risk factor of your age into account when determining your insurance rates.

Demographic

Male drivers are more expensive to insure than female drivers. This is due to the assumption and proven statistics that male drivers make riskier decisions while driving and are involved in more fatal accidents than females. National averages show that male drivers cost $350 more annually than females to insure.

Why does it cost more to insure a Teen Driver?

Now that you can see some of the factors that affect your car insurance rates, it may be evident as to why teen drivers cost more to insure. A teenager’s lack of experience behind the wheel of a car makes them more susceptible to an accident and, therefore, a more considerable risk to insure for the insurance company. Teens meet almost every high-risk factor for what drives up insurance costs.

For example, parents often select the maximum coverage for their teen drivers and their property. This ensures that if an accident occurs, parents do not have to worry about the costs of hospital bills or car repair costs. Teenagers also do not have a history of good driving to bring down costs, and statistics show that people in their teens actually have a history of poor decision-making when driving.

Because of these factors, insurance companies insure teenagers at higher rates to counteract the high chance that they will probably have to pay out a claim during their teenage years. These rates will decrease, though, as time progresses if your teen’s record stays clear.

How to Keep the Cost of Car Insurance Low for Teens:

Though it is a fact that teenagers are more expensive to insure, you are not just out of luck when it comes to cost breaks and ways to save. There are several decisions that you and your teen can make to help bring down the expense as much as possible.

Individual Policy

Most insurance companies recommend adding your teen to your existing policy rather than opening an individual policy under their own name. This is because your teen may be able to draw from your own good driving record rather than having a rate based on having one single young driver, which drives up premium costs.

Though, it is not always a good idea to have your teen on your policy. If you have an expensive sports car on your policy, it may be better to keep your teen on their own policy. This is because insurance companies will often match the most expensive person to insure with the most expensive vehicle to insure, which causes prices to rise even further. Additionally, it may protect your assets in situations where litigation may arise if your teen is on their own policy. But each insurance company has its own policies for how these situations are handled.

Vehicle

The type of vehicle you are insuring affects the rate you pay. For instance, it is more expensive to insure a classic sports car than a standard sedan. Additionally, it is cheaper to insure older vehicles than brand-new ones. A good rule of thumb to follow is that if a car is more expensive to replace, it is more expensive to insure. Therefore, when shopping for your teen driver’s first vehicle, it is wise to remain sensible and responsible. They might would rather drive a cool new sports car, but it is likely that they will remain safer, and their insurance will remain cheaper if you put them in a simple colored sedan or SUV.

Discounts

Most insurance companies offer a way for your teenager to save money by showing responsibility. For instance, some companies will have a good student discount policy where your student can receive a percentage discount for proof of maintaining good grades.

If you have a teen who is away at school without a car and does not drive very often, your insurance company may also have a student away at school discount where you can receive a lower rate because the risk of insuring your teen is low for the time being.

Safe Driving Programs

A few of the national insurance companies offer safe driving discounts that are an excellent way for teens to bring down the cost of insurance. These safe driver programs consist of a driver training course that is typically offered as an online course. They take a few hours to complete and include modules, videos, and quizzes that help teach a participant how to maintain safe driving practices. When your student completes this course, they can present a certificate of completion and receive a discount on their premium.

How to Add a Teen to Your Insurance Policy

When your teen is close to driving age, it is a good idea to begin shopping for insurance policies or speak to your current insurance carrier about their teen driver policies. You do not want to wait until the day they get their license to begin looking at your options in case you have questions or would like to shop around for different policies.

In many cases, it simply takes a phone call to add your teen to your policy. But the timing of when you add them can vary. Some companies may prefer that you add your teen as soon as they get a learner’s permit, while others will allow you to wait until they officially have their license. In either case, it is best to find out the company policy beforehand to avoid a situation where your teen driver is on the road without insurance.

Gebhardt Can Help You Find the Best Insurance for Teen Drivers

Are you looking for cheap car insurance for teens and young drivers? Our team at Gebhardt can help! We are familiar with national and local brands and their teen driver policies. We know which companies have safe driver programs, accident forgiveness, and good grade discounts. Therefore, if you are looking for the best insurance for teen drivers, we can help you shop your options.

We are available now to help you sign up for a teen driver policy or to simply answer the questions you have as your teen gets closer to reaching this big milestone. Call us today.

How to Save Money with Homeowners Insurance Discounts

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homeowners insurance discounts

Owning a home comes with so many more responsibilities than simply paying a mortgage payment each month. There’s mortgage insurance, property taxes, homeowners insurance, repairs, upkeep, utilities, and sometimes HOA fees. The payments can add up quickly. But a wise homeowner knows that there are ways to save on these costs and will take advantage of every opportunity.

One such area where the savings can add up is with home insurance discounts. But how do you know what home insurance discounts to ask for? Here’s a breakdown of some popular types of discounts. Continue reading to learn if you qualify and find out how you can save on home insurance costs.

How Do Discounts Work?

Whether you’re looking for a new home insurance company or simply looking to save money with your current company, it’s essential to know that there are potential savings available to you. As a way to stay competitive in the market and to retain customers, many homeowners insurance companies will offer discounts on your premiums or coverage options. These discounts will vary by company and often depend on many different factors.

In typical cases, an insurance company will offer a discount in a percentage of your total premium. For instance, if you live in a gated community, you may receive a discount of 3-4% of the going rate, as opposed to friends and neighbors who do not live within a gated community, because of the added safety measure, and a lower likelihood of theft or burglary.

These offerings change quite often, therefore, it’s essential that you periodically check in with your home insurance company to ensure that you are receiving every benefit available to you. Sometimes, the company may institute a new discount, or perhaps you have upgraded a system, made repairs to an older home, or reached a milestone in customer loyalty.

It is important to note, though, that most insurance companies have a percentage cap of 30-40%. Meaning even though you may qualify for savings beyond that percentage, you can only receive discounts up to the cap amount.

Types of Discounts

There are many different types of discounts. Some may depend on your specific house and its features, some may depend on you as a homeowner, and others depend on your insurance company and the policies they have in place. Let’s take a look at some examples of each category.

Features

Your home’s features and systems may qualify you for big home insurance savings. For example, installing smart home features like a security system, fire alarm, or burglar alarm decreases the likelihood that you will have to file a claim with your insurance company, therefore, you are at lower risk to insure and thus, may earn a discount.

The sizes of these discounts can vary depending on the type of system you install. For instance, if your smoke detectors are centrally installed to alert the fire department directly when they sound, then your discount percentage may be higher than a system where the homeowner must call in case of fire.

Homeowner Profile

Some discounts are not based on your house but on you as the homeowner. Are you a military member or teacher? Your insurance company may have discounts based on these aspects of your profile as a way to say thank you. Likewise, you may be a member of a union or professional association that has a deal with your insurance company to earn you savings.

Many companies also offer senior citizen discounts to help those on a set budget. If you are over the age of 55 and do not work more than part-time hours outside of the home, you may qualify for these savings.

Policy

Some companies offer price breaks for policy-related situations. One of the most significant ways to save falls under this category with bundling discounts. In many cases, if you bundle your home and car insurance with the same company, you may see large savings.

Other policy-related savings may include loyalty discounts for remaining with your company for 10 years or more, remaining claim-free for a specific amount of time, signing up for automated payments, and more.

How to Get Discounts

Most insurance companies will initially offer you a homeowners insurance quote based on your profile features, credit score, and the specifics of your home. The questionnaire process is typically pretty thorough and asks targeted questions to ensure you receive the savings you qualify for. But, if you have been with your insurance company for an extended amount of time or if you have made notable changes to your home, it is a good idea to check in with your agent to ensure you are not missing any available discounts. To do this, you should call your company and request a discount review.

If you are unhappy with your current rates, or if you would like to see other rates available to you, our team at Gebhardt Insurance Group can help. We can answer your questions about the savings you may qualify for and help you shop for the most competitive rates in your area.

Are you ready to find home insurance discounts? Call us today.

How to Switch Home Insurance Providers

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how to switch home insurance

So you bought a house and walked through the essential steps to ensure that your home is properly insured. But it turns out you don’t like the insurance carrier or policy you purchased. Are you just stuck and out of luck? Not at all.

Many homeowners think they must wait out their policy’s term to switch home insurance companies at renewal time. But this is not the case. You can switch insurers at any time. It is important that you carry a policy with a carrier that you trust because your home and personal belongings are some of the most important things that you own. You want to ensure that they are covered and repaired or replaced properly in case something terrible happens. It’s not something you want to change with a company or policy you’re unsure about.

If you are looking to switch homeowners insurance companies, our team can help. But before doing so, it is important that you follow the right steps to make sure you do not have a lapse in coverage or dual policies. Here are a few elements to consider and information on how to change home insurance companies before making any decisions.

Reviewing

The first step you should take before finding a new policy is reviewing your old policy, especially the terms and conditions. Knowing what your current policy includes or excludes will help you determine what type of policy you are looking for. Likewise, you should familiarize yourself with your current carrier’s guidelines for cancellation fees, your effective dates, such as when the policy began and when it ends, and if you have any bundled policies that will be affected by switching.

Requirements

Does your home have a mortgage? Your mortgage lender may have certain home insurance requirements. It’s absolutely essential to make sure that any new policy you sign up for will meet these requirements, such as certain coverage limits or special coverage for additions such as earthquake or flood coverage.

In many cases, your mortgage company will have rules for the type of coverage you must carry, but they do not have requirements for who your carrier must be. Therefore, you are still able to make an insurance switch at any time, you just need to ensure there isn’t any coverage gap and notify your lender of the switch.

Timing

Though you have the right to switch insurance companies at any time, it may not be advantageous to you to switch in the middle of a policy term. It is a good idea to time your switch so that it benefits you or, at the very least, does not harm you. For instance, some insurance companies will issue a refund check for annual premiums you have already paid in advance when you cancel mid-term, but other companies may charge fees to cancel before it is time to renew. In this instance, it may be better for you to switch companies after you finish out your current contract.

In addition, some insurance companies offer discounts at certain times of the year, therefore, if you can afford to wait, it may be wise to wait until you can take advantage of an offer to save money.

Canceling

When canceling your current insurance policy, it is crucial to ensure that the end date of your current policy and the start date of your new policy is on the same day so that you do not experience a gap in coverage. Furthermore, so that you do not find yourself paying for two policies at once. To ensure this, it is best to speak with a customer service representative and have your cancellation in writing for your records with specific dates outlined.

Additionally, if you pay your insurance with an escrow account, you should call to ensure that payments will be directed to the correct insurance company on the switch date.

Shopping

Switching homeowners insurance providers is a straightforward process, but it can require many steps and a lot of time to ensure that you find the right policy for you. Taking the time to shop every insurance carrier in your area can be a hassle that you simply may not have time for. That’s where our team at Gebhardt comes in to make your life easier. Our job is to shop insurance carriers for you in order to find the best deal with the right coverage for you.

We can help with every step of the process, from reviewing your current policy, outlining the coverages you do or don’t need, and finding the best policy that meets your needs. Likewise, if you’re looking to bundle your home and auto insurance, we can help with that too. When you work with our team, we make sure that you do not miss out on coverage that you need or a deal that works for you. Call us today if you need help switching your homeowners insurance provider.

What is Inflation Guard Coverage?

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inflation guard coverage

Once you purchase a home, an essential next step you must take is purchasing homeowners insurance so that your new asset is covered should something detrimental happen. Homeowners insurance coverage protects you from having to pay out of pocket if your home is damaged due to events such as extreme weather, vandalism, and fire. If you have purchased a home insurance policy, then your home and personal property will be repaired or replaced if any of these events should occur.

But did you know that sometimes, homeowners find out too late that their insurance policy does not cover the total amount of what is lost? When this happens, homeowners have to dig into their own pockets to help cover replacement costs because their policy is outdated or insufficient. Don’t let yourself fall into this category. You need inflation protection.

What is Inflation Guard on Homeowners Insurance?

In order to make sure that your homeowner’s insurance policy stays up to date. Your policy should include an inflation guard endorsement. This endorsement automatically ensures that your policy stays current with the rising costs of material and labor due to inflation.

When you select this endorsement, your coverage limits will rise according to the rate of inflation every time your policy renews. Typical inflation increases are between 4-8%. Your insurance costs will also rise, but the percentage is minuscule, typically between 2-4%.

With Inflation Guard, the total cost to repair or rebuild your home should be covered by your insurance company if you need to file a claim, even if the costs of wood, other materials, and labor have increased throughout the year.

Who Needs Inflation Guard Coverage?

In short, every homeowner needs an Inflation Guard Coverage endorsement on their homeowner’s insurance policy. Homeowners who choose not to carry this coverage may have to shoulder some of the cost to rebuild if their home is deemed to be a total loss in a calamity.

Sometimes, homeowners who do not plan to live in a home for an extended period choose to chance it and will not select Inflation Guard Coverage, but that is a risky move considering inflation changes from year to year, and a sudden increase can occur at any time. If you want to ensure that your coverage increases along with inflation increases, then Inflation Guard coverage is imperative.

Some homeowners insurance policies offer total replacement cost options, which should cover the cost of inflation increases, but it is always wise to check with your carrier to ensure that you carry this type of coverage if you choose not to carry Inflation Guard.

Inflation Guard Coverage Example

To help you understand Inflation Guard Coverage, check out the example below.

Say you carry one million dollars in dwelling coverage and inflation guard coverage at the high end of 8%. Six months into the year, your home is damaged, and you suffer a total loss. Without Inflation Guard, your insurance policy will cover one million dollars in damage, but with Inflation Guard, you will now receive an additional $40,000 in coverage to keep up with the costs of inflation during the year. Therefore, you will now have $1,040,000 to rebuild your home and replace the contents that were lost.

Need Help Finding Inflation Guard Coverage?

At Gebhardt Insurance Group, our mission is to help you ensure that your belongings are adequately insured. Our team is available to help you review your current policies, look for new policies, and compare available policies from different carriers to make sure your policies are up to date with your coverage needs.

We shop your local and national carriers to help you find the right fit and can help walk you through the process of selecting the proper coverage. Do you have more questions about Inflation Guard overage? Do you need to review and update your current policies? Are you ready to purchase new coverage? If so, we are available to answer your questions, so give us a call today.

Factors that Affect Homeowners Insurance Premiums

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factors that affect homeowners insurance premiums

Living in America, we are taught that we can do, be, and accomplish anything we put our minds to if we work hard enough. The American Dream is something we strive to achieve. And for many, accomplishing the American Dream includes homeownership. Homeownership is a great investment and a great goal to strive for. But homeownership is not as easy as buying a piece of land and constructing a home to live in for the rest of your days. Homeownership takes effort and responsibility. Homes are not cheap, and if you are going to invest your hard-earned money into a piece of real estate, you need to take the necessary steps to ensure that your property is maintained, cared for, and insured in the awful event that something terrible happens.

Obtaining home insurance is one of the most important steps you can take as a homeowner. It is one of the easiest ways to ensure peace of mind, and it is typically not expensive, considering the value of what you receive if you must file a claim. There are many factors that can affect your home insurance rates, and in many cases, you can make choices to decrease your rates where possible. Here’s a look at six factors that affect home insurance premiums.

Location

Where your home is located plays a significant factor in how much it costs to insure your home. Do you live in a zip code that has a high rate of crime? Or perhaps your geographic location has a high rate of natural disasters. In these cases, your insurance premiums may be higher than the average in order to account for the risk. But the opposite effect is also true. If you live in a quiet area with low crime and disaster rates, your insurance rates may be low. It is also typically the case that homes in rural areas see lower vandalism and theft rates than those in the city and therefore are less expensive to insure.

If you already own a home in a city or high crime area, though, you are not just out of luck. Some home insurance companies give discounts for installing home security systems and cameras. If you have not yet built or bought your home, it is wise to look up rates in different locations if you are concerned about high insurance rates.

Materials

The materials used to build your home play a role in how much your home will cost to insure. Is your home custom-built with unique features and craftsmanship, or was it a spec home built by a local home builder? The construction costs of these two types of homes vary greatly, and insurance companies will take the replacement cost of each into consideration when insuring your home.

Additionally, if you live in an older home that is outdated or worn, then the likelihood that it will need repairs is higher than if you live in a new home with new appliances, plumbing, and electrical work. On the flip side, sturdy old-school construction may prove itself to stand up to weather events better than new construction that has never been tested. Each insurance company has its own process for valuating the type of home you need to insure.

Hazards

Do you have any objects in or around your home that make insuring your property a higher risk for filing a liability claim? These contents may include swimming pools, floating docks, trampolines, treehouses, play structures, and more. Any object you have where someone could get hurt puts you and your insurance company at risk. Therefore, your insurance company may require that you pay a higher premium to counter that risk.

Sometimes, you may have to purchase an additional liability coverage policy. There is also a potential risk that your insurance company may not cover that item, such is often the case with trampolines. Therefore, you should call your insurer to confirm coverage before purchasing such items so that you know your coverage before an accident occurs.

Natural Disaster Potential

The United States covers such a vast geographical location that each state has varying likelihoods of different types of natural disasters. For instance, in Oklahoma, residents are at higher risk for tornado damage and therefore need to be concerned about coverage should a tornado occur. In Arizona, though, tornadoes are not as high of a concern as water damage during monsoon season. Additionally, you may live on or near a fault line that puts you at higher risk for earthquake damage.

Insurance companies know which areas are at high risk for each type of natural disaster and will therefore be able to inform you of your necessary coverages and the increases in cost due to risk. They also evaluate your homes distance from a fire hydrant or fire department and develop a special rating that determines the likelihood that your home can be saved quickly and salvaged in the event of a fire.

Coverage Selections

The types of coverage you wish to carry plays the most significant role in determining how much you will pay each month to carry homeowners insurance. Do you have a large home with luxurious features and valuable personal property? If so, you will probably want a higher amount of personal property coverage than a neighbor whose house is filled with thrifted finds.

Additionally, if you have valuable family heirloom pieces such as artwork or jewelry, you may wish to add additional floaters or endorsements to your policy to ensure that these items will be replaced in full if they should be stolen or damaged in your home.

Do you work from home? You may have electronics and business property that require extra insurance coverage as well. Your personal property is covered under your homeowner’s insurance policy, but only up to the policy limit. Therefore, if you have expensive business equipment for work or if you run an at-home business, you may need to speak with your employer about their coverage policies if they own the equipment, or you may need to purchase extra coverage to ensure that the important equipment is covered.

Claim History

Last on our list for today, but certainly not least, is the likelihood that you will file a claim. One aspect that heavily affects this factor is your claim history. Has an insurance company had to pay out a large claim for you in the past already? If so, you could be considered a claim risk. Similarly, do you have a rough credit history when it comes to paying your premiums for insurance? In that case, you may need to search for an insurance company that has special scenarios for people who are high-risk clients.

Finding the Best Homeowners Insurance Rate in Arizona

Are you an Arizonan looking for the best homeowners insurance rate for your home? Our team at Gebhardt Insurance Group would love to help you find the right policy and coverage for your specific needs. We understand that it can be daunting to search through all the options available in Arizona. We also know that many companies are not straightforward with their prices and costs, which can be frustrating.

We are here to help you navigate the options and find the best choice. Our job is to shop around through over 40 local and national carriers until we find a deal that best suits you. Let us help you today by giving us a call.