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Driving Safely in Monsoon Season

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Driving Safely in Monsoon

Because Arizona is typically hot and dry, many residents, especially those new to the state, forget about Arizona’s monsoon season. This rainy season runs from June through September and can be very dangerous for those who are unprepared. Therefore, our team at Gebhardt Insurance Group has put together important monsoon driving tips to keep you safe.

Stay off the Road

Our number one safety tip is that if you know a storm is headed your way that can affect road conditions, stay home if possible. Waiting out a storm may be inconvenient but can very likely save your life. Of course, we know that emergencies and surprise weather events occur, which is why we recommend being prepared. Learning how to drive safely is crucial during monsoon season.

Prepare Your Vehicle

Before every monsoon season, you should complete a monsoon preparation checklist for your home and your vehicle. Driving on a wet road can cause you to hydroplane or lose control of your vehicle. Therefore, it is wise to ensure that your car is in the best shape to handle driving in the rain. The following should be checked as the monsoon season approaches:

  • Check your tires for thick tread
  • Replace worn or broken wiper blades
  • Repair broken lights
  • Conduct regular checks on brakes and brake pads

Drive Safely

Assuring that your vehicle is road-ready is only half of the battle; you also need to be prepared for driving in adverse weather conditions. In addition to defensive driving, safety measures should double when driving in the rain, such as:

  • Maintain extra distance between your car and the vehicle in front of you. 
  • Drive slowly and avoid slamming on the brake pedal. 
  • Avoid flooded areas.
  • If a road is closed due to flooding, do not drive around road barriers.

Pull Aside, Stay Alive

If you are on the road and get caught in very heavy rainfall or flash flood conditions, the best course of action is to pull off to the side of the road. It only takes a couple of inches of water to lift your vehicle’s tires off the road, so make sure to crank the parking break in a safe location.

“Insuring” Your Safety

Staying up to date with the Arizona Department of Transportation’s safety advisories is the best way to safely drive in heavy rain and other weather events such as dust storms, extreme heat, and snow. These will help you with being prepared ahead of time and learn driving in monsoons so you can have confidence during monsoon season.

At Gebhardt Insurance Group, we care first and foremost about your safety and want to make sure that you are prepared for all that Arizona weather has in store. We are available to answer all of your questions about insuring your property during monsoon season and are able to set you up with the proper insurance plan for you.

Call us today at (520) 836-3244 to ensure that you are insured.

What Does Church Insurance Cover?

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What Does Church Insurance Cover

We recommend that every business carries the appropriate policies needed to insure all aspects of the business. This recommendation is the same for churches and other religious organizations. However, there are unique circumstances to church operations that make policy recommendations different from typical business policies.

Churches have physical buildings and other personal property that requires insurance coverage just as any business does. But because the business of church is all about people, there are other coverages that may be necessary.

Below we have listed some of the types of insurance that churches should carry to protect church property or church members.

Property Insurance

Building & Possessions

If your church owns any property, such as a building or meeting space, that property should be insured. This is the same as with any typical business insurance or homeowners policy that covers property damage due to fire, theft, natural disaster and more.

This policy should include the items found inside such as sound, lighting, service and classroom equipment. It is wise to select a policy that not only covers damage but also equipment breakdown. You would not want to be left empty handed because of faulty or malfunctioning equipment.

Commercial Auto insurance

Many churches own vehicles or provide services where members and employees will ride in a vehicle under the liability of the church. These situations include: traveling to camps, off campus functions, shuttling members to church, driving through the parking lot, and more. In these cases, the church should carry the appropriate auto insurance coverage for the vehicles, drivers, and passengers.

Liability Coverage

General Liability Insurance

In addition to physical property insurance, it is absolutely essential that churches carry professional liability insurance in order to protect the church, board, and employees. This insurance is necessary in cases of bodily injury when someone slips and falls on church property and seeks compensation for medical expenses.

Liability coverage also covers instances where someone may claim damaged property on church property. It also applies in cases where the church does not own the property or is renting or attending a space for an event.

Additional Types of Liability Coverage

In addition, it is not uncommon for churches to encounter specific liability instances that require additional special coverage. Examples are for pastoral counseling, volunteer and youth safety, security, or infectious disease outbreak.

In recent years, it has become necessary for churches to carry coverage for instances of sexual misconduct allegations, freedom of religion protection, and cyber liability. It is important not to overlook the necessity of these coverages. Even if you think your church or employees would never in a million years face these types of issues or allegations, it is better to have the coverage and not need it than the alternative.

Employee Insurance

Just as with any business, your church is required by federal and state laws to provide certain coverages for employees. These laws and requirements vary by state. In most cases, offering basic insurance such as health insurance and workers compensation are the church’s responsibility as an employer.

In addition to insuring employees in your church location, your church may sponsor or send missionaries to locations outside of your state or country. These types of missions may require the church to carry additional outside international coverage depending on the mission locations. These may not be coverages you carry permanently but on a case by case basis.

Finding Church Coverage

It can seem overwhelming to make insurance decisions. It takes knowledge and expertise to ensure that every instance and possibility is legally covered and insured. This is especially true when it comes to church coverage because of the many unique scenarios that churches encounter. At Gebhardt Insurance Group, we specialize in insurance, so you don’t have to.

When searching for an insurance company that knows the business of churches and nonprofits, we can assure you that Gebhardt understands these unique positions. We are available to offer the peace of mind and the coverage that you need in order to stay focused on your mission.

Schedule a call with us at (520) 836-3244 to set an appointment. In this meeting we will discuss your options and give an insurance quote for your church insurance needs.

Surety Bond vs. Insurance: Which One Is Better?

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Surety Bond vs Insurance

As a service provider, having a financial failsafe is proactive risk management. If you find yourself in a position where you need to file a claim or compensate for damage to customer property, having the right policies in place can save large and small businesses alike thousands of dollars.

Among the most popular options are insurance policies and surety bonds. While the policies themselves both offer financial security, they are very different in how they work and who they protect. As such, some business owners elect to purchase one, the other, or both.

Are you unsure of which policy is right for your company? See our breakdown below to help your understanding.

Who Does the Policy Protect?

Surety bonds and insurance policies are designed to cover different individuals in the process of rendering a service. Insurance is a contract between the person or business being insured and the insurance company.

A surety bond is a contract between the business—otherwise referred to as the principal, the person requiring work or project owner —otherwise referred to as the client, and the bond company.

For instance, in public work projects, payment bonds guarantee that subcontractors are paid for their work if the contractor defaults.

Furthermore, while surety bonds are single format and are backed by a bond company, there are several different types of insurance services (such as business insurance, general liability insurance, workers compensation, and more).

To get a better understanding about which individuals are protected by which policy, let’s look at an example with a moving company:

While moving a client’s belongings, a mover drops a particularly heavy piece, damaging it badly.

In this case, insurance will protect the company from any injuries suffered by the worker, while a surety bond will cover the loss of the damaged furniture.

In short:

  • An insurance policy protects the policyholder from financial loss
  • A surety bond protects the person receiving services (obligee) from financial loss

How Premiums Differ

Another way insurance and surety bonds differ is in the way their premiums are paid.

When it comes to insurance, some degree of loss is expected. This is why everyone contributes an ongoing monthly premium.  Depending on your history, line of work, and other factors that determine your risk bracket, the rate of your monthly premium is adjusted over time. When damage arises, you can file a claim and receive a variable amount of coverage.

Sureties are designed to cover potential losses. As loss is not necessarily expected, surety premiums are only paid once per renewal period. Depending on the policy, this renewal period lasts anywhere from 1 to 3 years. If loss occurs, this allows the client to interact directly with the surety company to redeem compensation.

Percentage of Compensation

As mentioned briefly above, when you file a claim with an insurance company, there is no guarantee that your damages are fully covered. This is because insurance claims often go through insurance agency adjusters, attorneys, and several rounds of negotiation before a final coverage price is reached.

Sureties are fully funded from the beginning and can be used to make disbursements if damage occurs. However, unlike insurance where the business files the claim, it is up to the obligee to file against the surety.

This goes back to the original principal discussed: insurance protects the business, sureties protect the clients.

Arizona Insurance Experts

Surety bonds and insurance can either be used together or separately depending on your business needs. To make sure you have the best information on the best route for you, be sure to talk to a professional from Gebhardt.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need.

Give us a call at 520-836-3244 and make an appointment to get more information on state requirements, insurance providers, and bond premiums— all from an Arizona insurance expert.

3 Best Supplement Insurance for Medicare 2021

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Best Supplement Insurance for Medicare 2021

Health insurance is a central and important concern for most Americans, especially seniors since aging increases the likelihood of need for medical intervention. Because of this, programs have been developed to help keep seniors insured and give access to affordable care.

When it comes to Medicare, there are many plans available and each provides different levels and costs of coverage. In addition, the government also offers Medicare supplement plans to cover additional costs. Because of this, the process of picking the proper plan can sometimes create more questions than answers.

In this quick guide, we will explain and unpack some of the basics of Medicare and outline the best supplemental insurance options for those with additional needs.

What is Medicare?

Medicare is a government-subsidized insurance plan with certain eligibility restrictions. An individual is eligible for medicare if one or more of the following apply:

  • They are over the age of 65
  • They suffer from an end-stage renal disease
  • They suffer with disabilities

In the case of persons with disabilities, Medicare can potentially offer coverage to younger individuals. Coverage is withheld until after a 2-year waiting period has elapsed and the individual seeking coverage can produce 2 years’ worth of Social Security Disability Insurance (SSDI) checks.

Medicare Plans: Original vs. Advantage

Individual coverage needs and financial ability is often the guiding factor in choosing between the different medicare plans. There are two “types” of Medicare offered: Original Medicare and Medicare Advantage. Both types are federal programs, but each have different covered services and thus different monthly premium costs.

Keep in mind that monthly premiums and deductibles change on a yearly basis. While updated information can be found on cms.gov, premiums can vary based on income and some plans may require a high deductible.

Original Medicare is separated into the following three plans:

Part A: Hospital Coverage

This plan covers inpatient hospital stays, skilled nursing facilities, some forms of home health care, and hospice.

Part B: Medical Insurance

This plan covers outpatient care, certain doctor’s services, preventative care, and medical supplies

Part D: Prescription Drug Coverage

This plan covers prescription drug costs to any of the original medicare plans in addition to potential coverage on some Medicare Cost Plans, Private Fee-for-Service Plans, and Medical Savings Account Plans.

Please note that Part D is offered by Medicare approved private insurance companies. As such, exact prices and extent of coverage may vary between plans and individuals.

Medicare Advantage 

The skip from Part B to Part D is intentional– Part C is reserved for Medicare Advantage. As such, the Advantage plan includes everything in Parts A, B, and D.

Advantage functions as an insurance bundle offered by private insurance companies contracting through the federal Center for Medicare and Medicaid Services (CMS).

What is a Medigap Plan?

Even when an individual utilizes a Medicare health insurance plan, there are certain expenses such as copayments, coinsurance, and deductibles that the individual is required to pay out-of-pocket. Keeping track of these amounts can be burdensome and the expenses may add up. Therefore, to help with these out of pocket costs, an individual can apply for supplemental insurance, also known as Medigap. These supplemental plans may also include additional coverage such as dental care, vision care, and more.

Medicare Supplement plans are sold by private companies but each plan offered must follow federal and state guidelines. Insurance companies do not have to sell them but if supplement plans are offered, they must include standardized coverage.

It is important to note that all 50 states have standard coverage laws but Massachusetts, Minnesota, and Wisconsin are the only states that have their own state standards that differ from federal policies.

How Much Does Medigap Cost?

The cost of Medigap is difficult to broadly estimate because costs depend on the chosen plan, the company you choose, the state you live in, and your zip code.

Though companies must offer federal standardized coverage, rates may vary per insurance company based on age, gender, health condition, discounts, and more.

Remember: premiums paid for Medigap are fees paid in addition to Original Medicare premiums.

How to Purchase a Medigap Plan

If you have decided a Medigap plan is right for you, there are a few steps that need to be taken before purchasing a plan.

  1. Eligibility

You must ensure that you are eligible and currently enrolled in Original Medicare. Once this has been determined, you can begin the process of looking for individual insurance companies that offer a Medigap plan.

  1. Research

While the research process might take a little time, information about insurance plans can be found through internet searches, calling customer service phone numbers, or even contacting your state’s insurance assistance program. The government also provides a free to use Medicare provider lookup tool.

While close friends or family can also be a resource, it is important to take into consideration the potential differences in their health and living situation from your own. Choosing the right insurance supplement is ultimately about choosing what is right for you.

  1. Compare

Once you have begun the process of gathering information, you can begin the comparison. Important items to consider in your comparison are: monthly premium rates, the option for high-deductible plans, and whether or not you will receive aid with matters such as part b deductibles, part b coinsurance,or prescription drug plans. 

  1. Purchase

Finally, it is time to purchase the plan itself. This is completed by contacting your chosen insurance company and purchasing your coverage directly through them.

Best Supplement Insurance Plans for 2021

In 2021, there are currently 10 Standard Supplement Insurance Plans available. The best plans are those that balance coverage and cost. Unfortunately 2 of these plans, Plan C and Plan F, are no longer available to new enrollees, therefore if you have not yet purchased supplement insurance, you have 8 to choose from in 2021.

Plans that offer more comprehensive coverage will incur higher premiums and vice versa. These plans can range from $62-$784 per month in 2021.

Below we have outlined our Top 3 Recommended Choices for Supplement Insurance in 2021:

Best Comprehensive Plan: Plan G

Plan G has one of the higher monthly premiums of up to $473, but this plan includes all coverages except for the Medicare Part B Deductible. This means that you are responsible for paying the $203 deductible in 2021 before costs are covered, but after that all coinsurance, other deductibles, and excess charges are covered.

Best Cheaper Plan: Plan N

Plan N is very similar to Plan G except, in addition to not covering the Part B deductible,  it does not cover Part B excess charges. These charges can add up due to Part B covering routine care such as outpatient procedures and preventative care. If you are relatively healthy and do not foresee needing much additional care, this may be a good plan for you.

Best Cheapest Plan: Plan K

This plan is much cheaper than any other supplement insurance plan but that does come at a cost. This plan differs from all the other plans in that Medicare Part A coinsurance is covered at 100% but everything else is only covered at 50% or not at all. Therefore if you need outpatient procedures, blood, preventative care or skilled nursing, only 50% of these costs are reimbursed. This is a great plan if you only need assistance with coverage to offset costs, not to cover costs.

Special Considerations

Like the Medicare Advantage Plan, Medigap is purchased from private insurance companies. However, it is illegal for an insurer to sell you a Medigap plan if you already own Medicare Advantage. Medigap is only offered to those on the Original Medicare plan.

In addition, Medigap policies are specific to the individual. This means that if both you and a spouse would like the additional coverage, you will both need to purchase separate policies.

Furthermore, even with the addition of medigap, there are still some fees that might go uncovered. Unless otherwise specified, these generally include costs for vision and dental, prescription glasses, hearing aids, long term care, and private-duty nursing.

Another factor to consider when selecting your Medicare and Medigap coverage is based on doctors who accept medicare, most offices will accept the coverage but it is always a good idea to confirm before selecting a plan.

Selecting Your Insurance

Making sure your healthcare needs are met is an important necessity that should not be rushed but should also not be put off for later.

Choosing the right policy is not only a matter of knowing what you need today, but knowing what you may need in the future. This, in addition to the difficulty often involved in changing Medigap policies once one has been instated, is the main reason to choose a plan you can grow into as you age.

There are many factors to consider when making the right choice for yourself and we know it can seem overwhelming, but you do not have to do it alone. Our insurance agents are well educated on the major insurance companies plans when it comes to Medigap insurance, these companies include Blue Cross Blue Shield, AARP, Humana and more.

The Gebhardt Insurance Group offers years of experience in understanding the country’s most respected insurance providers to help individuals find the coverage they need when it comes to Medicare insurance, auto insurance, life insurance and more. Call us to discuss your options at (502) 836-3244.

Why Do I Need Renters Insurance?

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Do I Need Renters Insurance

If you do not own a home, you are off the hook for purchasing homeowners insurance but that does not mean that you do not need to buy any insurance at all. No matter what your lifestyle or status, your belongings should be insured by a rental policy.

If you live in a rental home, then the landlord insures the home itself. That is, the building and appliances that come with the rental. But if there is an incident where your own personal property is damaged, such as furniture or electronics, then you will pay out of pocket to cover the damages. Therefore tenants choose to purchase renters insurance to help cover losses and replacement costs.

What is Renters Insurance?

A standard renters insurance policy covers your property in the case of damage or theft. It can also cover medical expenses and personal liability if an injury occurs at your place of residence. Carrying renters insurance is an affordable way to ensure that your hard earned money is safe in times of uncertainty. The Insurance Information Institute quotes that the average annual premium for renters insurance is around $200 per year, or $17 per month.

Is Renter’s Insurance Required?

In many cases, landlords require renter insurance be carried by tenants. Your lease will signify this specification and you may be required to show proof of coverage. Rental coverage is not required by law but it is legal for a landlord to require coverage as part of a rental agreement.

What is Covered with Renter’s Insurance?

Personal Belongings

Personal Property coverage extends to all of your personal property. This can include living items such as furniture and clothing or electronics such as televisions and laptops. This coverage applies whether the belongings were inside your home, vehicle, or another location with your person, such as on vacation. Many choose to forgo this coverage because they don’t feel they have enough expensive items but the average 2 bedroom apartment is considered to have around $30,000 worth of property and even more for houses.

Personal Liability

Liability coverage is necessary to have in case of injury or incident on your property. Even if you do not tend to have visitors or high incident items such as trampolines, sudden accidents can happen due to slips or trips. This coverage not only covers medical expenses incurred but also covers fees brought on by a lawsuit. Common instances where renters liability coverage is used are in instances where a family pet bites a visitor or a visitor slips on a stairwell.

Loss of Use

In cases where your home may become uninhabitable for a season such as in the instance of fire, water, or smoke damage, renters insurance will not only replace damaged items but will also cover additional living expenses. This means that if you must live in a hotel or temporary rental while repairs are being made, renters insurance will typically cover rental and food costs of your temporary stay.

Coverage Add-Ons

There are instances where damage is not covered under an insurance policy such as with floods and earthquakes. With these instances it is important to purchase floaters or add-ons to your standard policy. These policies can also include specific expensive items such as jewelry, furs, collectors items such as baseball cards, and high price electronics.

It is important to note that many policies have limits on how much can be covered toward a specific type of item under a standard policy, such as: $2500 for electronics or $1500 for jewelry. Adding a high priced computer or an engagement ring as a personal article policy to your standing policy is a much more affordable option (dollars per month) than buying individual stand-alone policies for these items.

Where to Start

At Gebhardt Insurance Group, it is our goal to connect you with the insurance products and services that best suit you. In many cases, it is wise to bundle your renters insurance with your current carrier for auto or life insurance for a discount.

As Independent Insurance specialists, we can find you the best deal for all of your insurance needs. Call us today to begin the search for the best renters insurance policy for you!

How to Compare Car Insurance Plans

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how to compare car insurance plans

When trying to figure out how to buy car insurance, the options can seem overwhelming. There are many companies to choose from and even more advertisements trying to convince you that one company is better than another. Every auto insurance company has their own auto insurance rates and individual formulas for calculating those rates. Unfortunately, most companies try to keep their formulas very secretive therefore it can be difficult to compare car insurance quotes and assess what factors may make one one quote higher than another.

There are many businesses and websites dedicated to offering comparison tools and evaluations each year, but to be sure that you are getting accurate information, it is advisable to do the research yourself or to hire an independent insurance specialist whose only goal is to find you the best deal.

In order to compare car insurance rates, there are many factors to be aware of. At Gebhardt Insurance Agency, we want you to make the most informed decision to save money. Keep reading to find more information about what factors may be affecting your rate and how to compare auto insurance quotes.

Factors That Affect Your Rate

Driving Record

The number one factor that car insurance companies use to determine your rate is your individual driving record. There are many aspects that play into this factor such as a limited history, claims, at-fault accidents, and other incidents. It is rare to find a company that will not use a checkered history against you when determining rates, but different companies definitely factor this into account in different ways therefore it is worth it to shop around if your driving record is affecting your premiums in a negative way.

Accident Record

At-fault and no-fault claims affect your rates in different amounts but each will play a role in your rate. Typically, having one or more at-fault claims or violations on your record will cause your premiums to increase for at least 1-3 years. Some companies vary in this therefore it is good to assess quotes for future possibilities.

Checking how rates fluctuate with an at-fault accident on your record at one, three, and five years after the incident will give you a good indication of how an accident will affect you. It is sometimes the case that you would actually save money paying for a low-cost accident out of pocket rather than reporting a claim to your insurance because of rate increases.

Many insurance companies now offer accident forgiveness options to be added to policies that will give you a locked rate if you have under 2 no-fault claims on your record.

Incident Record

Incidents may include a DUI, DWI, reckless driving, or any ticket for something similar. Depending on the severity of the incident, your rate may be affected significantly even so much as disqualifying you from purchasing insurance from certain companies. In this case you may need to carry non standard insurance and those options will vary by company. Typically an incident of this nature on your record will affect your rate from 3-10 years therefore it is necessary to assess these options if you have an incident on your record. Sometimes switching companies may lower your rate if you are currently being penalized for an incident.

Age

It is commonly known that age plays a factor in auto insurance rates. Teen drivers notoriously have the highest rates of any age demographic, followed by senior citizen drivers. Adding a teen to your policy or aging can sometimes double your rates therefore changes in your life status should always be cause to go shopping for car insurance.

On the flip side, drivers between the ages of 25-60 may see a drop in rates with a clean driving record therefore reassessing your insurance company when you reach any age milestone could be beneficial.

Gender

Some states such as California, Hawaii, Massachusetts, Montana, North Carolina, Pennsylvania and Michigan have passed laws banning the practice of using gender as a rate determining factor for car insurance rates.

In other states though, companies use this as a factor based on accident and incident data. For instance, sometimes, adult women drivers are charged a certain percentage higher premium than their male counterparts while the reverse is true for teen drivers. Teenage males are typically deemed more reckless drivers therefore their rates will be higher than a teen girl without violations.

Vehicle

The type of vehicle being insured plays a huge role in your insurance rates. This is because the cost to replace your vehicle in the case of an accident will be much higher with pricier cars. Typically high priced vehicles such as luxury vehicles or trucks incur higher rates than a sedan or used vehicle. This is a factor to consider when comparing auto insurance rates but also when purchasing a vehicle.

Location

Your area of residence or area where your car is driven the most will play a factor in the rate you receive from any insurance company. Typically, larger cities with a higher concentration of people and vehicle traffic will have higher insurance rates across most companies. The other side of the coin is that rates will be lower for areas that are more rural or that have higher foot than vehicle traffic.

Your home type can also play a factor in your rate regardless of city. For instance, insuring a vehicle that is typically parked in a closed garage in a neighborhood is less of a claim risk for insurance companies than a vehicle that is parked in an open lot at an apartment community with higher risk for theft or accidental damage.

Credit Score

The last but not least major factor that is considered when calculating insurance rates is your credit score. Having a good credit score will provide you with better rates because the insurance company sees a higher chance that your bill will be paid on time and in full. Likewise, having a low credit score with a history of non-payment can affect your premiums and options for coverage negatively. This is not necessarily a factor that all companies use though so if you are concerned that your credit score may affect your rates it is wise to check with a few companies for their policies.

Process of Comparing

When beginning the process of comparing insurance rates it is good to start with a plan of action. Knowing these steps and what to expect will be helpful in ensuring a smooth and easy process.

Know Your Information

Now that you know there are many factors that will affect the rate you are offered from different companies, before beginning your search, you should make a list of all your personal information that could affect your rate. Have on hand your information such as age, address, and vehicle make, year, and model. Also having a description and date of any accidents or incidents will help you to ask better questions when comparing rates.

Having a general idea of your credit score ahead of time can also be helpful because working towards building your credit for a few months before switching to a new plan may help you to lock in a better rate.

Before making any comparisons or phone calls it is a great idea to write down any questions or concerns you may have that way you do not leave anything out when assessing and you will know that you were thorough in your inquiries.

Choose Coverage

Most places have a state minimum of liability coverage that every motor vehicle must carry without exception. It is wise to do your homework and research what your state requires before having conversations about the coverage you need.

Arizona state law requires that drivers carry a minimum of $25,000 per person and $50,000 per accident in bodily injury liability insurance and a property damage liability coverage of $15,000 minimum.

These laws do sometimes change so if you have not assessed your coverage in sometime it is wise to look over your coverage and decide if you need to make some changes.

Collect and Compare

Unfortunately, collecting rate information and comparing prices is the most tedious part of the process of shopping for insurance. If you wish to truly assess all of your own personal information this may require making many phone calls to go through the process of collecting quotes from every insurance company that is popular in your local area.

It is a good idea to seek out which companies are most popular with your friends and neighbors and start from there, you may find that rate differences are negligible or easy to choose from.

Gebhardt Insurance Group

At Gebhardt Insurance Group it is our desire to earn your trust by finding the best rate available for you and your insurance needs. We do not sell our own insurance but shop most major and local companies to compare prices for your specific needs.

If you would like to compare insurance plans but do not wish to do the legwork yourself, we would love to partner with you. Call us at (520) 836-3244 to begin the conversation of buying car insurance today.

How Much Home Insurance Do I Need?

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How Much Home Insurance Do I Need

Are you shopping for home insurance? Most homeowners understand the need for carrying home insurance and don’t debate its necessity. But many questions surround the topic, including:

  • What exactly is homeowners insurance? 
  • What is covered? 
  • Is it required? 
  • What amount of coverage should I carry? 
  • Does my current policy cover my needs?

Below we have answered and explained a few of these questions to help you understand home insurance and how much home insurance you need.

What is home insurance?

Home insurance is a type of property insurance that covers losses, damages, and repairs to a residence and personal property. Standard homeowners insurance will pay for the repair or replacement of your home in case of events like fire, tornado, hail, lightning, vandalism, explosion, even volcanic activity in certain areas.

What is covered under home insurance?

Rebuilding Structures

Homeowners insurance covers the costs of rebuilding a home structure in the event of damage or disaster. This dwelling protection includes damage to a main house and other attached structures such as a garage. Most policies also have the option of covering structures that are not connected, such as sheds, fences, guest houses, mother-in-law quarters, and others of the like.

This rebuild coverage includes every aspect of replacing the damaged home. Therefore, in addition to the structure and interior and exterior walls and finishes, utility systems are covered. These utilities include plumbing, electrical wiring, heating and cooling, etc.

Replacing Personal Belongings

More than just replacing the home itself, home insurance includes personal property coverage. In catastrophe or damage, the items inside your home will also be replaced, such as furniture, appliances, clothing, and other possessions. You will either be paid the actual cash value or the replacement cost of the property destroyed, depending on your policy.

The actual cash value is the amount you would receive if you sold the item today, less the depreciation of your property. Replacement cost coverage is the amount it would cost you to buy or acquire a new replacement, making it more expensive than actual cash value coverage.

Living Arrangements

If your home is damaged, and you need to seek shelter elsewhere while your house is being repaired, your home insurance policy will cover your additional living expenses. This is referred to as “loss of use” coverage in a home insurance policy.

Your policy will reimburse you for the cost of a hotel or rental stay, the cost of meals or groceries, and additional living expenses up to a certain amount. Typically, most insurance companies calculate this amount by paying 20% coverage for loss of use. For example, if your home insurance coverage is $100,000, your loss of use coverage is approximately $20,000.

Liability Protection

Further, a home insurance policy will give you personal liability insurance coverage. The typical amounts are between $100,000 to $300,000. This is enough to cover medical expenses from an injury sustained by any individual who was injured within your residence or property.

This coverage also extends to any legal costs you may incur in the case of lawsuits. This is an often overlooked aspect of a home insurance policy. Still, it is beneficial because being involved in a lawsuit can be very costly, and an insurance policy can ease the burden.

What is not covered under home insurance?

Damage from some specific natural disasters is not included in typical home insurance policies. For instance, damage caused by earthquakes requires a separate special policy. Those living in common earthquake zones should purchase this additional policy.

Flooding is also not covered by basic home insurance. If you live in a flood plain, you must purchase a separate flood insurance policy from the federal government’s National Flood Insurance Program.

Is home insurance required?

There aren’t any state or federal laws that require homeowners to purchase home insurance. If you seek a loan from a mortgage company, though, most will have a requirement that you carry adequate insurance coverage. Companies that do not require home insurance coverage typically have very high premiums to offset the risk.

How much home insurance coverage should I carry?

To quickly estimate the amount of insurance you need to carry: multiply the total square footage of your home by local square footage building costs. This will give you a basic estimate of the minimum cost you should carry.

This estimate does not give an accurate number of the total cost you should carry because it does not consider personal property, loss of use, or liability coverage.

It is important to note that most home insurance companies will only provide full coverage if the owner has purchased coverage equal to a certain percentage of the home’s total replacement value. This percentage is typically 80%.

For example, if the total replacement of your damaged home costs $200,000, the dwelling coverage limit of your policy must be at least $160,000 to receive full payment.

To avoid this issue, many insurance companies offer extended replacement cost or guaranteed replacement cost options where applicable. These options mean you will receive 20% extra of your insurance coverage limit. Or your entire cost of replacing the home will be covered even if the policy limit is surpassed.

Others with significant investments or holdings may also purchase an umbrella insurance policy to cover claims in excess of a home insurance policy. Of course, you will have to pay extra premium costs for these types of policies.

Additional Cost Considerations

Knowing the true value of your home ensures that you buy the correct amount of insurance. Do you have upgrades such as custom woodwork, stone fireplaces, additional garages, sheds, or other special features? Make sure to buy additional coverage if you want these items to be covered too.

The age of your home and where your home is located may affect the amount you will pay for your insurance. If you happen to live in an area prone to severe weather, rates may be higher, or you may need to purchase additional policies.

Experts also suggest that you should know how quickly your selected insurance company will pay on your claims. Indeed, you would not want to wait for months before getting the amount needed to repair and replace lost property.

Does your policy have you covered?

For many people, owning a home is the most significant investment decision they will make in their lifetime. It can be a devastating and costly decision not to ensure that the home investment is adequately insured in case of disaster.

Recent studies reveal that a large portion of U.S. homeowners does not have sufficient insurance for their homes. This can be due to purchasing lower policies or perhaps not updating an old policy when the home value or changes are made. If you have a current policy, it is good to speak with an agent to ensure that you have the correct amount of coverage.

The peace of mind that home insurance coverage gives is worth every penny. If you are searching for a new policy or would like to update or replace your current policy, call us at the Gebhardt Insurance Group to speak with an insurance agent today.

Life Insurance for 50 and Over

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Life Insurance for 50 and Over

Turning 50 is a wonderful milestone and this time of life brings new adventures, challenges, and celebrations. You are now wiser, more respected, and still have much life to live without the stress of youthful inexperience. You are truly in your prime!

Part of taking advantage of this newfound freedom and aging gracefully includes making provisions for your belongings and loved ones in the event of your passing.

A recommended way to achieve this is by buying life insurance coverage. Now, you may have been told that having a life insurance plan is not available or necessary for people over 50. Perhaps your children are grown and have already attended college, your home and debts have been paid off, and you have a considerable amount of life savings. In that case, you may choose to opt-out of carrying life insurance.

But for those who still have young families, children in college, debts, or a spouse to care for after passing, life insurance is still necessary, even though you are over 50.

If you want peace of mind and reassurance of your loved ones’ financial stability once you are gone, a life insurance policy may be a viable option for you.  You have many options from which to choose your policy.

When shopping for life insurance quotes over the age of 50, there are several factors to consider:

Price

Naturally, aging means that you are getting closer to your life expectancy. Unfortunately, this means that insurers have less time to collect premium payments from you and an increased risk of paying out benefits as each year passes. Therefore, after turning 50, insurers pass this risk on to you in the form of higher premium payments, making life insurance more expensive.

Pricing increases do not only apply when purchasing new life insurance policies, though. They can also apply to existing policies. If you already have a life insurance policy, typical premiums will generally increase at age 50. Some policies may provide a guaranteed premium, while others have steadily increasing rates based on your age. All companies and policies are not the same, though. You can shop around to try and keep rates within a reasonable amount.

When turning 50, it is always advisable to look over your insurance policies. It may be an excellent opportunity to have an agent review your existing policy and compare it to a new policy’s pricing. You may find that it is more cost-efficient to switch policies depending on current rates and your health.

Aging Considerations

Most life insurance policies require a medical exam to be conducted at the time of purchase, no matter your age. But for people over 50, the likelihood of having a preexisting health condition is increased. Therefore it may be beneficial to take advantage of policies that waive this medical exam and offer guaranteed acceptance. In many cases, the premium payments for this type of coverage are higher. However, if you know that you have a disqualifying condition, you can ensure you still have excellent life insurance coverage for the benefit of your loved ones.

Policy Type

When looking at types of life insurance, you have many options. Below, we will focus on two categories of basic choices:

Term Insurance:

Term insurance is available for a designated amount of time. You can generally purchase term insurance for 10, 20, or 30 years. Once the term has passed, the policy expires. If you outlive your policy, you must then forfeit the premiums you have paid, buy a new term policy at a much higher rate, or purchase a different type of insurance. Some companies might offer the option of converting a policy before expiration.

The benefit of carrying term life insurance is that the policy is guaranteed to provide a death benefit if the insured person dies during the policy period. This is an excellent way to ensure that your family is cared for if you experience a tragic accident or sickness at an early age.

The hope is that you never need to benefit from term coverage since the only way to receive payment is through the insured’s death. Companies know that the risk of paying a death benefit is low for most. So to offset your costs, term insurance premiums are much less expensive than permanent insurance.

Permanent Insurance:

Permanent life insurance has several key differences from term life insurance and has many different variations available to purchase. The most notable difference is that permanent insurance lasts through your lifetime.

The two common types of permanent insurance are Whole Life coverage and Universal Life insurance. While similar in that they both have a guaranteed payout at the end of life and both have cash-value options, they differ in the amount that must be paid in premiums. Whole Life has a steady set amount that you must pay as long as you are living. In contrast, Universal Life has more flexibility in payment options. The interest of which is dependent on market conditions.

Because your insurance company will have to pay at the time of death, permanent life insurance premiums are much higher than term insurance. Permanent insurance may be a better option if you are looking for life insurance for a death benefit and a cash savings vehicle.

Your policy’s cash value can be taken out as a loan while you are living, but keep in mind that doing this may directly impact your death benefit amount, depending on your policy. You can utilize this type of policy to help pay for your children’s college or add to any other future cash need you see on the horizon. Permanent insurance can be used as a forced savings account to build financial strength for those who have trouble putting money aside and then used later when needed.

Permanent life insurance is an excellent option for those who need to guarantee financial stability for loved ones left behind. Many who have adult-dependent children or large estate tax payments often opt for permanent coverage.

Policy Benefits

Before purchasing life insurance, it is essential to assess your own needs to determine your policy’s benefits.

If you do not have dependents, debts, or savings accumulated elsewhere, you may not need coverage. Or you may opt to carry coverage that only covers funeral expenses.

Life insurance may be a good fit for you if you have minor children, anyone that is financially dependent on you, a mortgage to pay off, or limited savings.

If you are a business owner, you may need to protect your business and employees. Can your business financially sustain itself without you? If not, you may need a life insurance policy to protect your investment. This protection is an essential consideration for you as a sole business owner or for any partners necessary to the business.

Other situations not mentioned here may apply to you. Still, the overall consideration is that being over the age of 50 does not mean that life insurance is not available or necessary to you.

Your Insurance Needs

The options for life insurance coverage can seem overwhelming and difficult to understand or select. There are many factors to consider. It is exceedingly important to look at your entire financial picture and your goals before selecting a life insurance policy.

The first step is to identify your goals for a life insurance policy and then work with an experienced agent to find the right policy to achieve those goals.

  • How close are you to your retirement goals?  
  • Do you have people in your life that are financially dependent on you?  
  • Do you need assistance with saving for the future?  
  • How much can you realistically afford to pay in premiums?

These are all questions that you should consider and answer when selecting the policy that works for you.

At Gebhardt Insurance Group, we desire to connect you with the exact agent and policy that fits your needs. We are an independent insurance agency that represents many of the leading life insurance companies.

We are confident that we can provide answers to all of your life insurance questions. Our team is dedicated to ensuring that you find the right coverage for you and your family.

Contact our office today at (520) 836-3244 to begin your search for life insurance for 50 and over.

Motorcycle Insurance Components and Coverage

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Motorcycle Insurance Components

Cruising down an open country road is a symbol and feeling of freedom like no other. Many drivers gravitate to a bike for the thrill, speed, and friendship that is commonly associated with motorcycle enthusiasts. But along with this freedom and excitement come many risks.

In 2019, the Arizona Department of Transportation reported that there were 2,679 motorcycle crashes throughout the state. This led to 170 deaths and 2,235 injuries. Many factors contribute to collisions and accident severity including speed, alcohol use, seat belts, and distractions.

All states have liability insurance requirements for motorists that vary by state. To register any vehicle in Arizona, you must show evidence of financial responsibility coverage. Those buying motorcycle insurance should understand the required and optional coverages available and the factors that influence the price of premiums.

Benefits

There are many benefits to owning a motorcycle over a car. The cost of an average priced motorcycle is much less expensive than buying a new or used vehicle. Owning a bike allows you to save money on upfront vehicle costs. Maintenance and repair costs can also be cheaper.

Motorcycles also tend to be much more fuel efficient. The average motorcycle can travel 120-200 miles on a single tank of gas depending on vehicle, tank size, and road conditions. They are also more space efficient when it comes to storing in a garage or lot.

Risks

Motorcycle riders are at a greater risk of suffering injuries or being killed in accidents. This is due to open exposure, as compared to being enclosed in the metal frame of a car.

Helmet use is one key factor that affects the severity of accident injuries. Roughly 20 states have laws that require riders to wear helmets. The state of Arizona does not have helmet requirements for riders over the age of 18. However, the use of protective glasses or a face shield is required.

Motorcycles also carry financial risk. Motorcycles are easier to steal than other vehicles because they are smaller and harder to lock. They also experience more damage in the case of an accident or weather event.

Coverage Limit in Arizona

The minimum amount of coverage for motorcycle operators is the same as passenger vehicles. These requirements are $15,000 in bodily injury coverage per person and $30,000 per accident. Property damage coverage of $10,000 or more is also necessary.

Motorcycle Insurance Coverage Options

Bodily Injury: Pays for injuries when you are at-fault. Does not provide coverage for injuries that you incur. (See Medical Payments)

Property Damage: Property damage coverage is for vehicles or other property that is damaged that you are liable for.

Collision: Collision insurance will pay for the repair or replacement of your motorcycle from a crash involving another vehicle or object. This applies even if you are at-fault.

Comprehensive: This type of coverage pays for roadside assistance and damages from storms, fire, vandalism or theft.

The majority of comprehensive and collision insurance policies have a deductible. The deductible amount is a total that the insured must pay before the insurance kicks in. For example: Your bike has $1,000 in damage. If your deductible was $500, you are responsible for paying $500 and then, the insurance will cover the remaining balance.

Uninsured & Underinsured Motorist:. Uninsured motorist protection pays for your damages when the at-fault motorist does not have liability coverage. In accidents where damage is severe and the responsible party does not have enough liability coverage, underinsured motorist coverage may apply.

Medical Payments: Pays for costs including medical bills, funeral costs, and sometimes, lost wages that result from an accident. It is not as common because many people use health insurance policies instead.

Guest Passenger Liability: Unlike regular vehicle insurance, motorcycle insurance may or may not include liability coverage for passengers. You should review the terms of the policy and add optional guest or passenger coverage as needed. Keep in mind that the state requires passengers to have a seat and footrests.

What Factors Influence Rates?

There are a number of factors that insurance companies consider that impact rates such as:

  • Age. Younger people tend to exhibit riskier behavior and typically have higher rates.
  • Style. The type of motorcycle being covered influences rates. Sport or racing bikes typically have higher premiums.
  • Driving Record. Driving and claims history are generally considered.
  • Location. If you live in a busy urban area with higher accident and theft rates, you may have a higher premium.
  • Usage. A bike that is used on a daily basis will cost more to insure than a bike used only on weekends.
  • Cost of Parts. If you have collision coverage and/or comprehensive coverage, the cost of repairing or replacing your bike will impact premiums.

Discounts

Insurance agencies often give discounts to safe drivers. Riders who have taken motorcycle safety driving or military safety courses may qualify for discounted rates.

Members of groups like American Motorcycles Association (AMA) and Harley Owners Group (HOG) are frequently eligible to get discounts as well.

Purchasing motorcycle insurance through the same carrier where you buy home or auto insurance may qualify you for a bundle discount.

Experts suggest that shopping around and getting multiple quotes before deciding on a policy ensures that you get the lowest rate.

Traveling Outside the U.S.

The majority of motorcycle insurance policies issued in Arizona extend coverage when traveling into Canada. Many policies do not provide coverage for traveling in Mexico. According to Mexican law, visitors should purchase a separate policy for liability.

Motorcycle Insurance in Casa Grande

At Gebhardt Insurance Group, we provide excellent options for motorcycle insurance. Our insurance agents take the time to find you a policy that covers your specific needs at a highly competitive price.

Discounts are available for those who bundle other forms of insurance with their motorcycle policy. Contact our office today at (520) 836-3244 for a motorcycle insurance quote!

How Does Car Insurance Work?

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how does car insurance work

The purpose of car insurance is to provide economic compensation if something unexpected happens involving your vehicle. The insured party enters an agreement with an insurer that contains the terms. This includes details such as the policy coverage period, the maximum limits of coverage, and the cost (premium). As with most types of insurance, states develop their own set of rules and provide some oversight in the market.

“How do I make my car insurance affordable?” is one of the most frequently asked questions about auto insurance.  The key to understanding how to make insurance affordable is understanding how car insurance works.

Why Is Auto Insurance Important?

It’s a Requirement if Your Vehicle is Leased or Financed

If you are thinking about skipping insurance in the name of pinching pennies, think again. If you are leasing your vehicle or have a loan, your finance company will require you to have insurance. The lending company needs to ensure that your insurance will cover the cost of repairs or replacement if the vehicle is damaged.

Many lenders and finance companies require insurance in the amounts of 100/300/100. This means you have $100,000 bodily injury liability insurance per person, $300,000 total bodily injury liability insurance per accident, and $100,000 property damage liability per accident. You will usually have to have proof of the minimum required insurance before a lender will finance your vehicle.

It’s a Requirement by State Law

Finance companies aren’t the only ones that require car insurance. The government also legally requires you to insure your vehicle. This is determined at the state level. Each state has its own minimum requirements so if you move, make sure that your insurance meets your new home’s insurance minimums.

For Casa Grande residents, the state of Arizona requires minimum coverage of $15,000 bodily injury liability per person and $30,000 per accident. There is also a property damage minimum coverage of $10,000. When it comes to types of car insurance, the bare minimum can be dangerous.  

If you only carry the required state-level amounts, an accident can cost you much more in bills and expenses than your insurance will cover. Work with a skilled agent to make sure you have enough coverage at a price you can afford. There are many ways to bring down car insurance premiums without sacrificing the coverage you need. Having financial protection will give you peace of mind.

It Provides Assistance When Accidents Happen

More than 90% of car accidents are the result of human error. In recent years, we have recognized the dangers of distracted driving. The Centers for Disease Control and Prevention estimates that distractions cause nine accident fatalities each day in the U.S. The problem is mostly the result of drivers who are using mobile devices. Newer vehicles are also equipped with more sensors that create visual and audible distractions and onboard electronics.

The prices of newer vehicles continue to rise. Many people do not have the cash-on-hand to repair their car if it is significantly damaged in an accident. In fact, 40% of Americans would be unable to pay for an unexpected expense that exceeds $400 without borrowing.

Between 2015 and 2017, there were 7.4 insurance claims filed for every 100 people. Lenders require those who are financing a vehicle to maintain “full” insurance coverage.

Know Your Policy and State Requirements

You need to read your policy and understand your type of coverage. If you purchase a policy without understanding it, you may not realize your coverage gaps until it is too late. Liability, personal injury, and property damage insurance are all crucial facets of your policy. What you don’t know can hurt you and your wallet.

For instance, if you are in a car accident, your insurance policy may only cover your vehicle’s value. If your car is fairly new and the rate of depreciation is high, the car’s estimated value may be much lower than what you owe.

This means that the reimbursement from your insurance company might not be enough to pay off your damaged vehicle, much less help you get a new one. Your comprehensive coverage will only cover the damage to your car if caused by something other than accidents like theft or fire.

Gap insurance is designed specifically to help bridge the “gap” in circumstances like this. It can help you pay off the remainder of your vehicle so that you can start fresh. This is just one example of possible policy gaps and why you need to know what is and isn’t covered.

Those registering a vehicle in the state will need to have proof of liability insurance coverage. This covers other people and their property in an accident. Insurance companies in Arizona must notify the Motor Vehicle Department when a policy is canceled, not renewed, or a new policy is issued. Drivers must have proof of insurance with them in case they are stopped by law enforcement. They may show this proof using a smartphone.

Bodily Injury and Property Damage Liability

The state-mandated bodily injury coverage is used when a driver causes injuries to others. This coverage does not pay for injuries sustained by the party who is at fault in an accident. The property damage coverage insurance pays for damage caused to other vehicles, objects, etc. It is worth noting that the mandated minimum liability coverage also applies to motorcycles, mopeds, and personal golf carts.

Understand the Money Mechanics of Insurance

Understanding how car insurance works helps you make informed, affordable choices. Car insurance companies make their money by collecting more in premiums than they pay out in claims. Many factors go into your insurance rates.

Statistics: All insurance companies will compare your basic information to current statistics. If you are a male, 18-year-old driving a sports car, your insurance rates will most likely be much more expensive than a female in her 30’s driving a minivan. This is primarily because of statistics.

The numbers show that women and more experienced drivers are less likely to be in an accident. Similarly, a minivan driver is much less likely to be in an accident than a person behind the wheel of a Ferrari. While you may be a very responsible, law-abiding teenager with a new sports car, your insurance rates will initially reflect statistical averages and not your specific situation.

Driving record: Generally, the better your driving record, the better rate you can get. Additionally, as you become more experienced behind the wheel, you will be eligible for the best possible rates. Insurance companies prefer responsible drivers with few or no claims.

Suppose you have an accident or traffic violation such as a speeding ticket. In that case, your insurance company may automatically increase your rates. The best way to keep your rates down is to keep your record clean.

Affordable premiums: There are ways to make your premiums affordable. A good agent will review your policy with you and help you stay within your budget.

For instance, you can usually decrease your premium by increasing your deductible. This should be done strategically. While a lower monthly premium is tempting, you need to make sure you have a deductible you can afford.

You can also save money by bundling in one company. By using one company for multiple policies, you will usually be able to take advantage of deep discounts, giving you lower overall premiums. Also, don’t be shy about shopping around. There is lots of competition in the insurance industry, which is good for the consumer.

Penalties for Failing to Maintain Coverage

Those operating without the mandated insurance that the state requires will face a driver’s license and registration suspension, in addition to fines. To restore driving privileges, the motorist must obtain an SR-22 Certificate of Insurance, and they must maintain it for three years. Those who do not reinstate their Arizona license from failing to have insurance will be unable to obtain a driver’s license in another state.

Other Types of Auto Insurance Coverage

  • Uninsured and underinsured motorist: Uninsured motorist coverage is used if you are involved in an accident caused by an uninsured driver. Underinsured coverage applies when the driver responsible for the accident has insurance coverage limits that are insufficient to cover the full cost of damage.
  • Collision: This coverage is used to pay for car repairs or your vehicle’s replacement when involved in an accident. It is most commonly used when you are the at-fault driver in an accident. It also may apply if you were to strike a tree or other object while driving.
  • Comprehensive: This form of coverage is commonly referred to as “comp.” It is purchased in conjunction with collision coverage to obtain “full” coverage. It is used to repair or replace your vehicle stemming from an event other than a collision. 
    Common examples include theft, vandalism, or fire. Full coverage policies often contain a provision covering the cost of a rental car when necessary during repairs.
  • Medical Payments: This coverage is commonly referred to as “Med Pay” or Personal Injury Protection. This option will cover any medical bills for you and typically any passengers in your vehicle. Examples would include if you needed an expensive surgical procedure or rehabilitation. Those who lack health insurance coverage are among those most likely to purchase it for medical expenses.

Questions About How Car Insurance Works?

We’ve got answers! Knowing how car insurance works helps you get the coverage you need for a price you can afford. The Gebhardt Insurance Group is an independent insurance agency that represents many of the leading auto insurance companies.

Our customers benefit from our personalized approach. We will look closely at your individual circumstances to make sure you have proper coverage for you and your family. Contact our office today at (520) 836-3244.