Risk of Driving Without Car Insurance

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Driving Without Car Insurance

Have you ever done any of the following: talked on the phone while driving, been forced to stop suddenly and almost rear-ended the person in front of you, found yourself in less than ideal driving conditions such as snow, fog, rain or dust storms, had a close call where you were almost in an accident? Car insurance is a protective measure to ensure your financial stability in the event of an accident. This coverage is not just prudent, it’s the law. The risks to your status as a driver and financial implications simply aren’t worth the penalties of driving without insurance.

7 Auto Insurance Risk

1. I can’t afford insurance
While we empathize with the financial challenges many people are struggling with the unfortunate truth that you can’t afford to NOT have car insurance. The financial liability you will incur in the event of an accident while driving without insurance can be staggering. Assuming you beat the odds, where _ people in YEAR were in car accidents; if you are pulled over without insurance you will incur financial consequences that far outweigh the cost of auto insurance. In the state of Arizona if you are caught driving without insurance you will face the suspension of your license and registration as well as a fine and most likely an increase in insurance costs.

2. The legally required minimums are all I need to meet my lawful obligation
The bare minimum coverage in Arizona is bodily injury coverage includes: bodily injury coverage in the amounts of $15,000/per person and $30,000/per accident, property damage liability coverage of $10,000, uninsured and underinsured motorist coverage of $15,000/per person and $30,000 per accident. While the minimum amounts of coverage will keep you out of trouble if you are pulled over, they may not cover your expenses in the event of an accident. If any repairs or medical bills exceed your insurance amounts you may be held financially responsible for anything else left over.

3. My car isn’t worth very much
If you are not concerned about the cost to replace your vehicle we can customize your coverage to meet Arizona minimums and provide coverage in the event of damage to someone’s vehicle or property. The value, or lack thereof, of your vehicle is not a good excuse to forego auto insurance.

4. I am a great driver and won’t cause an accident
While we all appreciate your expert driving, there are simply no guarantees. Even drivers that adhere to every rule of the road may be found liable for an accident. Weather, other drivers, animals, and everyday distractions can all contribute to a car accident. In addition, car insurance is not just to protect others from you but is designed to protect you from other under or uninsured motorists.

5. I don’t drive very often.
The frequency in which you drive can be taken into consideration when pricing insurance. If you travel infrequently or live very close to work we may be able to get you lower rates, as this reduces your risk of an accident. That being said, every time you drive your vehicle it is a potential opportunity for an accident and is not a valid excuse to skip purchasing insurance. If your vehicle becomes inoperable, let your agent know right away so he or she can help you modify your policy and advise you of registration filing requirements.

6. Fender benders aren’t important
While minor accidents can be small annoyances that could be overlooked, this mentality doesn’t take into account the other party to the accident. Even if you were to simply scrape a guardrail or hit a road sign you are financially liable for the repair or replacement costs. This holds true for more traffic incidents of any kind. If you hit a road sign, pedestrian, vehicle or business without insurance you are responsible for the costs. These figures can add up quickly. If someone is injured you may also be on the hook for medical expenses. Your responsibility isn’t diminished just because an accident is “minor”.

7. I can’t get car insurance because of prior incidents such as DUI, tickets, etc…
While every ticket or incident such as a DUI makes you a higher risk to insure, it does not mean you can skip purchasing an insurance policy. In fact, many paths to reinstating your driver’s license not only require insurance but will also require an SR-22 certificate from your insurer proving you have adequate coverage. Coverage for people in these types of situations is available, and as an independent agency, we can quote your needs with multiple carriers to get the lowest price possible. The pricing for policies does go up with each incident but the good news is that you do get credit for good behavior. After a certain number of years, each incident impacts your pricing less and less provided there are no further tickets, etc.

It is important to be realistic about the responsibility and obligations that come with driving and avoid car insurance problems. Work with an established agency to ensure you have the coverage you need at a price you can afford. If you need insurance or would like a review of your existing coverage, please don’t hesitate to give our office a call.

4 Technological Features That Impacts Auto Insurance Cost

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Technological Features That Impacts Auto Insurance Cost

Technology is fast developing. Everything is getting automated and innovations are quickly changing the way we live our lives, including driving. The new technology introduced on cars not only affect the way people drive; it may also have an impact on the drivers’ auto insurance cost.

Auto insurance premiums are calculated based on several factors, including the likelihood of risks. Since many of the newly introduced technologies are designed to reduce accidents, injury, theft and others, it follows that having such technology will cut the cost of your auto insurance.

4 auto safety features that can cut down insurance cost

  1. Autonomous Features
    Many of the new cars sold in the market now have autonomous features, including automatic braking and parking assistance. Technology such as this, as found out by experts, is responsible for the reduction of accidents and crashes up to 38%. Because of the accident-reducing features of such technology, it is likely that insurers will offer you with cheaper premiums. Reduced accident risk is generally equivalent to lower insurance cost.
  2. Black Box Technology
    This technology is also called telematics. The main function of this technology is to monitor the drivers’ actual usage of their cars. Through a small device or phone app, the insurers will be able to check the actual driving behavior of the insured. Aside from this, driving experience, the type of car used and the age of the driver are also measured in. Factors like the number of times the car is being used, the braking and the speeding are also accounted. All these will help insurers have a better idea on the possible driving risks. So if you have such technology, and the records show that you are a careful driver, then the insurer will likely give you reduction on your premiums.
  3. Dashboard Cameras
    Dashboard camera is the most accessible and affordable kind of technology for cars. This is the reason why many drivers now avail of such device. Also known as dash cam, this small camera is mounted on the dashboard of the car with the purpose of recording the car’s journey. This makes it easy to watch and check the actual footage of the conditions and events leading up to the accident. This is important in determining whether the driver was at fault or not. If you have a dash cam, it is easier to provide that the accident was indeed not your fault or out of your control. Because of the importance of dash cam, insurers now give discounts on drivers who mount dash cam on their vehicle.
  4. Extra Security
    Security devices for vehicles are also now available. There are systems and devices that are designed to minimize the risk of vandalism, theft and damage. These security devices will allow you to convince the insurer that your vehicle is a low-risk. By adding or installing high-tech security features, it is likely that you will be given cheaper premiums.

So if you want to minimize your auto insurance cost, consider getting any of the abovementioned devices or technology. It’s not only that, you can also ensure your safety and that of your family when driving. Make an appointment with Gebhardt Insurance today.

Safe Driving Tips for Your Teen Driver

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In Arizona there are roughly 100,000 car crashes each year. In 2014, more than 8,000 crashes involved people under the age of 24. Teaching your teen driver to be safer while driving is an important step to make sure that they are not only safe from injury, but that they don’t harm other people on the road.

The first step in teaching your teen to be a better driver is learning what distractions they might face on the road.

Cell phones—Not Just for Texting

Did you know that 53 percent of all American 6-year-olds have a cell phone? Letting your child have a cell phone, especially when they reach driving age gives you peace of mind knowing that they can call you, or call for help if they need it.

But phones aren’t just for talking anymore. Kids use their phones for building their perfect driving playlist, for getting directions to the new store where they are meeting their friends, scrolling through social media and texting. All of these things can cause unnecessary distractions while driving.

GPS: Teach your teen to input the address of their destination before leaving the driveway or parking lot. That way they aren’t flying down the street, glancing at the phone on their map, still trying to figure out why Siri wants to take them to an address in the next town over.

Same goes for music. Teach your teen driver the “set it and forget it” mindset. They should not be looking at their phone trying to skip to the next track while they are cruising down the freeway. If they have a passenger, encourage them to let that person DJ. If the passenger is you then by all means crank up that 80s rock. Then next time they are the passenger in your car, let them pick the music. Setting a good example for them is one of the best ways to ensure that your teen will be a safe driver. It might not seem like it anymore, but your teen is looking to you for driving tips, and your opinion means more than you think.

Texting: Some cities in Arizona have adopted stricter ordinances than others to try to manage texting and driving, but it isn’t technically illegal. However, that doesn’t mean it is encouraged. A study conducted by the Transport Research Laboratory showed that texting and driving is just as dangerous as drunk driving.

Teenagers often feel invincible and have a “that could never happen to me” mindset, but the truth is that even sending just one text could be enough to distract them from the road long enough to cause an accident or fail to react to another car coming into their lane. This means no browsing through Facebook or Instagram while driving either.

Non-Electronic Distractions

Passengers: Every 16-year-old is going to want to take their friends for a drive as soon as they get their license, but studies show that the more passengers in the car, the more likely an accident is to happen.

One way to limit this danger is by putting a restriction on how many people are allowed as passengers in your teen’s car. In Arizona, new drivers aren’t allowed to have passengers in the car for the first 6 months he or she has a license unless the passengers are siblings or a parent or legal guardian. After that it is up to you to limit the number of people your teen drives around.

If you aren’t comfortable doing that (or don’t think they will listen to you) teach your teen driver that when they do have passengers in the car, it’s okay to ask them to turn the music down or stop rough housing in the back. It doesn’t make them lame, it makes them a good driver. Their friends will likely respect their wishes and may even adopt the same attitude themselves when they are driving.

Drinking and driving: Even if you don’t think your child is drinking, the fact is that 11 percent of all the alcohol consumed in the U.S. is consumed by young people ages 12 to 20. Even if you know your teen hasn’t experimented with alcohol yet, you never know when they will. So it is important to let them know that it is never okay to drink and drive. Set a zero-tolerance drinking policy and lay out the consequences clearly. Let them know that if they ever are in a situation where they have experimented with alcohol, they can call you to pick them up, no questions asked.

Late night driving: Did you know that in 2010, 41 percent of all teen driver fatalities happened between 9 p.m. and 6 a.m.? That’s why it’s a good idea to limit your teen’s nighttime driving—especially during the first year they have a license. In Arizona, individuals aren’t allowed to drive between midnight and 5 a.m. during the first six months they have a license.

While it may be more dangerous for teens to drive at night, it’s also important for them to practice, so be sure to go driving with them after dark at least a couple of times a month so they can get the hang of driving at night with you there to provide tips and support.

Before They Hit the Road

Buckle Up: Of the teens that died in car crashes in 2012, 55 percent of them weren’t wearing seatbelts. Just because you set a good example and taught your child to always buckle up, it doesn’t mean that they will practice that same behavior when you aren’t around. Especially if he or she has a friend who doesn’t like to wear theirs—peer pressure can be a powerful thing. Teach your teen driver to not only buckle up each time they enter a vehicle, but to make sure their passengers are buckled up too. In Arizona, the driver of the car can be ticketed for having unbuckled passengers in their vehicle. Which reminds me, make sure your teen knows what to do if they get pulled over.

Vehicle maintenance: Before handing your child the keys, make sure they know some basic vehicle maintenance. You should teach them how to change a flat tire, check their vehicle’s fluid levels and jump-start a dead battery—all without the help of a smart phone—you never know when they might be stranded without it! Also make sure that your teen knows who to call if they need a tow. Many insurance policies will cover this service if you use one of their approved towing companies.

You can’t control every situation, but having a new driver in the family doesn’t have to be scary. As long as you teach your teen driver to limit distractions, never drink and drive, buckle up and maintain their vehicle, they will be at less of a risk.

At Gebhardt Insurance Group, we shop more than 40 insurance carriers to find the best insurance value in Arizona for your whole family. Call us at 520-836-3244 or calculate your coverage costs for free today.

Save Money By Switching to Liability Only Coverage on Your Car

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Insuring all of your family’s vehicles can get expensive. Switching to liability only coverage on one or more of your vehicles is one way to save money, but you should weigh the benefits of having full coverage against the benefits of saving money before you make this decision.

Here’s some information about the different parts of your auto insurance policy and some helpful tips to keep in mind.

Understanding the different types of coverage

Full coverage insurance contains comprehensive, collision and liability insurance on one policy. If you are still paying off your car then you are usually required to keep full coverage on your vehicle and wouldn’t be able to opt for liability only.

Liability insurance is the bare minimum that all states require by law that you carry in some form or another. This is what protects you if you were to injure someone else or damage someone’s car in an accident while driving.

The amount of insurance you are required to carry varies state to state. Take Arizona for example. Drivers are required to hold coverage up to $15,000 for each person injured in an accident up to a maximum of $30,000 for the entire accident, and $10,000 worth of coverage for property damage.

Comprehensive insurance is what protects your car from damage that isn’t caused by collision with another car or single car collision, like fire, theft, falling objects, explosions, floods and vandalism.

Collision insurance covers both accidents that happen with another vehicle and damage that your car would sustain if you hit another object that wasn’t a car, like a light pole or a fire hydrant.

Consider how much your car is worth

Before you drop coverage to liability only, you should consider how much your car is worth. You can check out sites like Kelley Blue Book to help you come up with an estimate.

Let’s say your car is worth $2500 and your premiums for full coverage insurance are $100 per month, or $1200 per year. Your deductible is $500. If you were to drive your car into a pole and cause major damage, would it be worth it to you to pay the $500 deductible? Or would that money be better spent going toward a new vehicle?

If you are paying more in premiums in a year or two than your car is worth then it may be time to drop your insurance down to liability only.

Keep in mind that if you are in an accident caused by someone else, his or her liability insurance will cover you and your vehicle. Another reason to focus on the road at all times and to be a safe driver!

What’s in your emergency fund?

Do you have enough in your emergency fund to replace your car if you were to back into a tree the day after you drop your car’s full coverage insurance? Is your car worth enough that you would want to pay for those repairs in full?

If your emergency fund doesn’t contain enough money to replace or repair your car if an accident happens and you don’t have another vehicle to drive, then you shouldn’t drop your coverage.

Dropping collision only

If you consider yourself a safe driver, but you aren’t ready to drop full coverage completely, you can try dropping collision first and continue paying for comprehensive and liability. That way you will still be covered if your car gets vandalized or that tree does fall on it.

This is a good idea as long as you are keeping enough money in your emergency fund to pay for the deductible.

Want more tips about whether or not to drop your insurance to liability only? At Gebhardt Insurance Group we are independent Insurance specialists, so we shop the nation’s top insurance carriers to find you the absolute lowest insurance rate for your home, automobile or business. Call us a call today at 520-836-3244. We’re here to help!