UM/UIM COVERAGE

, ,

Although auto insurance is mandatory, there are cases where you get into an accident with an uninsured driver. A coverage that can protect you from such situations is Uninsured Motorist Coverage (UM) and Underinsured Motorist Coverage (UIM). This coverage not only protects you from accidents where the other driver doesn’t have liability insurance but also when they have insufficient coverage to pay for your vehicle damages of bodily injury expenses.

Some consumers tend to consider Uninsured Motorist Coverage as unnecessary. However, UM/UIM coverage plays a very important role, and if there is no UM/UIM insurance, people have to go through the hassle of suing the other party to receive compensation for the loss caused by the accident. According to the IRC (Insurance Research Council) 13% of drivers in the U.S are uninsured, and the number isn’t declining.
The state with the highest rate of uninsured drivers is Mississippi (29.4%) followed by Michigan (25.5%), Tennessee (23.7%), New Mexico ( 21.8%) and Washington (21.7%).

 

What is more concerning, is that the accident probability and the amount of damage caused by uninsured drivers is higher than for insured drivers. The top reason for those that don’t have auto insurance is the cost.  However, it has been reported that 40 percent of the eight major accidents in the past decade have been caused by uninsured drivers. Due to this reason, liability coverage is legally required in most states, including Texas.

 

If you get in an accident with an uninsured or underinsured driver and are without UM/UIM coverage, you will have to pay a lot more for hospital bills or car repairs compared to the additional premium for purchasing the coverage. However, if you have the UM/UIM coverage, you can reduce financial expenses for accidents such as hit and run. You and your passengers will receive compensation for medical bills. UM/UIM coverage can also pay for lost wages if you can’t work because of the car accident. It is possible to sue the other driver even if you don’t have UM/UIM insurance, but if the other driver is incapable to provide compensation, you won’t be able to get enough or anything from the other person.

 

UM/UIM insurance is one of the coverages that are included in an auto insurance policy that is so-called full-cover car insurance.  Below are other coverages available in auto insurance that can be customized to the need of each insured.

Liability:

Covers the cost of the other driver’s injuries and property damage if you’re at fault in an auto accident.

Collision:

Coverage that can pay to repair your vehicle if it’s involved in an accident.

 

Other than Collision/ Comprehensive:

Coverage that protects against damage to your vehicle cause by non-collision accidents. For example, theft, fire, flood and vandalism.

 

PIP :

PIP ( Personal Injury Protection) covers medical expenses for you and your passenger if you’re injured in an accident.

 

Towing and Rental Reimbursement:

There are optional coverages such as “towing” and “rental reimbursement”. Rental reimbursement helps pay for your rental car costs while your car is being repaired due to a covered accident.

 

Q) What should you do if you get into an accident with an uninsured driver?

First, call the police to the scene of the accident.
Unless it is a major accident, the police may not come to the scene, but it is recommended that you report the accident.
Although it may be difficult to do so amid all the shock, having a police report can provide evidence when filing a claim. You should also contact your insurance agent if you need any assistance with filing a claim.

 

 

/0 Comments/by

Renters Insurance

,

Compared to the majority of homeowners having home insurance, only about 20% of renters have rental insurance. This leaves many renters exposed to sudden accidents without any protection. One of the main reasons is that many renters are unaware of what a renters insurance actually is. This article will go over the basics of what a renters insurance is and answer some commonly asked questions.

 

I’m renting a single-family home. Why do I need renters insurance when I don’t own the property?

Renters Insurance provides personal property and liability coverage. If you were to lose your belongings such as clothes, furniture or electronics in a fire, a renters insurance will help you cover the costs. Another case would be when you are responsible for someone’s injury while at your place. Liability coverage will help cover legal expenses and medical costs. In addition to these 2 main coverages, renters insurance provides more coverage options such as Loss of Use.

Why do apartment buildings require renter’s insurance?

Apartment complexes carry their own insurance. However, it only covers the structure of the building they own. It doesn’t provide coverage for your personal belongings or personal liability claims. If you accidentally damage the property that you are renting, the tenant is responsible to compensate for the loss. For example, if the stove that you left unattended results in a fire that damages the whole property, you will be the primary person to pay for the damages.

 

How is the price of renters insurance determined?

Renters insurance is one of the cheapest insurances that you can buy. This is because a renters policy doesn’t insure a physical property. In other words, it mainly covers your personal property and liability. Premiums are affected by location, year and construction type of the place you rent. In addition, the amount of coverage for personal property and liability coverage are also a factor.

What should I do if my property is damaged in a sudden accident?

First, contact your agent and explain the situation. If damage to the house or your personal property is large, it is important to take “emergency” measures to reduce additional damage. For example, if the window is damaged due to a storm, board it up as a temporary measure to reduce further damage. If an extensive repair is needed, contact your agent so that an adjuster can inspect the damage. If the damage is minor, you can consult a contractor to get an estimate on the repair before deciding to contact your insurance company.

 

What is Personal Liability Coverage for Renters Insurance?

Personal liability protects you when you are liable for someone’s injury or loss of personal property. It helps cover medical costs and legal expenses. If someone brings a claim or lawsuit against you, it is recommended that you consult with your insurance agent.

Can my insurance company cancel my policy?

Insurance companies normally do not cancel policies mid-term. However, if you fail to make payment, or purchased insurance based on false information, the company can cancel your policy. The guidelines may differ based on state, but most insurance companies notify you 30 days before expiration on renew or non-renew.

/0 Comments/by

Alcohol Related Accidents and Insurance

, ,

Regards to drinking related accidents and insurance, there are two major kinds of policies. First, Liquor Liability Insurance for stores or restaurant owners who serve alcohol. Second, SR-22 filing in an auto insurance for those who have DUI.

According to statistics from the U.S. Department of Transportation, there are about 16,000 accidents involving drunk driving.
Despite the high number of deaths and property loss in alcohol related accidents, many restaurants and businesses that serve or sell alcohol still seem to be unaware of the need for Liquor Liability Insurance. A business owner in LA was sued for selling alcohol to a minor who ended up in an auto accident. The business owner was held responsible and was ordered to pay $1 million in compensation.

The “Dram Shop” states that bars and restaurants can be held accountable if they serve alcohol to a minor or visibly intoxicated customer who causes an accident and harms others. According to a recent report by the Texas Restaurant Association, only 135 restaurants, or 45% of the 300 restaurants surveyed, had Liquor Liability Insurance. Considering that the survey was based on large-scale restaurants affiliated with the Restaurant Association, it would be no surprise to find small restaurants that sell alcohol overlooking the risk of liquor liability.

Insurance is all about establishing a reliable foundation for your business by preparing for accidents before they happen. Even with new restaurants and liquor stores on the rise, many seem to be unfamiliar of the type of protection that liquor liability provides and underestimate the importance obtaining one.

Liquor Liability is a type of business insurance that provides coverage for business that sell, serve or distribute alcohol.  It can help cover third party bodily injury and property damage that an intoxicated person causes after you sold or served alcohol. Examples of such accidents are DUI and assault and battery.

Businesses that need Liquor Liability Insurance include liquor wholesalers, restaurants, bars, taverns, nightclubs, entertainment establishments, convenience stores, beer specialty stores, and wine specialty stores. For small businesses, Liquor Liability coverage is usually available as an endorsement that you can add on to your current business general liability and property insurance. As for large-scale restaurants and beer wine stores, a separate Liquor Liability insurance plan can be purchased.  Most Liquor Liability Insurance covers $300,000 to $2,000,000 per case.

Another insurance term associated with alcohol related accidents is SR-22. If you receive a ticket or have an accident due to drunk driving, you will be asked to file an SR-22 from the DMV or another institution. Also known as “Certificate of Financial Responsibility” an SR-22 proves that you have auto coverage that meets the minimum limits required by state law. This document cannot be issued by an insurance agency and can only be issued by insurance companies recognized by the state. In case the insured cancels or no renews their auto policy, the insurance company that filed the SR-22 must immediately report a SR-26 to the DMV. Which will then be followed with the suspension of your driver’s license or fines.

/0 Comments/by

Credit Scores and Insurance Rates

, ,

Did you know that your credit score affects your auto and home insurance rates? Nearly all major auto and home insurance companies now review your credit score when providing quotes. Let’s take a closer look at how your credit information is used and how it affects your insurance premium.

What is a credit score?

A credit score is a snapshot of your creditworthiness represented as a number. Credit information provided by a credit reporting agency is converted into scores based on various criteria which ranges from 300 to 850. In general, the higher the score, the more financial credibility you have.

How are credit scores used?

Most insurance companies use credit scores in the following two ways. First, as a reference to determine whether to approve or decline a quote. Second, as to determine the amount of your insurance rate. When calculating the rate, some companies put more importance on credits scores whereas some also review driving records and claim history.

 

What affects your credit score?

Below are the most common factors that impact credit scores.

Negative factors: bankruptcy, collection, mortgage, debt exemption

History of late payments: Number and frequency of past due payments.

Debt to credit ratio: How much debt do you have compared to your available credit?

Length of credit history

Homeownership: Whether a house is owned or leased

Credit inquiries: The number of applications for new accounts, such as recent housing loans, utility accounts or credit card

The number of credit cards issued: the number of major and co-branded credit cards that have been approved

The type of credits you are using: credit cards from major companies, store credit cards, finance company loans, etc.

 

Check your credit history!

There is a high possibility that an insurance company will check your credit score. Which means checking your credit score for its accuracy is important.  You can visit companies such as Equifax (www.equifax.com), Experian(www.experian.com), or Trans Union (www.transunion.com) and request a copy of your credit history.

In addition, if you contact the Federal Trade Commission (www.ftc.gov ) you can gain access to a  consumer brochure on credit reports. If you think an incorrect credit report has negatively affected your insurance rate, the insurance company should give the name of the National Credit Bureau that provided your credit report. You can request a copy of the credit report for free and dispute incorrect information.

 

 

How to maintain and/or improve credit score

First, it is most important to pay the debt on time without being late. Credit scores and records should be checked regularly and any issues that may negatively impact credit scores, should be dealt with. Negative information can last up to 7 years on credit reports, so it is important to steadily raise scores. It will require some time but, one to two years of consistent management will make a difference.

/0 Comments/by

Umbrella Insurance

, , ,

Some refer to insurance as an umbrella that protects you from accidents that are like sudden rain. Whether minor or major, there are a significant number of lawsuits in the U.S., holding the other accountable to receive compensation. In addition, the cost to hire a lawyer also varies greatly depending on the degree of skill and reputation.

Lawsuits regarding Liability Insurance claims are very common. Among those cases there are times when your auto and home insurance can’t provide enough compensation for the other party.  Which is why having an Umbrella insurance is necessary to protect your assets against lawsuit abuse.

Home insurance, auto insurance, and business insurance, each have a set amount of Liability Limit. By average, auto insurance holders have a liability limit of less than $100,000.  As for home insurance, the limit of $300,000 is general. In case of business insurance, most have a limit of around $1,000,000.  Imagine you are liable for the damages in an accident that requires a compensation amount higher than your limit. This is why it’s important to consult a professional on whether you have sufficient insurance coverage.

It’s impossible to predict the amount that you might be responsible for paying to the other party. In cases like this, an Umbrella Policy can be a good solution. It provides excess liability coverage above from what is provided by your auto, home or business insurance. Depending on the policy holder’s needs, umbrella insurance provides additional liability coverage from $1 million to $5 million.

Liability coverage compensates the injured person on expenses necessary for recovery, such as medical expenses, rehabilitation treatment expenses, and loss of income. Another important fact is that Liability covers the legal costs that you incur. In most cases, in the event of a huge accident, the average liability limit your home or auto insurance provides will not be enough to cover all of the expenses.

If the other party’s claim for damages exceeds the limit your insurance company can cover, the other party may go after your personal assets. Worst case, to satisfy the judgement, you may have to lose money and property by having to disclose your assets.

The solution to protect you in such difficult situations is to have an Umbrella insurance which is largely divided into Personal and Business. Umbrella insurance provides you a fairly large amount of additional liability coverage at a low price. In particular, Commercial Umbrella Insurance isn’t limited by different regions or locations unless there are legal restrictions. In addition, within the scope of coverage, Umbrella insurance can cover liability claims that is based on both parties’ agreement whether documented or implied in the contract.

/0 Comments/by

Frequently Asked Questions About Homeowners Insurance

,

Q) Do I still need to keep my homeowner’s insurance after paying off my mortgage?

After you have paid off your mortgage and obtained full ownership of your home, it isn’t mandatory to have a home insurance. However, considering that a home is  your biggest asset, it’s only natural to continuously protect it. Homeowner’s insurance not only protects your property but also includes liability coverage which will provide coverage for when you are liable for a 3rd party’s injury.

Q) My mortgage payment includes home insurance premium. Who is responsible to choose the insurance company?

As the homeowner, you are responsible to chose your insurance carrier. The policy must be insured under your name. In order to protect their investment, mortgage companies sometimes include the cost of your home insurance along with the interest in your monthly payments. That way it will also have enough reserve to make annual insurance and tax payments. Therefore, it is up to the home owner to find the most competitive and high-quality insurance service provider. A good time to search for comparative home quotes is 2-3 weeks before renewal.

 

Q) Does home insurance cover against all perils and accidents?

Although slightly different among insurance companies, standard home insurance companies which make up about 80% of the home insurance market generally have a similar coverage. Home insurance coverage mainly consists of two parts. One is property, and the liability which covers casualties and property damage to others. Property coverage is divided into 4 detailed categories. First, dwelling second, other structures, third personal property and forth personal property outside of the home.

 

Q) Does home insurance cover damages from flood and earthquake?

Homeowners insurance policies normally do not cover perils like flood and earthquake. If you own a property that is exposed to flood or earthquake,  prone areas you should purchase a separate policy.

The extent of coverage varies by insurance companies and plans. However, below are the most commonly covered losses.

 

  • Fire or lightning
  • Windstorm or hail
  • Explosions
  • Riot or Civil Commotion
  • Aircraft
  • Vehicles
  • Smoke
  • Theft or Vandalism
  • Falling Objects

 

Q) Are there additional perils that are excluded from homeowners insurance?

To list a few more exclusions, intentional loss caused by lack of maintenance, loss due to war and, wear and tear are also excluded. In addition, the extra expenses that occur due to ordinance of law are not covered.

Q) How do I calculate dwelling coverage limits?

When determining the dwelling limit for your home, it is important to select an amount that is sufficient to rebuild the building in case of an accident rather than the minimum amount requested by your mortgage. Each insurance company has their own replacement cost estimate tools. This prevents the insured from under or over insuring the property.

 

Q) What is the difference between replacement cost and Actual Cash Value?

The dwelling coverage has two different calculation methods. Replacement Cost and Actual Cash Value.  Replacement cost covers the current cost required to replace/ repair the damage. Actual cash value equals the amount of repair minus the decrease in value of your property. Therefore, it is recommended to choose replacement cost when purchasing home insurance.

/0 Comments/by

Common Home Insurance Exclusions

,

Few people are fully aware of the coverages they have purchased for their home insurance.  As a result, many homeowners assume that they have coverage for losses that aren’t covered. Keep reading to learn about common limitations or exclusions in a standard homeowners’ insurance. We’ll also be covering alternative options to better protect your home.

 

1. Cash and Valuables

The annual number of theft cases, in Dallas TX alone, is more than 46,000. Even with security cameras and burglar alarms, crime rates rise especially by the end of each year. Standard home insurance provides coverage for theft. However, there is a limitation for cash and high value items. Therefore, it is beneficial to know the extent of coverage in advance.

The extent of coverage varies by insurance companies and plans. For stolen cash, a typical homeowner’s policy can cover up to $100.  In other words, it’ll only cover up to a certain dollar amount. As for securities such as stocks and bonds, $500 is the max. High value items such as jewelry rings, watches and fur coats are also covered up to $500.

It is wise not to have too many cash or jewelry at home. Using a safe deposit box within a bank is an alternative. As for high value items, you can list them as Scheduled Personal Property on your home insurance. With a little additional premium, this endorsement will provide extended coverage for specific valuables.

 

2. Commercial Equipment or Inventory Stored at Home

Theft of computers or equipment included in business inventory are typically compensated up to $2500. However, each insurance company may offer different limits. It’s best to check the coverage on your home insurance in advance. If you have a business insurance, find out if  theft coverage extends to business inventory stored within the home.

3. Mold Damage

A typical home insurance doesn’t cover mold damage, just as termite damage is excluded. There was a time when many insurance companies in Texas had to temporarily stop selling home insurance. It was in result to a tug-of-war between state authorities on whether to pay for mold damage. There is no separate insurance for mold coverage. However, most insurance companies provide options to add coverage at an additional cost. The coverage limit is usually around $5,000.

 

4. Damage Caused by Underground Pipe

Water damage caused by an underground pipe that result from lack of maintenance or wear and tear are not covered. For a water damage caused by a pipe to be covered, the primary cause must be sudden and accidental. For example, if a sudden weather change causes a pipe to burst, leading to a water damage, it is likely covered.

If the damage is due to a covered loss, you will receive assistance based on your coverage. Home insurance helps pay for various expenses such as drying, cleaning, repairing or replacing wet carpet and walls. If your home is uninhabitable, you can also receive assistance in temporary housing expenses. Keep in mind that home insurance provides coverage for the damages caused by the damaged pipe not the repair or replacement of the pipe itself.

 

5. Damage from Earthquake

Homeowners insurance does not cover natural disasters such as earthquake and flood. A separate insurance exists for earthquake. In California, where there is a high change of earthquake, a separate earthquake damage insurance can be purchased. It’s available from a state-run company called California Earthquake Authority (CEA) designed to help victims from these risks.

Naturally, people living in areas highly exposed to earthquakes or floods, have higher insurance costs compared to those living in areas that do not. Earthquake insurance deductibles usually range from 2% to 20% of the property’s value.

6. Flood Damage

Typically, home insurance does not include flood coverage. Therefore, it is recommended that people living in flood prone areas to obtain flood insurance. In most cases, if you apply for a loan while buying a house located in a flood-prone area, the loan company requests you to submit a certificate of flood insurance. 

The flood damage caused by Hurricane Katrina in New Orleans caused an enormous damage that was unprecedented in U.S. history. It is said that many of the victims have left for other areas without any compensation because they didn’t have flood insurance.

Flood insurance is managed by the Federal Emergency Management Agency (or FEMA). The actual sale and service is provided by insurance companies designated by the government.

 

 

 

 

 

 

/0 Comments/by

Vehicle Accidents and Total Loss

, ,

Most car accidents are minor with damages that can be repaired. However, in some cases, the vehicle may end up being totaled.

Below are some frequently asked questions that may aid in a better understanding of total loss accidents.

 

 

◈ What is total loss and how is it determined?

 

The term “total loss” refers to cases where the cost of repairing the damaged vehicle is higher than the car’s actual cash value.

You may think that a vehicle is declared totaled when it is severely damaged and unable to drive. However, it is more of the value of the car rather than the extent of damage.

For example, a 2015 Buick and 2021 Buick occurred the same amount of damage.  There is a higher possibility that the 2015 model will be totaled since it has a lower value compared to the 2021 vehicle.

A claims adjuster looks up the actual cash value of the damaged vehicle on the insurance company’s data base.  It is then compared with the cost of repair to determine if it should be totaled.

Typically, insurance companies use the NADA (National Auto Dealers Association) or Kelley Blue Book and a secondary reference.

 

◈ What if you disagree with the insurance company’s payout or want to keep the totaled car?

 

 You can try to negotiate with the claims adjuster.  If you have done any recent maintenance, submit documentation showing proof the car is worth more than previously estimated. The adjuster will be able to refer to the documents to re-evaluate the value amount. You can also submit documents showing installation of custom parts or equipment to your insurance company.

Depending on the case, it may be possible to keep your totaled vehicle. In this case, the payout amount from the insurance company will be different from when you sign over your vehicle. You will receive the actual cash value minus the deductible and the salvage value.

If you wish to keep your vehicle, communicate with your adjuster on your options.  Keep in mind that the repair expenses, will be out of pocket.

 

◈ What happens to my totaled vehicle?

 

As mentioned earlier, in order for a vehicle to be determined as total loss, the cost to repair must be higher than the value of the vehicle. However, depending on carrier and state law, a vehicle is sometimes considered total loss when the damage amount exceeds a certain percentage of a car’s value.

Once the vehicle is declared as total loss, the insurance company pays out the actual cash value minus the deductible that you have selected on your insurance coverage.

The signed over vehicle will then be sent to a salvage auction.  Some cars will be refurbished but, in most cases, will be dismantled for parts.

 

◈ What if you want to buy a vehicle that has been totaled?

In most states, vehicles that have been determined as total loss are auctioned. The rules may vary but you will most likely need a salvage dealer or car dealer license to participate in these auctions.  So, if you’re planning to repurchase a totaled vehicle, it is important to check what the guidelines are and have a license in possession.

If you do repurchase a totaled vehicle, keep in mind that the whole repair cost will have to be out of pocket. Make sure that all necessary repairs are made because if it doesn’t pass the state inspection by the DMV, the insurance company may later decline coverage for a future accident.

In addition to passing the state inspection, you should also obtain Liability Insurance. Be aware that some insurance companies may not offer comprehensive or collision coverage for vehicles with salvaged titles.

/0 Comments/by

Understanding Your Home & Auto Deductible

,

So you’ve seen a deductible on your auto or homeowners insurance policy. How does it work exactly? You probably already know that it’s the amount of “cash-on-hand” you need should anything bad happen. What you may not know is that it can be a bit more complicated than that.

Auto Deductible

Simply put the deductible is how much you are responsible for paying for physical damage to your vehicle. Let’s say a tree falls on your car and causes $3,000 worth of damage. If your deductible is set to $1,000, then the insurance company will only pay $2,000 for that loss. The deductible is how much you will pay on your own.

The auto deductible applies to physical damage. It will never kick in for any liability losses. This deductible ranges from $100 up to $5,000. You can also separate these into different amounts for comprehensive and collision. Collision is for when you’re in an accident; this will cover the physical damage. Comprehensive is for really any other physical damage out of your control, such as fire, lightning, hail, stray rocks, etc.

Homeowners Deductible

Your homeowners policy also carries a deductible. There are two separate ones that apply here as well. You may have seen both of them the same, but they may not always be so. The deductible for all-peril and wind/hail damage losses remain separate. It can get more complicated with a third deductible that applies to catastrophic storms, but we will keep it relatively simple and only talk about the first two for now.

An all-peril loss is any loss listed on your policy that is covered. This covers things like fire, lightning, falling objects, theft, etc. Typically your all-peril deductible will be a percentage, but it may also be set as a flat amount. The percentage deductible is based on the overall, dwelling replacement cost, coverage amount. So in this case, if you want a percentage deductible, maybe consider how much your overall coverage is. The higher your dwelling coverage, the higher your percentage deductible will be.

On the other side, the wind/hail deductible is for exactly what it describes: wind and hailstorms. This would be any damage, typically to your roof, resulting in wind damage or hail damage. It is very rare to see this deductible a flat amount; it is standard across the board for this deductible to be a percentage.

 

Effect on Your Premium

Your deductibles, whichever you choose, will have the greatest visible impact on your premium. The higher your deductible, the cheaper your policy will be. This is due to the simple fact that you would be paying more out of your pocket for each loss.

This is something to consider when choosing which deductible is best for your policy. Do you find that you are opening claims often? If so, maybe a slightly more expensive premium with a low deductible might save you more money in the long run. Are you someone who is comfortable with cash-on-hand and you seem to not be using your insurance for claims quite so often? Then it looks like a cheaper overall policy with higher deductible is for you. It is all based on your personal situation and what you’re comfortable paying, either in overall premium or each loss.

Do you still have questions? Would you like someone to look over your policies and make sure you’re covered? Reach out to one of our qualified agents, and we can see what we can do for you!

 

Resources

Understanding Homeowners Insurance Deductibles – Policygenius

Car Insurance Deductibles Explained – Progressive

/0 Comments/by

What Are Telematics?

,

The terminology itself is an adopted term to describe all technology associated with tracking and communicating driving data. Insurance companies will take this data, and either offer you a personalized rate based on how you drive, or simply give a solid discount.

You’ve probably heard of various insurance companies offering a plug-in device for your car; lately these companies are adding a phone app to also track your driving. These devices all monitor various driving habits such as miles driven, time of day, hard braking, quick acceleration, etc. This is what we call “usage-based insurance” or UBI.

UBI consists of two types of rated insurance based on your driving data: “pay as you drive”, and “pay how you drive”. These are pretty self explanatory. Pay-as-you-drive telematics measures the distance you typically drive. This driving data measures how much and how often you’re driving. Pay-how-you-drive means that your driving habits, rather than pure distance, is measured.

So why should you consider rating your insurance based on telematics?

Traditionally insurance is rated based on historical data collected from the previous year. This doesn’t take into account certain years, or time periods, where you would be driving infrequently. You also may want to consider that if you are a low-risk driver, you could get a lower premium on your insurance. Telematics also accurately record accident damage; so if you find that you need your insurance, it may be helpful to have them already know what has happened. However, we know that this does bring up certain privacy concerns. This has led to some states writing legislation that requires insurance carriers to disclose the data they collect. In effect, this has caused these carriers to collect less driving data.

When you’re looking to lower your premium…

Adding telematics can be the easiest change to make without making a dent in your coverage. Many people have left the roads and their commutes this year. With the advent of working from home, or the unfortunate job loss due to Covid-19, many are looking to reduce their premium as much as possible. Why pay so much for insurance when you’ve reduced the chances you’ll need it? Various carriers, such as Nationwide, are offering variable rates based solely on how much you drive. So if you’re unsure of sharing your driving data, but want this variable rate, this may be a good fit for you.

If you’re looking to save money on your auto insurance this year, and telematics sound like a great idea, reach out to us and one of our knowledgeable agents will be happy to assist you.

 

Resources:

Telematics/Usage-Based Insurance – National Association of Insurance Commissioners

Background on Pay As You Drive Insurance – Insurance Information Institute

 

/0 Comments/by