Category Archives: Car Insurance

Adding a New Driver Can Be Expensive; Not Adding Them May Cost More

Inexperienced drivers have accidents.  Of course they do; anyone learning a new set of skills is bound to make a mistake.  In fact, new drivers between the ages of 16 and 22 are 96% more likely to have some type of auto accident.  It may just be a fender bender or something much more serious.  They’re going to have an accident; the severity is the question.

The risk of new drivers coupled with inflation, and supply chain issues are starting to cost the insurance companies a bundle (and I’m not talking about Flo’s bundled insurance package).  Parts and labor are in short supply driving prices even higher.  These factors make a fender bender that would have cost $1,500 to repair 3 years ago now cost about $3200.

The increased cost of repairs has been eating into the insurance company’s bottom lines, and we all know what happens next.  The insurance companies raise their rates.  That’s been happening across the board, but it’s been especially brutal for people with young drivers in their household.

Parents of young drivers are now facing some serious choices.  They are seeing increased spending at the grocery store (teenagers eat a lot); increased costs at the pump; and increased cost for auto insurance.  Something has to give.

One risk that parents are contemplating is to NOT add their young driver to their policy.  Here’s why that’s probably not a good idea. 

  • Some insurance companies are denying claims caused by members of the household that were never listed on the policy.  Remember the young driver’s have a 96% likelihood of an accident.
  • If the insurance company does cover an accident of an unlisted driver of the household, they will then add that driver to the policy and backdate it to the day they received their driver’s license, creating a potentially huge amount of money that is owed up front.  They would then likely cancel your policy leaving you with the task of finding another insurance company with a new accident and a young driver on your record.  That’s when the cost really increases.

Some Practical Advice 

  • Getting a driver’s license is not a right that teenagers have when they turn 16.  The financial condition of the family is more important than any one member of the family.  If the family cannot afford the increased cost of the teenager getting his driver’s license, then they should not get their driver’s license until they are able to pay for that themselves. 
  • Getting a driver’s license is a huge responsibility.  Part of that is a financial responsibility.  There is nothing at all wrong with making your teenager pay for their own car, gas, and/or insurance.  In fact, I think an argument can be made that it would be wrong to just give your child these things without any contribution from them.

I hope this is helpful to someone.  That’s my two cents.

Say NO to the State’s Minimum Coverage!

Presently the minimum legal insurance coverage that you must have to drive a vehicle in Indiana is $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $25,000 for property damage.    

Scenario:  You are involved in an auto accident and the other driver is injured and taken away in an ambulance.  It is determined that you were the at fault driver. You only have the state’s minimum coverage.

Q:   What if that person’s medical bills are $75,000?

A:  The injured person would hire a lawyer and sue you for the remaining $50,000 in medical expenses.

Did you know? 

Your auto insurance bodily injury liability coverage can protect you when you are in an at-fault accident where the other driver is injured.  These expenses often include:

  • Ambulance Rides
  • EMT Expenses
  • Emergency Room Charges
  • Doctors Bills
  • Hospital Stays
  • Surgeries
  • Rehabilitation and Physical Therapy
  • Lost Wages
  • Pain and Suffering
  • Lawyer Expenses
  • Any other expense that can be associated with the accident

Q:  I don’t own anything and I don’t have any money, so what do I have to lose by choosing the state’s minimum coverage?

A:   A law suit that results in a judgement against you can lead to garnished wages; liens placed on real estate and fixed assets that you own now and into the future.

RESOLUTION: Don’t settle for low liability limits on your auto insurance.  The difference in premium between the state’s minimum coverage and an acceptable coverage amount is often very small.  The insurance companies love to sell the state’s minimum coverage because they know they will never have any large pay outs and they still get your money each month. 

For an auto insurance quote that will actually protect you call Bragg Insurance at 317-758-5828 or visit our website at http://www.bragginsurance.com

How Long Does a Traffic Ticket Affect My Auto Insurance?

A traffic ticket can stay on your record for up to 10 years but will typically only affect your auto insurance rates for 3 to 5 years, depending on the insurance company. 

When evaluating your risk factors one of the areas that an insurance company looks at is moving violations.  Most insurance companies include a surcharge for moving violations such as speeding, disregarding a stop signal and tailgating to name a few.  This surcharge will continue for 3 years with most companies, while other companies continue a surcharge for up to 5 years. 

The amount of the surcharge varies depending on the number of tickets, the severity of the ticket, how recent the ticket was and if there are other negative risk factors on the policy.  The surcharge normally decreases over time as the ticket date gets older and older.

Traffic ticket divergent programs do not normally affect how an insurance company surcharges for tickets.  If the ticket shows up on the Motor Vehicle Report (MVR) the insurance company still sees this as a risk factor and will apply the same surcharge. 

Seat belt violations and parking tickets are not considered to be moving violations and normally do not affect your risk factors thus they do not normally affect your insurance rates.

If you’ve had a ticket in the last 5 years but have remained with the same insurance company, you may be paying too much for your auto insurance.  For an auto insurance rate contact Bragg Insurance Agency at 317-758-5828 or visit our website at www.bragginsurance.com

The 10 Year Milestone

Dear Friends,

Tomorrow, January 1st, 2021 is the 10 year anniversary for Bragg Insurance Agency. 

When I started this journey 10 years ago I had no idea how much a local insurance agent touches so many lives.  Through selling and servicing insurance policies I have developed new friendships and got to know some old friends again.

Through our great insurance carriers we have impacted our community with over $5,000,000 in paid claims and contributions. This is a significant number but even more significant is the impact you have had on my life.

There are many people to thank for the past 10 years and I’m sure I will miss some people but I do want to mention some people that have had real impact.

  1. My wife Kelly Bragg – I’ve had some pretty crazy ideas over the years and without fail you have always supported me.  Thank you!
  2. Dick and Marie Mosbaugh – I will never forget Dick walking into my office in 2011 asking to switch his and Marie’s insurance over to Bragg.  It was the first confirmation that I may be able to survive in this business.  Thank you Dick and Marie, you made a difference in my life.
  3. The community of Sheridan Indiana – This little town of Sheridan Indiana means the world to me and your kindness and acceptance of me and my family means more than I can express.  It is your open armed acceptance of Bragg Insurance agency that has made the difference.  Thank You!
  4. Jenna Romens – Jenna was my first district sales manager and mentor from Erie Insurance.  She took the time to educate me on both the insurance business and on the ins and outs of Erie.  Thank you Jenna!  I haven’t forgotten your investment in me. 
  5. Tony DaBreo – Tony took a chance on me 10 years ago by granting me an Erie Insurance contract.  Thank you Tony, you changed my life.
  6. I also want to thank my children, Garen, Kelsey, Catey and Courtney.   We had some lien years there at first but I never heard a single complaint.  Thank you kids!
  7. Thank you to my parents Dennis and Carolyn and other family members that have supported Bragg Insurance Agency for these past 10 years.

But Most of all, I want to thank God for continuing to use my life.  He walks beside me each day and holds me up when I’m ready to fall. 

Now the questions is what’s next….I’m happy to report that we are currently planning to add more insurance related products sometime next year.  We are also doing some long term planning for 10 and even 20 years into the future. 

Thank you for your loyalty and friendship! Bragg Insurance Agency, your friends in the insurance business. 

Referring Partner Rewards Program

FOR IMMEDIATE RELEASE

Bragg Insurance Agency Announces

Referring Partner Rewards Program

Free Gas Card

Bragg Insurance Agency (BIA) will be rewarding our clients and members of our community for referring their friends and family to our agency.  Each qualified referral will earn the referring partner a $10 gift card (no purchase necessary).  The referring partner’s name will then be entered into a drawing at the end of that month for an additional $50 gift card.  In addition the referring partner’s name will be entered into another drawing to take place twice per year for a $100 gift card.

There is no limit to the number of gift cards that can be earned   Purchase is not necessary to enter and win!  A referring partner could potentially earn up to $160 for a single referral!

A qualified referral is a person or business that has a verifiable need for an insurance product that BIA offers;  is not a current customer of BIA; has not been a customer of BIA within the past 90 days;  and hasn’t applied for insurance with BIA within the past 90 days.

Call Brian Bragg at 317-758-5828 for all of the details and to learn how you can become a BIA referring partner!

Top 10 Things to Review with Your Insurance Agent

Once again, it’s a new year. January is a great time of year to reflect back on the previous year while we make plans and preparing for upcoming year.start-line-3449607_960_720

I like to look back into my checkbook register from the previous year to see where I spent my money. This is a good indication of what I did and where my heart was. I’m always surprised by some meaningful things that I did during the course of the year that I forgot about. I’m also surprised by how much everything cost these days.

Because It’s easy to forget about some decisions that we’ve made and today’s cost of living I highly recommend that you review your insurance coverages with your agent at least once per year. It’s an exercise that can take as little as 15 minutes but may end up saving you thousands of dollars.

Top 10 things to review with your Insurance Agent

  1. Life Insurance Face Amount – You are your family’s most important asset, if you are gone your incomes goes with you. Make sure that you understand the type of life insurance that you have, the face amount and any expiration dates that they policy may have.
  2. Discounts – When reviewing your coverages with your agent be sure to ask if you have received every available discount .
  3. Best Company for you? – If you are working with an independent insurance agency (I highly recommend) be sure to ask if the company you are with is the best company for you. I think it’s a good idea to shop your insurance every couple of year to make sure you are getting the best coverages at the best possible price.
  4. Auto Insurance Bodily Injury Liability Coverage – Probably the biggest risk you take is when you drive.  If you injure or kill someone while driving the medical expenses can be devastating.  Be sure you understand how much coverage you have and purchase as much as you can afford.  Car Accident
  5. Personal Liability Coverage – As a part of your homeowners insurance policy, personal liability coverage is very inexpensive. Normally the minimum coverage amount is $100,000 but increasing this coverage to $500,000 may cost as little as $20 per year. If you have a large liability loss, a good attorney may cost $100,000 so increasing this amount may be important.
  6. Homeowners Dwelling Coverage – Be sure that your homeowner dwelling coverage is for Replacement Cost and Comprehensive Perils. Also, be sure that your dwelling amount is enough to completely rebuild your home. If you are unsure about the amount, ask your agent for a copy of the Evaluation Tool (MSB) used to arrive at your dwelling amount.
  7. Personal Property Coverage – It is difficult to arrive at a replacement value for all of your personal property. Review that number with your agent and purchase the most coverage that you can afford. Be sure that your personal property coverage includes Replacement Cost and Comprehensive Perils.
  8. Jewelry, Guns & Collectible – While your personal property coverage amount may be enough coverage for your jewelry, guns and collectibles, most homeowners insurance companies limit the amount that you can collect for these items. Be sure to discuss these items with your agent and make sure that you have enough coverage.
  9. Deductibles – Make sure you know and understand how your deductibles work. Your homeowner’s insurance policy may have separate deductibles for separate events. Your auto insurance policies may also have different deductible amount forred-48797_960_720 comprehensive and collision claims.
  10. Other Structure Coverage Amount – If you have a barn, a large building, or any other structure that is not attached to your home, make sure those outbuildings have enough coverage incase of a tornado, fire or unexpected event.

Of course if you ever need help understanding your coverages we at Bragg Insurance Agency are always happy to help.  Bragg Insurance, your friends in the insurance business.

Don’t Set It & Forget It

KneeI got good news today from my doctor, telling me that instead of the surgery I was dreading for my worn out knees, that I likely just need Physical Therapy (PT).  For many reasons this is welcomed news as well as an eye opener for me.

The reason for the PT is because years ago I had my knees operated on and then I just moved on with life.  I failed to do any PT after the surgery and the muscles in my legs never fully recovered.  I just moved on and forgot about it.

The bad news is that my knees are now weak and in bad need of PT, the good news is that I can now do something about it.  I met with a physical therapist and he has me on a plan to help me strengthen my knees that will help improve my life.

The attitude that I had about my knees reminds me of the attitudes some people have  toward their insurance plan.

Insurance AgentThey meet with an insurance person once, purchase a policy and then move on with life.  They “Set it and Forget it.”

Insurance is not a “Set it and Forget It”.  It is important that you review your coverages with your agent at least every 12 months.  Another important time to review your coverages is when you have a “Life Event”, such as a wedding, a new driver, or a new room addition to your house.

Don’t treat your insurance plan like I did my knees.  Take the time to review your coverages as often as necessary with your agent.  Life changes and your insurance needs will change with your life.

Insurance Video Library Now Open!

 

Bragg Insurance Agency is excited to announce the opening of our video information Library!  This new tool developed for Bragg Insurance Agency clients will help to answer many of your questions about how your insurance coverages work.  insurance-agent

To visit the Insurance Video Library you can click on the following link.  http://myinsurancevideos.com/all-videos/braggins/

We are hopeful that these 36 videos will help our community to make great decisions about their insurance coverages!

Types of Auto Insurance

A common question that we get in the agency is, “What is the difference between liability only and full coverage?”  This is a difficult question to answer because the terms, “liability only” and “full coverage” are relative terms, meaning different things to different people.  At Bragg Insurance Agency our job is to open up the discussion with the client about their coverage so that we can fulfil their expectations.  Communication is the key.

This video does a great job of discussing the different types of coverages that you can have in an auto insurance policy. auto

When Optimisim is a Negative

“It won’t happen to me is not a good insurance program”

It’s quite amazing how many optimistsglass-half-full-233x300 that I run into on a daily basis. I too am a “glass half full” person, so I truly understand the optimistic mindset. While I consider myself to be a positive person I cannot hold a candle to some of the idealistic thinkers that cross my path. Recently I’ve been putting these Utopian-minded folks into 3 categories.

The Immortals – This group is the most sanguine. They are a confident group that thinks that they cannot die. They are usually young and believe that their youth and positive buoyant attitude will keep death at bay. They go about their day to day activities on cloud nine ignoring pessimistic thoughts such as death, and responsibilities.

Unfortunately “The Immortals” do die, and many times way too young. Sometimes they leave behind a family with both emotional and financial voids. They leave behind mortgages, motorcycle payments, car payments, children, spouses, and extra expenses related to their funeral.

The Conscientious Optimist – This group of optimists are so meticulous that an accident could never happen to them. They are superb drivers, their homes are danger free zones and they never take risks –Never! When they drive they are able to look 3 and 4 moves ahead of everyone else and they can actually read the minds of other drivers. These clairvoyant powers keep them out of the path of drunk drivers and they are able to spot deer before they look into the headlights.

Unfortunately just as Superman’s weakness was kryptonite, even The Conscientious Optimist is susceptible to accidents. A car sometimes appears out of nowhere, someone hits their vehicle when it’s parked in a parking lot, or they only looked away for a second and that’s when the accident happened.

The Optimistic Procrastinator – Normally procrastination is associated as a negative word, but I’ve come to realize that Procrastinators are actually very positive people. They believe beat_procrastinationthat they can wait until the very last minute to take care of a duty or a task. Some of their most often used words are, “I meant to”, or “I was just getting ready to do that”, or “there’s plenty of time to do that later”

Unfortunately for the procrastinator his optimistic view of time often times runs out. His “meant to” turns into never did, and his “I was just getting ready to do that” turns into never got it done. The thing the optimistic procrastinator doesn’t realize is that when time runs out, his good intentions aren’t worth a hill of beans. He was derelict in his duties and responsibilities in spite of his good intentions.

pic-lhb-familyWe optimists are funny people. We really do see the glass as half full. But we also need to be aware of a balancing truth. We are not immortal, we do not have a magic force field around us protecting us from accidents, and we are not promised tomorrow.

So why not rather be an optimist that is prepared for the future? Live life to the fullest, but be prepared in case it’s your last day. Be a conscientious person that avoids all accidents, but have a plan in case the unexpected happens. Today, stop putting off those “meant to do” items and get them done today.

Brian Bragg owns and operates Bragg Insurance Agency and can be emailed at brian@bragginsurance.com