Tag Archives: Auto 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

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!

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!

Does your auto insurance extend coverage to a rental car?

A common auto insurance question this time of year is about purchasing rental car insurance from the rental car company.   While this varies, depending upon your carrier and your coverages, for some people there may be no need to purchase the rental car insurance from the rental car company.

DSCN0126For most of our carriers (including Erie, Allied, Allstate, Safeco, and Progressive) the coverages on a personal auto insurance policy extends to a rental car.  These coverage extensions include Liability, Un-Insured & Under-Insured Motorist, along with Comprehensive & Collision Coverages.

To be properly insured on a rental car you will need all of these coverages (many people refer to this as “Full Coverage”).   If you only have liability coverage on your auto (many people refer this to as PLPD) you will need to either increase your personal auto coverages to include comprehensive and collision coverage or purchase the rental car insurance from the rental car company.

The Deductibles Still Apply

Remember that if there is any type of damages to  the rental car that you’re deductible would still apply.   If the deductibles are $500 and there is any damage to the rental car, you may be out $500.  For this reason, we advise our clients to lower their deductibles while they are renting a car.Car Accident

It also a good practice when renting a car to do a complete inspection (inside and out) of the vehicle before driving away from the rental car company’s parking lot.  If you do find damage, quickly report the damage to one of their representative and document the damage by a picture, and then email that picture to yourself so that it is date stamped.

One Coverage Gap

If you elect to not purchase the rental car insurance from the rental car company and instead use your personal auto insurance coverages, there is one potential gap that you need to be aware of, “Loss of Use”.  Loss of Use would come into effect if the car is damaged and has to go to the shop to be repaired, and the rental car company has lost earnings by not having that car on the road being rented out.   It’s the rental car company’s “loss of use”, or lost income.

For example if the rental car company normally rents out your damaged car for $50 per day and it is in the shop for 10 days, they could say that they lost $500 in income ($50 x 10 days).  They will want you to pay that $500, and your personal auto insurance policy does not cover this.

If you have questions or doubts about what kind of coverages you have, call your agent and have the do a full policy review that includes how your personal auto coverage extends to rental cars.

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

2014 Insurance Planning

Greeting the New Year is one of my favorite events. Beautiful-Happy-New-Year-2014-HD-Wallpapers-by-techblogstop-1It’s a time when I can reflect back at what has transpired over the past 12 months, and set goals and plans for what I hope to accomplish over the year. It’s a time when I can free myself of the past year’s failures and shortcomings, while I celebrate my accomplishments and prepare to be my best in the New Year.

Some people will resolve to lose weight or quit smoking in the New Year. I would imagine that a lot will sit down at the kitchen table with pen and paper in hand to do some financial goal planning. You’re planning to pay off that pesky credit card, or maybe you’re planning on putting in that swimming pool that you’ve always wanted.

Insurance AgentWith this in mind, let me suggest that the New Year is also an excellent time to review all of your insurance needs with your insurance agent. Insurance is not a “set it and forget it” financial product. It’s a financial product that needs to be continually maintained. As our lives change so do our insurance needs.

As you probably know, there are many changes imagesMAO8Q7F8taking place in insurance right now, and not just in health insurance, but also in home and auto. Premium rates are increasing and coverages are decreasing. You’ve probably noticed the increasing premiums, but did you know that your coverages may not be as good as they once were?

I thought that I was covered is not an insurance program. Make an annual insurance review part of your new year’s financial strategy. You will be glad that you did.

 

Has Your Deductible Changed Without Your Knowledge?

For the past several years homeowner’s insurance companies in Indiana have been losing money, primarily because of wind and hail claims. Storm patterns in recent years have pelted the Midwest with wind and hail related claims that reach into the $ billions. In fact many insurance companies are paying out 2 dollars in claims, for every dollar they receive in premium.Hail-damage-house-OK-6-2011-lg

This has been the primary reason the industry has seen such an increase in homeowners insurance premiums over the past few years. While this trend is not likely to end any time soon, some insurance companies are also changing the way they pay out claims.

Traditionally a homeowner’s policy has a dollar amount named as the deductible. That amount is subtracted from the amount of the claim. For example, if the policy has a $1,000 deductible and there is a $5,000 claim, the insurance company would pay out $4,000.

However there is a trend in the industry that has some companies changing their deductibles from a dollar amount to a percentage, especially if the claim has been caused by wind or hail.

Hand over your moneyI recently spoke to a married couple who had damage to their roof caused by the outbreak of tornadoes we experienced in the month of November. They called their insurance company to file a claim, and discovered that their deductible for a wind claim is 10% of their dwelling value. Their dwelling value is $360,000 which made their deductible $36,000. Needless to say they ended up having to pay for the repairs to their roof out of their own pocket.

Did you catch that? Their deductible was $36,000 for wind and hail damages!

Unfortunately many other companies are following suit. Some very large and well-known insurance companies are changing their wind and hail deductibles to a % and most of their clients are unaware of the change. Often times clients are only notified of this change within the mountain of paperwork they receive in the mail from the company at the policies renewal.

Let’s face it; most people do not have the time to sift through that much paperwork. They file it away and assume that the coverages have remained the same.

The example given above of a 10% deductible is the most extreme case that I have seen. More frequently I am seeing wind and hail damage deductibles changing from a dollar amount to 1% or 2% of the dwelling coverage. 1% or 2% of the dwelling is still a significant amount of money to pay out of pocket at the stressful time of a claim.take action

Protect yourself.

1. Review your documents. Take the time to review the documents when you receive information in the mail from your insurance company. If you do not understand the language or have questions, take the policy to your agent and have them explain the coverages.

annual review2. Insist on an annual review. Your agent should be sitting down with you on an annual basis to review your coverages and to answer your questions. There are too many changes taking place in the homeowner’s insurance arena right now to ignore the paperwork and hope for the best.

3. Educate yourself. Too often times I hear people say that they paid their premium so the assumed everything was OK. Don’t turn a blind eye to your insurance coverages. Insurance is expensive so you should do you best to make sure that you understand what you are paying for.