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Archive: Aug 2017

Car Insurance Rates Explained

When it comes to car insurance, there’s no one price-fits-all scenario. In fact, car insurance costs can vary greatly from driver to driver, carrier to carrier and even state to state.

It’s not only about which coverage you select. Many other factors can also impact your car insurance premium – here are seven of them.

  1. Driving history: If you’ve been involved in a lot of accidents and received more than your fair share of traffic tickets, the result is almost certain to be higher car insurance costs. The good news, however, is that the inverse is typically true as well. So, watching the speed limits and not driving distracted are two ways to not only stay safe but to potentially lower your car insurance rates, too.
  2. Deductible and discounts: Don’t forget these two factors if you’re trying to keep your car insurance costs low. Oftentimes, a higher deductible results in a lower premium, so select the highest deductible you can manage. Remember, you’ll need to pay the amount of your deductible out of your own pocket in the event of a covered loss. You also may save on car insurance by taking advantage of special discounts. These can vary depending on your carrier but are typically available if you insure both your home and car with the same carrier, if you take an accident prevention course or if you drive your car infrequently.
  3. Your vehicle and how you use it: The more time you spend on the road, the higher the chance of something happening. So, if you have a long daily commute, you should expect to pay more for your car insurance. Your vehicle makes a difference in your car insurance rates, too. If you drive a vehicle with solid safety ratings or one that has a high likelihood of theft, your rates may go down or up, respectively.
  4. Your home: What does your home have to do with car insurance rates? Where you live can oftentimes either increase or decrease your chance of an accident or other incident. For example, metropolitan areas have more traffic, so there’s likely a higher chance of being involved in an accident than a rural area with less traffic. So, those who live in a high-density area may pay more for auto insurance. Drivers in any area, however, may pay less if they own their homes. Many carriers offer a car insurance discount if you own a home, townhouse or condo.
  5. Age, marital status, and gender: Believe it or not, married drivers typically have fewer auto accidents than non-married drivers, so the former may pay less for their car insurance. Young, inexperienced drivers typically pay more, so keep this in mind if your kids are nearing driving age. And, finally, female drivers often experience fewer accidents, so they may receive lower rates than males.
  6. Credit history: Data has shown that those with higher credit-based insurance scores typically have fewer claims over time. So, keep your credit in check if you want to keep your car insurance costs in check, too. Though, in some states, carriers are not allowed to use your credit history in determining your car insurance rate.
  7. Previous coverage: If you’ve ever had any gaps in your coverage or you’ve carried lower-than-recommended limits in the past, you may find yourself paying more for car insurance today.

So, you see, there are a lot of factors that go into determining your car insurance rate. In the insurance industry, we call them “rating factors.”

If you want to better understand which of the above rating factors may be impacting your car insurance costs, give us a call! And, remember, your rating factors can change, so it’s a good idea to review your insurance policies annually and make sure they are still a good fit for you.

What You Should Know About Back To School Safety

It’s that time of the year! Back to school! As summer is winding down, we would like to remind you of a few “Back to School” safety tips:

  • A person may not use a wireless phone, at any time, while operating a motor vehicle on a roadway or in a school speed zone.
  • Drivers should not block the crosswalk when stopped at a red light or waiting to make a turn.
  • Passing a stopped scool bus – the driver of a vehicle shall stop the vehicle before meeting or overtaking, from either direction, any school bus stopped for the purpose of receiving or discharging pupils on a highway or upon a private road. Such stop is required before reaching the school bus when the school bus is in operation and the school bus visual signals are activated. The driver of the vehicle shall not proceed until the school bus resumes motion or the driver of the vehicle is signaled by the school bus driver to proceed or the visual signals are no longer activated.
  • Child Passenger Protection Act – children under the age of 8 years must be secured in an appropriate child restraint system, more commonly called a child safety seat. Child safety seats include infant seats, convertible seats (rear-facing for infants and forward-facing for toddlers) and booster seats that are used with the vehicle lap and shoulder belt system.
  • Always stop when directed to do so by a designated crossing guard or police officer.
  • Remember children are the least predictable pedestrians and the most difficult to see.

School Speed Zones in Illinois

The following is an excerpt from Chapter 625 of the Illinois Compiled Statutes, Act 5, Chapter 11, Section 605:

On a school day when school children are present and so close thereto that a potential hazard exists because of the close proximity of the motorized traffic, no person shall drive a motor vehicle at a speed in excess of 20 miles per hour while passing a school zone or while traveling on a roadway on public school property or upon any public thoroughfare where children pass going to and from school. For the purpose of this Section a school day shall begin at 7:00am – 4:00pm

Here’s to a safe school year! 

Does Your Student Need Renters Insurance in College?

When you’re helping your child pack for college, you may be thinking about their class schedule and hoping they use their free-time wisely. Someone making off with their laptop or a dorm fire are probably not what you’re envisioning about the campus experience, but since they may be bringing some expensive stuff with them – a television, speakers, clothing, and a smartphone – it’s a good idea to make sure these things are protected before they leave home, just in case.

Whether they’re living in a dorm or an off-campus apartment, it’s important to have coverage for all those things that help them keep up with classes and make their living space more like home. How to help protect their stuff, though, typically depends on where they’re living.

Dorm Life

If they’re living in a dorm or other campus housing, their belongings ma be covered under you homeowners or renters insurance policy. But you’ll want to check with your agent to make sure – the National Association of Insurance Commissioners (NAIC) says that students who are younger than 26 and living on campus may be covered through your policy.

It can be a good idea to know the policy’s coverage limits for personal property. The Insurance Information Institute (III) says some policies limit coverage for belongings while they are away from the policyholder’s home. This is often referred to as “off-premises coverage.” For example, if your policy provides $100,000 worth of coverage for belongings, but limits that coverage to 10% for items that are off-premises, it may provide up to $10,000 for items away from their home, including belongings they bring to school.

It’s also important to note that certain items, such as a laptop, may have coverage limits. If the policy’s limits aren’t enough to cover the items they’ll be bringing to school, the III says your parents may be able to add scheduled personal property coverage, sometimes referred to as a “floater,” to their homeowners or renters insurance policy to help cover certain valuable possessions.

Off-Campus Housing

If they’ll be living in off-campus, the III cautions that your insurance will probably not extend to any belongings they bring with them (but always check with your agent to be certain). Their own renters insurance policy may be a good way to help them protect their belongings, should they be stolen or damaged by a covered loss.

A renters policy will also likely provide liability coverage, which may help prevent them (or you) from paying out-of-pocket if they are found legally responsible for someone else’s injuries or accidental damage to their property (including their landlord’s).

The III recommends asking your agent about coverage limits, as well as whether they’ll benefit from additional coverage for certain valuables.

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