Demystifying Car Insurance Rates

Have you ever compared your car insurance rate with a friend or family member and found it wildly different—even if you both use the same insurance company? It's not that your carrier likes one of you better than the other. In fact, the way rates are determined is based on many different factors—some obvious, some you might not expect:

ñ     Accident History and Driving Record-- Okay, this one's a given. If you've had many accidents in the past, you're likely to have more in the future, and your insurance rates will be accordingly higher to make up for the risk. The same logic applies if you have a slew of speeding tickets or other traffic violations on your record—higher risk, higher price.

ñ     Mileage and Vehicle Usage-- This factor boils down to simple probability: the more you drive, the more likely you are to be in an accident.

ñ     Vehicle Make and Model-- This factor tends to surprise a lot of people, but it is an important part of your insurance rate. Some cars are just safer than others, while some tend to crumple if you look at them sideways—which affects risk, and in turn, rates.

ñ     Demographics--   Demographic information  is a very good predictor of who are the most—and least—safe drivers out there.

ñ     Insurance Score-- You probably knew you had a credit score, and that all-important number helps us calculate your insurance score. Believe it or not, there's a strong relationship between how you manage your credit and your likelihood of loss in a car accident, which is why we take it into account when calculating your rates.

I hope this helps shed some light on how auto insurance rates are calculated, but if you're still confused, give me a call. I'll not only help you find a great auto insurance rate, I'll also help explain it—and how you can lower your costs.

For more info, or to request a quote, go to
http://www.erieinsurance.com/lp/squeeze/5/index.aspx?agent=WW1793

What Really Matters

If you’re like a lot of people, your car is your baby. You hate the idea of it getting the slightest dent or scratch. But because you have auto insurance, you know that if it did get damaged in some way, it’d get fixed, and you wouldn’t have to spend much out of pocket. It’s reassuring knowing you have that safety net for something that’s so important to you.

But are you protecting your family the same way you’re protecting your car? Think about it: you’re required by law to have car insurance, both to protect yourself and to protect other drivers on the road. But there’s no law saying you have to have life insurance. It’s up to you to take that step and make sure your family is safe.

It’s not pleasant to consider that there may come a day when you can’t provide for your family as you’d like. We hope and pray that day never comes.  But having life insurance gives you peace of mind, knowing you’ve provided for your family.

Let me help you figure out the best kind of life insurance for you and your family. You know I can take care of your car—now let me take care of something much more precious.

The LIFE Foundation has a lot of great information available online at http://www.insureyourlove.org/.  Be sure to check it out.

-Matt

Buying a New Ride? Here’s How to Keep that Baby Safe

It can be one of the most exciting purchases—a new car. Whether it’s a sports car or a family ride, here are a few things to know about keeping it insured:

First, when you replace a car, the ERIE coverage on your previous vehicle will transfer to the new one—for a limited period of time. Similarly, if ERIE covers all your vehicles and you buy an additional car or truck, the new vehicle will be protected for the broadest coverage afforded under your existing policy, but the coverage does not extend indefinitely.

Both scenarios have limitations that could leave you at risk. Your insurance contract requires you to contact our agency or ERIE about the change in vehicle as soon as possible.

Second, there is usually a time limit—typically you are required to report the change during the current policy term and immediately, if you wish to modify or add coverage.

Finally, your new car may not be fully covered under your old policy, especially if you chose not to carry physical damage coverages (comprehensive and collision) to keep your premium low on an older car. We can help you review your policy and make any needed changes.

One endorsement in particular you may want to consider is ERIE’s New Auto Security Coverage Endorsement.  This coverage helps protect against depreciation for up to two years in case you have to replace your new vehicle after an accident.

The smartest approach to lining up insurance for your new car? Contact us before you buy. We can help you evaluate how much your new car will cost to insure and help you make the change to your policy before you drive your new dream home.

Not all companies are licensed or operate in all states. Not all products are offered

in all states. Go to erieinsurance.com for company licensure and territory

information.

Welcome to 2012!

The first post of the new year...

The calendars have been flipped, the Christmas music has finally stopped and we all get back to reality.  This past Christmas season was a great one for myself and my agency and I hope you had all of your Christmas wishes come true.

Have you taken down your decorations yet?  Probably not.  Please remember that if you haven't watered the tree in a few days, it's probably very dry and very flammable.  Time to get it out of the house.

Then there are the outdoor lights.  It is quite cold today here in Watertown:  a chilly 12 degrees.  However, the weather should warm up for the end of the week.  It may be a perfect time to get out there and take it all down.  It will be much less safe to be up on a ladder or walking around on an icy roof once the temperature plummets again (and it will).

I have not shoveled snow yet!  Time to stop at the hardware store and pick up driveway salt.  If you want to prevent your friends and family (and the paper boy) from falling on your property you need to keep it clean and salted.

If you have any questions about your policy and how it protects you, go to our agency website or just give me a call at 920-261-3255.

-Matt

Cell Phone Ban Recommendation

The National transportation safety Board said that texting, emailing or using a cell phone while driving has been proven to be too dangerous to be allowed anywhere, and recommends that all states impose a total ban, except for emergencies. The recommendation would also apply to hands-free devices, the federal safety board said.

The NTSB noted a recent deadly crash in which a teenager sent or received 11 text messages in 11 minutes before being involved in an accident.

The unanimous recommendation by the five-member National Transportation Safety Board noted that it would make an exception for devices deemed to aid driver safety, such as GPS navigation systems.

Read more from the official website here.

It's still autumn, can't you tell?

I just had to write something!  I have neglected this blog for close to 2 months now, and I apologize.  But, the weather hasn't changed much so it doesn't feel like it's been that long.

Speaking of weather, now is the time to be sure that you are ready for the long, cold months ahead.  Actually, that time was a few weeks ago.  But, Mother Nature has decided to give you a pass so far this year.

YOUR CAR:  Do you have an ice scraper?  What about a mini shovel?  Extra pair of gloves, boots, blanket, some hand warmers?  All of these items are inexpensive but can literally be a life saver if you get stranded in a snowstorm.  Don't think it could happen to you?  Think back to February 2nd of this year.  24 inches in 24 hours.  Chicago's Lake Shore Drive shut down and everyone was stranded.  Like the saying goes:  It's better to have it and not need it, than need it and not have it.

Also, now is a good time for a little vehicle maintenance.  A lot of us don't even think about our car's maintenance unless we're due for an oil change.  You should have your coolant system checked and possibly flushed if needed.  Then, there are the tires.  If you are low on tread (or air pressure) then you must address the problem.  I know tires aren't cheap, but a new set of rubber can keep you from leaving the road and entering the unknown.

YOUR HOME:  Have you shut off the water to your outdoor faucets yet?  Don't forget to bring in all of your outdoor items, furniture, decorations, etc.  Your furnace has probably been running for a little while now.  When is the last time you had that (expensive and incredibly important) appliance serviced?

Air ducts.  I just had a service come out to my home and clean all of the air ducts.  The price was reasonable at $300 for a 3 bedroom ranch.  The technician was there for about 6 hours and I was amazed at how much dirt, dust and pet hair he got out.  If you didn't know, all of that can pose a fire hazard and diminish your indoor air quality.  Believe me, I am breathing easier now that it's been done.

So, take a look around your house and do a 2 minute vehicle check to make sure that you and your family are safe for the winter season.

HAPPY HOLIDAYS!!!

Referrals are like high fives

Referrals!  As a small business owner, I have come to realize the importance of referrals.  Advertising is expensive and usually amounts to a shot in the dark.  But, when I help somebody out and they are so happy with my service that they tell someone they know about me, I know I've done my job.  I get to meet a lot of neighbors and family members of clients and they are glad to meet an insurance professional who will sit down with them and take the time to listen.

So, why do I get so many referrals?  Simple.  Undeniably outstanding customer service.  It is the only way that I know how to treat people.  If you have a question, I have an answer.  Usually within 24 hours.  Not two weeks later or when I get around to it, but now.  If you have a problem, I have a solution.  If you call my office, I am the one answering the phone.  That is important to a lot of people.  My clients like to know that if they need to get a hold of me they can.  Whether it's about a claim, a billing question, to talk about the weather or to get my opinion of the Brewers season, I am always just a phone call away.  I work hard to make sure that I maintain a level of service that I would expect to get myself.

Now, I've "upped the ante".  I give my clients a referral reward!  If you are a client of Burdick Insurance Agency in Watertown and you send someone to me to get a quote on home, auto, life, business or health insurance, I will give you a $10 certificate.  It's usually a $10 gas card.  Or, if you are local to Watertown then it may be a Chamber of Commerce certificate.  I do this as a way to say thank you to the people who help make my business successful.  The person you send to me is not required to actually buy a policy from me.  I just want the opportunity to talk to them about their insurance needs, just like I did with you.

The easiest way to send a referral is to go to my website and click on the lower left corner of the homepage where it says "Refer a Friend".  Otherwise, just tell your friends, family and co-workers to mention your name when they call or stop in.  I will take care of the rest.