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