Insurance News and Notes

An Independent Approach To Car Insurance

(NAPS)—Many consumers are finding they can drive down the cost of car insurance—and the time it takes to select the right policy— by contacting an independent insurance agent or broker.

Because they represent many different insurance companies, independent agents have the flexibility to review rates and coverage from competing carriers and get you the best deal. Plus, they can offer affordable protection for your home, business and other assets. So rather than spending hours gathering quotes from various companies, you can get it done with one simple call or visit to your independent agent or broker.

If you’re thinking of contacting an independent agent, here are a few things to consider:

What’s your lifestyle? Many factors determine auto insurance rates, not just vehicle year, make and model. Companies also look at information about you. If you’ve recently moved, gotten married, had a birthday or experienced a similar life milestone, mention this to your independent agent or broker. You may be eligible to save money on your car insurance.

Sweet 16 doesn’t have to be sour. Having a new teenage driver usually means the auto insurance bill will go up, but there are ways to save. An independent agent or broker can find them for you.

How old is your car? You don’t always need the same level of physical damage coverage on older cars as on newer ones. If you drive an older car, your independent agent or broker can advise you what level of coverage makes the most sense. If you want to keep your physical dam-age coverage, consider raising your deductible—that could save you money each year, too.

Save money on the fun stuff. If you have a motorcycle, boat, RV or other “toy,” you might save money by having it covered by the same company that insures your car. Talk to your independent agent or broker about it.

You may also want to consider separating your homeowner’s policy from your car insurance policy. Bundling your homeowner’s policy with your car insurance doesn’t always save you money. It may, but have your independent agent look at separating the policies— the discount you may have gotten for keeping them together may be outweighed by the lower price another company might have for your car insurance.

To learn more call Dalton Insurance Agency at 401.722.4772

Fact vs. Fiction: Uncovering Auto Insurance Myths (March 2008)

Like a teenager eager to try a new video game, playing before reading the rules, many drivers buy insurance without really understanding what they’re buying.

In the rush to feel “covered,” they can skip the details. That can lead to frustration.

Following are five insurance myths heard by some of the more than 13,000 claims people at Progressive, one of the country’s largest auto insurance companies:

Myth: I bought “full coverage” so everything’s paid for.

Reality: There is no such thing as “full coverage.” In most states, only liability insurance is mandatory. There are a lot of other coverage options out there, so select what you need and can afford based on your personal situation.

Myth: I need three estimates before my wrecked vehicle can be repaired.

Reality: Not necessarily. Very few insurers actually require this, although some might. If you decide to use a shop that’s in an insurance company’s “network” of pre-approved shops you may just have to get an estimate from that shop.

Myth: My insurance premium always increases if I’m involved in an accident.

Reality: It depends. Your rate can increase, decrease or stay the same. The information about your accident is combined with other information about you, your car and your driving history to determine your rate.

Myth: If I lend my car to someone and he/she crashes it, I’m covered.

Reality: Not so fast. If you or your friend don’t have optional physical damage coverages, damage to your vehicle generally won’t be covered.

Myth: If I buy a new car, my auto insurance company automatically knows; and my new car is covered.

Reality: No. Most insurance companies require that you notify them or your agent within a specified number of days. Generally, you have 30 days to add the new vehicle to your policy.

“Insurance can be complicated,” says Chuck Crist of Progressive. “It’s not something people deal with every day. So the more informed you are, the better choices you’ll make.”

To learn more, contact Dalton Insurance Agency at 401.722.4772.

Seven Shopping Strategies For New Car Buyers

New car shopping can be a lot of fun, especially if you’re a car enthusiast. But others can find the experience stressful and tedious. Either way, there’s a lot to think about. According to a survey of car shoppers, overall purchase price is the most important factor when shopping for a new car (46 percent), followed by make and model (31 percent).

Safety and performance come in a distant third, tied at seven percent. But whether you’re turned on or turned off by the dizzying array of car choices, trim options, “expert” reviews, incentives and other deals, it definitely pays to approach car buying strategically.

So if you’re in the market for a new vehicle and you find yourself having trouble keeping a clear head, just keep these strategies, courtesy of Dalton Insurance Agency, in mind:

1. Decide how much money you can spend and what type of vehicle best suits your needs. Just looking for the basic transport capability of a small or medium sedan? Or do you need the hauling capacity of a van or SUV? Something practical? Something sporty? Something in between?

2. Research crash tests and accident data available from the Insurance Institute for Highway Safety.

3. Shop around for financing. If you can, apply for and get approval for a loan from a bank, credit union or other financier before you even visit the dealership. Being a “cash buyer” gives you an advantage when you do finally meet with the dealership’s financing person.

4. Test drive the car. Try to drive in conditions that will be similar to those under which you’ll drive every day.

5. Check pricing for your desired make and model at two or three dealerships and use that information to help you negotiate the best deal.

6. Get a firm quote, in writing. This should include not only the cost of the car, but any fees and the sales tax.

7. Inspect your new car carefully before driving off the lot. Make sure all the options you’ve ordered are included and that the body and paint are free of scratches or dents.

Finally, it’s important to consider the cost of auto insurance, although it seems that few people realize that what they pay for insurance can add significantly to the vehicle’s total cost.

Wise car buyers know to shop around for insurance and find out how costs compare. They also know to visit an independent insurance agency – like Dalton Insurance Agency. We can check with several companies to find the best combination of coverage and price.

Shedding Light On Car Insurance Savings

It can be easier than you think to put the brakes on high auto insurance rates – as an independent agency, Dalton Insurance Agency can help! We can review your policy and possibly help you find a variety of illuminating ways to save money. Here are some things you may want to consider:

• Ask us to check several companies’ rates. This is the single most important thing you can do to get the best possible rate—and we can do it for you quickly and easily. The difference between the highest and lowest rate available to you from different companies could vary by hundreds of dollars.

• Reduce or drop physical damage coverage on an older car. Depending on your car’s age and where you live, comprehensive and collision coverage may not be worth keeping. We can give you advice on whether it makes sense to reduce or drop this coverage altogether.

• Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15 to 30 percent. In addition, because the average driver files a collision claim only once every ten years, odds are that over the lifetime of your car, a higher deductible will save you money. We can show you how raising your deductible will lower your premium.

• Look for discounts. Many insurance companies reduce premiums for certain driver traits or car features. For example: being a homeowner for more than three years, nonsmoker, nondrinker, students with good grades, senior citizens who have taken an approved defensive driving course, people who only drive for pleasure, cars kept in garages, antilock brakes, antitheft devices, air bags, etc. Ask us to check.

• Don’t assume having your car and home insured by the same company is the best option. Because auto insurance rates vary so much from company to company, it may make sense for you to have your car and home insured by separate companies. Let’s talk about it.

To learn more about all an independent agency can offer you, call Dalton Insurance Agency or visit progressiveagent.com. 401.722.4772

Four Questions To Get The Right Auto Insurance

Using the right tool for a job is key to success in any profession. Experts say the same principle applies when selecting an auto insurance policy. Having the right type of policy can help ensure that you, your employees and your business are all protected in the unfortunate event that one of your vehicles is involved in an accident.

If you’re a business owner and you or your employees use a vehicle for business-related deliveries or to carry certain materials to and from a job site, you may need a commercial auto insurance policy that’s tailored to more closely suit the needs—and risks—of a business vehicle operator.

Here are some questions that can help you determine if you might need a commercial auto policy instead of a personal auto policy, courtesy of Dalton Insurance Agency:

• Do you need more liability coverage than your personal auto policy provides? Generally, a commercial auto policy provides higher limits of liability, but less or no coverage in areas that are typically not associated with commercial auto risks.

• Do you need special coverage for situations associated with conducting business? Commercial auto policies also usually offer certain coverages—such as hired and non-owned auto coverage and coverage for towing a trailer for business use—that are not available with personal auto policies.

• Do you need to list any employees as drivers? You can do this with a commercial auto insurance policy.

• Do you use your vehicle for business purposes? If you use your vehicle for things like pizza or newspaper delivery, catering, door-to-door consulting service, landscaping or snowplowing service, logging business, day care/church retreat van service and/or farm-to-market delivery, you might need a commercial auto policy.

Dalton Insurance Agency is an independent insurance agency – trained, licensed insurance professionals who offer personal service and advice. We can help match you with the type of policy that best suits your needs and those of your company.

To learn more about all an independent agency offers, visit DaltonInsuranceOnline.com or give us a call. 401.722.4772