Auto Insurance Buyers Guide

Auto Insurance Buyers Guide

Table of Contents Understand Your Rights as a Consumer...1 Introduction...... 2 Why You Need Auto Insurance...... 3 When to Shop for a New Auto Insurance Policy.. 4 How to Shop for an Auto Insurance Policy.. 5 What Can Influence the Cost of Your Auto Insurance Premium... 6 The Language of Car Insurance Policies...7

Understand Your Rights as a Consumer As a consumer, many states have enacted laws to protect consumers from unscrupulous practices. There are also industry groups that have developed best practices. When working with an insurance company or an independent agency, look for affiliations or memberships in these industry groups, such as Trusted Choice. Here are some best practices you can expect: Look for agents, brokers and companies that: Inform you of your coverage options when applying for a new policy, or at any time upon your request. Show you how each choice in coverage may affect what you pay and what the benefit would be in the event of an accident. You can shop for a new policy at any time not just when your policy is up for renewal. And, if you find a policy with a better price, you can cancel a policy at any time and obtain a refund for the unused portion of your premium. You can change your coverages and policy limits at any time, even if it is not near your renewal date. Review the policy before you sign it. Make sure that all of the coverage you agreed to is included in your insurance policy. Ask any questions that you may have. Remember to cancel your old policy when the new one goes into effect. Make sure to always have proof of insurance policy in your car or in your wallet at all times. If you are stopped by police they will ask for proof of insurance. Have it in the glove compartment of your car so you will never forget where it is. 1

Introduction If you own a car, most states require that you carry auto insurance to protect your car, yourself, your passengers and other drivers in the event of an accident. There are many decisions and options to consider when buying auto insurance including: The types of coverage you need What optional coverage should you consider How the cost is determined The payment options Selecting the insurance company How to save money on your policy Whether you are buying a new car or renewing an existing policy the following will help guide you through the conversation you should have with your insurance agent when shopping for your car insurance. 2

Why You Need Auto Insurance If you do not have auto insurance and you were responsible for the accident, you become personally liable for all of the costs associated with: Repairing the vehicles involved. Repairing or restoring any property damaged from the accident. Paying any medical bills required for you and victims. These costs can be substantial. Most states require every vehicle owner to carry a comprehensive automobile insurance policy to protect yourself, your passengers and other drivers in the event of an accident. 3

When to Shop for a New Auto Insurance Policy There are several events that can trigger a need to consider shopping for a new car insurance policy or new insurance policy carrier including: Purchasing a new car Moving to a new city or state Notice of a rate increase from your current auto insurance company Notice of a change of coverage from your auto insurance carrier Change in the number of eligible drivers in your household Major change in your driving habits or use of the vehicles When your insurance company decides not to renew your policy When the vehicle being insured is getting older and replacement value of the vehicle is well below the value of the coverage you are purchasing 4

How to Shop for an Auto Insurance Policy The internet gives consumers the option to search for auto insurance companies online. You can compare brands, pricing, types of coverage, right? Well, it is a little more complicated than that. Not all insurance companies are created equal. Some offer better customer service than others. Some are more flexible with payment options. Some are more competitive with their rates. Some allow bundling of car insurance with your home owner s policy and other policies to lower your premiums. Each insurance company has their own risk profile for underwriting. A great way to shop for a car insurance policy is to work with an independent insurance agency who: Knows the local market. Can match your driving history with the right carrier. Can include all the rate varying aspects into the quote. Knows how to match your personal risk profile (based on your driving record) with the risk profile of insurance companies to select the most competitive company for you. 5

What Can Influence the Cost of Your Auto Insurance Premium? Because insurance companies use statistics to determine the prices each person pays for coverage, what you pay can vary greatly. In addition to these statistics, the amount of risk each insurance company is willing to take also varies widely, adding yet another variable in the competitive landscape of car insurance. Here are several factors that typically affect your car insurance rate: Age of Driver: The younger you are, the higher your car insurance premium. Driving Record: A good driving record will lower your car insurance rate. A poor driving record can increase your rate. Miles Driven Annually: How many miles you drive your car each year and if you use your car for personal, business, or both can be a factor. Number of Drivers: How many drivers there are in the household to be included in the policy. Number of Cars: The number of cars in the household to be included in the policy. Vehicle Attributes: The type of car, and the make and model of your car or cars to be included in the policy. Deductible: All policies come with a deductible which will affect your premium rate. Ownership: If the car is owned by a leasing company, they may require some additional coverage. 6

The Language of Car Insurance Policies Insurance policies have a language all their own using terms you may not be familiar with. Typically your auto insurance policy is divided up into different coverages based on the type of claim that will be paid to you or other individuals. Here is a description of the common coverages you can expect to see on your auto insurance policy: Bodily Injury Liability Coverage: Pays for claims and lawsuits by people who are injured as a result of an accident you cause. Property Damage Liability Coverage: Pays for claims and lawsuits by people whose property is damaged as a result of an accident you cause. Uninsured/Underinsured Motorist Coverage: Pays for property or bodily injury if you are in an accident caused by an uninsured or underinsured motorist. Comprehensive Coverage: Pays for damage to your vehicle that is not a result of a collision; such as theft of your car, vandalism, flooding, fire or a broken windshield. Collision Coverage: Pays for damage to your vehicle as the result of a collision with another car or object. First Party Benefits: Provides coverage for medical, wage loss, funeral benefits and accidental death to you and your resident relatives. Tort Options - Limited Tort: Limits your right and the right of members of your household to seek financial compensation for injuries caused by other drivers. Recovery for medical and out of pocket expenses may be sought, but not for pain and suffering or other nonmonetary damages unless the injuries suffered fall within the definition of a serious injury. Tort Option - Full Tort: You and the members of your household maintain an unrestricted right to see financial compensation for injuries caused by other drivers.

Our insurance professionals will work with you to provide a comprehensive auto policy that meets your insurance needs at a competitive price. Call us today to request a quote for an auto insurance policy from the Shevland Group. www.shevland.com 610-647-3115 info@shevland.com 2014 Shevland Group