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, Summit Insurance 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.

 Managing Your Insurance Costs:

A dinner-time conversation

Our agency wants you to get the most from your insurance. That means we want to help you keep your insurance costs low while keeping you well covered for the unexpected.

So here is a way to explore how your household can find discounts and other ways to minimize your cost of insurance.

Just pick one evening and gather around the table. Then, perhaps over dinner, read through the following list and discuss the things that influence your insurance rates.

What influences the cost of auto insurance (varies by state)?

·         Age - can't do much about that! But under 20 and over 80 should expect to pay

       the highest rates.

·         At-fault accidents - if you are causing accidents, your costs may go up.

·         Coverage lapses - timely payment of premium helps keep your coverage in  

       place and keep your costs low.

·         Prior insurance - people buying insurance for the very first time often pay the

       highest rates.

·         Credit scores - better credit means better rates (in some states).

·         Driving experience - the longer you've been a safe driver, the lower your

       insurance rates will likely be.

·         Major violations/suspensions - trouble with traffic laws results in higher costs.

·         DUI - if you are convicted of driving under the influence, your insurance rates

       could rise.

·         Homeownership - owning a home or condo can mean lower auto insurance

       costs.

·         Minor violations/speeding tickets - violations indicate higher risk and may

       increase your costs.

·         Coverage limits - higher limits cost more.

·         Vehicle type - some vehicles are more expensive to insure, because they are

       costly to repair, risky drivers often drive them, or they lack safety devices.

·         Years since most recent occurrence - the longer you've driven since your last

       accident, the less likely your insurance rates will increase.

·         Friends borrowing your car - good for your friends, not so good for you if they

       have an accident. You will pay and your rates could suffer.

·         Deductible amount - higher deductibles lower your premium costs.

Available discounts for auto insurance (varies by state).

             ·        Accident-free: earn a reduction in certain instances when an accident

                  free driving record is maintained.

·         Home and Car: qualify for a discount when you insure both with one carrier.

·         Long-term Customer: available if you are insured with a carrier for a certain

       number of years (varies by state and carrier).

·         Vehicle Restraints: earn a reduction in your medical coverage premium if your

       vehicle is equipped with air bags.

·         Safe Driver: applies in certain instances when violation-free driving record is

       maintained.

What influences the cost of home insurance (varies by state)?

·         Type of home - masonry homes often receive the best insurance rates.

·         Age of home - owners of new homes may pay less for insurance because it is

      more likely that the home meets codes and was built using newer materials.

·         Location of house - homes farther from a fire station can have higher rates.

·         Claims history - lots of claims can drive up your rates.

·         Deductible amount - higher deductibles lower your premium costs.

Available discounts for home insurance (varies by state & carrier).

·         Age of construction: discount based on the age of your home.

·         Claims-free Long Term: The longer you are insured and claims-free, the larger

       the discount.

·         Home and Car: qualify for a discount when you insure both with the same

       carrier.

·         Protective Device (Alarm): you qualify if your home has items such as smoke

       detectors, fire extinguishers, fire alarm, etc.

What does age have to do with it?

·         Under 20 and over 80 should expect to pay the highest rates because these

       drivers tend to have more accidents.

·         Elderly drivers have a higher crash death rate per miles driven than any other

       group except teens.

·         A February 2004 study by the AAA Foundation for Traffic Safety found that the

       probability of death or injury in car crashes increases with age, as does the

       likelihood that an older driver will be involved in a left-turn crash, be affected

       by illness, or suffer from lapses in perception that could contribute to a crash.

How does owning a home impact your auto insurance?

·         Insuring both your home and car with one carrier can save you up to 20%.

·         Your home is a valuable asset. As a result, you'll want to protect it. If you are

      ever involved in an automobile accident that results in injury to other people   

      and/or property, all of your assets, including your house, can be subject to

      liability claims. Claims that exceed your liability coverage can come out of your

      assets. When you buy a home, you should reevaluate the liability limits on your

      automobile insurance policy to make sure that you have adequate liability

      coverage to protect your home. 

Are you a safe driver?

(Would the state highway patrol agree? And why is this important?)

·         With some carriers, you can save up to 10% on your auto premium when an

       accident-free driving record is maintained.

·         Major violations and suspensions -- trouble with the law - may result in higher

       insurance costs.

·         If you are caught driving under the influence, your insurance rates could rise.

·         Minor violations and speeding tickets indicate higher risk and may increase

       your insurance costs.

When was your last auto accident?

(Was it your fault?)

·         With some carriers, you could receive up to a 10% reduction in certain

       instances when an accident-free driving record is maintained.

·         The longer you've been a safe driver, the lower your insurance rates will likely

       be.

·         At-fault accidents often increase your premium.

What type of car do you drive?

·         Some vehicles are more expensive to insure because they are more costly to repair, tend to be in more accidents, or tend to incur more vehicle and/or bodily harm to passengers. Vehicles such as sport cars and some SUVs tend to rate lower in terms of crashworthiness and therefore carry higher insurance rates.

·         Another important factor is whether or not your vehicle is on the list of those most frequently targeted for theft. Nonprofit organizations such as the National Insurance Crime Bureau (NICM) and the Highway Loss Data Institute (HLDI) track the most commonly stolen vehicles. Basically, cars on these lists will most likely be more expensive to insure. Make sure you check out the insurance costs of a particular vehicle before purchasing it.

How old is your home?

·         Owners of newer homes may pay less for insurance because it is more likely

       that the home meets code and was built using newer materials.

·         With certain insurance carriers you could save up to 30% based on the age of

       your home.

How do claims impact your insurance?

·         Filing a claim could increase your premium on certain types of insurance, especially if you're at fault. The reason for this is simple: actuarial evidence indicates that people who have had accidents in the past are more likely to have accidents again in the future.

·         You may know that it costs more to repair some cars than others, and more to insure some cars than others. You may not know that this also translates into higher claims payments from your insurance company. What does that mean to you? Higher claims typically lead to higher insurance rates. You may want to research the most and least expensive vehicle models for various types of claims.

Why does deductible amount matter?

·         A deductible is the amount of money which the insured party must pay before

      the insurance company's own coverage plan begins.

·         The amount of a deductible is almost always proportional to the amount of the

       premium (regular payments) charged by the insurer. Example: A larger

       deductible would have a lower premium.

·         It is best to try to find a balance between affordable premiums and a fair

      deductible when buying insurance.

Why does it matter how long you've been insured?

·         People buying insurance for the very first time often pay the highest rates

       because they have not established an insurance track record.

·         Coverage lapses may increase your costs.

·         Timely payment of premium helps keep your coverage in place and keep your

      costs low.

What does my credit have to do with insurance?

·         Credit information is needed to make a complete risk analysis when evaluating

       an insurance application.

·         Higher credit scores could mean better rates (in some states). Statistical

       analysis shows a direct correlation between your insurance risk score and your

       likelihood to file a claim. Insurance risk scores evaluate your stability - meaning

       you pay your bills in a timely fashion and have the same credit accounts for a

       long time.  Keep in mind that your insurance score is not the only factor that

       determines your premium. Other factors impact what you pay more

       significantly than your insurance risk score.

·         There are a few relatively painless steps that you can take to improve your

       score. To keep your insurance score high, be sure to pay all of your bills on time

       and limit the number of credit cards for which you apply and open.

Why insure both home and auto with the same insurance company?

·         By insuring both your home and car with the same insurance company, you

      could save up to 20% on your insurance premiums.