Fact vs. Fiction: Uncovering auto insurance myths

Wednesday, January 25th, 2012

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 us today.

Shedding Light On Car Insurance Savings

Tuesday, January 24th, 2012

It can be easier than you think to put the brakes on high auto insurance rates – as an independent agency, Burch 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, anti-lock brakes, anti-theft 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. 

Take The Time To Understand Your Policy

Wednesday, May 4th, 2011

Insurance can be a lot of things, a hassle, another expense…But it can also be an extremely important part of putting your world back together in the event of a claim. Insurance can provide peace of mind if you take the time to review your policy with your agent and understand how you coverage works.  Pay attention to what your policy covers and what it does not.  Be specific, if you have questions about specific scenarios, get your questions answered.  Take the time to understand you policy.

For a free, fast insurance quote, visit www.burchins.com.

Should You Buy The Optional Insurance When You Rent A Car?

Tuesday, April 26th, 2011

Understanding your auto insurance policy might save you a lot of money when you are standing at the rental car counter.  Do a little homework before you rent your next car.  Here are a few tips.

• Discuss your policy with your agent – a quick policy evaluation will help determine whether your coverage extends to your rental car.
• Call your credit card company – some companies may provide coverage at no charge when you use their credit card to purchase your rental.  However, restrictions may apply so be sure to ask for details.
• Have your insurance policy handy – if questions come up, having a copy of your policy and your agents contact information with you may go a long way.

As always, please talk to your agent about the details and coverages provided by your policy.

Get A Quote On That New Car!

Monday, April 25th, 2011

How much you pay for auto insurance is depends on several things.  Those things include, where you live, your age, your marital status and what you drive. You certainly can’t do anything about your age, and you probably aren’t willing to move just to lower your insurance premiums. You can, however, choose a vehicle that costs less to insure.  Before you buy that next vehicle, get an auto insurance quote from your agent.

Driving in the rain?

Friday, April 22nd, 2011

When you are driving on wet roads, it is important to remember to slow down and give other drivers a little extra room.  It is also good to note that roads are most slippery during the first 10 or 15 minutes of a heavy rain.  Stay safe out there.