What Is Minimum Coverage And Do I Need More?

Minimum auto insurance coverage, in most cases, is not enough to ensure that you are completely protected from the financial and legal responsibilities that may result if you were ever to be involved in a car accident. Here are some facts about minimum car insurance coverage and whether it is enough for you.

What Does Minimum Coverage Include?

Minimum coverage is just that-the minimum. The amount of coverage you need to be legally insured as a driver. It covers you for a very specific amount of liability for any damage you may cause to others’ property, or for any medical expenses and lost wages that may incur as a result of an accident in which you are at fault. It does not provide you with any coverage for your own property or medical expenses for you and your passengers. In many cases the minimum amount of liability insurance may also not be enough if you are involved in a serious accident, and you will be personally responsible for the amount it costs beyond your coverage.

What Should My Minimum Coverage Really Be?

If you want to keep yourself protected as a driver, but still do not want to pay the high premiums, what types of coverage should you have? In general, it is smart to be sure you have both collision coverage, which will pay for repairs to your vehicle, and comprehensive coverage, which will protect you from natural disasters, theft, or vandalism in addition to your minimum liability coverage. This will protect you from out of pocket expenses for repairs to your own vehicle and any medical expenses you may incur. To keep your insurance expenses under control, choose the highest deductible you can afford.

The purpose of any type of insurance is to protect you from the expenses of unforeseen and unavoidable life events. Choosing coverage that provides the right protection is important, and finding a balance between protection and cost is the best way to do this.

Top Factors Affecting Auto Insurance Rates

Have you ever had a conversation with a friend or family member and wondered why their auto rates are so different from yours? The factors that go into determining the premium for an auto insurance policy are many, and the rates for two drivers can be very different. If you are wondering how the insurance company arrived at your rate, here are some of the factors that have an impact on your premiums.

Your Age And Experience

Your age and the length of time you have been driving are two of the biggest factors in determining insurance rates. Young drivers who are less experienced are statistically more likely to have accidents, and their accidents are more likely to be serious. Thus insurance companies rate for age and experience based on the risk they are taking by insuring you. You might hear that word a lot if you look into how insurance rates are determined: risk. The higher the risk a driver represents to an insurance company, the more they will be charged.

The Type Of Vehicle

The type of car you drive has a big impact on your rates as well. Some cars are more expensive to repair, more likely to be stolen, or considered more dangerous to drive due to high speeds (sports cars, for example). All of these things can lead to an increase in the premiums to insure that car. Older, less valuable cars can be cheaper to insure than newer, more expensive cars, because it will cost the insurance company more to repair or replace a newer car. And in some cases newer cars are more expensive to insure than older cars depending on the estimated availability of parts if the car was involved in an accident.

Where You Live

The zip code where you park your car at night is another determining factor in your premiums. If there is a lot of theft in your neighborhood, this might cause an increase in insurance rates, as the insurance company is taking on a higher risk of having to pay out on a theft claim.

How Much And How Far You Drive

If you have a long daily commute, you spend more time in your car than someone who works from home, which means you are more likely to be in an accident. The more you drive your car, the higher your premiums are likely to be. Again, you are at a higher risk of having a claim due to more frequent use of your car, resulting in a higher premium.

These are just a few of the many factors that go into determining what an individual pays for their auto insurance. Insurance companies rate each driver and vehicle based on the level of risk they represent-the likelihood that they will have a claim. The lower your risk level, the better your premiums will become.

Why You Can’t Afford Not To Have Life Insurance

Insurance agents hear the same story over and over again: I know I need life insurance; I just can’t afford the premiums. The trouble is that those who feel they can’t afford to have life insurance are likely the people who need it the most. Here are a few of the reasons why the argument that you can’t afford life insurance coverage likely means you really need it.

You Have No Savings

If you live paycheck to paycheck and have no savings or other backup to cover yourself in case something goes wrong, then you also have no way to provide your family with what they need should you pass away. The less you have in the way of assets and savings, the more a life insurance policy will be needed by your loved ones in the event of a tragedy. How will they pay the mortgage and utilities, buy food, or handle all the other costs of everyday life? Without a life insurance policy, you will be leaving your family in a seriously difficult situation, dependent on charity or family members for help.

There’s No Extra Room In The Budget

When your budget is tight, which it is for many people today, you probably need every dollar that is coming in right now to cover the bills and make ends meet. What happens if some or all of that income is taken away? The family members left behind certainly won’t have a chance of finding income to replace what is gone quickly enough to avoid losing their home and more. While it can be difficult to fit the premium for a life insurance policy into a tight monthly budget, the cost of not fitting that policy in can be a lot higher if something unexpected happens.

If you really think you can’t afford to have life insurance, then the truth is you need to find a way. Talk to us about ways to take out a policy affordably, and look at your budget to see if there is a way you can make room. The more you think you can’t pay for life insurance, the more you need that coverage to protect your family from losing everything if something happens to you. Knowing your loved ones will be okay if you are gone is well worth stretching the budget just a little more.

Most of the time life insurance is a lot cheaper than you think it is. We have term policies for as little as $20 a month with less than 10 medical questions. Even if you can only afford a small policy some coverage is better than no coverage at all.

When Should I Buy Life Insurance?

Life insurance is one of the most important purchases you can make to keep your loved ones protected, but is life insurance only for those who are married with children? Whether you fall into this category or not, there are a lot of factors that make purchasing life insurance a wise choice. Here are some things to consider when deciding whether it is time to purchase life insurance, and information on what type of policy you will need to keep those you love safe.

When Do I Need Life Insurance?

There are a number of factors that affect whether life insurance is or is not is a good idea. In general, if you have any responsibilities that would still need to be fulfilled should you pass away suddenly, getting life insurance to protect those who would be left behind is a good idea. If you have any of the following responsibilities you may want to consider life insurance:

• You are married or have a common law spouse
• You have a life partner
• You have children
• You have outstanding debts
• Your income is essential to the maintenance of your family’s lifestyle
• You own a home on which there is still an outstanding mortgage
• You are a single parent
• You want to make sure your funeral expenses are covered

Life insurance is meant to protect your loved ones should anything happen to you, and any number of financial responsibilities could become an enormous burden on them should you pass away.

What Type Of Life Insurance Is Best For Me?

There are a number of different types of life insurance policies available on the market, and finding the one that is best for you may seem like a difficult task. Essentially there are two types of life insurance: term and permanent. These types of policies offer you different benefits depending on your personal circumstances. In most cases your first life insurance policy should be purchased when you are young and in good health. A term policy is also a good idea for a first life insurance policy as it will give you the most coverage for the lowest premiums. Permanent insurance can offer you a return on your investment, but for most people other types of investments, at this point in their lives, are a better idea.

In general, no matter what your situation, life insurance is a smart purchase. Contacting us to get professional advice on which type of life insurance is right for you will give the information you need to make that choice.

The Most Important Policy Most People Don’t Have

You know you need insurance to help protect you from the unexpected. You carry auto insurance because you acknowledge the possibility of an accident, theft, or vandalism. You carry homeowner’s insurance because you know a fire or burglary could happen to anyone. You probably have life insurance because you know that if the worst should happen, your family would need to be provided for and you realize that it could happen at any time. And yet, many people don’t carry long-term disability insurance. You know that you are at as much risk as anyone of an accident or illness sidelining you from working, so why not carry coverage to protect you from this possibility?

Another Policy?

With all of the insurance we are required by law to carry or have been told we can’t live without, it can seem like it’s just yet another policy you have to pay for and yet another premium coming out of your bank account, all based on “what if?” Long-term disability insurance is often the policy that falls through the cracks or is simply dropped because people don’t want to pay another premium.

But before you discount disability insurance, consider the reality of what would happen if you were disabled for a long period of time. Your workplace benefits probably give you a small amount of coverage, but when they run out and you still can’t work, what then? A long-term disability policy gives you extended coverage for the difficult situation of an illness or injury that you can’t simply get over in a matter of weeks. Without it, you could lose your home, your car, and your entire lifestyle, all while trying to take care of your health.

The Cost Of Long-Term Disability

If you don’t have an LTD policy because you feel the premiums are too high or not worth it, take a moment to think about what it will cost you if you do not have the policy and do become disabled. Without your salary, even with whatever benefits you have from work or other sources, your life will change completely. You won’t be able to afford the things you are used to having. Not only will you be facing the difficulty of trying to recover and take care of yourself, you will have to struggle to pay the bill and face the stress of losing things that are dear to you.

Long-term disability insurance is the one policy too many of us do not have that we absolutely need. Don’t wait until it’s too late; talk to your insurance agent today.

Is it time for your car insurance check-up?

You take care of your car by making sure it is regularly maintained with oil changes, tune-ups, tire rotation, and recommended annual maintenance. But have you missed one of the most important annual maintenance procedures necessary to protect your vehicle? If you haven’t had an annual review of your auto insurance policy, you’ve overlooked a significant component of that annual maintenance.

 

An annual review of your policy with an insurance professional can help ensure that you are neither under-insured nor over-insured. You will be able to review policy options that you may not be aware of and evaluate their costs and benefits. In addition, you will have an opportunity to “tweak” your policy if you want to add inexpensive options such as coverage for towing and rental car costs, to avoid paying these expenses out of pocket. The review also allows you to be sure you thoroughly understand the coverage you have and get all your questions answered as well as giving you the opportunity to make sure you are getting all of the discounts that you are entitled to.

 

Please give us a call at 401-433-111 to schedule a free, no-obligation policy review at your earliest convenience. Chances are, we will be able to save you some money and/or ensure you have the coverage you need without paying for options you don’t want.

What Is Minimum Coverage And Do I Need More?

Minimum auto insurance coverage, in most cases, is not enough to ensure that you are completely protected from the financial and legal responsibilities that may result if you were ever to be involved in a traffic accident. Here are some facts about minimum car insurance coverage and whether it is enough for you.

What Does Minimum Coverage Include?

Minimum coverage is just that – the minimum. The amount of coverage you need to be legally insured as a driver varies depending on where you live. But in most cases it covers you for a very specific amount of liability for any damage you may cause to others’ property, or for any medical expenses they incur as a result of an accident in which you are at fault. It does not provide you with any coverage for your own property or medical expenses. In many cases the minimum amount of liability insurance may also not be enough if you are involved in a serious accident, and you will be personally responsible for the amount it costs beyond your coverage.

What Should My Minimum Coverage Really Be?

If you want to keep yourself protected as a driver, but still do not want to pay the high premiums, what types of coverage should you have? In general, it is smart to be sure you have both collision coverage, which will pay for repairs to your vehicle, and comprehensive coverage, which will protect you from natural disasters, theft, or vandalism in addition to your minimum liability coverage. This will protect you from out of pocket expenses for repairs to your own vehicle and any medical expenses you may incur. To keep your insurance expenses under control, choose the highest deductible you can afford.

The purpose of insurance of any kind is to protect you from the expenses of unforeseen and unavoidable life events. Choosing coverage that does this is important, and finding a balance between protection and cost is the best way to do this.

Do You Need An Insurance Agent?

It seems that many insurance companies today no longer sell their policies through agents anymore, they sell insurance directly thru the company either online or over the phone.  It might seem that having an agent to help you purchase auto insurance is a thing of the past, but don’t discount the insurance agent just yet.  There are some very good reasons to consider using an insurance agent to buy care, home, renter’s, condo and motorcycle insurance.

 

Agents Know Their Products

 

Many of the customer service representatives who handle the phones at large insurance company call centers know the basics of the insurance policies, enough to help you select and purchase one.  But insurance agents, especially those who have been around for a while, understand a lot more about coverage and policy limits.  They can share with you a wealth of knowledge that will ensure you not only get the right policy, but the best rate and a good understanding of what you are paying for.  An agent will help you select the best possible coverage limits to fit your needs and what you need to protect.

 

Agents Are On Your Side

 

If the day comes when you need to file a claim, it’s always good to have someone who is truly on your side.  Especially in a complicated claim, your agent can walk you through the process and be there to answer all your questions.  An agent is also there to step in when there are disagreements with the adjuster or other involved parties at the insurance company.  Because your agent knows all about the policy and how the claims process works – and knows you, they will be able to go over any claims issues with you and your adjuster.

 

At this day and age I am sure almost everyone has had a bad experience with an automated phone system.  When you are calling to report an insurance claim one of the last things you want to deal with is getting lost in an automated phone system.  When you have an agent you can call your agent directly to report the claim and the agent can handle things for you from there.  You will talk to someone who you’re familiar with to report the claim and you won’t have to press a bunch of numbers on your phone before you can speak to an actual person.  

 

Agents Keep Your Policy Accurate

 

A good agent will take the time to review your policy with you and make sure that everything is accurate and you are still carrying the coverage you need.  An agent knows when changes in your life might affect your insurance coverage needs, such as a marriage, change in job or a child getting their driver’s license.  Large insurance company call centers can’t always provide that level of personal attention and if you have to call back there is a good chance you will end up talking with someone else and have to go over everything all over again.

 

Are Agents More Expensive?

 

There is a general view that an insurance policy purchased through an agent will cost more than one purchased directly.  That isn’t necessarily true.  The best rate for you may well be one from an agency, so don’t discount quotes from agents when you are shopping for car insurance.  You might get the best rate along with the service only an agent can provide.  And for some people paying a little more to receive personal service is more than worth having to pay a little extra, especially when there is a claim that needs to be filed or when you have important changes to make to your coverage. 

 

 

You might not feel that you need an agent for your insurance, but there are certainly some very good reasons to take the time to meet with a one and see if it turns out to be right for you. 

 

Here at the Daigneau Insurance Agency we are always willing to make time for our customers and potential customers whether it’s to make a payment over the phone, add a car to their policy, file a claim, change an address or they just have some questions (even the “what if”) questions.