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Auto
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How much Auto Insurance do I need?
What affects the price of Auto Insurance?
Auto Insurance Discounts
Coverage and Deductible Options
Cars Stolen Most Often
Driving with a Cell Phone Dials Disaster
Be Aware of Animals in the Road
How much Auto Insurance do I need?
Consider the following three questions with the help of your agent:
1) How high should my liability coverage limits be?
No one can predict exactly how much you would have to pay if you were to cause an accident. Ask yourself how you would pay for any damages exceeding your coverage limits. The higher your liability coverage limits are, the more likely your policy will be able to pay all of the damages.
2) How high or low should my collision and comprehensive deductibles be?
Higher deductibles lower your premium but increase the amount you must pay out of your own pocket if a loss occurs. Ask yourself how much you would be willing and able to pay on short notice in order to save on your premium.
3) Should I carry collision and comprehensive coverage?
You may be required to carry collision or comprehensive coverage if your vehicle is leased or financed. Once you have paid off your car, and its value decreases, you might consider dropping these coverages to save money on premiums.
Consider, though, whether the savings would be enough to offset the risk of having to pay the entire cost of repairing or replacing the vehicle.
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What affects the price of Auto Insurance?
The price of auto insurance varies by company and by:
What you buy
• How many coverages you buy
• The deductibles
What kind of car you drive
If you are buying or selling a car, you will need to re-evaluate your auto insurance needs. Generally, the more expensive the car, the more you pay.
Where you drive
Generally, due to higher rates of vandalism, theft and accidents, urban drivers pay more for insurance than those in small towns or rural areas.
How much you drive
People who use their car for business and long-distance commuting normally pay more than those who drive less.
Your age, sex and marital status
Accident rates are higher for all drivers under age 25, especially young males and single males. Insurance prices in most states reflect these differences.
Your driving record
Drivers who cause accidents generally must pay more than those who are accident-free for several years.
Your credit history
Studies have shown that credit history is a powerful predictor of future auto insurance losses. Many insurance companies consider certain credit characteristics in addition to many other factors when determining an individual's rate.
What can I do to save money on my auto insurance?
If you're shopping for a car, consider how your choice will affect premiums.
Some insurers increase premiums for cars more susceptible to damage or occupant injury, and lower rates for those that fare better than the norm.
Ask about discounts for good students, insuring more than one vehicle, accident-free driving, and others.
Consider joining a car or van pool, or finding other transportation to work. If you reduce your driving mileage enough, you may lower your premiums.
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Auto Insurance Discounts
Are you eligible for a discount?
Most auto policies offer a variety of discounts that include:
• Multiple Vehicle
• Multiple Line
• New Vehicle Safety
• Accident Free
• Anti-Theft Device
• Defensive Driving
• Good Driving
• Good Student
• Driver Training
Availability of discounts varies by state or province.
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Coverage and Deductible Options
What is a deductible?
A deductible is the part of a covered loss that you have agreed to pay with your own money.
If you file a claim against your insurance, you will pay only the amount of the deductible. State Farm® will pay the rest - up to your coverage limit.
When choosing a deductible, you must decide how much you would be willing and able to pay out-of-pocket, if you ever had to file a claim.
Typically, higher deductibles mean lower premiums.
Who does my auto insurance policy cover?
An Auto Insurance policy typically covers:
• You and your spouse
• Relatives who live in your home
• Other licensed drivers who have permission to drive your insured vehicle.
Types of auto insurance coverage
An Auto Insurance policy generally consists of several kinds of coverages.
Because all 50 states have different laws when it comes to Auto Insurance, the following coverage descriptions are simply general information. They are not statements of contract.
To learn more about auto insurance in your state, contact Lynette.
Most Common Coverages:
Liability
Auto liability coverage pays for the damage if you are legally responsible for accidentally injuring someone, or for damaging another vehicle or other property in an auto accident.
Auto liability coverage falls into two categories:
• Bodily Injury Liability - which covers medical expenses, pain and suffering, lost wages, and other special damages.
• Property Damage Liability - which covers damaged property, and may include loss of use.
Liability coverage also pays legal defense and court costs.
State laws usually dictate the minimum amounts of insurance required, but higher amounts are available.
Personal Injury Protection (PIP)
This coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident.
It may also pay for:
• Rehabilitation
• Lost earnings
• Replacement of services (For example, child care if a parent is disabled.)
• Funeral expenses
Medical Payments
This coverage is available in most states. It pays medical and funeral expenses for covered persons when those expenses are related to an auto accident.
Collision
This coverage helps pay for damage to a covered vehicle caused by:
• Collision with another vehicle
• Collision with an object
• A vehicle rollover
A deductible is required.
Comprehensive
This coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover.
Examples of this type of damage or loss include:
• Fire
• Wind
• Hail
• Flood
• Vandalism
• Theft
• Hitting an animal
A deductible may apply.
Uninsured Motorist
This coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance
In some states this coverage may also pay for property damage.
This coverage varies by state and depends upon policy provisions.
Underinsured Motorist
This coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance.
Application of this coverage varies by state and depends upon policy provisions.
Rental Reimbursement
This coverage pays for renting a car when your auto is disabled due to an auto accident.
Daily allowances or limits vary by state or policy provisions.
Emergency Road Service
This coverage pays for having your auto towed due to a breakdown.
Towing limits vary by state or policy provisions.
This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements.
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Cars Stolen Most Often
According to the National Insurance Crime Bureau (NICB®), in 2006, 1,192,809 motor vehicles were reported stolen which is 42,417 fewer than in 2005. NICB® VINCheckSM
The NICB has compiled a list of the 10 vehicles most frequently reported stolen in the U.S. in 2006.
1. 1995 Honda Civic
2. 1991 Honda Accord
3. 1989 Toyota Camry
4. 1997 Ford F150 Series
5. 2005 Dodge Ram Pickup
6. 1994 Chevrolet Full Size C/K 1500 Pickup
7. 1994 Nissan Sentra
8. 1994 Dodge Caravan
9. 1994 Saturn SL
10. 1990 Acura Integra
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Driving with a Cell Phone Dials Disaster
A study released in February 1997 by the New England Journal of Medicine might make you put some distance between yourself and drivers busy talking on their cell phones. University of Toronto researchers discovered:
• Cell phone users were four to five times more likely to have crashes than non-users.
• Cell phone units that allow the hands to be free offer no safety advantage over hand-held units.
The main factor in most motor vehicle collisions is driver inattentiveness.
Be cell phone savvy
While convenient, using cell phones while driving can be hazardous. The American Automobile Association offers these tips:
• Make sure your phone is mounted where you can easily reach it while driving. The phone should be within comfortable reach in your usual driving position and as close as possible to your line of vision.
• Know all the operations of your cellular phone and learn to use it without looking.
• Keep your attention on the road by programming frequently called numbers into the phone's memory to minimize dialing.
• Dial sensibly. Wait for a stoplight, pull off the road to dial or ask a passenger to dial for you.
• Don't use your cellular phone in distracting traffic situations. Pull off the road to make a call.
• Be careful about where you stop to make calls.
• When calling 9-1-1 to report an emergency, be prepared to provide the closest major cross streets or off-ramps, and know your cellular phone number.
• Use your voice mail to take calls or leave yourself messages. Never take notes while driving.
• Disconnect your cellular phone when using jumper cables; the power surge could burn out your phone.
A few states actually regulate cell phone use, including California, Florida, Massachusetts, Oklahoma and Minnesota. Oklahoma and Minnesota require police to include cell phone information in accident reports. Several countries prohibit cell phone use while driving including England, Switzerland, Spain, Australia and Italy.
Calling 9-1-1
Police suggest calling 9-1-1 from your cell phone only in true emergencies:
• Unreported collisions
• Any life-threatening event
• Any crime against you or another person
• A vehicle or object blocking traffic lanes
• A suspected drunk driver
Do not use 9-1-1 for situations such as:
• A stalled vehicle off the roadway
• A broken-down vehicle that is not a hazard
• Winter road conditions
• A stolen vehicle when nothing is known about the suspected thief
• Asking for directions
• Testing your phone
When you dial 9-1-1, the call from your cellular phone is routed to the appropriate emergency response authority. Be prepared to provide:
• Exact location of vehicle in distress
• Nature of emergency
• Your name and cellular number, including area code
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Be Aware of Animals in the Road
Each year, about 1.5 million animal-vehicle collisions cause about $1 billion in damage, according to the Insurance Information Institute for Highway Safety (IIHS). About 150 people die and another 10,000 are injured annually in such crashes.
When a deer or, in some northern states and Canada, a moose or elk meets up with a moving vehicle, there's on average about $2,500 worth of property damage, though it can exceed $10,000.
While animal-vehicle collisions can happen any time of year, fall is the peak season for deer-car accidents. That's mainly because autumn is both mating season and hunting season, so deer are more active and more likely to roam beyond their normal territory.
No foolproof way has been found to keep deer, moose and elk off highways and away from vehicles. Some motorists insist deer whistles have helped them avoid collisions. But the IIHS says there's no scientific evidence to support claims they prevent deer from approaching cars or reduce crash risk.
Perhaps a more promising approach is roadside reflectors, designed to reflect light from vehicle headlamps and cause deer to "freeze" rather than cross the road. Studies and field tests suggest they do reduce crash frequency to some extent.
You can prevent a collision with a deer, moose or elk. Here's how:
• Be aware of your surroundings. Pay attention to "deer crossing" signs. Scan down the road and far off to each side. At night, use your high-beam lights if possible to illuminate the road's edges. Be especially watchful in areas near woods and water. If you see one deer, there may be several others nearby.
• Be particularly alert at dusk and dawn when these animals venture out to feed.
• If you see a deer, moose or elk on or near the roadway and think you have time to avoid hitting it, reduce your speed, tap your brakes to warn other drivers and sound your horn. Deer tend to fixate on headlights, so flashing them may cause the animal to move. If there's no vehicle close behind you, brake hard.
• If a collision seems inevitable, don't swerve to avoid the animal; your risk of injury may be greater if you do. Maintain control of the vehicle. Report the accident to the police and your insurance company.
• Always obey the speed limit and wear safety belts.
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