Hidden Dangers of Cheap Auto Insurance

Everyone wants to keep their bills down! Sometimes, changing insurance companies or coverages is a good way to make that happen. But there can also be pitfalls! Here is a great article from Yahoo! about the dangers of cheap auto insurance:

Hidden Dangers of Cheap Auto Insurance


When it comes to car insurance, cheap isn't always better. Find out why...

By Chris Kyle

Are you looking to cut costs on your car insurance? Here's some advice: Proceed with caution. Cheap auto insurance could actually end up costing you more down the road.

"Nobody should shop for auto insurance by price alone," says Jeanne Salvatore, senior vice president of public affairs for the Insurance Information Institute (III), an organization dedicated to improving public understanding of the insurance industry.

"You want to get a great price that comes with great service," Salvatore says. "It's a balancing act."

To help you make an informed decision, we've outlined five potential pitfalls of cheap auto insurance. Keep reading to learn why the lowest insurance rates can end up costing you big-time in the long run...

# 1 - You're probably not getting the coverage you need

Okay, so after some digging, you found a cheap quote on a car insurance policy. But do you know what's covered in the policy - and more importantly, what's not?

In most states you need some liability insurance, which covers the damage you cause to others or to property in the event of an accident, to legally drive. So, make sure you know your state's minimum coverage requirement.
However, collision and comprehensive coverage - which covers your car in the event of an accident, theft, vandalism, fire, and weather-related disasters like floods - is not required by law in the United States, according to the National Association of Insurance Commissioners' (NAIC) website, which helps regulate insurance requirements.

Do you want protection from these types of accidents? If so, you can expect your rate to rise accordingly.

# 2 - Your low-priced deductible payment could lead to higher costs

One popular way to save on car insurance is to opt for a higher deductible, the amount you pay out-of-pocket before your insurance kicks in, according to "How Can I Save Money on Auto Insurance?" an article on the III's website.

This could help reduce your premium because you are agreeing to pay a set amount (perhaps the first $1,000) on any future claims.
The danger is that if you are unlucky enough to have several accidents, this strategy can quickly become an expensive one.

You should take a look at your finances and make a realistic assessment of what you can afford.

A $1,000 deductible may not make sense if you don't have that kind of money handy in case you need repairs. On the other hand, a higher deductible could make sense for low-risk drivers who rarely get behind the wheel.

The important thing here is to be honest about what kind of protection you need and can afford.

# 3 - Bad customer service is bad news, even if your policy is cheap

You know the old adage about how the customer is always right? We all know that's not true. However, it is reasonable to expect prompt and courteous responses to your questions and concerns.

"You want to find a company with a really good reputation for customer service," Salvatore says.

Salvatore urges consumers to ask friends and family members for recommendations, just like you would do if you wanted a doctor or dentist referral. Ask if they have filed a claim with their company and how it went.

You can also check with your local state insurance department to find out the number of consumer complaints received about a particular company in relation to the number of policies sold, according to the III website.

# 4 - Friends may not be covered on a cheap policy

Hey, you're a nice guy or gal. Sometimes you let a friend borrow your car. But is he or she covered?

"Perhaps," writes the Ohio Department of Insurance in a consumer guide on the Ohio state's website. "Some liability policies cover a licensed driver who drives with your permission, while other policies state specifically that no other person is covered when driving your car."

And in a related hypothetical situation, what if you borrow a friend's car?

Whether you live in Ohio - or elsewhere - you owe it to yourself to find out the answers to these questions now. Don't wait until after you or a friend get into an accident to find out that your cheap policy has some holes in it.

# 5 - You need to watch out for cheap insurance scams

If a cheap car insurance quote sounds too good to be true, it probably is. In fact, it may even be fake. Potential red flags can include dirt cheap rates as well as companies and agents who are difficult to reach.

In 2011, some Detroit-area drivers were scammed into buying low-cost, bogus auto insurance through a company called Ethos, according to Michigan's Department of Licensing and Regulatory Affairs website.

Fortunately, insurance companies and their agents must be licensed in the state that you live, so verification is usually only a quick phone call away to your local insurance department.

And while auto insurance scams can be uncommon, it's better to be safe than sorry.

Questions about your policy? Want to get a quote, or talk to an agent about the exact coverage that you need? Contact Tague Insurance at (760) 729-1143!

Personal Emergency Preparedness Plan

The fires in Colorado have a lot of us thinking about our own personal emergency plan. Check out the article below for tips and details!
Do you pay attention to the headlines after natural disasters or large accidents occur? More specifically, are you aware of what is typically reported in the aftermath? Typically there are reports of persons stumbling around, seeking aid and at a lost for what to do.

Often there is little an individual can do to control a situation. But it is always better to make what plans one may. That is the simple philosophy behind the personal emergency preparedness plan (PEP) aka Family Disaster Plan

PEPs give individuals and families a plan of action when a natural disaster (such as flooding, earthquake, serious windstorms, tornadoes, etc.) is eminent or should a severe accident (home fire, structural collapse, utility line or pipe breakage, etc.) occur.

Generally a PEP should have the following objectives:

• Identify safe areas during an emergency – what are safe areas of the home during storm or earthquake? – What safety rules should be followed in event of a fire or flood?

• Escaping from area that is endangering family members – identify escape routes from every room (at least two)

• Establishing means for all family members to re-unite – Determine a safe meeting place immediately outside the home, or a neighborhood location – make sure to have access to working radio to access emergency information

• Ascertaining everyone’s safety – Check everyone for possible injury – apply first aid or contact emergency personnel as appropriate. Check residence for any dangers created by the emergency event, such as leaking utility lines, structural dangers, fire, etc

• Establish means to contact other family members and loved ones – have access to working phones, post emergency nos., training children on how and when to make emergency calls – make contact list of family members and emergency contacts (work and/or school numbers and e-mails)

Families should also consider issues that support a PEP, such as maintaining proper insurance, having an adequate first aid kit available and acquiring first aid training. Being aware of an area’s emergency plans and procedures as well as information on nearest emergency facilities are also helpful.

The above suggestions are merely a guide to considerations of an actual plan. Please seek out competent sources (such as city, state, hospital and similar websites) for information on creating a detailed PEP for you and your loved ones.

If you'd like to discuss your emergency plan with your insurance agent, call Tague Insurance at (760) 729-1143!

COPYRIGHT: Insurance Publishing Plus, Inc. 2010

Steps Parents Can Take to Help Their Teens Be Safe!

The first years teenagers spend as drivers are very risky. In fact, teen drivers have the highest death rates of any age group, according to the U.S. Department of Transportation.

While getting a drivers license is an exciting rite-of-passage for teens, it can be enough to make a parent frantic. Here are some steps parents can take help their teens be safe:

Pick a safe car.

You and your teenager should choose a car that is easy to drive and would offer protection in the event of a crash. Avoid small cars and those with high performance images that might encourage speed and recklessness. Trucks and sport utility vehicles (SUVs) should also be avoided, since they are more prone to rollovers.

Understand your state's teenage driving laws.

Many states have specific restrictions on teenage driving, often referred to as Graduated Drivers License laws. You should understand your state's restrictions and the quality of those restrictions before your teenage begins driving:
http://www.ghsa.org/html/stateinfo/laws/license_laws.html
http://www.iihs.org/laws/graduatedlicenseintro.aspx

Have your teen take a certified driver's education course.

A teenager who has learned to drive through a recognized driver's education course may be viewed more favorably by insurers. In some states, teens must take a driver's education course if they want to get a license at age 16; otherwise, they have to wait until they are 18. The more driving practice they have, the more confident your teen will be behind the wheel, and the better able to react to challenging situations on the road.

Enroll your teen in additional safe driver programs.

There are many additional "safe driver" programs that can provide additional assistance for teenage drivers. Check in your community, with your child's school or with your insurance company to find such programs—if your teenager completes the program, you may be eligible for additional insurance discounts. In addition, some insurers now offer discounts for parents and teens who install tracking devices in the car. Parents can monitor and provide coaching on their children's driving with a small global positioning system (GPS) device fastened to the dashboard. The GPS is connected to a Web site that lets parents set limits on their children's driving. For example, if the car goes over a certain speed, or ventures too far from home or school, the parents will automatically receive a message.

Talk to your teen about the dangers of combining driving with alcohol, drugs, lack of sleep and distractions.

Teach your children about the dangers of drinking and driving, and other distractions. Accidents occur each year because a teen driver was driving while drinking, using a cellphone, text messaging, playing with the radio or CD controls, or talking to friends in the backseat. Also, teens should be careful not to create distractions and to exhibit safe behavior when they are passengers in their friends' cars.

Be a good role model.

New drivers learn by example, so if you drive recklessly, your teenage driver may imitate you. Always wear your seatbelt and never drink and drive.

Have more questions about keeping your teen safe while driving? Or, if you'd like a quote on various vehicles for your new driver, call Tague Insurance at (760) 729-1143 for help!

Taken from the Travelers Insurance website: www.Travelers.com

Snowmobile Safety

Ok, so we live in an area where the sun shines and beach go-ers are everywhere, even in the winter time. But the nice place about our area is that the snow is just a short car trip away! If you're planning on taking a trip to the snow, enjoy a snowmobile tour!! Here's a quick article about snowmobile safety:

Bounding over trails through woods, over fields and across frozen ponds or lakes with cold blasts of air whipping around are all part of the fun that thousands and thousands of people enjoy during winter in their snowmobiles. Snowmobiling’s fun should not mask the fact that it still involves the use of fast, heavy vehicles that, in collisions, can cause severe injuries and damage to property. Some models of snowmobiles and all-terrain vehicles operate at speeds that rival automobiles. Unlike autos, they are open vehicles, lacking the structural protection of even the smallest auto; therefore the danger to snowmobile users is far higher.

The danger of being injured while operating snowmobiles is compounded by some important factors. Snowmobiles are operated over rough terrain with obstacles that are often hidden by snow. They are operated in areas where the drivers are not familiar with paths or trails. Novices and older operators with poorer reflexes are attracted to recreational snowmobiling and these vehicles are often used very late at night, in remote areas. Another consideration regarding use of snowmobiles is that operators also combine driving with drinking and alcohol intensifies the other dangers.

Naturally there are practices that can help lower the chances of being in a serious accident. Snowmobile operators should:

Avoid solo snowmobiling - having another person around in case of an accident is probably the greatest safety practice.

Properly maintain the snowmobile to insure safer operation

Dress in appropriate safety gear and clothing, including water-repellant apparel

Operate snowmobile at speeds that are appropriate for conditions and terrain

Do not drink alcohol while operating a snowmobile

Use marked trails and don’t stray off of them

Carry a first aid kit, as well as other emergency equipment, especially tools, flashlights, compass, matches, etc.

Avoid crossing bodies of water as breaking through ice is a major peril (drowning is a chief source of snowmobile accident fatalities).

If you've got your own snowmobile, make sure it's insured! We can provide you with the best snowmobile policy available. And our companies don't require that you have a homeowners or renters policy. Contact your agent at Tague Insurance to get a quote!

COPYRIGHT: Insurance Publishing Plus, Inc. 2010