What Factors Determine The Rate of Your Car Insurance?

Best Car Insurance Agent Roseville, CA

Best Car Insurance Agent Roseville, CAWe bet you’ve wondered how car insurance premiums are calculated. Do you ever have discussions with friends of similar age and driving history and find you’re all paying very different premiums for what would appear to be similar coverage?

Insurance premiums are based off of many factors, all of which play a role in your total premium for your auto insurance. A single difference of any of these can give dramatically different outcomes. Some factors insurance companies use to calculate premium can include:

  • Gender, age & marital status
  • What’s your past driving history?
  • What’s your claim history?
  • Your Zip Code where the vehicle is garaged
  • Your credit score
  • How many miles you commute
  • Will you or do you have other policies with the same insurance carrier such as home or renters insurance?
  • Are you currently insured?
  • What types of overage do you want? What limits?
  • What limits did you have on your previous insurance policy?
  • Type and age of vehicle being driven (think safety equipment)

Insurance companies do their best to determine a premium for your situation and calculate a premium that will be profitable for them. It may surprise you to know that many insurance companies try to earn just a few cents on each dollar of premium they collect.

While it is impossible to guess what you are going to be paying each year, you can improve your odds of getting a great rate and terrific coverage by calling a local independent insurance agent. Independent agents represents multiple insurance companies, so we can provide you with comparison quotes from several of the top insurance companies in your state.

How Can I Lower My Car Insurance Cost?

Save when you bundle.

Insurance carriers tend to give great discounts when you bundle your auto insurance with your home/renters/other lines of insurance. Need to insure several vehicles? Multi-policy discounts could earn you some substantial savings. Ask your agent!

Don’t drive much? Seek a low mileage discount.

If you drive less than 10,000 miles a year, ask your agent if you qualify for a discount.

Choose a higher deductible.

If your finances allow you to pay a higher deductible in the event you have a claim, you could save money by making this switch.

Ask your agent about other discounts. Do you qualify for any?

  • Paying your insurance coverage in full
  • Paperless option
  • Safe driver (accident free)
  • Electric or hybrid vehicle owner
  • Great credit score
  • Good student
  • Higher education
  • Advance quote

Did you experience a higher premium at renewal?

Reach out to your agent and ask to get a re-quoted on your policy. Since we can quote many top-rated insurance carriers, you can likely get same or similar coverage with a new carrier to save money. Life changes, so can your insurance company – but you don’t need to change your agent.

How to Protect Yourself from Uninsured Motorists

Uninsured drivers are a huge problem across the United States. Each year billions are paid out in uninsured motorists claims. Even though uninsured motorists have steadily declined over the past decade, some states still have one in four drivers driving without insurance. You can protect yourself with an insurance coverage called uninsured motorist coverage.

Uninsured motorist coverage (often times referred to as UM, UMPD or UMBI coverage) is required in some states, so check with your insurance agent it you already have this coverage. In other states, it is purely optional, but certainly a good idea to carry. If you’re injured or are involved in an accident with an uninsured motorist, this coverage will help protect you, get your vehicle repaired and can even pay your medical bills as well as act as insurance in case of a lawsuit if you’re badly injured.

Uninsured coverage comes in many forms, all meant to protect you in case you’re involved in an accident with an uninsured motorist. When reading these coverages, please keep in mind that the policies and laws vary by state.

Uninsured Motorist Bodily Injury

This coverage may pay for damages when a covered person is injured and the person at fault for the accident does not have liability insurance.

Underinsured Motorist Bodily Injury

This coverage may pay for damages when a covered person is injured and the person at fault for the accident does not have enough liability insurance.

Uninsured/Underinsured Motorist Property Damage

This coverage may pay for damages when a covered vehicle is damaged and the person at fault for the accident does not have liability insurance or does not have enough liability insurance.

UM coverage varies by state and according to law so if you’d like to learn more about UM coverage, simply contact your insurance agent to inquire.

Five Things You Should Do Before Hiring a Contractor

General Liability Insurance Roseville, CA

General Liability Insurance Roseville, CAIf you’re an experienced home remodeler, you’ve probably come across contractors who are willing to offer better pricing for cash deals or who are reluctant to provide you with a service contract. Did you know that you can be held liable for hiring a contractor who does not carry the right insurance and causes damages or injuries to another person or even one of their own workers? Saving a few dollars on your remodel can end up costing you thousands so follow these tips to avoid an insurance disaster.

  1. Look for obvious red flags: Getting multiple quotes for the job is a great idea, but did you find a contractor who will do the work for ½ as much as the next guy? How is this possible? When you’re inviting a contractor to your home, be sure to ask them for credentials before they come over to give you a bid. Following these steps can save you from theft, liability and even money.
  2. Ask for references: If you found a great contractor and you like him/her, ask them if they have a website or if there is someone who has had work done by them recently that you can talk to. If a contractor is proud of the work they do, they should have several references for you to call. It is okay to ask for reference and most people expect it. Most small businesses survive off of word-of-mouth advertising, so don’t be shy.
  3. Utilize the internet to look up their license: Contractors are required to have a license to perform work. You can utilize your states resources to find these contractors. An internet search will provide you with some quick references. You can even make your job quicker by asking them to provide you with a copy of their license or number.
  4. Active License, Insurance & Bond: Ask the contractor for a copy of their license as well as documentation of their insurance and bond. Note: Check the dates on the license as well as the insurance to ensure they’re currently in force or active.
  5. Get specific: Not only is it important to protect your insurance from a scam, but ensure your pocketbook doesn’t get taken for a ride too. Ask questions like, “Is this an estimate or a final bid?” “Does this estimate include parts and labor?” “Can I see where you’re buying the products beforehand?” The more questions you ask, the better you will feel and the more the contractor will understand that you’re educated on this process.

Let’s take a closer look at what some of these products do:

  1. License: A license to do business means that contractor has met local guidelines and qualification standards to work in their field. Hiring an unlicensed contractor can result in shoddy work or dangerous results such as with an electrician.
  2. Insurance: Contractors need two types of insurance really.
    1. General Liability Insurance: This will protect you from damages that the contractor causes such as a ladder falling through a window, causing a fire or overspray onto a neighboring house during some painting.
    2. Workers Compensation Insurance: This insurance will protect the contractor if one of his employees is injured on the job while on your property. If the contractor does not carry workers compensation insurance, your homeowners insurance policy might be asked to pay that workers claim.
  3. Bonds: A bond acts as a guarantee that the contractor will perform the work they’ve been asked to do. For instance, say your pay a contractor to do a job and he never gets the permits or doesn’t pay a subcontractor – collecting from his bond can help cover these costs.

Hiring a contractor this way can be a great option to bringing some new changes to your home. It is possible to really save money on these services, but just using some simple, quick research and asking the right questions can save you a bundle as well as a headache.