News
Why Discount Car Insurance May Cost a Lot More Than You Think
We all have a lot of demands on our wallets: Mortgages or rents, car payments, lessons for the kids, phone bills – and on and on. So, when it comes time to buy car insurance, it’s little wonder why so many people want to keep their costs down.
However, buying cheap car insurance – or minimal car insurance – today can set you up for a big financial hit tomorrow. Here are three hidden costs of cheap car insurance you’ll want to avoid:
- Paying out of pocket to cover your own injuries and vehicle repairs. Most states require you to carry liability insurance for property damage and bodily injury you may cause to others. And, that’s just it: The coverage is for other people’s repair bills and medical expenses, not your own. If you’re at fault for an accident, and you have chosen a liability-only policy, none of your own expenses related to the accident will be covered. You’ll have to cover them on your own. So, think twice before buying only enough car insurance to meet your state’s requirements. Yes, it will be cheaper than buying a more robust policy, but you’ll lack any coverage for yourself.
- Having your wages garnished to make up for inadequate liability coverage. Imagine you hit another car and the driver sustains a pretty bad head injury from the crash. She has to stay in the hospital for a week, and it looks like she is going to have some long term medical needs. A judge awards her a settlement of $150,000 for medical bills, mental and emotional anguish and loss of quality of life. Your auto liability limits, however, are exhausted at $50,000, so the judge garnishes your wages. You’ll have to hand over 40 percent of your income until the remaining $100,000 is paid. All of a sudden you don’t have enough money to meet your regular expenses, and you still have to address the damage to her vehicle and yours, too.
- Being denied coverage when you lend your car to a friend. Most carriers provide coverage for you, any listed household members who have access to your vehicle and any relatives or friends you allow to borrow your vehicle(s) occasionally. But, your discount auto policy may not. Such a policy may limit coverage only to you, the person named on the policy. If someone else is driving your car and causes an accident, you won’t receive any coverage for the incident. No coverage to help repair your vehicle, and no coverage to help pay for any damage or injuries that others involved in the accident sustain. You’ll have to pay it all out-of-pocket.
I know it’s tempting to determine what you can afford to pay for car insurance and then find a policy to match. But, as these examples illustrate, saving in the short term may actually cost you more in the long run. So, talk to your independent insurance agent before you settle for an auto policy that leaves you open to risk. Your independent agent can help you balance coverage and price to a point that feels comfortable to you.
About Fire Prevention Week
Fire Prevention Week was established to commemorate the Great Chicago Fire, the tragic 1871 conflagration that killed more than 250 people, left 100,000 homeless, destroyed more than 17,400 structures and burned more than 2,000 acres. The fire began on October 8, but continued into and did most of its damage on October 9, 1871. Since 1922, Fire Prevention week has been observed on the Sunday through Saturday period in which October 9th falls.
This year's Fire Prevention Week Campaign, "Don't Wait - Check the Date! Replace Smoke Alarms Every 10 Years," represents the final of a three-year effort to educate the public about basic but essential elements of smoke alarm safety.
The NFPA's (National Fire Protection Association) data shows that the public has many misconceptions about smoke alarms, which may put them at increased risk in the event of a home fire. For example, only a small percentage of people know how old their smoke alarms are, or how often they need to be replaced.
As a result of these findings, NFPA is addressing smoke alarm replacement this year with a focus on these key messages:
- Smoke alarms should be REPLACED every 10 years
- Make sure you know how old ALL the smoke alarms are in your home
- To find out how old a smoke alarm is, look at the date of manufacture on the back of the alarm; the alarm should be replaced 10 years from that date.
Click here for more answers to some frequently asked questions about replacing your smoke alarms.
Paschall Insurance Group, LLC
Weatherford, Texas
Licensed Sales Producer - Listing September 2016
AGENCY INFORMATION
Paschall Insurance Group, LLC is a fast growing, multi-line, independent insurance agency that serves both, commercial and personal lines clients in the State of Texas. Due to the continued growth of our client portfolio, we are in search of a high quality individual to join our current, top-notch team.
JOB DUTIES
Solicit, interview and consult with potential clients.
Explain the features of various policies.
Provide customer service to new and existing clients.
Understand and utilize a paperless working environment.
Follow directives and implement new initiatives independently.
SKILLS/QUALIFICATIONS
Hold an active license with the Texas Department of Insurance.
Prospecting, Service and Sales skills are mandatory.
Multi-tasking is required and professional behavior is a must.
Dependability, Integrity and a stable work history are required.
COMPENSATION
Will align with experience, prior work history and information obtained during the interview process.
CONTACT/APPLY
Email current resume directly to:
Paul Paschall - paul@paschallins.com
1. You can only shop for car insurance when your current policy expires.
Many consumers don’t realize that they aren’t bound to their insurance coverage for the full term (ie – 6/12 months). The insured can cancel at anytime, for any reason.
2. Working with a direct company (i.e. the little green lizard) is always cheaper than going through a local agent.
While it’s true that direct companies save money on costs by not incurring agent commission fees, this does not necessarily mean the savings will be passed on to you. Many direct insurance carriers will use those savings to spend more on marketing their brand and product. Without the benefit of local agents marketing for them, direct carriers may need to spend a bit extra to create awareness for their brand. In addition, pricing algorithms of car insurance policies are extremely dynamic and, as a result, there will be a large range in price for any single individual.
3. If your friend borrows your car, then your vehicle is not covered against damages.
In most cases, this is simply not true. Comprehensive and collision coverage will provide protection against any damages to your vehicle, regardless of the driver. However, if you explicitly excluded this friend from your auto insurance policy, then damages would not be covered.
4. Auto insurance rates automatically go down when you turn 25.
Age is an important variable in pricing models. Like any other variable in the pricing model, age is used to predict the likelihood that the insured will make a claim. While people under 25 are statistically more likely to get into an accident, each company handles the impact of age on the price of the policy differently. There is no hard and fast rule that once you turn 25, the price of your car insurance will decrease. Some carriers may offer a pricing break at 21, 23, or 30. There are a variety of other ways to receive discounts on your policy such as bundling a Homeowners or Renters policy with your auto coverage, paying your premium in full, or even choosing to receive paperless billing. It is important to check with each insurer on discounts you can qualify for when shopping for a new policy.
5. Comprehensive coverage covers theft of your vehicle and all items contained within.
Comprehensive coverage on your auto insurance policy only covers items physically attached to your vehicle. This may include your car stereo or GPS device if it is factory installed. For coverage on items contained in your car such as iPods, clothing, and compact discs you will need Homeowners or Renters coverage.
The Ins and Outs of Flood Insurance
“I’m not in a flood zone, so I don’t need flood insurance.”
I can’t tell you how many times I’ve heard that. Each time my reply is: “Well, that’s not exactly true.”
Most of the country is in some kind of a flood zone, a designation that indicates the area’s risk of flooding – some are just more severe than others. So, what does that mean for you as a homeowner? It means you are at risk of flooding, even if it hasn’t happened in your area in recent memory. And, it also means that you may want to consider buying flood insurance.
Here are five important things to know about a policy for flood coverage:
- It’s a separate policy. The typical homeowners insurance policy does not offer any coverage for flooding. None. But, you can likely purchase a separate flood policy through the National Flood Insurance Program. A few carriers in Florida also offer private flood insurance as an alternative. Your independent agent can help you find coverage in your area.
- Different flood zones have different flood insurance costs. The zone in which you reside will help determine your flood insurance costs, along with other factors. And, yes, the more severe the flood zone, the higher your insurance rates may be.
- Your lender may require it. If you purchase a house in one of the more severe flood zones, your lender will likely require you to carry flood insurance as a condition of your loan. If you purchase the home with cash or pay off your mortgage, it will be up to you whether or not you carry the coverage. Just be sure to discuss any major insurance changes with an independent agent first.
- Flood insurance is not just for coastal areas. Take, for example, the flooding just this year in West Virginia, Texas and Tennessee. It all goes to show that even if you don’t live near the coast, a flood could still devastate your area – and your home.
- What your policy covers will depend on the policy itself. Most people who buy flood insurance want dwelling and contents coverage. Be sure you understand what you’re buying and how much coverage you’ll have. An independent agent can help.
Keep in mind that the Federal Emergency Management Agency (FEMA) periodically updates its flood zone maps. Even if you have flood insurance now, you may want to check whether it is still insuring you at the level you want. If you don’t have flood insurance and you think you could benefit from it, be sure to contact an independent insurance agent. Because flooding isn’t just a Florida thing.
