An accident affects car insurance in different ways depending on certain details of the accidents. There will not always will there be a negative impact on the policy premium; however, rates may be increased or a policy may be non-renewed if an accident is classified as chargeable:

Accidents are classified based on a few factors:

• Was the accident at-fault? - If a policyholder is not considered to be at fault, most likely the rates will not be increased. On the other hand, being at fault in an accident will impact rates depending on the company’s underwriting guidelines. It may cause a policyholder to lose their good driver discount which may cause an increase in premiums in the area of 20%. If there was only one vehicle involved, usually the accident will be considered to be chargeable unless it was caused by some kind of debris on the road or by a collision with nature’s objects such as a falling tree, an animal etc. To determine fault, a police report will usually indicate the at-fault party. Without a police report, insurance companies may investigate through witness reports and driver statements. Usually, if both drivers are found liable or 50% at fault, both drivers would be considered at-fault.
• Were there any injuries involved? – Whether or not there were injuries involved will also have different impacts on rates. If one was at fault but there were no injuries, it would have less of an impact than if there were. A “letter of experience” from a carrier will indicate whether there were any bodily injury payouts. Sometimes the police report may be acceptable proof of no-injury; however, not all companies will accept it since persons may not feel injured until a couple days later.
• Was the accident as a result of a collision with an emergency vehicle, such as an ambulance or police car? If there was a collision with an emergency vehicle, sometimes it will be considered non-fault because those type of vehicles sometimes disobey traffic regulations in order to rush to an emergency situation. In that case it shouldn’t have an impact on rates.
• Were any drivers under the influence? If a driver involved in an accident was under the influence of drugs or alcohol, it will be considered a “major violation” and may cause a bigger impact on premiums since it will be in conjunction with a DUI (driving under the influence) or DWI (driving while intoxicated). In Michigan, these charges can stay with you for 5 years.
• Was the amount of damage under $750 in damage? An accident may be dismissed or non-chargeable if the property damages were under a certain amount, usually $750 in damage; however, the amount may vary within carriers. Usually when there is insignificant damage to the vehicles (fender benders), no injuries are involved and rates are not impacted.
• How long ago was the accident? If an accident occurred more than three years ago, usually it will be not be considered chargeable since guidelines usually dismiss them after a certain time. Check with the insurer to see how long until they dismiss them.
• Was there a citation issued? Usually the driver who receives a citation when involved in a accident will be considered to be at fault for breaking traffic laws. This, however, does not apply for violations such as “unregistered vehicle” or other non-moving violations.
• How many accidents within the past 3 years? The number of accidents one is involved in also determines impact. Multiple accidents within a certain period may cause non-renewal and significant rate increases.

The best way to find affordable rates, even with tickets or accidents, is to stop by the Steve Bedgood Agency in Muskegon will insure for less.

Have you ever wondered why you get charged the amount you pay for car insurance?

Insurers have a way to figure out how much they would possibly spend on insuring you by calculating a level of risk and assigning it to each driver. Drivers with a high level of risk, or a high chance of filing a claim, are charged more for a policy than a driver who is assigned a low level of risk.

How is a level of risk determined? What would be the  impact of an accident on your rates and quotes?

All of the answers that are given in our interview  or to your agent are taken together and that is what forms the level of risk.

1. A high level of risk is assigned to someone who has a driving record with tickets and accidents. The more of either of those activities, the higher the risk level.

2. Drivers who put a certain high number of miles on their vehicle every year or who live in a high crime area are charged more for their insurance.

3. Expensive vehicles cost more to insure.

4. A driver with few years of driving experience will pay a little more than someone 25 or so.

How do these things (plus others) prove a driver is going to file a claim? Auto insurance companies have statistics that show the background information, such as that listed above, of drivers who file claims most often. With these indicators the insurer can fairly accurately predict who they will need to pay out a claim for and then charges them more to even out the balance.

At the Steve Bedgood Agency in Muskegon, Michigan we can find your level of risk and we can get a policy to fit your needs.

Please give me a call at (231) 744-9099 or start with a visit to my web site at www.muskegoninsuranceagent.com.

We know citizens of Michigan are doing their best to abide by the state law and carry the required amount of auto insurance. We also know they are trying to find ways to cut back on expenses and save money wherever possible. Perhaps the suggestions below can help the drivers in Muskegon, Michigan not only save money on their policies but move forward in their understanding of car insurance and get closer to full coverage.

Can I Save Money On Required Liabilities?
State legislation has declared a minimum requirement of coverage that must be purchased by every driver on the road, which is personal protection insurance for $1 million, personal injury protection, residual bodily injury for $20,000 per person and $40,000 per accident, and finally $10,000 in property damage liability. Combined, these mandatory coverage types will pay for the other party’s property damage, their medical bills, and your medical bills. There is no way to lower the amount that is required to be carried because it has been said as being mandatory by the state. Drivers who have carried higher amounts of these coverage types can lower their amounts to these stated minimums to help save money on their premium, but in the long run it may cost the driver more to pay less now and then in an accident situation pay out of pocket for expenses no longer covered. This thought should also be heavily considered when thinking about only carrying the state required amounts and nothing more to try and save money.

What Coverage Is Necessary For Mi. Drivers?
As mentioned earlier, if you live in Michigan you must purchase personal protection insurance, personal injury protection, residual bodily injury liability, and property damage liability. Any other coverage is extra and can be added on to the policy for a price.

What Coverage Is Available In Michigan?
Each insurer in Michigan offers different coverage options so it’s best to check with your current insurer or prospective insurers (perhaps the Steve Bedgood Agency) to see what is offered. As a general rule of thumb, most insurers offer coverage types that will give the policyholder and members the ability to expect the insurer to pay for their accident related medical bills and property damage. There are also other add-ons that will cover rental cars or help with paying for a rental car when your vehicle is in the shop because of an accident. Options regarding towing services are also available. Figure out what you coverage you need to properly protect your assets and policy members, know your budget, and decide what coverage you can afford.

Where To Find Good Car Insurance Coverage
The best place to find coverage for Michigan drivers at a good price is right here at the Steve Bedgood Agency.  All drivers in Muskegon can utilize our service. We can show you what prices we are charging and help you get your discounts. Anyone interested in finding a great agency with one-stop service should come visit our office.

We are located at 1500 Whitehall Rd, Muskegon, Mi. 49445 or you can start by checking us out at www.muskegoninsuranceagent.com

To begin this process, start by e-mailing me at steve.bedgood@fbinsmi.com. We’ll need to know the local zip code, basic information about the driver, your vehicle you would like to purchase insurance for, and the type and amount of insurance to be added to the policy. Knowing this information beforehand will help the answering process go very quickly. To help the you prepare, we’ll go over a few things that will be asked.

Information about you will probably be the easiest to obtain, especially if it’s you who is answering the questions and not another person. We need to know things like your name, age, address, and most importantly your driving history. For the vehicle, we’ll need the VIN, estimated annual mileage, and possibly the condition of the vehicle. The coverage that is wanted will be in addition to what is required by the state. There is a list of options the applicant can highlight and include the amount you would like to purchase as well. For more information about what these options entail, you can search through more of our articles found on this site.

Once the answers have been entered and the entire application submitted, the driver will be given a list of quotes from insurers. That’s right, the driver answers one set of questions and in return is given a number of quotes. We claim this is the fastest and easiest way to gather quotes, especially when compared to contacting each individual insurer, asking each representative the same question, and then moving on to the next company. You can compare the prices and the companies on the list and if desired, purchase a policy directly from the quote page. This process is also less intimidating that traditional methods of speaking with representatives who can sometimes be pushy.

How To Save Money
The best way to save money on a car insurance policy is by taking advantage of the discounts that are offered by Farm Bureau Insurance, after you’ve made sure your coverage is adequate. Driving an insurance friendly vehicle will also help Michigan drivers save on their insurance. Getting smart and sometimes creative can help your premiums stay low, which is important so every driver can afford a good car insurance policy.

Now that you know what is needed for Michigan auto insurance, where to find it and how to save on the premium, there is no excuse about not having car insurance. Because it’s a state law that all drivers have insurance, you should do everything possible to get that insurance and try to make it fit into your budget. The Steve Bedgood Agency is committed to helping people get there by seeing them one-to-one and giving them the personal attention they deserve.

Where our office is, in Muskegon, Michigan, when people ask for PL & PD they are normally asking for a lower cost policy. This is normally because either the vehicle is older and the client doesn’t feel they want to pay the extra cost for physical damage coverage or they just simply can’t afford the extra expense.

In Michigan, a “No Fault” state, the only way to get physical damage coverage is to buy it. If you are in an accident in Michigan, each car’s insurer pays to fix their client’s car if they’ve purchased the coverage.

Put another way, if you only have PL & PD (Personal Liability and Property Damage) your car will not be repaired buy either insurance company no matter who is at fault.

“So what good s that kind of coverage?” you might ask. I’m glad you asked.

First, you have  Bodily Injury coverage. This provides coverage for you if you are at fault in an accident and you injure someone to the point that they become dead, disabled, disfigured or loses in income in excess of $4000.00 per month. You can choose anywhere from $20,000 to $1,000,000 coverage on this. I wouldn’t recommend any less than $300,000.  Without the physical damage on the policy this should be affordable for most people.

A second type of coverage provided by PL & PD is Property Damage. If you run your vehicle into a building, guard rail, pole or some other property that belongs to someone else, they can file a claim with your insurance company and save you the expense of having to make restitution for the damage.

A third type of coverage is PIP. (Personal Injury Protection) In Michigan, insurance companies must pay 100% of medical expenses if you personally are injured. This can have a value of thousands of dollars.

With PL & PD you can also choose to have Uninsured/Underinsured Motorist coverage. This allows a person in your car protection in case you are not at fault in an accident but the person who hits you has either no insurance or the minimum required by law. If you or your passenger are awarded money for a settlement ( for becoming dead, disabled, disfigured or loses in income in excess of $4000.00 per month) from the “at fault” party, but they have no money or too little coverage to cover what you are awarded, this coverage can really save the day.

The reason the law makes a basic policy like PL &PD mandatory is that it helps make sure each driver can take responsibility for their actions. It makes sure people don’t have to suffer financial loss as a result of our actions. Even the hospital, if we didn’t have insurance would have to wait until a person fully recovered and gets back to work, catches up all their other bills and then paid them back at a small amount per month. With PIP coverage they can be paid in a timely manner and you don’t have a stack of medical bills waiting for you when you get home.

Hopefully, this makes you feel a little better and a little more responsible. You really are helping yourself and society at large by owning PL & PD coverage.

Please call me at (231) 744-9099 or visit our site at www.muskegonautoinsurance.net

In all the years I’ve been selling insurance in the Muskegon area, I’ve often wondered why more about insurance isn’t taught in school.

Young drivers, who spend a ton of money on car insurance, don’t take a class on Insurance. Why not?

I always take an educational approach to helping my clients get the right Insurance. I meet people of all ages and I’m always amazed when people tell me “No one ever explained this to me before.”

I don’t believe Insurance is too hard for people to understand. I do believe that there are agents who just peddle policies. They aren’t concerned (on the front end) with educating their clients. Of course, they have to educate them when a claim isn’t going to be paid.

If you’d prefer to understand what you’re spending your hard earned money for, give me a call or start by checking out my web site at www.muskegoninsuranceagent.com.

Also, if you’d like to have a class taught in the Muskegon area, give me a call at (231) 744-9099.

It is common knowledge that car insurance can be paid for in monthly payments and many companies no longer require their customers to pay for the entire policy up front in one lump sum. But just as in every decision, there are pros and cons to paying monthly versus making a one-time payment. We’ll go over those pros and cons to help drivers make an informed decision that will suit their situation best.

Pros of Paying Monthly
One pro to paying for car insurance in a monthly payment cycle is it’s easier to afford for many drivers. The tight economic status most families are facing these days are forcing even tighter budgets and people searching for ways to cut back on their expenses. While paying for a policy in monthly payments isn’t necessarily cheaper than paying the whole premium, it is more manageable since the high cost is broken down. Paying $150 a month is much easier for many drivers to afford compared to paying $900 in one payment. In theory, a person could save the $150 a month to pay the $900 at once, but often people find themselves unable to keep that $150 untouched.

Another pro to making monthly payments is if the policyholder needs to cancel the policy due to moving or switching to another company like to us at Farm Bureau Insurance. Remember, a driver can only legally cancel a policy under those circumstances. Otherwise, the driver will be without a policy and will be breaking the law by driving without auto insurance or another form of financial responsibility. When a policyholder has already paid the premium in full and needs to cancel the policy, they will have to wait for the insurer to send them a check for the remaining amount of premium unused. However, in monthly payments, the policyholder won’t have to wait for a huge check to be sent since they will only need to wait for the remaining month’s amount.

Cons of Paying Monthly
Paying in monthly payments can have its downfalls as well. For instance, paying monthly means having to remember to pay every month’s payment on time. When the payment is not made on time, a notice is mailed to the policyholder instructing them they only have a few days left before the insurer will terminate the policy due to non-payment. If the payment is not made, the policyholder will lose their coverage. But, if the policyholder makes the payment, the policy will remain in affect. A few ways to make sure the payment is made on time is by writing the due date on a calendar and sending the payment well before that date, or by sending the payment the day the bill is received. Another idea that may help is many insurers and even banks will send reminders of when a bill is due through email. This could be a great help for people who tend to forget things.

A second con to paying monthly is the fees that are needed to be paid. Insurers charge a processing fee each month when a policyholder chooses this form of payment, but there are no fees when the policyholder pays their premium all at once. These fees are usually quite minimal, sometimes ranging from $4 to $10, (Farm Bureau Insurance will waive it’s $5.00 charge if you choose EFT payments) and don’t increase the total payment very much. However, some policyholders may feel spending $48 to $120 a year on fees to their insurer isn’t a wise way to spend money and would rather pay the premium in full to avoid such fees. There is a wide variety of opinions on this matter, and really the only person who knows whether or not the fees are worth paying monthly is the individual policyholder.

Third, many insurers require a policyholder who is making monthly payments to make a down payment first, and then pay the remaining balance of the premium cost in equal monthly payments. For instance, if the entire policy costs $700 for a 6 month contract, the insurer could require a 25% down payment, or $175 for the first month. Then, the policyholder will be charged the remaining $575 throughout the next five months of the policy, paying $115 each payment. At the end of the six month contract, the policyholder will have paid the entire $700. (These numbers are just used as an example; policies vary in price and insurers vary in the amount required for a down payment.) This may be a nuisance to some policyholders because the monthly payments aren’t equal and it’s harder to budget, especially for someone who lives paycheck to paycheck. Do make note that some insurers require smaller down payments, or none at all, which keep the monthly payments the same.

In some instances, it doesn’t matter which method of payment a policyholder chooses. No matter which way a driver pays for their insurance, their contract length will remain the same. Paying month to month does not mean the contract is month to month as well. The contract remains the same throughout the entire policy period and it doesn’t matter if the policyholder paid the premium in full or in monthly payments. Another item that doesn’t change is the total price of the coverage purchased. Buying $100,000 of uninsured motorist coverage will cost the same whether the policyholder chooses to pay in full or in monthly installments. However, remember that when choosing a monthly payment the total price will increase if paying month to month due to the processing fees even though the coverage costs the same.

Paying monthly is easier for many drivers to do when it comes to paying for their car insurance coverage. They prefer it over paying the premium in full because it is less money to worry about when paying bills, and they are able to overlook the cost of the fees. The personal preference of each policyholder will determine which method of payment is best for their family and financial circumstance. When drivers are not sure which method would suit them best, they can always try paying for their premium in monthly installments for one policy period and then pay the premium in full for the next policy period. This will show them the differences and they’ll be able to make a more informed decision. Let the Steve Bedgood Agency help you find the right policy for you. Give us a call at (231) 744-9099 or start at our website, www.muskegonautoinsurance.com.

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Drivers on the road who have adequate auto insurance may wonder, what is the purpose of needing a form or way to prove I have car insurance? Besides it being a state law in most areas, there are a few additional reasons we’ll cover here that drivers may not have considered before. These can help give a better understanding to the purpose of having a proof of insurance card. Afterwards, we’ll show drivers how to obtain their proof of insurance if they don’t yet have it.

Why would you need proof?
Because it is a state law to carry auto insurance, drivers need a way of stating they have proper insurance coverage through a legit company. In most states, it is common practice for an officer to request proof of insurance along with the driver’s license and registration when the driver has been pulled over. They can’t just use word of mouth to verify their insurance coverage, especially because the police officer could assume they are lying or even worse, in a major accident the person may not even be conscious enough to explain who their provider is and that they have coverage. If a driver cannot provide this proof during a routine traffic stop or at an accident scene, that driver will face some consequences.

It’s possible that if the driver does indeed have proper coverage but for some reason does not have their card, they could only be written a warning. This, of course, depends on how many times the driver has been caught without insurance. The severity of the penalty increases with each offense. In addition to these, the driver’s license and possibly the vehicle’s registration could be suspended in some states.

Another reason for proof of auto insurance is to reinstate a license or vehicle registration. When the driver has lost their license or vehicle registration to suspension, they will need to show to the court that they do have auto insurance by providing a proof of insurance card. The easiest and quickest way to do this is to purchase a policy with us. By purchasing a policy here, the driver can walk out with the proof they need. This card is valid and can be brought into the court the very next day, if the court allows, and the license and registration can be reinstated. If you are already a client of ours, we can fax a proof on your new car, right to the Secretary of State’s office.

Also, drivers who have purchased a vehicle from a dealership know they are usually asked by the dealership or the loan company if they have auto insurance. Loan companies who finance the purchase of a new car will only agree to loan the money if the driver has full coverage on the vehicle. They want to be sure that the driver has a way to pay for the loan in full, even if the vehicle is involved in a major accident or if it’s stolen. An auto insurance company agrees to pay for damages up to the cash value amount of the vehicle, which pleases the loan company enough to agree to loan the money out to the driver.
To get your “Proof of Insurance” give me a call at (231) 744-9099 or visit my website first at www.muskegonautoinsurance.net

Looking for car insurance for a young driver in all the wrong places will lead a policyholder to the highest rates in town. This is not something any policyholder wants, but it is necessary to find insurance for a teenage driver despite the high costs that are so commonly found. Listed below are 8 ways we have come up with that can help policyholders save money on their teen’s auto insurance. They shouldn’t be considered a cure-all since auto insurance isn’t a one size fits all regime, but there will be at least one that every driver can apply to their insurance practices and save some money.

#1. Set Their Record Straight

Having a clean driving record is key to always getting low auto insurance rates for the rest of a person’s driving career. Teen drivers may not know the importance of this, and may decide to ignore the advice of avoiding tickets and accidents. However, teen drivers who are given traffic tickets or who are involved in accidents will watch as their premium rates skyrocket, even with only one offense. And what these teens don’t always know is that their record stays with them, and the offenses are only wiped clean after a certain number of years. If a driver receives one ticket every year, their record will usually carry at least 2-3 tickets at a time which causes rates to go up significantly. Young drivers who care about their record and avoid these costly marks should shoot for a clean record for years to come. They’ll be the ones to always have lower prices.

#2. Be Modest

It would be wise advice to not allow a teen driver to operate a sports vehicle or any other luxury vehicle that is expensive by nature or appears to be driven fast. Teenagers are statistically shown to drive faster more often, and they are also involved in many more accidents than the average driver who is not a teen. A safe assumption would be that the majority of teen drivers will be involved in an accident at some point of their teenage driving career, and handing the keys of a sports car would only be guaranteeing this activity. Allowing the teen driver to drive a safe and modest vehicle could help decrease their chances of being tempted to speed or do anything else in a flashy car. It’s more important that the teen is safe while driving, not how they look in their car.

#3. Give Guidelines

Most often, it is the parent or guardian who gives the teen the most direction in their life, and driving rules should be no different. Communication is vital at this age, and when expectations are directly expressed to the teen, there is little room for excuses or whining about the consequences. Giving the teen driver rules about where and when they can drive will be beneficial in getting lower rates because it helps keep them off the road, even if this lasts for only a few months or the first year. Giving them guidelines may also help instill in them a feeling of importance of obeying traffic laws and the consequences for not doing so.

#4. Suggest Alternatives

Auto insurers want to know the estimated mileage of the vehicle the teen will be driving, and rates increase as the estimated mileage increases. Expecting the young driver to take the bus to school and/or work will keep them off the road more often. They can still gain driving experience throughout the summer or on weekends, preferably during the day when there’s less of a chance of an accident.

#5. GPA Matters

Encouraging the young driver to get good grades could help the policyholder get lower rates. There is a discount commonly referred to as the good student discount that is offered to student drivers who earn a certain grade point average every quarter or semester. All they need to do is send in a copy of their report card to the insurer and they may be given this discount. This, coupled with other discounts, can really help the savings add up.

#6. Get Their Help

There is nothing wrong with asking (or demanding) the teen driver to help pay for their own premium charge. This is a separate charge to the premium as a whole, if the teen is joining their parent or guardian’s existing policy, and the teen can pay for part of the increased amount or all of it. By having the teen pay for their own insurance, they will learn one more thing about living expenses and how driving isn’t a right but a privilege. There is a chance they will be more cautious on the road because they know any negative marks on their insurance record will lead to higher rates, and if they are responsible to pay for those higher rates there’s a good chance they will do better at not being involved in tickets and accidents. Plus, it keeps the premium the same amount for the policyholder.

#7. Continuing Driver’s Education

Some insurers offer driving courses that can be taken by any of their drivers, which once passed will lead to a discount in their final premium charge. Teens can sometimes take these courses and also get a lower rate for their insurance. They will be taught the importance of defensive driving and how to maneuver their vehicle to avoid accidents better. Also, if a young driver is issued a ticket, encourage them to attend traffic school to keep the ticket off their record. Having a clean record will pay off in the long run as it contributes to less expensive insurance for young drivers.

#8. Be A Good Example

Children learn from their parents, including their bad habits. Don’t be surprised to learn the young driver rear-ended someone because they were tailgating, especially when it’s a habit of the parent. The same goes for cutting people off, speeding, or rolling through stop signs. It becomes easier for a young driver to obey traffic laws and have respect for them and other drivers when they see their own parent demonstrate that very same attitude. This attitude will help the young driver avoid traffic incidents and keep their record clean.
Please call me at (231) 744-9099 or check out my website at muskegonautoinsurance.net