Most of us are unaware that there are many factors that affect car insurance. Actually the factors are so many that by simply changing your address by crossing the street to the other side could drastically change your car insurance premiums.

Change of premiums means a change in the level of risk for the insurance company that supplied your car insurance. This can either go up or down and the insurance premium will naturally follow in the relevant direction.

This is the reason why it is worth checking with your insurance company about how your car insurance is affected by your change of address.

For example auto theft is a much more serious risk in certain neighborhoods than it is in others. So if your insurance coverage was taken out initially in an area where auto thefts are a very low risk, your coverage may not have addressed this issue adequately for your new area.

An insurance company will tend to have all the latest information and statistics on all these risk factors. So by consulting with your insurer you will also be made aware of the new dangers and higher risks you face in your new neighborhood.

Another factor worth considering is that your new neighborhood may be much closer to your work place meaning that you will probably use your car less. This is a factor that affects your car insurance because it is assumed the more you use your car the more opportunities there will be for accidents or possible accidents.

You should be able to review the change of circumstances in relation to your current car insurance and make a quick decision whether you honestly still have adequate car insurance or not.

There is no harm in negotiating a new car insurance deal even when your old one has not expired, simply based on your change of circumstances.

Please call (231) 744-9099 or visit www.Steve.BedgoodAgency.com

Your Farm Bureau Insurance agent (I) would love to have a brief meeting with you. It won’t cost you anything. In fact, it might even save you money.
It’s called an insurance review, and it’s a vital part of the service your agent should provide for you.
Fall is a great time to review your overall insurance program. Life slows down a little after a busy summer and the changing leaves cause us to reflect on making changes in our lives. So turn over a new leaf. Start by setting up your insurance review with me.
Why is a review so important?
Think about the risks you face, the priorities in your life, and the future you envision. We need to make sure your Farm Bureau Insurance coverages are working at full strength to protect you in the best way possible.
A review will give you the peace of mind that comes from knowing that:

• Everything is up to date and you have all the insurance protection you need.
• There aren’t any gaps in your coverage.
• You’re getting the most value for your insurance dollar.
• You’re taking advantage of available credits and deductible options that can lower your cost.
• Your insurance reflects any changes in your life or circumstances.
• Your financial security is protected.

One insurance review can do a lot for you…and it won’t take long. Call your Farm Bureau Insurance agent for an appointment today.
www. muskegoninsuranceagent.com.

Bodily Injury Liability: A requirement for almost every state, bodily injury liability comes in two forms. The first is coverage for each individual, or per person as it’s commonly referred to. The second type is per accident, or the total of all of the “per person” amounts. Often the per accident amount is double the per person amount. For instance, bodily injury liability, in Michigan is required in the amount of $20,000 per person and $40,000 per accident. To further describe it, this means that the insurer will cover up to $20,000 of the medical bills per person with a total payout of no more than $40,000 for all of the injuries combined. Sometimes this coverage can apply towards funeral expenses or lawyer fees. In all cases, this coverage only goes towards the other party of the accident, not the policyholder and their passengers. It is a way to pay for damages caused by the policyholder or members of the policy but in most cases, this would be far too low.

Property Damage Liability: This liability coverage enables the policyholder to pay for any damages they cause to another person’s property, be it a fixed structure, another vehicle, etc. The insurer will pay up to the amount that is purchased in the policy to fix the broken property. This is another required coverage in almost every state.

Medical Coverage: There are a few different forms of medical coverage, such as personal injury protection and medical payment. Both of these are forms of insurance that work similar to a healthcare insurance plan. Depending on which types and the amounts that are purchased, the insurer will cover the policyholder’s injuries (as well as the policy member’s injuries) in Michigan this amount is unlimited. Unlike bodily injury liability, these coverage options are gear specifically towards the policyholder, members, and sometimes also the passengers that were in the policyholder’s vehicle at the time of the accident. Also, for these coverage options, it does not matter who caused the accident. The insurer will pay the medical bills even if the policyholder was at fault. In some cases, lost wages are paid under a medical coverage on an auto insurance policy. Some states require a form of medical insurance.

Uninsured/underinsured Coverage: It’s no secret there are drivers who do not carry car insurance. When these drivers cause an accident, they have no way to pay for the damages done to the other driver and their vehicle. When uninsured or underinsured motorist coverage is purchased, the policyholder’s insurer will pay for the damages that are done by a driver who is not insured or has very little insurance. Whether or not the policyholder takes the other driver to court for damages is obsolete in this example, but policyholders know their property and medical bills will be taken care of as soon as possible because of this coverage.

Comprehensive and Collision: These are actually two different types of coverage, but they are usually paired together. Between the two of these, a policyholder’s vehicle will be covered no matter what or who caused the damage. Property damage liability only covers the other person’s vehicle, but comprehensive and collision can pay for the policyholder’s damaged vehicle even if it was stolen, vandalized, or a tree fell on it. Every insurer has their own terms, so be sure to understand exactly what is covered. These are not required by the state, but they are usually required by a bank if the vehicle is on loan. It is worthwhile to carry both coverage types if the cash value of the car is high, but if the cash value is low or nothing, comprehensive and collision coverage might not be worth the cost.

At Farm Bureau we offer Roadside Assistance standard when our client has either one of these.

Additional Options: Other types of coverage that are often offered by insurers are ones that will make life easier in the event of an accident. Rental services are available so that when a policyholder finds themselves in an accident and their vehicle needs repairs and towing, it can be arranged through the Car Insurer without cost at that time. These additional options, and others, should be thought through by the policyholder and weighed on their value to the policy.

How To Choose
When a policyholder is looking to purchase a new policy or add to their current policy, they should first look at their situation including their current savings account or extra money and how they would be able to pay for the different aspects of an accident if there should ever be one. Next, they should look at the cash value of their vehicle and decide whether or not it would be worth having full or partial coverage. Finally, they need to know the state laws and what is required of them.

When the state requirements are known, policyholders can then add to their policy according to their financial abilities. Paying for damages of a major accident is very costly and the policyholder might want to look at the costs of paying for more insurance. If more insurance doesn’t fit into your budget, we’ll look into what discounts can be applied to your insurance policy to save money and other ways to cut back on car insurance expenses. It may come down to finding a better, more insurance friendly vehicle to help save on better coverage.

At the Steve Bedgood Agency we are happy to offer our ideas of recommended auto insurance to every driver, and we understand the importance of finding the right policy for each driver. Feel free to call to get a feel for what different coverage options on your policy will cost. No one wants to get suckered into purchasing more than what is needed, but so many people advise drivers to carry as much as possible because it’s better to be safe than sorry. These conflicting recommendations leave drivers spinning in circles as they try to figure out what they should do. At our office, we won’t discuss what each individual driver must purchase because that decision should be made based on the driver’s circumstances. However, we will offer information on which types of coverage we offer and their purpose, as well as offer some recommendations on how to choose what is necessary for each driver.

Bodily Injury Liability: A requirement for almost every state, bodily injury liability comes in two forms. The first is coverage for each individual, or per person as it’s commonly referred to. The second type is per accident, or the total of all of the “per person” amounts. Often the per accident amount is double the per person amount. For instance, bodily injury liability in Michigan is required in the amount of $20,000 per person and $40,000 per accident. To further describe it, this means that the insurer will cover up to $20,000 of the medical bills per person with a total payout of no more than $40,000 for all of the injuries combined. Sometimes this coverage can apply towards funeral expenses or lawyer fees. In all cases, this coverage only goes towards the other party of the accident, not the policyholder and their passengers. It is a way to pay for damages caused by the policyholder or members of the policy.

However, you will want to be covered with enough to protect your other assets in case of a law suit.
Property Damage Liability: This liability coverage enables the policyholder to pay for any damages they cause to another person’s property, be it a fixed structure, another vehicle, etc. The insurer will pay up to the amount that is purchased in the policy to fix the broken property. This is another required coverage in almost every state.

Medical Coverage: There are a few different forms of medical coverage, such as personal injury protection and medical payment. Both of these are forms of insurance that work similar to a healthcare insurance plan. The auto insurer will cover the policyholder’s injuries (as well as the policy member’s injuries). Unlike bodily injury liability, these coverage options are gear specifically towards the policyholder, members, and sometimes also the passengers that were in the policyholder’s vehicle at the time of the accident. Also, for these coverage options, it does not matter who caused the accident. The insurer will pay the medical bills even if the policyholder was at fault. In some cases, lost wages are paid under a medical coverage on an auto insurance policy.

Uninsured/Underinsured Coverage: It’s no secret there are drivers who do not carry car insurance. When these drivers cause an accident, they have no way to pay for the damages done to the other driver and their vehicle. When uninsured or underinsured motorist coverage is purchased, the policyholder’s insurer will pay for the damages that are done by a driver who is not insured or has very little insurance. Whether or not the policyholder takes the other driver to court for damages is obsolete in this example, but policyholders know their property and medical bills will be taken care of as soon as possible because of this coverage.

Comprehensive and Collision: These are actually two different types of coverage, but they are usually paired together. Between the two of these, a policyholder’s vehicle will be covered no matter what or who caused the damage. Property damage liability only covers the other person’s vehicle, but comprehensive and collision can pay for the policyholder’s damaged vehicle even if it was stolen, vandalized, or a tree fell on it. Every insurer has their own fine print in the terms, so be sure to understand exactly what is covered. These are not required by the state, but they are usually required by a bank if the vehicle is on loan. It is worthwhile to carry both coverage types if the cash value of the car is high, but if the cash value is low or nothing, comprehensive and collision coverage might not be worth the cost.

Additional Options: Other types of coverage that are often offered by insurers are ones that will make life easier in the event of an accident. Car rental services are available so that when a policyholder finds themselves in an accident and their vehicle needs repairs and towing, it can be arranged through the insurer without cost at that time. These additional options, and others, should be thought through by the policyholder and weighed on their value to the policy.

How To Choose

When a policyholder is looking to purchase a new policy or add to their current policy, they should first look at their situation including their current savings account or extra money and how they would be able to pay for the different aspects of an accident if there should ever be one. Next, they should look at the cash value of their vehicle and decide whether or not it would be worth having full or partial coverage. Finally, they need to know the state laws and what is required of them.

When the state requirements are known, policyholders can then add to their policy according to their financial abilities. Paying for damages of a major accident is very costly and the policyholder might want to look at the costs of paying for more insurance. If more insurance doesn’t fit into your budget, look into what discounts can be applied to the policy to save money and other ways to cut back on auto insurance expenses. It may come down to finding a better, more insurance friendly vehicle to help save on better coverage.

We are happy to offer our ideas of recommended auto insurance to every driver, and we understand the importance of finding the right policy for each driver. Feel free call me at (231) 744-9099 for what different coverage options on your policy will cost.

www.muskegoninsuranceagent.com

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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