Hello, thanks for stopping by. All drivers should know they are supposed to have a car insurance policy (or other form of financial responsibility), but many who are new to driving or are about to start driving may not be very familiar with what a policy entails.  Unfortunately, it’s not taught in school. But, that’s a topic for another day. Perhaps it would help young drivers if they knew what they were paying for before they start paying premiums. The Declarations Page The declarations page is the part of the car insurance policy that contains all of the information about the policy purchased, including who purchased it, what vehicles are listed, etc. This page is an easy reference page for you and you can refer to it to refresh your memory of what you’ve purchased or when you’ve been in an accident and need to know what’s covered. Names – the declarations page contains your name, the members of your household, and the name of the insurance company. Also listed with the names are your contact information, such as residential address and phone number. These names are listed so there is no confusion about who is and isn’t on the policy. Policy Number – the policy number is listed on the declarations page. This number is what each customer of the insurer is referred as first, since there are some people with duplicate names. To easily file a policyholder’s information and refer to them quickly, the insurer assigns a number (which can be mixed with letters). Policyholders will need this number whenever they contact the insurer by phone or on the website. Policy Period and Term – these listed dates are the length of the policy and the dates the policy is effective. Most car insurers will automatically renew the policy when the term ends, but not always. Any accident related damages that occur outside of these starting to finishing dates will not be covered under the policy. Vehicle Description – also on the declarations page is a description of each vehicle that is insured on the policy. The make, model, and year are in this section of the page, as well as the VIN number and age of the car is usually also present in this section. The garaged address is also listed in this section or underneath. It shows the address of where the vehicle is stored when not in use. There is usually a discount given for vehicles that are in a stored and locked facility, and the address of this location is needed. It does not have to be the same as the residential address. Coverage and Premium – In this section is listed the coverage options that have been purchased, the amounts purchased, the deductible, and the cost of the premium. This part is what can be the most confusing to policyholders. First, spend time with an experienced agent and get to know what liabilities are and then the names of the optional coverage that is offered by the insurer. Once you know these definitions you will be able to read through this section easier and with better understanding. Endorsements – endorsements listed on a declarations page are the other options that have been purchased and added to the policy. Not everyone adds endorsements, but they should be looked at to get an idea of what is offered by the insurer. Signature – this is where you sign to acknowledge the agreement of purchase between the insurer and yourself. Without your signature and date, the policy is not valid. In addition to the declarations page, insurers will usually include explanations or terms of what each coverage purchased are that have been purchased. Each insurer’s terms may vary from one another. Buy A Policy Now that you have some idea of what to expect within a policy after you purchase one, you can start looking for a policy to purchase. The best way to start is by giving us a call at the Steve Bedgood Agency to help with coverage for your vehicle. Have the declarations page and the information like driving records and birthdates of drivers ready. If you have that information readily available before you start it will make answering the questions (and the whole process) go much quicker. You can conduct a further research of us at www.muskegoninsuranceagent.com or you can stop by my office at 1500 Whitehall Rd. Muskegon, Mi. 49445. There is no obligation to buy. Having a car insurance policy is required by most states, and understanding how they work and what they look like may entice more drivers to abide by the law and purchase a policy. Not every driver feels they can afford a great policy, so start with a visit to see what the coverage you need would cost. We’ll look into what discounts you could be eligible to receive to lower the cost as much as we can. For more ideas on how to save on car insurance, read through our other articles. We aim to help you find the best coverage for your premium dollars.

Drivers who are satisfied with their automobile insurance company will often assume they have “the best” company in the business. They are happy with the price they are paying and feel their coverage is adequate. However, many car owners stop there and don’t look further into their provider to find out whether or not they truly do have “the best” car insurer out there. They omit checking to see what other companies are offering to their customers, such as more coverage for a lower overall price. Past the final cost of the premium, drivers should look for other things about their car insurance company before declaring them as the best choice.

How are their finances?
Have you checked into the finances of the car insurance provider for your vehicle? It’s no secret that the current economy isn’t allowing for many companies to do well. Even some of the more popular companies throughout all sectors are barely hanging on. Now is as good of a time as ever to look into the finances of the insurer who claims they will insure your vehicle, especially before the time comes where you may need to file a claim. There have been instances where drivers get in an accident and file a claim with their auto insurer, only to discover their insurer does not have the money to pay up as once promised. This leaves the driver angry and looking for another way to pay for those damages immediately, particularly the medical bills. Had those drivers known about their car insurance company’s financial strength, they could have switched to a stronger provider before they needed to file a claim to avoid this mishap.

Checking out the financial strength of an auto insurance provider is relatively simple and doesn’t take much of the driver’s time. If you think you will need to contact the insurer to get this information, think again. There are third party companies who go in and evaluate car  insurance companies to determine how strong they are financially. Each company has their own ranking system and gladly shares their findings with the public. The companies who are providing the rankings are trusted companies who have been performing these evaluations for some time.

There are three known companies we’ll discuss today that will give out their findings of which insurance companies are strong and which ones should be avoided. The first is AM Best. They are adamant about sharing who is “Secure” and who is “Vulnerable” in their finances. This is determined by their giving each company a letter grade, much like in school. Any company receiving a letter grade of B or lower is deemed as vulnerable to financial failure, but this does not indicate that AM Best knows the insurance company is going to fail. It implies that based on the car insurance company’s current finances and the way they are handling them they are susceptible to a possible failure. Companies who receive a letter grade of B+ or higher are secure, meaning they are likely to remain financially strong for the next while according to their current finances.

A second company that will evaluate the financial status of car insurance companies is Weiss Ratings. Each quarter, Weiss Ratings evaluates other companies and then will post their findings. Weiss explicitly states they do not accept any money from the companies they evaluate, which makes their findings 100% unbiased. They give out letter grades to the companies they rank, ranging from an A to an E. Receiving an A will indicate the insurer is “Excellent” while an E ranking will deem that company as “Very Weak.”

The third company is Standard and Poor’s. They have been assessing financial strength since 1971 and they also distribute letter grades, beginning with the highest markings of AAA. They offer an interactive guide for their readers to help them understand how to properly read their findings and use them for their benefit.

All ratings from these companies are their opinions based on what they have found in their evaluations. They are not guarantees, only suggestions.

How will they treat you?
The top car  insurance companies will go out of their way to help their customers feel like they are the top priority. Speaking with other trusted drivers about how their interactions have been with their insurer can help a driver figure out which company is best, but this can lead to a small group of opinions and make it a harder choice. JD Power is a third party company that evaluates not the financial status of a company like the previously mentioned companies, but they evaluate the customer satisfaction of an insurer. Not only do they assess the way customers are treated by the representatives, but also the way a customer can pay their bill and the overall experience. JD Power will list their top find each year.

What is their cost compared to others?
Price is a huge factor when choosing an insurance provider for your vehicle. It’s almost the top reason why people will switch insurers. However, as seemingly important as this may be, most drivers don’t bother to see what other insurance companies are offering for the same coverage.  Farm Bureau Insurance will need to know information about the driver, vehicle, and coverage wanted, which is exactly what would be asked by other insurers if you were to call around and get quotes. We do this face-to-face  so we can get to know you and your needs,when the answers have been submitted, we will know we’ve met your needs.

The best auto insurance company is the one that has a strong financial status, great customer service, and low prices. While some companies may only offer two out of the three, Farm Bureau does quite well at all three. Occasionally the financial status and customer service may be top notch, but the price is a little higher than other companies. Some drivers may find this to be okay since they’ll be paying a little more for a better quality company, but only they can make that decision. Know what you want before you purchase a policy for better chances of being happy with the company.

At the Steve Bedgood Agency we strive for excellent service while offering an excellent product at a fair price. Check us out at www.muskegonautoinsurance.net.

How can a driver figure out what type of coverage they will need on their car insurance policy. How can a driver figure out what type of coverage they will need on their auto insurance policy? 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. Here, 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 are offered and their purpose, as well as offer some tips in 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 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

Anyone who is curious about how an auto insurance company determines a driver’s rates can find answers here. With over 19 years in the insurance business, I’ve helped thousands of clients understand their coverage.
I’ll go over the generalized routine that is involved when different providers decide on what rates they are going to be charging. Sometimes the driver can influence the decrease or increase of the premium by their actions taken while driving. Other factors that are used cannot be so easily changed.

Insurers take information about the driver and determine a level of risk associated with that driver. This level of risk refers to the chance that driver will make a claim in the future. When a policyholder files a claim, the carrier must pay for the damages as promised, up to the purchased amount in the contract. Someone who is a high level of risk usually makes many claims, and the insurance company begins to lose money from insuring that individual, unless the insurer increases that person’s rates. Insurance providers have gathered statistical data to show them what groups of people are likely to be involved in accidents. Drivers who are placed in more than one of these groups will be paying higher premiums than drivers who are placed in zero to one high risk group.

Below are listed some of the aspects of a driver’s life that are taken into consideration by the car insurance company. I’ll tell you why these are looked at and what, if any, actions can be taken by the driver to decrease their premium.

Age: The age of the driver gives the insurance company a better idea as to how long this driver has been on the road. A 16 year old obviously hasn’t had much experience in driving, and therefore is classified as high risk. The risk begins to go down with each year that passes without having to file a claim or receiving a traffic ticket. Around the age of 25 years will the driver notice a drop in premium price compared to when they were 16 years old. There is not anything a driver can change about their age to decrease their premium, although the young driver can avoid being involved in traffic incidents and keep their record clean.

Address: The location where the driver resides is usually the same location that the car is stored. A driver living in a high crime area is one who will pay a higher premium because the chance of the vehicle being stolen or vandalized is increased when compared to vehicles stored in low crime areas. In addition, vehicles stored in a locked garage will be charged less for their insurance compared to vehicles parked outside on the street. The chances of a vehicle being stolen or vandalized while stored in a locked garage are less than when it’s unattended outside. A motorist has a little bit of choice as to where they live, but usually people who live in high crime areas or without a garage do so because that is what they can afford. So in reality, motorists don’t have too much of a way to decrease their premiums unless they move.

Driving History: The ticket from last year or the accident caused by the policyholder two years ago will come back to haunt them when it comes to determining rates. Insurers always look at the driver’s history to get another estimate of the level of risk. It should be obvious that a person who has a spotless driving record for a few years is less likely to be involved in any kind of traffic incident (ticket or accident) than a person who has three or more accidents or tickets within the last few years. Drivers with little to no negative marks on their driving history are classified as “good drivers” and quite often an insurer will give them the lowest rates. Anyone who is interested in decreasing their premiums should consider cleaning up their driving record and keeping it free from tickets and accidents.

Type of Vehicle: It makes sense that an expensive vehicle costs more to repair or to replace. Knowing this, there shouldn’t be any wonder as to why it costs more to insure an expensive vehicle. Insurers need to know the make, model, and year of the vehicle to be insured so they can get an idea as to how much that vehicle is worth. Then they can get an estimate about how much it would cost them to repair or replace up to it’s cash value amount. Drivers who have luxury or expensive vehicles have a choice to purchase another, less expensive vehicle and then they will see a decrease in their rates. If a driver is choosing between two cars, they should contact their insurer to find out which one would cost less to insure before the purchase.

Type of Coverage: Policyholders who carry the minimum amount of insurance will easily pay less than the policyholders who opt for full coverage. Insurers look at the types and amounts of insurance that are purchased for the policy and make the policyholder pay for it accordingly. One way to decrease premiums in this respect is to drop coverage from the policy, but this isn’t always recommended. Auto insurance is a way to pay for any future accident repairs and medical bills, and without that coverage the policyholder will be left to pay for those expenses out of pocket.

Adding Another Driver: When the time comes to add another driver to the policy – a new spouse or teenage driver – the policyholder will notice an increase in their rates. Insurers also use the number of drivers on the policy to figure out how much to charge the policyholder. It’s actually cheaper for the policyholder to add drivers to the existing policy compared to putting those drivers on their own, new policy. The best thing that can be done here is to reiterate to those new drivers how important it is to keep their driving record clean to get the lowest rates. However, make sure to ask your agent (or attorney) what increased liability risk you have by keeping 18-25 year old kids on your policy.

Knowing how insurers determine auto insurance rates can help policyholders learn how to save money on their policies. They can make the appropriate changes that are necessary to lower their premium rates instead of wonder why they are charged a certain amount. At my agency we have all the tools you need to make great decisions on your Auto Insurance. Please give me a call at (231) 744-9099 or check my website at muskegonautoinsurance.net to discuss your needs.