Just about every state in the country requires you to have compensation in place for property damage that you may cause with your vehicle and either bodily injury liability for injuries caused to others and/or Personal Injury Protection (PIP) to pay for an injury suffered by the policyholder regardless of who is at fault. States will enforce these laws which are known as the Financial Responsibility and No Fault laws. Although there are a few different ways to satisfy these laws such as making a cash deposit with the state or obtaining a surety bond for a specified amount, most drivers choose to purchase auto insurance and maintain coverage through an insurer.

Although not all states require it, it may be a good idea to always carry proof of car insurance at all times while operating an automobile. If you are involved in a traffic accident you will need to swap policy information following the incident so having the documentation readily available can make it a whole lot easier and faster to go through the claims process. In many states it will asked for by a law enforcement officer upon arrival at the scene of the collision and in many cases not having proper proof will give the officer the impression that you do not have coverage which may result in a fine and a “need to appear” in court with the documentation necessary; both of which can be avoided by simply carrying that piece of paper.

Additional Information about Proof of Auto Insurance

When you purchase an automobile policy, the agent or his representative  should provide you a temporary proof of insurance as soon as the transaction is complete and the finalized documentation should be mailed to your residence. On the identification cards most states require that particular information is stated on the documentation; in most cases states require that the cards show the name of the insurer, a policy number, the effective date and expiration date of the coverage, your name, a description of the year, make and model of vehicles including the “VIN”. It is the responsibility of the policyholder to ensure that all information is correct.

You should make yourself aware of whether or not you are required by law to have proof on you at all times while driving because fines can get quite expensive and become a hassle if you are caught without the proper documentation (even if the state does not require identification cards to be carried it is probably a good idea to do so anyway.) States which require you to have policies you at all times will allow law enforcement officer to ask for identification cards at routine traffic stops and if unable to furnish the driver can be cited. According to the Washington State Department of Licensing those who are caught operating an automobile without coverage can be given a fine of at least $450 which can be close to the amount it would cost to purchase a policy. It would be wiser to always have the documentation ready and never risk driving uninsured.

Feel free to call me at 1-888-365-7553 or start by checking www.muskegonautoinsurance.net

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.

Parents and teenagers often disagree on a number of issues, but saving money on car insurance is one issue that they should agree on. Many times, it’s the parent that is paying for the insurance premium charges and the teenage driver isn’t too worried about the expense. It’s not until the parent sits down with their child and explains the process of purchasing car insurance for them and the vehicle, how coverage is decided, and what it takes to pay for the insurance policy that the teen starts to understand the importance of this insurance. Teenage drivers who can grasp the value of the coverage may decide to care more about how safely they are driving, especially when they realize how much accidents cost and affect the car insurance premium.

For The Teenage Driver:
Teenagers are placed in a different category of drivers than their parents. When they are ready to be put on a policy, the auto insurer automatically assumes them to be a high risk driver due to their lack of experience. Don’t take personal offense because this is decided based on the statistics showing teenage drivers being involved in a high number of accidents. If anything, take responsibility and keep your driving record clean, which means free from accidents and traffic tickets. If you can manage to do this for three years, you will begin to see a decrease in your premium rates.

Something a teen driver can do is  to help pay for your part of the rates as a secondary driver. It becomes an expensive bill as more drivers are added to a policy and parents might offer more flexibility in their rules if they see you trying to make an adult-like effort and taking financial responsibility for your activities.

Showing them this process might have a lasting effect so when they are old enough to leave home and purchase their own car insurance policy, they will know just what to look for.

Look for a vehicle that is insurance friendly. It may not be the most popular car in the market, but an automobile that helps you get lower rates will be easier on your wallet. Vehicles that are a few years old, have safety features, and aren’t flashy sports cars will be your best bet. If you’re curious about which specific cars will help you save money, contact me and ask what rates Farm Bureau would charge for different cars. A young driver and a car that requires “full coverage insurance is the most expensive combination.

For The Parent:
Parents are always looking for ways to save money with their children’s endeavors, and saving on car insurance is nothing different. One way to help save on future premium hikes is to set an understanding with the teenager of what is expected, or rules that need to be followed and the consequences that will be experienced if they cause an accident or receive a traffic violation. Many of my clients warn that the child will get their own insurance if they get a ticket. It’s a great idea to bring your new potential driver in with you and let me help you educate them. on the rules of the road and the cost of driving poorly in the early years.

Some rules could include the specific hours the teen may drive (sun up to sun down), who is allowed in the vehicle when the teen drives, whether or not the radio or cell phone can be used while driving, or how many miles the teen is permitted to drive per week or month. These rules may only need to be enforced for the first year of driving or they may need to be in effect for longer, depending on the teen. As your child demonstrates an ability to follow your rules and state traffic laws, you can more easily trust their driving skills and lighten up on certain expectations. But, this doing is choice of the parent.

Another idea is to expect the teen to contribute in paying for part or all of the premium charges. Many parents require their teenagers to pay for their portion of the insurance rates before the policy period begins. This is another way to instill responsibility in the teen and help them understand the values of money and good coverage. It is less expensive to keep the teen driver on the parent’s policy and not create a new policy just for the teen, especially when they are listed as a secondary driver because their use of the car is limited by the parent.

For Both:
Working together as a parent and teen team is the best way to save money on car insurance for the teenager. Look us up to find the best premium by seeing what we’ll will offer. Start with calling me at (231) 744-9099. Or check out www.SteveBedgoodAgency.com.

Providing honest, accurate answers will ensure receiving an accurate quote that won’t change at the time of purchase (if you choose to make a purchase). This can even be done for teens who only have their driving permit and have some time before they turn 16 and are eligible for a license. These kids do need insurance and can be added as soon as their permit is qualified.

You’ll see that Farm Bureau Insurance has a strong financial status and great customer service rates. Write a list of the pros and cons of each policy, and then make a decision.

It could also be valuable to go through a couple things before the teen is allowed to drive. For instance, explaining what is and is not covered on your policy will help the teen better understand the estimated costs of repairs when damages occur. Also, go through the process of what should be done if the teen is involved in an accident, such as who should be called and what information will need to be given to the officer and other driver.

Auto insurance for teenagers can be quite expensive, but when there is a mutual understanding of what is expected between the parent and teen, a higher chance of saving money happens.

Check out www.muskegonautoinsurance.net

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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Muskegon residents should know what type of car insurance coverage they need to carry to comply with state law before purchasing a policy. There are different coverage types that are required in addition to the amount that needs to be purchased. Beyond those requirements are other alternatives that can be added to the policy according to the needs or desires of the policyholder. Finally, I’ll explain the easiest way to purchase insurance for a vehicle that can get the best quotes.

MI State Auto Insurance Requirements
State law says that every driver in Michigan must carry the correct type of financial responsibility to legally operate a vehicle on public roads. The most common form of financial responsibility is purchasing an auto insurance policy. There are many, many companies throughout the state that offer a variety of policies at different prices for motorists to choose and purchase.

Like many other states, Michigan requires their drivers to carry bodily injury liability and property damage liability in a 20/40/10 minimum amount. This means that the insurer will pay up to $20,000 for the bodily injuries of the other driver and passengers per person and up to $40,000 for the bodily injuries combined. This coverage also will help cover court costs. The 10 in the 20/40/10 refers to the $10,000 that will be covered in property damage, and the insurer will pay for those repairs up to $10,000. These are only the minimal amounts required and it is recommended by experts for drivers to carry a 250/500/1000 policy for bodily injury and property damage liabilities.

Michigan also requires drivers to carry two additional coverage types in their minimal insurance policy, personal protection insurance and personal injury protection. Personal protection insurance is in the amount of up to $1 million and pays for damages caused to other people’s property. It is similar to property damage but check with the individual provider to get the exact terms of coverage. Personal injury protection pays up to a certain amount for the medical bills and any lost wages for up to three years. It covers medical expenses of the policyholder, members of the policy and any passengers of the accident no matter who caused the accident. This coverage can be used in addition to the coverage of a healthcare policy. Personal injury protection is a great coverage for drivers who carpool regularly since passengers are covered under it.

Additional Coverage Options
There are other coverage types that can be added to the minimum state requirements to ensure full coverage on the vehicle. Comprehensive and collision are very popular types to add to a policy. Comprehensive insurance covers damage done to a vehicle that was caused by something other than a typical on the road vehicle accident. This can include weather related causes of damage such as hitting a deer, strong winds or hail. Collision covers damage no matter who caused it. So, when in an accident that was the policyholder’s fault, their state required liabilities will go towards the other driver’s repairs and medical bills, and the collision coverage will go towards the policyholder’s vehicle for repairs.

Other options include protection for the policyholder from drivers who do not have auto insurance or who have a small amount of it and cannot pay for the full repair bill. Uninsured and underinsured motorist liabilities would be used in this situation, and it would be the policyholder’s insurer who pays for these damages incurred by the other driver who has insufficient insurance or no insurance at all. This coverage is actually required in other states.

A few other additional options would be the towing coverage and the rental car coverage. Each of these are for the policyholder’s convenience. The towing coverage allows for a tow truck to haul the policyholder’s insured vehicle away from the scene of the accident to a body shop, and the rental car coverage forces the insurance company to pay for the rental car fees that occur when the policyholder’s vehicle is being repaired. Most often these are covered up to a certain amount and are not just a blanket amount covering however much the policyholder feels necessary. For example, some insurers only cover up to $25 a day or up to $50 a day with certain rental car coverage options. These optional types of coverage are not always included when you ask for “Full Coverage”.
Find out which other options we offer by contacting me at www.muskegonautoinsurance.net or call me at (231) 744-9099. I’ll help you to get the best coverage for your budget.