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.

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

Why Devote a Month to Life Insurance Awareness?

These are unsettling times. Over the past year, almost every pillar of our financial security has been shaken, one by one. The bursting of the real estate bubble, the precipitous decline in the stock market, a rapid spike in job losses. Now more than ever, Americans are searching for ways to maintain basic financial security.

One source of financial security still stands strong, however, and that’s life insurance. It continues to do what it was designed to do – serve as the foundation of your family’s financial security.

If you own a term life policy, the death benefit it would pay if you died tomorrow is unchanged from last week, last month or even last year. If you own a whole life policy, your death benefit is also guaranteed, and over the past year your cash values have actually grown, not declined. In this tumultuous economy, you can take comfort in knowing that life insurance – whatever type you own or intend to buy – can provide some certainty and stability at a time when both are in short supply.

To make sure Americans are reminded of the need to include life insurance in their financial plans, the nonprofit LIFE Foundation coordinates Life Insurance Awareness Month. Each September, LIFE is joined in this educational initiative by more than 100 of the nation’s leading insurance companies and other industry groups.

Almost everyone knows they need life insurance, but almost no one wants to buy it. That’s understandable. No one likes to think about dying, so we procrastinate, make excuses, or hope that we’ll be one of the lucky ones that lives a long life. But what if you’re not one of the lucky ones? What if you haven’t planned properly? The amount of life insurance you own is likely to determine whether those you love will have a financially secure future or be confronted with years of financial hardship.

Our website is the leading source of objective information about life insurance. We encourage you to spend a few minutes learning more and trying our interactive tools like our Life Insurance Needs Calculator. If you determine that you have a need for coverage, we strongly urge you to act by contacting an insurance professional who can help you safeguard your family’s financial future.
You can find out more about me and the life insurance I offer at www.muskegonlifeinsurance.com of just call me at (231) 744-9099

 When drivers get into an accident, their first thought is often “How much will this cost?” It depends on your insurance company and your state’s laws, but part of that cost will likely be an increase in your auto insurance premium – unless the accident was very minor.

How Likely Is a Rate Increase?

The chance of an increase in premium rises along with several factors:

• Accident severity.
• Your degree of fault, unless you’re in a “no-fault” state.
• The value of the insurance claim you or the other driver files.
• Type of violation, if you get a ticket at all.
• Whether the violation or accident appears on your MVR or CLUE report.

How Much Money?

Like everything else about insurance prices, the amount of an increase, if any, varies by company. However, based on a 2008 Insurance.com study of the effect a violation or insurance claim has on premiums, the price can be high. Drivers who had an additional ticket saw their rates increase from $157 to $248 a year while those who had an additional claim saw increases ranging from $302 to $458 annually.

When Will It Go Up?

These increases are typically seen at renewal time, but if you didn’t notify your insurance company (please do!) and no one made a claim, it could take awhile for the company to find out. Rest assured that they will not be happy to uncover a ticket or accident you failed to report. If you’re switching companies, they may not find out until they order your driving or claims history, at which time they may decide not to issue you a policy.

Accident Forgiveness

Some insurance companies, including us at Farm Bureau,  offer an accident forgiveness feature for our clients. If yours does—and you qualify—your rates may not increase if you’re found to be at fault in a relatively minor accident. However, there could be severe consequences if you’re involved in a major accident and you’re driving under the influence. Remember that there are worse things that can happen than a higher insurance premium, like license suspension and jail time.

MVR = Motor Vehicle Report. Not every traffic ticket actually appears on your MVR. In fact, in some states only 75% of all moving violations are ever recorded on an MVR.

CLUE = Comprehensive Loss Underwriting Exchange. C.L.U.E. is a claims history database created by ChoicePoint that allows insurance companies to access your claims information when they underwrite or rate a policy. The report includes claim information such as date of loss, type of loss and amounts paid, and vehicle description.

Car Insurance can vary widely from company to company. Come see me at the Steve Bedgood Agency and we’ll do our best to get you get you the best policy we can based on your situation.

Contact me at www.muskegonautoinsurance.net or call me at (231) 744-9099

If your already in business with an insurance policy the basics of this article will be familiar too you. Yet, in this article we share the 5 tips that could save you thousands of dollars on your current or next policy so it very well could be worth your read!

All insurance companies exist for one reason. They are in business to make a profit. The way they do this is simple. We, the customers with insurance policies, pay a premium for the peace of mind that if something bad should ever happen, the insurance company will compensate us for the losses and we won’t loose the items were insuring. If the insurance company pays out less for claims than it brings in from all the current policies it makes what’s called an underwriters profit.

So obviously ‘business insurance’ is a policy which is intended to serve the needs of a business rather than the needs of an individual. In general this type of policy protects a business from monetary losses due to just about any type of catastrophe you can imagine, fire, theft, vandalism and even business loss insurance can protect a business should they have a bad quarter or lose money for a short period of time. Business insurance can also help stabilize your business by establishing better credit relations and provide a retirement plan for your employees.

Needs of Business Insurance:

Whether it is a small enterprise or a large corporation, the success of a business always depends largely on the hard work and ingenuity of its employees. Yet, a single disaster can eliminate all the profits, wipe out a business and leave many hard working employees on the street. The only key to make sure that all the money and effort that have been invested in a business is completely secure in case of any tragedy to the business is to protect the business with an appropriate insurance policy.

There are mainly five ways to save money on a business insurance policy and they are as follows:

1. Shop around: Now a days it is very easy in getting the names of companies or brokers who specialize in business insurance and comparing prices online before purchasing, this alone can save you serious money off your monthly premiums over the next few years. (When you’re shopping, make sure you check with me at (213) 744-9099 or check out www.SteveBedgoodAgency.com

2. Choosing a higher deductible: By choosing a higher deductible you the customer pay less for the policy. As an additional side note here, this also works for homeowners insurance and auto insurance and can save you thousands over the next few years as long as you know that if you need to make a claim it will be a little more out of your pocket.

3. Purchasing a package policy: It is sometimes cheaper to purchase a package policy rather than individual coverage and this can be ideal for small and medium sized businesses. Ask me about our “Guardian Policy” for small businesses.

4. Work closely with the insurance agent: By working closely with your insurance agent you’ll get valuable advice to protect your business from unexpected disasters.

5. Follow the Insurer’s recommendations: By following your insurer’s recommendations and guidelines you will be able to reduce your premiums. Basically this is because the insurer thinks you are less likely to make a claim.

Benefits of Business Insurance:

It’s not usually required but, most businesses have a certain kind of insurance whether they are a for-profit or nonprofit company. That is why business insurance is very essential for every companies as business risks increase year by year. It is very necessary to know what insurance to purchase depending on the nature of your business. If there are lots of assets in your business then the theft and property damage insurance should be considered as well.

Countless hours from talented staff are spent in developing your business. Therefore it is very important to plan to secure your business from a lawsuit, natural disaster strike or some other crisis. And thus we find the actual need of business insurance.

My goal is to make sure that everything you need covered is covered and make sure we keep your budget in mind.
To learn more about the Steve Bedgood Agency and how we may be able to help you, visit www.muskegoninsuranceagent.com or call me at (231) 744 9099