Personal Auto – FAQ

Insurers discount their rates for good drivers and those who take  safety and security precautions. Depending on the insurer, you can often lower your rates from 5 to 35 percent. Insurers generally offer discounts for: 

• Clean Driving Record - No violations or accidents. 
• Safety Features - Anti-lock brakes, air bags and passive restraint systems (i.e., automatic seat belts).
• Defensive Driving - Clean violation record, driver's education courses for teenagers and defensive driving or accident prevention courses for adults (insurance discounts for the latter are required in some states).
• Security Systems - Alarms, electronic locks and disabling devices.
• Changing Driving Habits - Commuting by public transit, using a company vehicle for work-related travel and car-pooling.
• Buying Home Owners and Auto Policies from the Same Company - If you own a home and an automobile and you are insured by two different companies, check into the cost of carrying both policies by one insurer.
• Higher Deductibles: You can also lower your insurance rates by requesting higher deductibles. Increasing your deductibles on collision and comprehensive coverage from $100 to $250, or even $500, will bring your rates down. Moreover, you may not need collision and comprehensive coverage if you drive an older car.
• Multi-Car and Multi-Policy Discount:  Companies give additional discounts for multiple vehicles under the same policy, and for combining your home or tenants policy.

Auto Insurance policies are broken down into the following coverage areas:

Bodily Injury - covers injury to others you are liable for.

Property Damage - damage to property of others

Medical Payments - covers medical expenses for injury to you and anyone in your vehicle, regardless of fault.

Uninsured/Underinsured Motorist Bodily Injury - covers injury to you and everyone in your vehicle caused by someone not insured or someone that does not carry adequate coverage limits.

Comprehensive/Other than Collision - covers the vehicle for losses other than collision, upset, overturn, or hit-and-run, i.e., fire, theft of vehicle, vandalism, crime coverage, falling objects, glass breakage, water damage.

Collision - collision, upset, overturn, hit-and-run.

Towing and Labor - towing due to breakdown and labor for jump starts, or tire changes.

Rental Reimbursement - Extended transportation-provides coverage for a rental vehicle if your vehicle cannot be drive due to a covered loss. Mechanical breakdown is not covered.

If a private passenger auto is not a pick up or a van and is registered in the name of a business, it needs to be covered under a business auto policy. If the vehicle is registered in the individual's name, but is used for business use, some uses may be covered under the personal auto policy (for example a sales person). However, the personal auto policy must be designated as business use.

If an auto you lease is totaled in an accident, this provision will pay the outstanding balance of the lease if it exceeds the car's actual cash value.

Some things to think about are...

Teenagers are expensive to insure because they are the least experienced drivers. A driver's education course can help ease the burden of insurance costs since it teaches your teenager defensive driving techniques. If your child's high school does not offer driver's education, try to find one offered by another school or a private firm in the area. After all, the cost of driver's education could be cheaper than the extra cost of your insurance.

• Many insurers offer "good student" discounts, if your child is on the honor role or has a B average or better. This can result in a substantial savings.
• Teenagers are easily distracted by passengers, cell phones etc. Take time to talk with your teen and set rules when they start out on their own.
• Safe Driving: Accidents do happen, but accidents and violations are going to increase the cost of your young driver's insurance substantially.

Clark-Mortenson is an active participant in educating new drivers about the insurance process. Have your child give us a call and we will be happy to review the key areas that can effect your child's insurance one on one with them.