Southern Insurance

If you are facing buying your first car or recently obtained your driver’s license, the most immediate thing you need to do is purchase car insurance.  The process may seem a little over whelming at first, but below you will find some helpful information to determine what type of policy you need to purchase.

If you are a young driver or someone newly licensed that lives in the household of someone who currently has insurance, the best place to start is by having that person contact their current insurance provider.  Many insurance companies require that all drivers in a household be insured under one policy.  The reason for this is that it is very likely at some point you will end up driving a car that is already insured.

Aside from the risk factors the insurance sees by having multiple drivers in one household under different insurance companies, there is a benefit to you as well.  Often, to encourage one insurance provider per household, your insurance company will give you a price break based on your parent’s good driving history.  So it is beneficial for everyone- the insurance provider, your parents, and yourself, to explore this option first.

If you are shopping for insurance for the first time, or switching insurance companies, you will need to first decide what type of coverage you need to have.  If your car was a gift that was paid for in full, if your car was given to you as a hand-me-down, or if you purchased your car with your own money you have the option to choose between liability and collision insurance.  If your car has a payment, as a general rule, you will be required to have full collision insurance.

Liability only insurance means simply that if you get in an accident that is found to be your fault you will be responsible for all expenses for damage to your own car as well as your own medical bills.  Damage caused by you that is done to another person’s vehicle or property is covered by this insurance.  You will be required to have the state minimum amount of coverage, but understand that if expenses exceed that minimum amount you may be responsible for all expenses over the amount your insurance company agreed to pay.

Collision insurance is required if you make payments on a car, but is also a good idea if you car is new or valuable.  Collision insurance often doubles or triples the cost of liability alone.  This is because if you are found to be at fault in an accident you will receive the book value of the car you have insured.  If you owe money on your car, this money is used to pay toward your remaining loan.  You are not always completely protected however.  If your remaining loan amount is higher than the value of your car, you may still owe the bank money on a car that you no longer can drive, so it’s important to be careful not to get upside down on your car loan.

Doing your research is the best thing you can before purchasing insurance.  Make sure your needs are met without paying for unnecessary coverage that you hopefully will not ever need to put to use.

Every insurance company has some magic formula that calculates a whole lot of information and spits out your insurance premium rate based on the risk factors associated with insuring you.  This process is known as underwriting, and thanks to the wonder of modern computers it can often be determined just seconds after your information is plugged in.  But also thanks to the wonder of modern computers, a lot more information is taken into account now than in the past when that rate is decided upon.  While most of us will never have the brain power or desire to figure out this complex process, there are a few basics you can assume will go into an insurance company determining your premium rates.

1.The make and model of your vehicle- generally the first question you will be asked is what exactly it is you drive.  Computers keep track of the number of accidents and citations owners of certain vehicles receive, and take this into account when insuring your car.  It’s safe to assume that driving a shiny new sports car you will be more likely to get a speeding ticket than if your driving your Grandmother’s hand-me-down.
2.Your driving record- your past history behind the wheel of a car is a huge factor in determining your insurance rates.  Past accidents, tickets, and DUI charges will greatly impact your ability to get coverage at a decent rate, and may affect your ability to get coverage at all.
3.The area you live in- anyone who lives in a major city knows the perils of rush hour traffic.  One small fender bender leaves the whole city stuck on the interstate. You are much more likely to be in one of those fender benders if you live or work in this heavy traffic areas and your rates will be higher than someone that lives in a small town as a result.
4.Your deductible- the amount you set as your deductible affects your premium rate.  The higher your deductable the lower your premium as a general rule.
5.Basic coverage amounts- your policy is made up of several basic parts.  You have control over how much coverage you purchase above your states minimum required amounts. Liability covers damage to other people’s property. Collision covers damage to your own vehicle. In an accident that is your fault.  Comprehensive covers damages to your personal property and vehicle in the event of natural disasters, vandalism or theft.  Medical covers the medical bills that result from an accident.
6.Extras- there is many extras that can be added onto your policy, and while they do offer protection they also increase your premiums.  Uninsured and underinsured motorist covers your expenses in the event you are hit by someone who is not carrying insurance or amounts above what their policy covers.  Without it you could be left holding the bill even if the accident is no fault of your own.  Add-ons like personal injury protection, towing expense coverage, rental car reimbursements are convenient, but may be worth covering out of pocket to keep your payments low.

No one looks forward to the day they find themselves in a car accident.  Regardless of the severity of the accident, you are likely to be shaken by the situation and unable to think clearly through the situation. With this in mind, it is important to do your research ahead of time so you know what to do in the event you are involved in a car accident.

The process seems like it would be obvious.  Move your car out of traffic if possible, call the police, check on everyone to be sure there are no injuries, answer the law enforcements questions, exchange insurance information and be on your way.  After the accident you call your insurance company and get your car repaired.  Pretty straight forward, right?  Actually, not so much.

Every time you are involved in an accident that is reported to your insurance company it is recorded in your records.  Even the smallest of accidents can cause you to be considered a higher risk to insure, causing your policy premiums to skyrocket.  Some of these claims can be avoided all together, so it’s important to assess the situation before you call your insurance agent and report that fender bender.

The first thing to consider whether or not the police officer gave you a citation.  If you were the fault of the accident, it is likely that your rate will jump regardless.  So if there were damages to your car or the other person’s car its in your best interest to go ahead and call your agent.

Generally speaking, anytime there are injuries or damage to another person’s property you need to call your insurance company and alert them to the situation.  Failing to do so could cause your policy to be cancelled and finding new insurance coverage could be a very challenging task.

When the accident only causes damage to your own car and there are no injuries to report, you should use caution before you pick up the phone and report the incident.  If your teenage son, for example, forgets to put the car in park and bumps into the wall of your garage, you may not want to call at all.  Look at your insurance policies deductibles and also take a look at your current financial situation.  If the damage to your vehicle is less than the deductable, there is no point in reporting the damage.  A $1,000 deductible means your paying full price for anything bill that is less than that amount, so calling in the damage will only cost your more in the long run.  Even if your damages are a bit more than your deductible, if you have the funds to cover the repairs or you can live with the dings and dents, do so.  What you will pay in increased premiums over the next five years will likely cost you more than the bill from your local mechanic.

Your insurance is there to protect you from serious financial loss in the event of an accident.  It is best you look at is just that- coverage for the situations that are outside of your abilities to financially fix yourself.

Everyone should be aware of the fact that your credit rating and credit score can impact your ability to finance a new home or car and affect your ability to get a decent annual percentage rate on a credit card, but few realize that the impact of your credit affects much more than just new purchases.  About ten years ago, your financial history and ability to pay your bills on time began affecting your homeowners insurance.  For those with bad credit this probably was not much of an issue, as most people with bad credit do not own their own home.  But more and more car insurance companies are now taking your credit history into account when writing your insurance policy.

This is a pretty controversial subject, and for good reason.  You purchase and maintain car insurance to be a responsible driver and protect yourself from financial loss.  In a troubling economy like we have been experiencing the last few years, more and more people find themselves in situations where they must prioritize their bills each month.  More than a few of us have defaulted on student loans and credit card bills to pay for our homes and vehicles, as well as insurance on these important aspects of our lives.  One would think that prioritizing your insurance at the top of the list of your bills would ensure you have insurance, but that may not be the case.  Some insurance companies are actually dropping clients that have paid regularly because they have dropped the ball on other bills, thus lowering their credit rating and credit score.  Even companies that are not dropping their clients may still be capitalizing on others misfortune by making rates skyrocket as a response to your dropping credit score.

The laws and regulations that govern insurance companies are not federally set.  Instead, each state has its own laws dealing with insurance companies and what information they are permitted to use when determining your policy premiums.

Your insurance company has a complex mathematical procedure they even they likely cannot explain to you, but it takes into account many factors including your age, gender, marital status, children, the type of car you drive, where you live, your driving record and often your credit score.  This process assigns you a risk level to the insurance company, often based on their past experiences as a weighting measure.  Your risk factor determines your premium amounts, a higher risk equaling a higher premium rate.

Unfortunately, there is not much you can do about this whole process other than doing your best to stay on top of your debt.  Should you find yourself in a situation where your financial situation changes and you are at risk for not being to pay your bills you should seriously considering scaling back wherever possible rather than accumulating more debt.  Most states require the insurance companies to tell you what factors go into determining your rate, so calling around and finding a company that does not use credit in their determinations may be a viable option of protecting yourself as well.

A homeowner policy is designed to cover the named insured as well as residing family members as far as personal belongings are concerned. This includes both contents inside the home as well as contents away from your premises that may be in storage or a secondary residence.

What happens if a non family member like a boyfriend or girlfriend moves into your home? Will their contents automatically be covered? The answer is typically no as this person does not fall into the definition of a named insured or residing relative. To solve this coverage issue, the non-family member will need to secure an inexpensive renter’s policy to cover their belongings.

What about your child’s contents who is away at college? Will they need to secure their own renter’s policy or will their contents be covered under the parent’s homeowner policy. The answer is that you need to save your money as the contents coverage extends to your child at his or her location at college.

The same holds true if you own a secondary residence. Your contents coverage under your primary residence will actually transfer covering the contents under your secondary. Based on this you can adjust your coverage downward so that you don’t duplicate your contents limits. Of course keep in mind that you have to make sure that the contents limits under your primary are adequate to cover both locations.

For more details on how your contents are covered please contact you agent for a review.

Car insurance is expensive; there is no doubt about that fact.  But like taxes, it is one of those things that we just have to pay.  It may seem like an easy option to just let your insurance slide, especially when facing financial difficulties as many Americans are today.  But the reality is, that if you own a vehicle or drive, you must be insured.

The consequences for driving without insurance vary from state to state, and perhaps even county to county.  You are required to show proof of insurance anytime you are stopped by a police officer.  In the event you do not have insurance, you will at a minimum be cited and have to appear at court.  The court fees are your responsibility, along with any fines.  And they will force you to get the insurance you should have had in the first place, and that is if you are lucky.  In some areas driving without insurance will not only cost you court fees, fines and the cost of insuring your vehicle but also vehicle impoundment fees, loss of license and jail time.  And this is just thinking you simply get pulled over for a traffic stop.

The real damage is done if you are in an accident without having proper insurance.  You could find yourself responsible for the damages to your own car, other cars involved in the accident, medical bills for yourself as well as other people involved in the accident… the list goes on and on.  Medical bills alone for one person in a serious accident can run into the hundreds of thousands.  In the blink of an eye, you can find yourself in the midst of a legal and financial nightmare, and simply put, losing everything you have worked for including your house.

Obtaining car insurance does not have to be extremely expensive, although if you have gone without coverage for more than thirty days you will likely pay a higher premium than someone who has maintained the minimum amount required by law.  Look into your states requirements, and at the very least carry those amounts of insurance on your vehicle.

Unless you make car payments, you can generally get by with basic liability coverage.  Depending on several factors including the type of car you drive, your driving record, your lifestyle (a spouse and children will pay off for you in this regard), and your age basic liability may cost you as little as $50 a month.  Shop around and get quotes from a minimum of five companies, even more if you do not find a quote you are happy with.

If you absolutely cannot afford car insurance, look into other transportation methods while you get back on your feet financially.  No matter how you look at it, driving without insurance is not a risk you should take.

At least once a year it is a good idea to dust off you insurance policies to make sure your coverage’s are still relevant for your needs. This holds true for your auto, home, life and health policies. Below are some quick tips for making sure your policies are current and up to date.

Auto Insurance Policy

For the most part, year after year you will tend not to need to make too many changes regarding your car insurance coverage’s or limits. However, whenever you have some kind of life-changing event like a student driver, or taking a driver off the policy, you should make sure certain items are updated. For instance, if your 23 year old son decides to move out on his own but the vehicle is still titled in your name, you need to make sure the limits he secures on his policy reflect your assets as you will be named in the lawsuit because of the ownership of the vehicle. Or you can have the vehicle titled to his name only.

Another example could be your F-150 pick-up truck is now over 10 years old. This is getting to the point that you should start considering taking off the comprehensive and collision coverage on this vehicle. Keep in mind that if you also have towing and rental, that these coverage’s will need to come off as well if you delete comp and coll.

Remember that your agent is trained to help uncover various changes in your household that may need to be changed or updated. One of the most common updates involves people moving into your household. Some carriers won’t pay out a claim if an undisclosed driver is in the household who has a claim in your vehicle.

Homeowner Insurance policy

Homeowner insurance has changed quite a bit since the 04 hurricanes that hit the state of FL. Now carriers are offering huge discounts for wind mitigation factors like new roofs and shutters. If you have made any of these changes you’ll need to submit these to your insurance carrier for the proper discounts.

In addition, if you have made any structural changes to your home, you’ll definitely want to contact you agent to make sure the values for your home reflect these changes. Also, the dwelling values have dropped about 40% over the last 3 years so you may also find that your home is over insured. Your agent can complete a replace cost estimator to verify the proper value.

What if you just bought your wife an expensive diamond anniversary ring worth $10,000? You assume because you have $150,000 of contents coverage on your homeowner policy that you are covered. Unfortunately, if someone stole her ring they would find out that their policy has a limitation for theft of jewelry for 1000. A review with his agent explaining this addition, would have allowed the agent to insure it properly.

Lastly, keep in mind that if you have added a diving board, slide, trampoline, ATV, or buy a dog on the bad breed list, your coverage’s may change if a claim arises from these hazards. Most insurance carriers won’t write you if you have one or more of these risks so if you obtain them after your policy is in force just make sure you understand how your coverage’s will apply if at all.

Dusting off your policy and reviewing these changes in your lifestyle with your agent, it may save you a lot of headaches down the road.

Most of us know that the big ways to save on our car insurance is to only have collision insurance on cars with enough value to warrant having collision.  Keeping deductibles set at the highest rate we can afford to pay out of pocket is another.  But many of us overlook the little add-ons that get stuck to our policy that increase our rates.  Below are a few ways to save even more on car insurance that you might have over looked.

Life events impact us in many ways, but did you know they could affect your policy premiums as well?  Generally speaking, insurance companies like people who play it safe.  When we do certain “grown-up” things these make us look like safer people in the eyes of the insurance companies.  So if you have a major life changing event- such as getting married, having a child, earning a college degree to name a few- call your insurance company and see if you get a price break.  There is no harm in trying, and you may be pleasantly surprised to see that your mother is not the only one happy to see you growing up and “settling down”.

Auto drafting your payments is another way to skim a few dollars off of your insurance bill.  You will find the biggest price break if you sign up to have your full premium debited from your account on either a yearly or semi-yearly basis, but even if you need to pay month by month most major insurance companies will give you a small break for auto drafting your bill from your checking account or credit card.  Insurance companies like to be certain they are getting paid, and auto draft is one of the ways they can assure that they will be paid on time.  It is like insurance for the insurance provider, and they like that!

We all want to be safe on the roads, so double check that your car has all possible safety features.  Things like passenger side air bags, stability control, amiable headlights, anti-lock breaks and security alarm will all help chip away at your premium price.

If you and your spouse or children all drive vehicles, look at how each person is billed.  If you bundle your household drivers together on one policy you will likely find you save a significant amount of money.  You may also find that even though you are all insured by the same company it does not mean you are getting a multi-driver discount.  To be safe, call your insurance company and ask if you are receiving this discount and have them rectify the situation if you are not.

Lastly, keep on top of your bills.  Even the bills outside of your car insurance can greatly affect your premium rates.  While most people argue it is not fair to base your premium on your credit, it has an impact.  The better your credit score the lower your payment will be.

Usually homeowner insurance claims are something that can’t be prevented; however, below are some tips that can help you minimize some of the claims that are avoidable.

1- Inspect Your Roof: The weather in FL can take its toll on your roof so it is always a good idea to inspect your roof for possible warn areas. One of the biggest areas where leaks occur tends to be around skylights, and vents. As a result it is a good idea to place additional roof tar and caulking around these areas to prevent future leaking.
After a major storm is also a good time to inspect your roof to make sure no damage has occurred. If you are near trees, make sure no branches have fallen and pierced the roofing membrane. It is always best before a storm to make sure any branches are cut back to avoid this problem. Also make sure the wind hasn’t lifted up or separated any of your shingles.

2- Motion Sensor Outdoor Lighting: The last thing a prowler wants when sneaking up to you home to break in is to have your outdoor flood lights turn on to expose his intentions. This lighting is very inexpensive and can be obtained at your local home improvement store. Make sure when adding motion sensors that you address all sides of your home, entry ways and drives.
Because a good percentage of criminals case a potential home before they break in, adding this simple motion lighting may be cause enough to avoid braking into your home.

3- Plumbing and Electrical Updates: As homes age, plumbing and electrical issues become more prevalent. For instance, older homes with copper plumbing will tend to develop pin- hole leaks that usually keep forming until you eventually have to replace your piping. In addition, toilets, showers, and refrigerator hoses also have a high tendency to wear out over time. If you notice any changes a thorough inspection should be made to make sure there isn’t a further issue.

Outdated electrical systems can sometimes cause fire problems in a home. Every few months do a thorough check of your home. If you notice any faulty electrical outlets or wiring get it repaired right away. One small fix could save you a lot of grief in the future.

4- Inspect Fire Extinguishers and Smoke Alarms: Fire Extinguishers are something we all buy with good intentions but then store it in some cupboard that we would have to search for when we really need it.

Regarding inspecting your fire extinguisher, who does that? How do you even inspect it to make sure it works? My suggestion is that you own several that are kept in strategic locations throughout the house. Hopefully they will work when you need them most.

Smoke alarms should be inspected 2-4 times per year to make sure the batteries are still good and the actual alarm still works. Some ideas for keeping track of these inspections are the first day of each new season for 4 times a year or when daylight savings time occurs if you want to check them twice a year. Having smoke alarms and fire extinguishers that are working and are in an accessible location could make the difference between life and death.

5- Monitored Fire and Theft Alarms- If someone gets past your lighted motion detectors a monitored alarm system is your next level of protection to deter the intruder. Not only does the alarm go off when they break in but the authorities are called so intruders know they have to get out quickly. Also keep in mind that not all burglary claims occur at night. A lot of criminals will break in during the day while you are at work. Motion detectors won’t help in this situation.

The same holds true for the monitored smoke alarm. If you can’t locate your fire extinguisher and the fire gets out of control, the smoke alarm will automatically call the authorities to hopefully minimize the damage.

I hope these tips have been helpful in your understanding how to minimize your claim activity.

Car insurance is one of “those things” in life that you just can not avoid, unless you really like public transportation and are willing to give up your car.  But lets face it, few of us wants to wait for a bus in the freezing cold rain or spend our days memorizing bus schedules.  In all states, law requires insurance if you plan to take your car out of your driveway, and in some states even if your car will not make it out of the drive way you still have to have insurance to own it.

The good news is shopping for car insurance is much easier today than it was ten years ago.  The internet makes national insurance companies fight for customers, which means great opportunities for you to save.  In the past you had to open a phone book, find insurance companies, call each one, repeat the same information over and over until you found a good deal.  Now you can simply visit specific companies websites for a quote or use on of the free services that get multiple quotes instantly for you to choose from.

There are a few things you do need to know before you plug in your information and start comparing quotes.  First, you should do a quick search to see what the minimum coverage requirements are for your state, as these vary.  You will also need to have the dates of any moving traffic violations (parking tickets do not count) or accidents you have been in.  You will also need the year, make model and vehicle identification number of your car.  Lastly, if you make payments on your car you will need the lien holder’s information.

Once you have gathered this information and found the company or broker site you are getting a quote from you will need to decide on the type of coverage you need.  If you have car payments you will need full coverage, or comprehensive collision, insurance.  If you own your car outright the choice is yours to make, but remember while liability insurance is cheaper it does not cover damages to your own car.  So basically, if you total your car in an accident and are found to be to blame, you are out a car.  Generally only people with older cars that have a low value will want to go this route.

Be honest about your past tickets and accidents, as the insurance company will eventually run your motor vehicle report and catch you if you try to hide anything.  That can result in penalties, higher payments and cancellation of insurance.  Once your quotes are in, pick the best one for your needs and budget and you are ready to drive!