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How to Choose Car Insurance in 4 Steps

Because there are so many companies selling car insurance, sorting through all the choices to find the right policy for you and your family can be a challenging task. With each carrier claiming to offer the best value, it’s easy to feel confused. At first glance, all of the policies may look the same, but there are important differences you may need to consider. Your goal should be to find one that includes all the benefits you need at a competitive price.

Follow these four steps for finding the best car insurance policy for you:

1. Determine the Level of Coverage You Need

The cheapest policy may not be the one you need. Inexpensive plans may not provide collision coverage, which pays to fix your own car following an accident. They may not offer comprehensive coverage, which covers damage to your car not caused by auto accidents, such as natural disasters, theft or vandalism.

The nonprofit Insurance Information Institute notes that all states except New Hampshire require property and bodily injury liability coverage.1 A policy that offers only the minimum amount of liability protection required by law may save you money, but it probably won’t cover the legal claims that can stem from serious accidents involving property damage or injuries.

Remember that not everyone’s insurance needs are the same. For example, if you’re leasing a car, you may need gap insurance. If the car is totaled, gap insurance covers the difference between the actual cash value of the vehicle and the outstanding balance on your lease.

2. Review the Financial Health of Car Insurers

Everyone wants a good deal on their auto insurance policy, but low rates won’t do you any good if the company you choose isn’t around to pay its claims. Online reports from independent ratings companies, such as A.M. Best, Fitch, Moody’s and Standard & Poor’s, can help you determine your insurer’s financial health, says Investopedia.2

Each ratings agency uses its own standards for evaluating insurance companies and their financial health. 

3. Compare Several Car Insurance Quotes

You can shop for insurance by going online, using the telephone or working directly with insurance agents. A report by Bankrate says getting multiple quotes is important because prices for the same level of coverage vary greatly.3 That happens because insurance prices are based on risk. Each carrier has its own formula for measuring the policyholder’s risk for filing claims.

Some insurers rely heavily on insurance scores to determine how likely policyholders are to file claims. Other companies may give more weight to the type of car you drive and how expensive it would be to repair following an accident.

Where you live also can be a factor in determining what you pay for car insurance. If your ZIP code has a higher-than-average rate of car accidents, your insurance costs could be higher. 

4. Ask About Discounts

Many insurance companies offer discounts, notes MarketWatch.4 If you have a teen with good grades on your auto policy, he or she may qualify for a reduced insurance rate. Some insurers offer discounts to drivers who meet annual low-mileage thresholds or take driver education classes. If your car has an anti-theft device, that also could qualify you for a discount.

Be sure to ask to request a list of all available discounts. It could make a big difference in how much you pay for your policy.

Now that you’ve got some ideas on how to save on your car insurance, you may want to check with your carrier to review your coverage. You can get a quote from Southwest Federal Insurance.

Sources:
1 http://www.iii.org/article/auto-insurance-basics-understanding-your-coverage
2 http://www.investopedia.com/terms/i/insurance-company-credit-rating.asp
3 http://www.bankrate.com/finance/insurance/tips-for-getting-car-insurance-quotes.aspx
4 http://www.marketwatch.com/story/11-little-known-car-insurance-discounts-2013-10-22?page=2

10 Ways to Save on Your Car Insurance

Car insurance is a necessary expense for many people, and there are a variety of ways to save on this household cost once you know what it takes. To get started, gather your personal information, determine your budget and then consider the insurance coverage that you think will best safeguard you and your lifestyle.

Here are 10 ways to save on your car insurance:

1. Gather Specifics About Your Car and Its Primary Drivers

One way to begin the process of shopping for car insurance to get the most value for your money is to gather all of the information an insurance carrier needs to offer you the best possible rate. Start by compiling this basic information before you shop for quotes:

– Make and model year of your car. You’ll find it on your car’s registration.

– Vehicle Identification Number, or VIN. This is located on the inside of the driver’s side door pillar.

– Your car’s safety features, including lane departure warning system, forward-collision warning and a back-up camera.

– The anti-theft devices you use, including such mechanisms as an electronic tracking device or a steering wheel lock. Along with understanding the anti-theft features, you’ll want to take note of where you will be parking your vehicle. Consider the difference between parking your car in your garage versus parking it on the street or in locations outside of your home.

– An estimate of how many miles you drive annually, plus your home and work addresses.

– A list of everyone who will drive the car, their ages and any driver safety courses they have completed. Many insurance companies also want to know who in your household is of legal driving age, what their license status is (such as whether they have a learner’s permit or a suspended license, for example) and whether other drivers in your household have their own insurance. Depending on the state, this can help the insurance agent determine who should be listed and considered for your quote.

With this information, an insurance carrier can suggest the best coverage and rates for you and your lifestyle.

2. Research How Much Car Insurance Costs Before You Buy or Lease

When you buy or lease a car, it can be tempting to get a brand-new car or trade in your practical family vehicle for a sports car. Just keep in mind that the type of car you drive may impact your insurance coverage and rate. Be sure to check the cost of insurance before you finalize your car purchase or lease. Insurance rates may vary widely depending on the type of car, repair costs, safety record and many other subjective points.

3. Research All Car Insurance Coverage Requirements

Each state has specific requirements for car insurance coverage.3 Coverage may become more complicated when a financial institution owns the vehicle you drive, so if you’re taking out a loan to make the car purchase, keep in mind that the lender may require you to have specific insurance that might otherwise be optional.4 One example is collision insurance that pays for the repairs of damage to your car sustained during an accident. Another example is comprehensive coverage, which typically covers the loss of the car for theft, fire and other damage due to non-accidents. Find out what coverage you need and the cost before you buy or lease.

4. Decide What Additional Coverage You Need

It may seem counter-intuitive but buying additional car insurance coverage may save you money.5 Weighing the options for additional coverage will help you to ensure you are well protected. Consider how your finances might be impacted if you’re involved in an accident, and the injuries or damages exceed the amount covered by insurance. You purchase car insurance to help protect against the potential costs of a theft or accident, so be sure to talk to your insurance agent or carrier for professional guidance on the appropriate level of coverage for you.

In addition, there are other coverage options that may save you money. What if your financed car is totaled? Can you afford to pay the entire loan? In this case, you may want to consider GAP insurance, which covers the difference between what your vehicle is currently worth, which is what your standard insurance typically will pay, and the amount you owe on it.

5. Save Money with Accident Forgiveness

Having a clean driving record is one thing that typically can help you to qualify for lower premiums. But there are times when even a good driver can have an accident. You may want to consider looking into potential savings through Accident Forgiveness and Minor Violation Forgiveness, if available in your state. These optional features can help you avoid a premium increase following your first covered accident or minor violation. There are also other features that can help provide peace of mind, such as Decreasing Deductible and a Total Loss Deductible Waiver. Ask your insurance agent about these plans, if you fit the bill as being a responsible driver because of your good driving record. Some carriers – in select states – also offer a program that uses smartphone technology to capture and score driving behavior of drivers covered on your policy, which could result in savings both in your first term and at renewal. It’s another option to explore when you’re a good driver and looking to save on your car insurance.

6. Determine What Car Insurance You May Not Need

If you own an older car and are looking to trim your expenses, you may consider dropping collision and comprehensive coverage. You’ll want to consider how much your older car is worth when you consider the cost of your premium including collision and comprehensive coverage. Be sure to also consider your individual driving situation to base your cost-cutting efforts on all the factors that could help you determine if this is a wise choice for you. With an older car, you may be paying premiums that total more than your car’s value. Typically, if your car is worth less than 10 times the insurance premium, it may not be cost effective to keep that part of your coverage.

7. Life Cycle Events Can Save Car Insurance Costs

One thing you can count on is that life will sometimes bring changes in your lifestyle and circumstances, so it’s smart to consider how these changes may or could affect your car insurance costs. For example, did your child go away to school? Perhaps there’s a Student Away at School discount you can explore. Did you buy a home? Maybe you can explore a Multi-Policy Discount and get the benefit of bundling your policies. These are some of the events that may help lower your car insurance rate. It’s a good idea to notify your car insurance agent when you have a major life event such as these, to have a conversation to ensure you’ve got the best coverage for your current life needs.

8. Choose the Deductible That Is Right for You

Your car insurance deductible is the amount you’ll pay out of pocket before your insurance kicks in. The lower the deductible, the less you’ll pay out of pocket if an accident occurs. Selecting a higher deductible may lower your car insurance premiums.

For example, if you choose a $1,000 deductible and have an accident causing $2,000 in damage, you would pay the first $1,000 of a covered loss before insurance kicks in.

9. Compare Car Insurance Companies and Costs

With many things we buy nowadays there are choices. Many of us wouldn’t think of buying a product or service without comparing prices, the value you get for your money, and the reputation of the provider. You may want to consider using the same philosophy when you purchase car insurance. Do your homework and then talk to your insurance agent or carrier about what your needs are.

10. Ask Your Agent About Available Discounts

It’s a good practice to check in with your insurance agent at least annually to find out if you are eligible for a better car insurance rate. You may receive discounts if you bundle coverage, such as buying insurance for your home and car from the same company. As mentioned earlier, safe driving records and extra safety features on a car may also lower rates. Ask your insurance agent about any new offerings or gaps in your coverage to determine the best coverage for you.

Now that you’ve got some ideas on how to save on your car insurance, you may want to check with your carrier to review your coverage. You can get a quote from Travelers or find an agent here.

Sources:
1 https://www.iii.org/article/what-determines-price-my-auto-insurance-policy
2 https://www.iii.org/article/8-questions-to-ask-before-buying-auto-insurance
3 https://www.dmv.org/car-insurance.php
4 https://www.iii.org/article/insuring-leased-car
5 https://www.iii.org/article/auto-insurance-basics-understanding-your-coverage
6 https://www.iii.org/article/what-gap-insurance
7 https://www.iii.org/article/how-can-i-save-money-auto-insurance#Reduce%20optional%20insurance%20on%20your%20older%20car
8 https://www.iii.org/article/choosing-an-insurance-company
9 https://www.iii.org/article/how-can-i-save-money-auto-insurance

5 MYTHS ABOUT HOME INSURANCE

Homeowners insurance includes many myths and preconceived notions that can make the home buying process confusing and intimidating for first-timers. However, demystifying homeowners insurance may be easier than you think. Take these five common home insurance myths into consideration before buying your first home to help ensure a smooth process.

Myth #1: The surrounding neighborhood doesn’t affect the price of home insurance.

Contrary to popular belief, the cost of a home’s insurance premium is influenced by its surrounding area. Each neighborhood has a record of multiple factors that insurance companies take note of, including prior insurance claims and crime rates in the area.

Based on statistics provided by the FBI, the state, and other departments, each community is given a grade by insurance companies. The frequency of crimes, like burglaries and vandalism, within a community is compared against the city’s population. Neighborhoods with lower grades are considered higher risk, and homes within these areas will often have higher premiums.

Myth #2: External home fixtures don’t affect the price of insurance.

The physical structure of a home isn’t the only factor involved in home insurance. When it comes to calculating premiums, insurance companies consider every potential risk on the property. Homes with trampolines and swimming pools carry a higher risk of claims due to injury or property damage and are subject to higher premiums.

Dog owners may also be surprised to learn that they could face higher premiums. Although many domesticated dogs are friendly, insurance companies pay close attention to the risk of bites and other injuries.

Myth #3: Older, cheaper homes will have lower insurance premiums.

Though an older home may have a lower sale price, it may have a much higher insurance rate. Older homes are considered high risk to insurance companies for many reasons. Homes built in the ’80s and before may have outdated plumbing, and water damage and leaks are among the most common home insurance claims.

Another concern with older homes is the wiring system. Older homes may have aluminum wiring installed, which is susceptible to fire. Outdated wiring systems also may not be up to current state code, which can further drive up the price of a premium.

Myth #4: Homes within the same neighborhood will have the same premium.

Though the neighborhood a home is located does influence its premium, many factors could cause one house to pay a vastly different amount than even the one next door. For example, brick houses are at lower risk of fire damage than homes with wooden frames. However, homes with fiber-cement siding are fire resistant and have an added benefit of being termite proof.

It’s important to note that homes within earthquake-prone zones are evaluated differently. Brick houses are more prone to damage from earthquakes and will pay higher premiums than homes made of other materials within these areas.

Myth #5: Once a premium is calculated, the price is fixed and can’t be changed.

A homeowner has plenty of options to reduce the cost of their home insurance premium. Updating the roof to hail-resistant shingles, for example, will impress an insurance company. Additionally, installing security features such as a fence or alarm system will decrease both the risk of claims and the cost of your premium. Installing a sprinkler system to reduce the risk of fire damage is another way to make an insurance company happy, and they’ll reward you — by lowering your premium.

Now that you are armed with insider knowledge about the way homeowners insurance works, you can begin the hunt for your first home with confidence. If you have questions about homeowners insurance or are interested in quotes, an independent insurance agent can help you. Visit trustedchoice.com to get matched up with an independent insurance agent today, so they can help you get started on your journey.

five ways to lower your auto insurance bill

It’s easy to lower your insurance costs — especially if you have a great driving record, or don’t mind having higher deductibles.

Who doesn’t want to pay less for car insurance? Billions of dollars are spent on ad campaigns to convince you to “switch and save” — but the truth is, many people can find savings no matter who their insurance company is. According to the Insurance Information Institute and other experts, here’s how you can, too:

1.Drive safely. Accidents, speeding violations, and other incidents on the road can put your safety at risk, of course. But they also can hit your wallet pretty hard, because some can cause your insurance premiums to skyrocket. On the flip side, many companies will give you a discount if you don’t have an accident or moving violation over a set amount of time — so not only will you not pay more than you should, you could pay less than you would otherwise.

2.Make sure your coverage fits your life (and your car). If you can afford higher deductibles — that is, the amount you have to pay before your insurance kicks in — you can save significantly on your premiums. The Insurance Information Institute says raising your deductible from $200 to $500 could drop your overall cost by as much as 30%. You’ll also want to consider dropping collision or comprehensive coverage if your car is old and worth far less than it once was.

3.Pay your bills on time. And not just the ones from your insurance company, either. Most carriers use credit information when they’re determining how much your coverage will cost, so it pays to have a good credit history. Other things that can impact your standing include your outstanding balances and how much available credit you have.

4.Ask about discounts. There are all kinds of discounts available for drivers — including some you might not have realized. Do you own your home? You might save on your car insurance. Do you purchase your homeowners and auto policies from the same company? You’re probably already getting a discount for that. If you don’t drive much, you could be eligible for a low-mileage discount. The list goes on and on (literally), so make sure your agent helps you get the savings you deserve!

5.Shop around. This goes for cars and insurance policies! Your car has a big impact on how expensive your insurance will be, so if you’re buying a new one, be sure to do your research on how much it costs to repair that particular model, the likelihood of theft, etc. And when it comes to insurance, an independent agent can help you get quotes from a number of insurance companies — they’ll make it easy to weigh your options and find the right balance between coverage and cost.

How to Drive Safely in Strong Wind and Rain

Driving in conditions that involve strong wind or heavy rain can be relatively common and may not be the most pressing safety concern for many drivers, but Travelers safety professionals know that driving in severe weather can significantly increase the risk of a dangerous situation for you, your family and other drivers. Severe weather demands your undivided attention, so be sure to reduce driving distractions by turning the radio down and turning off and stowing your phone to help you keep your attention fully on the road. Keep in mind that sometimes the best decision you can make is to avoid driving altogether and to stay off the road completely until the weather clears.

Driving in Heavy Winds

Wind may not seem like it can present a significant risk, but strong wind deserves special consideration from drivers. Strong wind can occur just about anywhere, but it can be more common in wide open spaces. Areas for concern also include highway overpasses, tunnels and “road cuts” through mountainous areas that can act as funnels for wind. The following tips can help keep you on the road and safe if you encounter heavy winds.

1. Anticipate gusts. Take special care when driving through areas prone to strong winds or when weather reports predict severe weather.

2. Notice larger vehicles. Be aware of large vehicles on the road such as tractor-trailers and recreational vehicles. They are more susceptible to high winds and drivers may have difficulties staying in their lanes.

3. Keep a firm grip on the wheel. Keep both hands on the wheel in case the wind begins to move your vehicle, especially if you are driving a large vehicle or towing a trailer.

Driving in Heavy Rain

In addition to the potentially poor visibility that accompanies most heavy rain, drivers should be ready to protect themselves against hydroplaning. Hydroplaning can occur when a vehicle is traveling too fast in heavy rain conditions, causing the vehicle’s tires to travel on a thin layer of water rather than grip the surface of the road. This has the potential to make steering and braking difficult and could even lead to losing control of your vehicle. Follow these tips to help you stay safe while driving in heavy rain.

1. Take your time. Slow down to help avoid hydroplaning. Also, one of the most dangerous times to drive can be soon after it begins to rain. The rain can cause oils on a roadway to rise to the surface and make conditions slick. Waiting a while after rains begin, rather than rushing to your destination, can be a safer plan when it is raining.

2. Turn your lights on. Turning on your headlights can help you to see more clearly and also helps other vehicles see you. Many states require the use of headlights during rain.

3. Give other vehicles more space. Add 1-2 extra seconds of following time in the rain, which gives you, and the cars behind you, more time to react to traffic.

Ten Tips on How to Sell Your Car Privately

When you’re ready to replace your old car with a newer or different vehicle, typically you have two options: trade it in at a dealership or sell your car on your own.

While the former may certainly be the quickest of the two options, it typically may not be the best way to maximize the money you’ll get for your vehicle. In most cases, selling your car privately is the path toward top dollar — but it’s never guaranteed. Keep in mind that a change in car ownership also means you’ll need to consider insurance coverage for the next vehicle you own, but make sure that your current vehicle maintains the appropriate coverage. Contact your insurance agent for guidance and to ensure you’ll be appropriately covered.

Some Tips on How to Effectively Sell a Used Car Privately

Selling your car privately takes time, effort, and a little bit of sales savvy. Are you willing to put in the work to make it happen? Want to make sure your car sells fast and for the best price? These 10 tips can help:

1. Make any repairs and get a tune-up.

If your car needs repairs, you’ll generally want to have them done before listing the vehicle for sale. While you’re at it, consider having the car tuned up, and be sure to save your service receipt to show potential buyers. Ask your auto mechanic to top off the oil and fluids, to make sure the lights are working, and to test the pressure on all the tires. You could even request a full inspection to ensure there are no other issues before you sell the car.

2. Consider the market.

Take some time to analyze the current vehicle market before listing your vehicle. What time of year are you selling your vehicle? What type of buyers are on the market and what sort of cars might they be looking for and at what price?

For example, if you’re in a suburban area, sedans, minivans, and SUVs may sell more readily based on the demand. Collector cars or convertibles? Those might be harder sells if you’re not in a beachside town or selling in the heat of the summer. Understanding the market you’re selling in can help you both time and price your listing better.

3. Price it right.

In addition to knowing your market, you also need to gauge the value of your vehicle. You can look to online reference books or car dealer websites that list the prices of used cars for guidance. For a more accurate depiction of what people are paying for similar cars, head to an online marketplace for car buyers and sellers. These resources can give you a glimpse at what you could reasonably ask for the vehicle.

4. Know your car.

Some potential buyers are going to pull your vehicle’s report before they’re willing to make an offer on it. Want to make sure those reports don’t derail your sale? Pull them yourself before listing your vehicle. There are web-based services that provide vehicle history reports that can help you learn about your car’s history and other details.

5. Get it detailed.

If you want to maximize your selling price, consider taking it in for a full detail job — vacuuming, upholstery cleaning, waxing, the whole works — before you list the vehicle. If you’re short on cash, you can do many of these tasks yourself (they’ll just take a little bit of time). Just make sure you do it before you have photos taken. You want the car looking its best in your listing photos.

6. Take great photos.

Aside from the price and the mileage, the photos may be the most important part of a listing.  In taking photos of your vehicle, make sure you capture it from various angles and vantage points. You’ll also want to snap pictures of any details on the car — maybe the grill, wheels, sunroof or the navigation system.

7. Cross-list the car.

To reach the most potential buyers, you may want to list your car extensively. There are several online auto websites to list your used car for sale, so do your research to decide which one suits your needs. You can also advertise your car for sale in the Classified ads section in the local newspaper. If you’ve got a collector car, you can search online car forums and message boards for potential bidders.

8. Be responsive.

Don’t advertise your car if you’re not ready to start fielding offers. Once it’s listed, you’ll need to be prepared for phone calls, texts, and emails about the vehicle, and you won’t have any say in the time of day these queries may come. While you don’t need to respond to these messages immediately, consider setting aside a block of time each day to return calls and answer questions.

9. Don’t compromise.

If you’ve done your research and know what your car is worth, don’t feel like you need to accept any low-ball offers. Sometimes, you might not reach an acceptable number with a buyer, and that’s okay. If you’ve priced your car properly, it may be worth waiting for a better offer.

10. Have all the records.

Put together a folder of all your car’s service records and receipts. This shows potential buyers that you cared for and maintained the vehicle properly — a big vote of confidence when it comes to used cars. On top of this, it also gives them an idea of the car’s condition and what its maintenance requirements might be down the line.

After You Sell Your Car

Whether you’re selling your car privately or trading it in at a dealership, you’ll need to alert your insurance carrier and lien holder, if you have one, of the change of ownership. Contact your agent and let them know that you’ve sold the vehicle, and make sure to add your replacement car to your policy. Depending on your new car and how you plan to use it, you may also need to adjust your coverages.

Should I File a Claim Against Another Driver?

If you believe you’re not at fault for the damage to your vehicle, you have the option to file your claim with the other driver’s insurance company or with Travelers. Here are some things to consider when making a decision:

-You will not be required to pay a deductible if you file with the other company. If you file with Travelers, you may be required to pay a deductible and then wait for a possible reimbursement from the other driver’s insurance company.

-The other company will likely provide you with alternative transportation or a rental while your vehicle is being repaired. Travelers may not provide a rental if you don’t have that type of coverage.

-The other company may not agree that their driver is 100% responsible and may only offer to pay a portion of your damages.

-If you file a claim with the other company, we will not be able to assist you with your claim against that company. However, if you change your mind, you can come back to us and we will process your claim.

Every insurance carrier is different, but the information below may help you understand how to file a claim with the other driver’s insurance company and what to expect.

5 Questions to Ask Your Car Insurance Rep

When it comes to choosing a car insurance policy, many of us let premium price drive our decisions. But cutting corners on cost could leave you under insured and overexposed to the risks of the road.
Fortunately, it’s easy to strike a balance between affordability and adequate coverage when you have the right information. Remember: your insurance representative is a valuable resource. Asking these five questions before you purchase a car policy can help you get the protection you need at a price you decide is right for you.

1. Do I Have All the Coverage I Need?
This first answer to this question will depend on the state where you live. At a minimum, most states require liability insurance, which covers the cost of accident-related injury, death, vehicle damage, property damage and legal fees.
Once the minimum requirements are met, ask your insurance rep to explain and recommend additional coverage options best suited for your individual needs. These commonly include collision, comprehensive, uninsured and underinsurance motorist protection (UM/UIM). Your rep should also explain how each will affect your premium and “out-of-pocket” expenses after an accident.
If you have a lot of personal assets to protect, you may also want to discuss excess liability insurance with your insurance rep. This is a separate, personal liability policy that can kick in to cover costs where your car (or homeowners) insurance leaves off.  

2. Am I Getting All the Discounts and Savings I Can?
The cost of insurance partly depends on the coverages, deductibles and policy limits you choose. It is also based on your “risk rating” — a calculation used to determine the likelihood that you will be making a claim in the future. Factors such as the age, gender, driving record, insurance score and garaging location of the vehicles on your policy will largely determine the price of your premium.
While there is not much wiggle room to affect your risk rating and its effect on the price of your policy premium, there are many discounts designed to help lower premiums.
Savings are commonly found in safe driver, continuous insurance, multi-policy, multi-car and good student discounts for those who qualify. Additional discounts may be available if you are insuring a new or hybrid/electric car, or own a home. How and when you pay can affect your premium, too. Your insurance company may offer discounts if you pay in full, by electronic funds transfer (EFT) or by payroll deduction, as well as if you pay on time.  
Ask your insurance rep to ensure you are getting all the discounts for which you are eligible.

3. What Is Covered if My Car Is in an Accident or Gets Damaged?
It is a popular misconception that car insurance will automatically cover the replacement or repair of your car, as well as towing or rental car fees, after an accident. The reality is, without the right coverages, you may not have these benefits.
Liability insurance typically pays for damage to another driver’s vehicle or someone else’s property if you cause an accident, and is the minimum coverage required in most states. To cover repair and replacement of your own car, you will need collision coverage for accident-related damage and comprehensive coverage for non-accident incidents, such as theft, vandalism, hitting an animal or storm damage. 
Be sure to ask your insurance rep whether optional coverages like roadside assistance and rental reimbursement are right for you.
Another important coverage to discuss with your rep is uninsured/underinsured motorist insurance, which can help pay for damages and medical expenses if you get hit by a driver who has no insurance or inadequate coverage.
If you have a lease or loan on your car, ask your insurance rep about gap insurance, too. This coverage may pay the difference between what your car is worth and what you still owe on it if your car is totaled.

4. What is Covered if My Car Is in an Accident and Someone Is Injured or Dies?
Protecting drivers, passengers and pedestrians who are injured — or worse — in an accident is a top priority. That’s why bodily injury liability insurance is the most important auto coverage a driver can have, covering accident-related expenses such as hospital and medical bills, lost wages, rehabilitation and legal fees.
While bodily injury liability insurance is a requirement in most states, the minimum level of coverage may not offer adequate protection. Discuss policy limits with your insurance rep before purchasing car insurance. Remember: you will be personally responsible to cover any costs above this limit.
Ask your insurance rep to help you determine your need for additional coverage options and protections, too. Depending on where you live, these can include:
Personal injury protection.
Medical payments coverage.
Uninsured/underinsured motorist coverage.
Total disability.
Work/income loss coverage.
Accidental death benefits.
Funeral expense coverage.
First party benefits.

5. What Costs Will I Need to Cover “Out-of-Pocket” if I Am in an Accident?
How much you will pay out-of-pocket for accident-related expenses depends on your policy limits, coverages and deductibles, as well as the specific circumstances of the incident.
If you did not cause the accident, the driver who did — and his or her insurance company — is typically responsible to pay for any resulting damages or injury. However, if the at-fault driver has no insurance or is underinsured, you may be left holding the bill. Ask your insurance rep what you can do to ensure your policy will protect you in this situation, such as adding collision or uninsured/underinsured motorist coverage. 
If you are at fault for an accident, your insurance typically provides coverage for repairs, medical, legal and other related expenses up to your policy limits once you pay your deductibles. For example, let’s say your car is damaged in a covered accident you caused, you have collision coverage with a policy limit of up to $10,000 and your deductible is $2,000. If the cost to repair your car is $1,500, you will pay the entire $1,500 since it is less than your deductible. If the cost to repair your car is $8,000, you will pay your deductible of $2,000 and your insurer will pay the remaining $6,000. If the cost to repair your car is $12,000, you will pay $4,000 (your deductible, plus the $2,000 above your policy limit) and your insurer will pay $8,000.
To keep monthly premiums low, drivers often opt for higher deductibles and lower policy limits. But if you can’t pay your deductible or accident-related expenses above and beyond your policy limits, you may find yourself in financial crisis. Before purchasing any policy, have your insurance rep go over all the scenarios with you. Work together to create a policy that balances your individual needs with a premium, deductible and policy limit you can afford.

Sources:1 http://www.dmv.org/insurance/common-mistakes-when-shopping-for-insurance.php
2 http://www.insure.com/car-insurance/5-auto-questions.html
https://www.travelers.com/tools-resources/car/insuring/5-questions-to-ask-your-car-insurance-rep?fromAgent=true&utm_medium=AgentDigital

Saving Money on Your Homeowners Insurance

Save money on your homeowners insurance by “bundling” when you have more than one insurance policy with a single company. This is done primarily for the purposes of customer convenience and savings. With insurance companies offering an array of products to provide protection against the cost of losses to the things that customers value most, it can be difficult to sort out what coverage you need and from whom to purchase it. Here’s a closer look at the concept of bundling, why it may make sense for you and where to find guidance to help ensure your most valuable possessions are properly covered in case of theft or damage.
What is Bundling?
Bundling means you are buying two or more types of insurance policies such as home insurance and auto insurance from the same company. It can be an effective way to get insurance discounts, because insurers typically offer price savings when you buy multiple policies from them. Compared to purchasing policies from separate insurance companies, most people save money when they choose to bundle multiple policies under one insurer.
What Are the Advantages of Bundling Insurance?
There are a number of advantages to bundling your homeowners insurance with other insurance policies. By purchasing your home insurance and auto insurance from Travelers, for example, you may be able to save as much as 15 percent on your home insurance premiums compared to what it would cost you to buy those policies individually from different companies. But the benefits can go beyond the financial, says Angi Orbann, Travelers Vice President of Personal Insurance/Property. The convenience of combining policies and payments with one insurance company can be a major advantage. “In addition to potential cost savings, customers choose to bundle their policies for many reasons, including time savings and efficiency,” Orbann says.