February, 2016 | Boizelle Insurance Partnership
Lowering the Cost of Auto Insurance
If you’re looking for insurance, you’re interested in lowering your auto insurance rates. Have you ever wondered how auto insurance rates are determined?
Insurance companies must balance rates with the cost to cover claims. Factors that may affect the cost of your policy:
- Accident history
- Driving record
- Vehicle make and model
- Annual mileage
- Vehicle usage
- Your credit-based insurance score
- Your age and eligibility for discounts
Auto insurance rates vary by state too. Rates in any given state are based in part on historical claim frequency and repair costs for car accidents or theft, as well as other factors like the cost of medical care. Within a state, some territories have higher rates than others.
Keeping Rates as Low as Possible
Why are auto insurance rates rising?
Insurance companies pay claims using the money collected from their Policyholders. Higher auto repair costs, higher medical bills, and costlier auto accident lawsuits have made claims more costly to settle.
ERIE does all it can to control expenses and offer low rates, but as the costs increase for goods and services, premiums must be raised to cover those expenses. Premiums could also increase on individual policies because additional drivers are added, there is a change in the autos insured, or an accident or violation results in the loss of a discount.
Erie Insurance is committed to keeping your auto rates as low as possible through fiscal responsibility and disciplined underwriting practices. ERIE further lowers your rates through numerous discounts.
ERIE also offers ERIE Rate Lock®, which helps you avoid auto insurance rate increases. Even if you have a claim, your rates won’t change until you make certain changes to your policy:
- Add or remove a vehicle from your policy
- Add or remove a driver from your policy
- Change your primary residence
We’d like to explain the details in person or on the phone. Contact Boizelle Insurance to get an auto quote that includes ERIE Rate Lock®.
By: Erie Insurance
Read moreBuying Renters Insurance? 6 Things To Consider.
Figure out how much your stuff is worth.
“There is value to everything when it comes to renters insurance,” says Terry McConnell, vice president, Personal Lines Underwriting, at ERIE. “Most people underestimate the value of their contents, but once they itemize them, they realize there’s a dramatic difference from what they initially thought.”
To get a clear idea of your belongings’ worth, check out ERIE’s Home Inventory Record.
Decide between actual cash value and replacement cost.
Actual cash value takes depreciation into account when calculating the worth of your belongings. So if you bought a brand new laptop for $1,000 five years ago, you’ll only be reimbursed for what the laptop is worth in today’s dollars minus depreciation.
Replacement cost is a better option: It reimburses you for the original value of the item (or one of similar kind and quality at today’s replacement cost if the item is no longer available) and costs only slightly more than actual cash value.
Consider earthquakes and other disasters.
Boizelle Insurance can tell you more about adding these extra coverages to your renters insurance policy.
Choose a deductible.
Think about how much premium savings you’d want from picking a higher deductible and how much you could afford to pay out of pocket should you experience a loss.
Think about extra protection for any valuables.
ERIE offers $3,000 worth of coverage for any one item that’s stolen. If you own pricey items like jewelry, furs or silverware, you’ll probably want to add an endorsement to your renters insurance policy to make sure they’re fully covered.
Pick a liability limit
“Think about all the ways you could accidentally hurt someone,” says McConnell, “and you’ll see there are many.” If your dog bites another animal or person, you’ll be held responsible, for example. That kind of lawsuit can get pretty costly if the injured person has any long-lasting physical scars or impairments. (If you’re concerned about having enough liability protection, consider an umbrella policy that offers an extra $1 to $5 million in coverage.)
Finally, remember that no matter where or what you’re renting, Boizelle Insurance is always there to help you get the right coverage at the right price.
By: Ashley Weber, Erie Insurance
Read more