Assurance Auto Insurance info

What you should do after an accident

2012-09-23T08:54:00.000-07:00

What you should do after an accident

Every driver involved in an accident is legally
required to remain at the scene. He or she must also
offer aid and give necessary information to others
involved and to law enforcement officers. If you’re
involved in an accident:

• Use all means possible to warn oncoming

traffic of the danger at the scene.

• Give reasonable aid to the injured. Do not

move them unless it is absolutely necessary.

• Notify the Washington State Patrol (WSP),

city police or county sheriff, and if needed,

request a doctor or aid unit and ambulance.

• Obtain and give necessary information for

the accident report, including names of

witnesses and police officers.

• If there is any injury or death, or if property

damage exceeds $700 to any one person’s

property, you must notify the WSP, city

police or county sheriff. If you fail to

complete a written report, when required, it

may result in the suspension of your driver’s

license or instruction permit.

It is equally important that you promptly report the
incident to your insurance company. Also, you may
be subject to other reporting requirements specified
in your insurance policy. It is vital that you read your
policy and know what you must do to file a claim.

How to reduce your rates

2012-09-23T08:50:00.000-07:00

How to reduce your rates

Here are several options for saving money on auto insurance while making sure that

you have adequate coverage:

Shop around

Each insurance company has unique financial

goals and costs. As a result, it isn’t uncommon

to find rate differences between companies

for the exact same coverage. The cheapest

insurance may not provide you with the degree

of coverage you need. It is a good idea to discuss

your coverage with your agent or insurance

company.

Select the right car

The type of auto you own has a direct influence

on your insurance costs. Before you buy an

auto, check with your agent or broker to find

out how much it will cost to insure.

Select higher deductibles

The amount of the deductible you select will

affect your auto rate. For example, you may

save money by increasing your collision and

comprehensive deductibles from $100 to $500.

To help keep your premiums down, you may

want to think about paying for smaller claims

yourself and using your insurance to only pay

for larger claims.

Special discounts

Ask each agent or company if they offer special

discounts. They often offer discounts to young

drivers who are good students or who have

completed a driver’s education course. Many ompanies will give you a discount on your

auto premiums if you also insure your house

through the same company.

Insurance companies are required by state law

to give discounts to seniors, age 55 and older,

who complete safe driving courses.

Eliminate duplication

Your coverage may overlap in some areas, such

as medical, collision, and uninsured motorist

property damage. Ask your agent or broker to

explain your coverage and advise you if you are

duplicating coverage.

Buying collision/comprehensive

coverage

If you don’t think you could afford to fix

your car yourself if it was involved in an

accident, you may want to carry collision and

comprehensive coverage. These coverages

protect owners of expensive and late-model

autos against the cost of repairs. Though

coverage may increase your rates, you may want

to think about it if the difference in what you

pay would exceed your ability to pay the repair

bills. Your lender may require these coverages

until you’ve paid off your car.

The cost of auto insurance

2012-09-23T08:38:00.002-07:00

The cost of auto insurance

Auto insurance cost is a major concern to Washington’s drivers. Insurance companies must submit their rate requests to our agency for review. These requests must include enough financial information (actuarial-based) to verify the need for the requested rate. If we are satisfied with the rate information, we must approve
the request.

Insurance companies can rate all licensed drivers in the household -- the policyholder and his or her
spouse, and other household members, whether
or not they are related by blood. This includes

roommates. As a result, insurers generally base their premiums on all household members.

Insurance companies base auto rates on a variety of factors. The premium you pay consists of a “base rate.” The base rate is adjusted based on factors such as your age, sex, marital status, driving pattern, claims history, location, credit history, and the make,

model and year of your vehicle. When you shop for auto insurance, remember that each company uses these factors differently.

Age

Statistics show drivers under the age of 25 have more accidents than adults between age 25 and 65. As a result, insurers charge young drivers and families with young drivers in the household higher rates. Statistics also show that senior citizens are more likely to be involved in an accident.

Gender

Young men under the age of 25 are involved in more accidents per miles driven than any other population
group. Washington state law allows insurance
companies to charge based on gender and age when
statistics indicate a greater risk.

Marital status

Statistically, married couples have fewer accidents
than singles and generally pay lower rates.

Vehicle type

Generally, the more expensive your vehicle, the

more you will pay for comprehensive and collision

coverage. Also, because sports cars and high-performance cars are involved in more accidents,

cost more to repair, and are stolen more often, they

cost more to insure.

Location

A higher number of accidents in a highly populated

area will raise both liability and collision premiums.

Higher crime rates in urban areas can also raise

premiums for comprehensive coverage. The law also

allows companies to base your rates on your address

(where you keep your car), even though you may

drive to a more urban or rural area.

Driving patterns

The number of miles you drive per year can increase

your rates. For example, if you drive a total of 7,000

miles in a year, you will normally pay lower rates

than if you drive 15,000 miles in a year. Insurance

companies consider the distance you commute

to work as additional miles you add to your non-commuting, “pleasure” miles.

Driving record and claims history

Most companies apply a surcharge to drivers

involved in an accident or convicted of multiple

traffic violations. Likewise, the more claims you file,

the more likely your rates will increase.

Credit history

Under federal law (Fair Credit Reporting Act),

insurance companies can use credit history as one

factor that impacts your auto rate. They may assign

you an insurance score based on your credit history.

They use your score as one factor to decide whether

to accept or decline your coverage, or how much to

charge you. However, the Insurance Commissioner

believes that the use of credit information in

insurance is inherently unfair and in 2002, he

requested a bill to limit its use. The law limits the use

of certain information in credit scoring.

Companies differ in the skill, care and speed with which they settle customers’

claims. The OIC cannot recommend one company or policy over another.

What to do if you can’t find auto coverage ?

2012-09-23T08:02:00.000-07:00

What to do if you can’t find auto coverage ?

Some drivers have a hard time obtaining insurance. This can result from a number of factors, including a poor driving record, type of vehicle, claims history, experience, etc.

There are insurance companies that write non-standard policies in this state.They include:

• Allstate

• Dairyland

• Farmers

• Financial Indemnity

• Guaranty National

• Infinity

• Leader

• Nationwide

• Progressive

• Safeco

• Viking Insurance Company of Wisconsin

If your driving record prevents you from obtaining a policy in the non-standard market, your agent or broker will contact the Automobile Insurance Plan on your behalf. More than 55 years ago, the Washington State Legislature created this plan to provide auto insurance coverage to high-risk drivers who are unable to find coverage. To qualify for this special coverage, you must:

• Be a Washington state resident or a member of the U.S. military

• Hold a valid Washington state driver’s license

• Not have any debt from previous auto insurance coverage

Shopping for automobile insurance

2012-09-23T07:52:00.000-07:00

Shopping for automobile insurance

Many insurers offer auto insurance in Washington state. Under state law, insurers may

consider your age, driving record, where you live, credit history, and other factors to decide if

they will offer you coverage. Not every insurer will offer you coverage.

If an agent or broker is unable to find coverage
for you, it doesn’t mean that there isn’t an insurer

willing to cover you. No single agent or broker will

have access to all auto insurers doing business in

Washington state.
There are three segments of the auto insurance
market you should know about:

Preferred market -- This market features the

lowest premiums and it is available to

low-risk drivers with exceptional driving records.

Standard market-- This market refers

to the average driver who uses family-type

cars and has a reasonably good

driving record.

Non-standard market-- This market

includes young drivers with less experience,

drivers with multiple tickets or accidents,

and drivers with reckless or drunk driving

histories.

Most insurers offer coverage that falls into
the standard or the preferred markets. A few

corporations have several companies within their
group and establish tiers that range from the

preferred market to the non-standard market.
We cannot recommend or suggest specific

companies, but we can offer tips to help you shop
for auto insurance. Regardless of how you shop or

whose services you choose, it is important to do your

homework in advance. You should:

• Know what types and limits of coverage
you need.

• Ensure you’re dealing with an authorized

company and a licensed agent or broker.

• Make sure you have the make, model and

other details of the vehicle you wish
to insure.

• Answer any questions about your driving

record and accident history fully and
accurately.

• Shop for customer service and price

Agents and brokers selling insurance in Washington
must be licensed with our agency. We regulate nearly
85,000 licensees. Some are employed exclusively by
a specific insurer, while others work independently.
You can find agents and brokers:

• in the Yellow Pages of your local phone book

• through referrals from friends and family

• on the Internet

Insurance can be a sophisticated product. You

need to do your homework and shop the market,

regardless of whether you buy in the traditional

manner or online.

Types of coverage

2012-09-23T07:42:00.000-07:00

Types of coverage

There are many different types of coverages available to meet your auto insurance needs. Some

are required and some are optional. Here are brief descriptions of the available coverages:

Liability

Washington state requires liability coverage. This

covers bodily injury and damage to property that you

cause to others while using your car.

Emergency road service

This covers towing when your car breaks down.

Personal injury protection

This covers a limited amount of medical and hospital

costs, income continuation, funeral expenses, and

loss of services. Coverage limits are defined in the

policy.

Car rental expense

If you have a claim that is covered under your auto

policy, this coverage pays to rent a car. Be sure to

check your policy for any limitations

Medical payments

This covers medical and funeral expenses (not all

companies offer this coverage).

Death, dismemberment and loss

of sight

This pays for death and certain injuries to people

named in your policy due to an auto accident.

Uninsured/underinsured motorist

bodily injury

This covers injuries an uninsured or underinsured

driver causes to an insured person.

GAP coverageooooo

In the event your vehicle is a total loss, this pays the

difference between the current market value of your

auto and the amount you still owe the lender.

Uninsured/underinsured motorist

property damage

This covers property damage an uninsured or

underinsured driver causes to your insured vehicle.

Custom equipment coverage

T

his covers direct and accidental loss to custom

furnishings or equipment.

Many companies also offer other endorsements

(additional coverage). Ask your insurance agent or

broker about:

• Trailer/camper body coverage

• Snowmobile coverage

• Limited Mexico coverage

• Joint ownership coverage

• Auto loan/lease coverage

Collision coverage

This covers damage to your car that is caused by

a collision.

Comprehensive coverage (other

than collision)

This covers damage to your car -- except by collision.

For example, this covers your car if a tree falls on it

or someone vandalizes it.

Understanding your auto insurance policy

2012-09-23T07:33:00.000-07:00

Understanding your auto insurance policy

Your insurance policy is a contract between you and your insurance company. It spells out exactly

what the company agrees to do in exchange for the premium that you pay. This contract is divided

into two sections: a declarations page and the policy itself.

The declarations page

This section of the policy includes basic details of

the agreement. It is important that you review this

page to make sure all the information is correct and

all the coverages you requested are included. The

declarations page includes:

Name of the insurance company

Name(s) of the policyholder(s)

Policy number

Policy period

Description of the vehicle(s) insured

Coverages purchased

Limits of liability and deductibles purchased

Premium charge for each coverage

List of forms that are a part of the policy

The policy

The second part of your insurance contract is the

policy itself. This includes:

Insuring agreement

Definitions

When and where coverage applies

Conditions if the vehicle is financed

General conditions

Mutual conditions

Exceptions and endorsements of the policy

What is mortgage life insurance?

2009-12-26T04:47:00.000-08:00

Mortgage protection life insurance is simply insurance that is meant to pay off your mortgage in case of your death while the mortgage is not fully paid.
The original type of mortgage life insurance followed the amount of the mortgage balance so, as your mortgage obligation decreased, so did the amount of insurance. Today it usually makes more sense to get mortgage life insurance equal to the original mortgage amount but instead of a decreasing amount of insurance, you simply get the most inexpensive level term insurance.
Recently it has become more common to buy return of premium policies for mortgage term life insurance. The reason this type of insurance is used is that currently traditional mortgage life insurance rates are not as competitive as most term life rates. and with return of premium, if you keep the policy, you get all the payments paid back to you.
The most affordable is the level premium, level benefit term life policy. This type of insurance can be purchased for a period of time such as 30 years, 25 years, 20 years etc. The policy amount is guaranteed not to decrease and the premium can be guaranteed for the full period of time.
Traditional mortgage protection life insurance is occasionally still marketed by banks and some agents but it may make more sense for you to get:1. An insurance policy with guaranteed lower rates than a mortgage life insurance policy2. One that will pay off your mortgage in case of your death 3. The insurance amount does not decrease.
To get a mortgage life insurance quote or an instant life insurance quote for other needs, click here.
Return of Premium Insurance to cover your mortgage
Another method becoming more and more popular is Return of Premium Term Life Insurance. This type of life insurance is term insurance with the added and unique benefit that when you keep it for the full term (20 years, 30 years) you get all your premiums back, tax free!
Using this method, the insurance will be there to pay off your mortgage but in the likelihood that you live and you keep the policy, the insurance company guarantees to return all the money that you paid on the policy and since it’s considered a return of what you put in, it comes back tax free. This kind of mortgage term life insurance can be more appealing since it is likely that you will live to the end of the term period.

Brokers aren't all the same. Their commission levels and commercial relationships can massively impact what you pay

2009-12-26T04:46:00.000-08:00

The way to get policies even cheaper than going direct is to use the niche ‘execution only’ brokers give you the commission, and instead you just pay a small fee, and as such you get identical policies but at a much, much lower price.
However beware that the fact they’re ‘execution only’ means they just find you the price without giving any advice. If you'd like advice, to ensure you have the right cover or come back if it's not, read the Getting Advice section.
Having surveyed over 20 insurers for a range of quotes, there are three which are always competing to be cheapest; best practice is to use all three.
Remember all quotes are based on a healthy person so your price may go up if you have any health issues. Always check the full terms of the policy meet your needs before you buy.
Cavendish Online
This has been my top pick for over four years, and has consistently offered good prices during this time. It pioneered giving up all its commission in return for a one-off fee; £35 for an online application or £45 over the phone and can make it over 50% cheaper than most full-commission brokers.
It offers two quotes, the ‘fee' and ‘fee-free' option; always choose to pay the fee, the monthly saving eats up the cost of the fee in just a few months. The commission option is only worth considering if your premiums (monthly payments) are under £7 a month. It has also recently introduced an 'instant cover' option, whereby applicants can get immediate cover if their application is medically fairly clean. Link: Cavendish Online
MoneyWorld
This is a firm of independent financial advisers that provides life insurance for a flat fee of £25 and no commission, either online or on the phone. It’s been around a while but recently moved to the ‘one-off fee’ practice and lowered its prices, and is often the cheapest of the top three

Quit smoking or planning to?

2009-12-26T04:45:00.000-08:00

Non-smokers pay a lot less cash than smokers, simply because they're a lot less likely to die during the term. To count as a 'non-smoker' you need to have been genuinely smoke free for at least a year. Therefore one year after the date you quit, you should go throught this process to get a new deal and you should save enormously. Don't be tempted to lie though... if you were to die and it was discovered you had been a smoker it could invalidate the policy. See other saving in the Stop Smoking MoneySaving guide.
While some may be worried that ‘cheaper isn't better' actually, with term assurance, there's no investment element as the payout is fixed; and there's no argument over whether someone is dead so this is a truly simple policy. In fact, in most cases, (and do forgive the virtual shouting for necessary emphasis

Is Mortgage Life Assurance worth having?

2009-12-26T04:43:00.000-08:00

Most lenders strongly recommend you get a policy when you take out a mortgage and it isn’t a bad idea. If done correctly, it shouldn't be prohibitively expensive. Yet lenders will try and flog you their own ridiculously expensive policies, often without regard to circumstance. For example, if you don’t have anyone to leave your property to and money is tight, then there’s no need.
For many with dependents it’s also worth considering the cheapest Level Term Assurance policy instead. At the very least when getting a new quote, see what the price difference is. This is because level term policies pay a fixed amount rather than decreasing sum. This has two advantages; first it means if you trade up to a bigger house in future you mightn’t need much additional insurance, plus as well as paying off the house it leaves extra money for dependents.
An unpleasant fact... why's it assurance not insurance?
If you're wondering why it's life ‘assurance' not ‘insurance', that's because assurance is for something that is certain to happen, insurance is where there is only a risk of it happening..... and death is assured. Though some do call this ‘insurance' too as there's no guarantee you'll die within the term

Mortgage Life Insurance

2009-12-26T04:42:00.000-08:00

Your house is a place that you and your family call home. A place that protects your loved ones and provides a shelter from the outside world. Your house is a big investment – probably one of the biggest you’re ever likely to make. It is also probably the single largest source of personal debt. That’s why protecting your family and home is so important.
The sudden loss of income can put an enormous strain on a family’s ability to pay their mortgage. Mortgage life insurance is an excellent way to help protect your family in the event of an untimely death.
Features of Mortgage Life Insurance
A Mortgage Term Life insurance policy will provide your loved ones with a guaranteed death benefit if something happens to you. They can use these funds to help make their mortgage payments or pay the loan off.
You choose the coverage you need based on your mortgage balance.
Coverage is available for 15 and 30 years.
The amount of insurance is level for the first five years and then decreases annually at the beginning of each policy year, with a minimum amount of 20% of the original face amount.
You can pay premiums annually, semi-annually, quarterly, or monthly
If you need lifelong coverage, you can simply convert to permanent coverage and premiums – no matter your state of health.
If you have auto insurance with State Farm, purchasing a State Farm life insurance policy may entitle you to a discount on your auto premiums with our multi-line discount.
The sooner you start, the lower your premiums could be

Why You Don’t Need Mortgage Life Insurance

2009-12-26T04:38:00.000-08:00

When you signed for your mortgage, you were offered mortgage life insurance for mere pennies a day. If you chose to decline it, you had to sign all sorts of liability forms declining said insurance, which no doubt made you second-guess your decision, and possibly change it.

There are several reasons why declining the bank-offered insurance is advisable in favor of an individual life insurance policy:

Mortgage Life Insurance Insures the Bank, not You
Okay, so your life is in the lurch, but your family doesn’t actually see any of the life insurance proceeds should you die. The bank is the beneficiary of the policy. So the good news is that your estate is absolved of its mortgage liability when you die. But the bank is truly the winner here – they get their money. And for this, you get to pay the monthly premiums.
Individual Policy: If you had higher interest credit card debt for example, your family could choose to pay that off instead and carry the mortgage. Choices abound with an individual policy.

Mortgage Life Insurance is a Decreasing Benefit with Level Premiums
Mortgage life insurance pays off the balance of your mortgage. And if you are paying it off responsibly, that amount will decrease as the years go by. However your premiums remain the same. Some would argue that this is accounted for in calculating the premiums, however I have sifted through many quotes and illustrations, and not found this to be the case.
Individual Policy: Standard term life insurance will offer a level benefit for the term. You pay “x” dollars a month, and if you die your beneficiaries will receive “x” dollars. Period.

Changing Mortgage Lenders Means New Underwriting
At the end of your five year term (for example), you decide to switch your mortgage to another bank offering better rates. However if you want the life insurance option, you will have to succumb to the medical questionnaire and underwriting process again. If something has happened to affect your insurability during this time, you could well be declined.
Individual Policy: Most term life insurance has a renewability clause. Under the terms, you have the option of renewing the insurance at the end of the specified term (eg: 10 years), but at significantly higher rates. The premise of this is that you are guaranteed to be insurable (until age 65 or 75 for example), but will pay increasing rates at each renewal. If instead you reapplied at the end of the term for a new policy and are healthy, you would get much lower rates. But if something had indeed happened to you to affect your insurability, with the renewable clause at least you still have some coverage.

You may say “oh, but xyz well-known insurance company is offering the insurance through the bank – it’s not just bank insurance, it’s an individual policy. I get paperwork and everything”.
Although ‘xyz insurance’ is underwriting the policy, and although you know they offer individual policies , if you sign for it through the bank it is still mortgage life insurance. The issue here is not the insurance company; it’s the product. Don’t be fooled into thinking that your mortgage life insurance policy is a suitable substitute for your own individual life insurance policy. Do a proper needs analysis (preferably with your financial planner), and cover off the exact amount of life insurance you truly require.