Tony's Tips - How To Save On Car Insurance

What is a Basic Auto Policy?

There are six coverages that may be included in your auto policy. Each agreement is priced separately:

Bodily Injury Liability applies to injuries that you, the policyholder(s), cause to someone else.

Medical Payments or Personal Injury Protection (PIP), and No-fault pays for the treatment of injuries to you and your passengers after an accident, while driving your car or someone else’s and injuries to you or your family when you are pedestrians. Personal
injury protection (PIP) and broader “no-fault” coverage are expanded forms of medical payments. Some policies in California are “named driver” policies only and do not cover your driving someone else’s vehicle.

Property Damage Liability pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. This includes damage to another’s car, or structures you hit.

Collision pay for damage to your car resulting from a collision with another car, (even if you caused it), objects, potholes, or as a result of flipping over.

Comprehensive will pays for damages to your car for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, weather mishaps, vandalism, or colliding with animals.

Uninsured and Underinsured Motorist Coverage (UM) coverage pays for your injuries if a hit-and-run driver or someone who doesn’t have auto insurance strikes you. The hit-and-run driver, or the at-fault party, must be identified in order to pursue an UM
claim. If you are hit as a pedestrian and the driver flees; it is assumed that the driver was uninsured.

Additional coverage includes: Towing, Glass, Rental Car, and Non-factory Add-ons to your car. Only you can determine the amount that you need to protect yourself and your assets. Almost every state requires you to buy a minimum of liability insurance. The California minimum is $15,000 per person, $30,000 per one accident; $5000 per party damage. If you own a home or property, much higher limits are advised, e.g., 100/300/50.

How Much Coverage Do I Need?

Only you can determine the amount that you need to protect yourself and your assets. Almost every state requires you to buy a minimum of liability insurance. The California minimum is $15,000 per person, $30,000 per one accident; $5000 per party damage. If you own a home or property, much higher limits are advised, e.g., 100/300/50.

What Determines The Price of My Policy?

Many factors influence the price you pay for auto insurance. They include:

Your driving record. The better your record, the lower your premium. You may also pay more if you haven’t been insured for a number of years.

Where you live. Insurance companies look at zip codes; local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair.

Your age. Insurers charge more if teenagers or young people below age 25 drive your car. Most insurance companies also offer discounts to drivers over 55 who are less likely to drive aggressively or too fast.

The car you drive. Variables include the likelihood of theft, the cost of the car, the cost of repairs, and the overall safety record of the car.

The amount of coverage. The more coverage you take out, the more you pay.

How To Lower Your Auto Insurance Costs

Shop around. Automobile insurance rates vary depending on the company, agent or broker you choose; the coverage that you want, and the type of car you drive. Check the reliability, financial ratings and service record of the company you are choosing. Ask
your friends, colleagues, consumer guides, and your state insurance commission. Cheaper does not always mean better. Find a local established agent to better service your policy. (Note: broker fees are frequently negotiable.)

Choose higher deductibles. By requesting higher deductibles you can lower your costs substantially - sometimes between 15 to 30%.

Drop collision and comprehensive insurance on older cars. Check the book value of your car. (Go to www.kbb.com ) If it is worth less than $1000, it may not be worth the extra fees of collision and comprehensive.

Avoid duplicate medical coverage. If you already have health insurance, you may not need duplicate medical coverage in your auto policy; check to see if you need it for your passengers.

Purchase a “low profile” car. Cars that are expensive to repair, or that are favorites for thieves, have much higher insurance costs.

Live in a low-risk community. Costs for car insurance are lowest in rural communities and highest in city centers where there is more traffic congestion and/or crime.

Ask about discounts for low mileage. Some companies offer discounts if you drive fewer than a certain number of miles a year.

Ask about seat belt and air bag discounts. Some insurers offer discounts on automatic seat belts and/or air bags.

Ask about other discounts: Some insurers offer discounts for more than one car; no accidents or moving violations in three years or more; driver training and defensive driving courses; anti-theft device; anti-lock brakes; good grades for students; auto and
homeowners coverage with same company; college students away from home without a car, etc.

Some companies offer discounts for certain professional groups, such as doctors, lawyers, teachers, police and fire engineers, and nurses. Ask.

Where Can I Find More Information?

There is abundant information available to you. You will find more at:

California State Insurance Department (213-897-8921)

Insurance Information Institute; 110 William Street, New York, NY 10038. (212) 669-9200

National Insurance Consumer Hotline; 1-800-942-4242; general consumer questions/answers

Independent Insurance Agents of America 1-800-221-7917

A.M. Best Insurance - information source for financial reliability of insurers. http://www.ambest.com/

Insweb.com - auto insurance quotes

Insurance.com - all-encompassing insurance site

Also meet with a professional agent. Review coverage and your needs. Establish a “coverage list”, then present the request to 2 to 3 companies or agents to compare for quotes.
What better resource to get information on claims than here at Tony’s Body Shop! We deal with many insurance companies, and know all too well how these companies operate, who pays claims in a timely fashion and who lags, who returns phone calls, and who cuts corners. Ask us. We’ll be happy to help.

Thoughts For The Day

“The best thing about the future is that it only comes one day at a time.”

-Abraham Lincoln

“Kindness is more important than wisdom, and the recognition of this is the beginning of wisdom.”

-Theodore Isaac Rubin

Why should you refer your family and friends to Tony's Body Shop?

What we offer with every repair job:

Guaranteed color match

Accurate panel to panel alignment

Repairing the vehicle to a safe condition

Your 100% satisfaction is our goal.

At Tony's Body Shop you can still find service, a smile, and a sincere thank you if you allow us to service your auto body needs.

Please feel free to call us if we can be of help or guide you in any way.

This newsletter is brought to you by an independent who has to work harder to make your car repair decisions easier.

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