Coverages you should consider when you buy a new car:
New Car Replacement
If your brand new car is totaled within the first year, you’ll be paid the full value of the car you lost or a comparable model. Without this coverage, you’d be paid Actual Cash Value, which would subtract depreciation. New cars depreciate the second they drive off the lot, so this coverage can save you thousands of dollars if you have to replace your new car in the first year.
Loan/Lease Gap Coverage
If you finance a new car through a lease or a loan, this covers the gap between the Actual Cash Value and the amount you owe. Without Gap coverage, you’d be on the hook for paying the difference between your loan/lease amount and the depreciated value of the vehicle.
Original Equipment Manufactured Parts (OEM)
Most leases require that you return the vehicle in good condition, with original equipment manufactured parts. For example, if you have a BMW, the lease may require that you only use BMW parts for repairs.
Most auto policies will pay for aftermarket parts if your car is damaged, which may not be from the same manufacturer as your car. With OEM coverage your policy will pay to replace damaged parts with new OEM parts. This coverage is important if you have a lease or if you would prefer brand new OEM parts.
If you’re investing in a new car, make sure you have the protection you need. Give us a call or Request a Quoteto get coverage tailored to your needs.
An auto insurance deductible is one of the most important factors to consider when choosing coverage for your vehicle. Because your deductible will impact your monthly premium as well as the amount you’ll pay for damages after making a claim, it’s critical you choose wisely.
So, what is a deductible and how does it work? Here are some points to consider when evaluating car insurance options to decide what will work for your needs.
What Is an Auto Insurance Deductible?
An auto insurance deductible is the fixed dollar amount you’re responsible for paying as the policy holder toward the financial loss from a covered car accident. If your damages exceed your deductible, the insurance company will cover the remaining balance up to your coverage amount. You choose your deductible amount and your coverage limits, and are required to pay up to the deductible amount before your insurance company steps in to cover the rest. For example, let’s say you choose an insurance policy with a $1,000 deductible. If you’re involved in an accident and the estimated damages are $2,000, you would be responsible to pay $1,000 of a covered loss before insurance kicks in.
There are two main types of car insurance coverages that typically include deductibles:
Collision: This coverage helps pay for damage to your vehicle if it hits another car or object, is hit by another car, or rolls over.
Comprehensive: This coverage helps pay for damages to your vehicle that are not caused by a collision. Examples include theft, vandalism, glass-only damage, hitting a deer or other animal, and storm damage.
After you’ve paid your applicable deductible, your insurance will cover the cost of the damages to your vehicle, up to the limits of your policy.
How Does a Car Insurance Deductible Work?
Unlike with health insurance, your deductible is paid for each accident that you have. For example, if you get into three separate accidents during a given policy period, and you have a $500 deductible, you will pay a $500 deductible for each accident. It’s also important to note that your insurance company may only cover the cost of damages that exceed the deductible amount.
For example, if you have a $500 deductible and the damages to your car total $450, you would pay the full $450. But if the damages to your car total $1,000, you would pay your $500 deductible, and the insurance company would cover the remaining $500.
When Do You Have to Pay A Deductible?
You only pay a deductible when there are covered damages to your vehicle, not when there are damages to another person’s car. That said, it can be difficult to understand every situation in which you’ll be required to pay a deductible. Here are a few scenarios to help you understand, but be sure to check with your insurance agent to verify what your specific coverages include.
Another driver hits your car. If another driver is determined to be at fault for the accident, typically, their insurance company will be responsible for paying for your repairs if you file a claim with the other company. If you choose to file your claim with your insurance company, you will owe your deductible, but your insurer will likely seek reimbursement of your deductible from the other driver’s insurance company. However, if a driver hits your vehicle and both you and the other driver are determined to be at fault, then you may be responsible for paying at least a portion of your deductible if you file a claim with your own insurance company.
You hit another driver’s car. If you strike someone else’s vehicle and in doing so, damage your car, your insurance company typically will pay for the damages to your car, and you will be responsible for paying the deductible.
Your car was damaged by something other than a collision. With comprehensive coverage, if your car is damaged in a storm, fire, flood or if you strike an animal, typically your insurance company will cover the damages and — depending on your policy — you are likely to have to pay your deductible.
Your windshield was damaged. Generally, comprehensive coverage covers glass damage. In this case, your insurance company would pay for the cost to repair or replace your windshield. Depending on your policy, you may have to pay a deductible. Again, check with your insurance agent to confirm what your coverage will do.
Your vehicle was damaged in a hit-and-run. If you have collision or uninsured/underinsured motorist coverage and someone hits your car and flees the scene, you likely will be responsible for paying your deductible. This type of claim would be worth a phone call to your insurance agent for guidance on your coverage and what you may owe.
Your vehicle is totaled. If your insurance company determines your car is a total loss (e.g., generally, the cost of the damages exceeds the value of the vehicle), then it will typically pay for the fair market value of your car before the accident, minus your deductible.
How Does A Deductible Impact Your Car Insurance Premium?
Your deductible has an impact on your car insurance premium, so you’ll need to decide this based on your budget and perhaps several other considerations. In general, the higher the deductible you choose, the lower the premium you’ll pay. Conversely, the lower the deductible you choose, the higher the premium you’ll pay.
For example, if your current policy has a $500 deductible and you decide to increase your deductible when your policy is up for renewal, your monthly premium will likely decrease (assuming all other factors remain the same).
Here are a couple other things to consider when choosing your car insurance deductible:
How much of a deductible could you afford to pay? If you’re in an accident, you may need to pay your full deductible, so it’s important that it’s an amount you can afford. Consider starting an emergency fund to save up some money in case you have an accident that requires you to pay your deductible. Also, some insurance companies have minimum deductible requirements, so keep this in mind when you discuss your policy details with your insurance agent so you will know what to expect if you have a mishap with your vehicle.
How much is your car worth? The value of your vehicle may make a difference in what deductible makes sense for you. For the most part, the more expensive your vehicle, the more it costs to insure. That can translate into greater savings if you choose a high deductible.
Several factors affect the cost of your car insurance policy, but your deductible will have an impact on your premiums as well as on how much you’ll pay out-of-pocket for damages to your car from an accident. Before you select a policy, consider your options for your deductible. Hopefully you may never face a situation where you’ll have to pay a deductible, but it’s important that you be careful to choose a policy with a deductible that you can afford to pay.
Everyone who owns a car relies on it for so much of the normal day-to-day activities they participate in. Most people would be lost without their vehicle, from work and school to shopping and socializing.
Generally speaking, anyone that lives in your household and has a driver’s license is required to be rated on your auto policy. Your car insurance can also extend to licensed drivers who you give permission to drive your vehicle.
Auto insurance makes sure your vehicle is protected, but it also protects you and your assets with liability coverage. Almost every state requires drivers to carry basic liability insurance, and Colorado is one of them. Liability coverage helps to pay medical bills for injured people due to an accident caused by the driver of your vehicle. This is something to consider before you allow someone to drive your car. Depending on the amount of coverage you have for liability, legal action against you could be very expensive.
Coverage for your vehicle itself is optional unless you have a lease or an auto loan. Then you’ll need to carry coverage for your vehicle in the form of collision and comprehensive. Collision coverage protects your vehicle itself in the event of an accident where the driver of your vehicle is at-fault. You’ll have to pay your deductible, which is also something to consider before allowing someone else to drive your vehicle. Comprehensive coverage protects your vehicle from things other than an accident. That can include fire, hail damage, theft, and more.
Integrity First Insurance has been doing business in Colorado since 2008. We are an independent agency with a focus on integrity and education. We want our clients to trust their insurance and we offer the residents of Colorado service beyond their expectation. Our agents will be there for them in the good times and the bad. Check out our website for more information about the products we offer.
Driving for Uber or Lyft is a great way to make a little extra money. You can work when you feel like it and all you need is an okay driving record and an eligible car. Other than that, there aren’t many requirements.
Both Uber and Lyft do require that you have your own insurance on your vehicle. But many people don’t really know when their own auto policy stops covering them and when Uber or Lyft’s insurance starts covering them.
Generally speaking, as soon as you log into the Uber or Lyft app, your auto policy stops extending coverage.
Insurance 101 – A Parent’s Guide to College Student Coverages
At the end of every summer, many parents are packing up their recent high school graduate and sending them to college. This is the start of many big life changes for everyone, which can also bring a lot of stress and questions.
As a parent, you’re probably not thinking about insurance in that moment. It’s important to consider what coverage your kid will have when they go off to college.
Are they covered under your homeowners policy?
Many homeowners policies provide coverage for your college student while they are away at school. If they’re living in a dorm, your home policy might cover their personal liability and personal property.
Carriers can vary in how much personal property extends while away at school or away from home. The average for property covered away from the home is 10% of the personal property limit.
If your child decides to rent an off-campus apartment, they might need a renters policy. Even if their personal property isn’t worth much, they still need renters insurance for the liability coverage.
College students don’t always make good choices. If your kid throws a party, they are at risk of a lawsuit. Someone could get hurt and sue. Or a guest could drive drunk and injure someone, leaving your child responsible because they served the alcohol.
Liability coverage offers legal protection from those types of situations. A renters policy can help protect the future your child is building.
What about their auto insurance?
Auto insurance is pretty specific about who can and cannot be a driver on a policy. Most insurance carriers only allow “household members” to be drivers on a policy. While your child may not be living in your home daily, most insurance carriers consider college students a “household member.”
As long as your child is in school, you should be able to insure them on your auto policy with most insurance providers. Once they have graduated and have their own permanent residence, they’ll need to get their own auto policy.
While they’re still on your policy they may be able to qualify for a few discounts, like Good Student and Distant Student.
Most insurance carriers offer the Good Student discount if your student maintains a B average (3.0 GPA) or higher. You may need to provide a report card showing their grades each policy term to keep that discount.
The Distant Student discount can vary, it’s usually available for a student that is attending college more than 100 miles away from home. Most carriers specify that they can’t have a vehicle at school with them. Some insurance companies will provide the discount if they have a vehicle, but it’s more common to see the “without a vehicle” stipulation.
Dorm Do’s and Don’ts for your college student
Over the next few weeks, your child may be getting a taste for living on their own for the first time. That can be scary to think about as a parent. Below are some safety tips to share with college students to help keep them and their belongings safe during the school year.
DO keep your dorm room door locked at all times.
Many kids will keep their doors unlocked when visiting a friend a few rooms away, thinking that no one will enter their room if they’re only gone for a few minutes. This can’t be further from the truth.
Many electronics are small and portable and can be stolen in 30 seconds if left unattended. Whether you’re making a quick trip to the restroom or hanging out in the room next door, keep your door locked.
DON’T leave candles/incense unattended.
Candles and incense are big on college campuses. Small rooms crammed with at least two people can smell a little funky, so many students use these items to help freshen up the air.
Leaving these unattended while lit can be a huge fire hazard. The flame is not the only issue with candles and incense. The heat from the candle and the ash from the incense are enough to start a fire.
DO remove dryer lint from lint trap before running dryer.
Many students are used to Mom and Dad doing their laundry. Living at college is their first real experience with washing and drying their clothes regularly.
Dryer fires are common on college campuses because many students don’t clean the lint trap in the dryer and dispose of the lint properly. Dryer lint is like kindling and can catch fire from the heat put off by the dryer. Be sure to clean the lint trap before turning on the dryer every time you use it.
DO plug electronics into surge protectors and frequently save all work.
There is nothing worse than being up until 2:00 a.m. finishing a 20-page paper only to have your computer shut down or short out before you’ve saved your work. Surge protectors will help keep your electronics from being fried due to an overload from your neighbor’s hair dryer. Saving your work frequently will help prevent a late-night meltdown if you encounter computer issues.
DON’T post when you will be away on Facebook or other social media sites.
In today’s social media-crazed society, many people think nothing of posting their plans, even when it means they will be away from their home for a weekend or longer. If you post that you’re going home for the weekend, this may give someone who sees that post an opportunity to break into your room and rob you blind.
Posting on social media is not like telling your friends your plans. It’s more akin to posting your plans in the newspaper.
Some of these tips may seem like common sense, but they are all derived from actual incidents. Many people have that old “it won’t happen to me” mentality. But these situations can and do happen, so it doesn’t hurt to have a quick conversation with your college student.
In an ideal world, safe drivers would pay less for their car insurance and riskier drivers would pay more. Telematics programs help insurance companies work towards that goal.
When drivers take part in telematics programs, they get real-time feedback about their driving habits. The programs generally last at least 90 days, sometimes longer. That gives drivers an opportunity to correct their bad habits and earn a better rate.
As insurance companies get data from the driver’s habits, they can adjust the rate accordingly.
More and more insurance carriers are offering telematics programs to help customize auto rates. These programs vary by carrier, but they will generally monitor your driving one of two ways. They will use either a device that you plug into your vehicle or a mobile app on your phone.
What driving behaviors are monitored by telematics?
If you’re the proud parent of a 14 or 15-year-old, you may be counting down the days until they get their license. Maybe you’re apprehensive about them driving, or you’re eager for them to have more independence (no more soccer practice drop-offs, finally!). Either way, it’s a huge milestone in your teen’s life, one that often comes with a hefty price tag.
When it comes to insuring your teen driver, it’s important to know when you have to add them to the policy. They usually don’t need to be rated when they only have their permit. As soon as they get their license, you’ll have to add them to the policy as a rated driver.
Adding a teen driver to your auto insurance will increase the cost of the policy, even if you don’t add an extra car. The simple truth is that teenagers pose an additional risk. Since insurance is all about rating for risk, that generally comes with a higher price.
Luckily, there are a few things you can do NOW to help lessen the financial blow.
If you watch TV or listen to the radio, chances are you’ve seen or heard a commercial from a personal injury attorney. You know the ones- “I called (name of law firm) and they got me $700,000!” The frequency of these commercials means you’re more likely to get sued if you are at-fault in an accident.
The fact of the matter is, there are people out there that see a big payday if they get in an accident. Insurance is there to pay your medical bills paid and get your vehicle fixed. When the injured party wants to pocket extra cash, it drives up rates for us all.
If you’re at-fault in an accident your insurance company will only pay up to your liability limits. Anything beyond that is your responsibility. If you don’t have that money laying around, they can take your home or garnish your wages.
Here are 3 ways you can help protect your family and your financial future:
Some of the most common questions I hear are: Do I really need Uninsured Motorist coverage? Isn’t that why I have health insurance? For me, the answer is simple. Yes, you do need it.
Hopefully you’ll never have to use it, but I wouldn’t take that risk. Sure, your health insurance may cover some of the costs if you’re injured in an accident. But you’ll still have out-of-pocket expenses.
Picture this:
You’re driving home from work and another driver runs a red light and smashes into your car. You’re taken to the hospital by ambulance where you undergo surgery for your lacerated liver and internal bleeding. Luckily, you’re alive and will make a full recovery.
Unfortunately, you’ll be in the hospital for a week and out of work for 3 weeks while you recover from your injuries.
Most classic car insurance policies offer “agreed value” coverage. That means you and the insurance company would agree to insure your vehicle for a specific value. Then if there if there is a total loss to the vehicle, that is the amount the insurance company pays. This type of policy allows you to properly insure your classic car at the true market value.
Regular auto insurance policies cover your vehicle for the “actual cash value” at the time of the loss. The insured value of your vehicle depreciates as the vehicle ages. Because of that, normal car isn’t sufficient to cover the higher value of a classic car.
Benefits to classic car insurance over “regular” car insurance:
