Auto Insurance:

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 Auto Insurance,  protects the policyholder against financial loss in the event of an incident involving a vehicle they own, such as in a traffic collision.

Coverage typically includes:

Auto Insurance

  • Property coverage, for damage to or theft of the car
  • Liability coverage, for the legal responsibility to others for bodily injury or property damage
  • Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses


Auto insurance can cover some or all of the following items:

  • The insured party (medical payments)
  • Property damage caused by the insured
  • The insured vehicle (physical damage)
  • Third parties (car and people, property damage and bodily injury)
  • Third party, fire and theft
  • In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
  • The cost to rent a vehicle if yours is damaged.
  • The cost to tow your vehicle to a repair facility.
  • Accidents involving uninsured motorists.

Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently.

If a vehicle is declared a total loss and the vehicle’s market value is less than the amount that is still owed to the bank that is financing the vehicle, GAP Insurance may cover the difference. Not all auto insurance policies include GAP insurance. GAP insurance is often offered by the finance company at time the vehicle is purchased.

DEDUCTIBLE: (Excess Payment)

An excess payment, also known as a deductible, is a fixed contribution that must be paid each time a car is repaired with the charges billed to an auto insurance policy. Normally this payment is made directly to the accident repair “garage” (the term “garage” refers to an establishment where vehicles are serviced and repaired) when the owner collects the car. If one’s car is declared to be a “write off ” (or “total loss”), then the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to the owner.

If the accident was the other driver’s fault, and this fault is accepted by the third party’s insurer, then the vehicle owner may be able to reclaim the excess payment from the other person’s insurance company.

Compulsory excess

A compulsory excess is the minimum excess payment the insurer will accept on the insurance policy. Minimum excesses vary according to the personal details, driving record and the insurance company.

Voluntary excess

To reduce the insurance premium, the insured party may offer to pay a higher excess (deductible) than the compulsory excess demanded by the insurance company. The voluntary excess is the extra amount, over and above the compulsory excess, that is agreed to be paid in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by the insurer, the insurer is able to offer a significantly lower premium. auto insurance, auto insurance, auto insurance, auto insurance



Vehicle Insurance

Tailored To Your Needs, Personal Vehicle Insurance, Home and Business Insurance

Vehicle insurance (also known as car insurance, motor insurance or auto insurance) is insurance for cars, trucks, motorcycles, and  other motor vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability  that could also arise there from. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions, such as keying and damage sustained by Vehicle insurance can cover some or all of the following items:
  • The insured party (medical payments)
  • Property damage caused by the insured
  • The insured vehicle (physical damage)
  • Third parties (car and people, property damage and bodily injury)
  • Third party, fire and theft
  • In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
  • The cost to rent a vehicle if yours is damaged.
  • The cost to tow your vehicle to a repair facility.
  • Accidents involving uninsured motorists.

Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently.

If a vehicle is declared a total loss and the vehicle’s market value is less than the amount that is still owed to the bank that is financing the vehicle,  GAP Insurance may cover the difference. Not all auto insurance policies include GAP insurance. GAP insurance is often offered by the finance company at time the vehicle is purchased.

Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company, in accordance with a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverages than on mandatory liability coverages.

When the premium is not mandated by the government, it is usually derived from the calculations of an actuary, based on statistical data. The premium can vary depending on many factors that are believed to affect the expected cost of future claims  Those factors can include the car characteristics, the coverage selected (deductible,  limit, covered perils), the profile of the driver (age, gender,  driving history) and the usage of the car (commute to work or not, predicted annual distance driven).


Because male drivers, especially younger ones, are on average often regarded as tending to be more aggressive, the premiums charged for policies on vehicles whose primary driver is male are often higher. This discrimination may be dropped if the driver is past a certain age.

On 1 March 2011, the European Court of Justice decided insurance companies who used gender as a risk factor when calculating insurance premiums were breaching EU equality laws. The Court ruled that car-insurance companies were discriminating against men. However, in some places, such as the UK, companies have used the standard practice of discrimination based on profession to still use gender as a factor, albeit indirectly. Professions which are more typically practised by men are deemed as being more risky even if they had not been prior to the Court’s ruling while the converse is applied to professions predominant among women.  Another effect of the ruling has been that, while the premiums for men have been lowered, they have been raised for women. This equalisation effect has also been seen in other types of insurance for individuals, such as Life Insurance.


Teenage drivers who have no driving record will have higher car insurance premiums. However, young drivers are often offered discounts if they undertake further driver training on recognized courses, such as the pass plus scheme in the UK. In the US many insurers offer a good-grade discount to students with a good academic record and resident-student discounts to those who live away from home. Generally insurance premiums tend to become lower at the age of 25. Some insurance companies offer “stand alone” car insurance policies specifically for teenagers with lower premiums. By placing restrictions on teenagers’ driving (forbidding driving after dark, or giving rides to other teens, for example), these companies effectively reduce their risk.

Senior drivers are often eligible for retirement discounts, reflecting the lower average miles driven by this age group. However, rates may increase for senior drivers after age 65, due to increased risk associated with much older drivers. Typically, the increased risk for drivers over 65 years of age is associated with slower reflexes, reaction times, and being more injury-prone.

U.S. driving history

In most U.S. states, moving violations, including running red lights and speeding, assess points on a driver’s driving record. Since more points indicate an increased risk of future violations, insurance companies periodically review drivers’ records, and may raise premiums accordingly. Rating practices, such as debit for a poor driving history, are not dictated by law. Many insurers allow one moving violation every three to five years before increasing premiums. Accidents affect insurance premiums similarly. Depending on the severity of the accident and the number of points assessed, rates can increase by as much as twenty to thirty percent.[25] Any motoring convictions should be disclosed to insurers, as the driver is assessed by risk from prior experiences while driving on the road.

Marital status

Statistics show that married drivers average fewer accidents than the rest of the population so policy owners who are married often receive lower premiums than single persons.

Vehicle classification

Two of the most important factors that go into determining the underwriting risk on motorized vehicles are: performance capability and retail cost. The most commonly available providers of auto insurance have underwriting restrictions against vehicles that are either designed to be capable of higher speeds and performance levels, or vehicles that retail above a certain dollar amount. Vehicles that are commonly considered luxury automobiles usually carry more expensive physical damage premiums because they are more expensive to replace. Vehicles that can be classified as high performance autos will carry higher premiums generally because there is greater opportunity for risky driving behavior. Motorcycle insurance may carry lower property-damage premiums because the risk of damage to other vehicles is minimal, yet have higher liability or personal-injury premiums, because motorcycle riders face different physical risks while on the road. Risk classification on automobiles also takes into account the statistical analysis of reported theft, accidents, and mechanical malfunction on every given year, make, and model of auto.


Some car insurance plans do not differentiate in regard to how much the car is used. There are however low-mileage discounts offered by some insurance providers. Other methods of differentiation would include: over-road distance between the ordinary residence of a subject and their ordinary, daily destinations.

Reasonable distance estimation

Another important factor in determining car-insurance premiums involves the annual mileage put on the vehicle, and for what reason. Driving to and from work every day at a specified distance, especially in urban areas where common traffic routes are known, presents different risks than how a retiree who does not work any longer may use their vehicle. Common practice has been that this information was provided solely by the insured person, but some insurance providers have started to collect regular odometer readings to verify thvehicle insurance, vehicle insurance, vehicle insurance, vehicle insurance, vehicle insurance, vehicle insurance, vehicle insurance

car crowded parking place

Study Finds Car Insurance, Insurers Raise Rates in Minority Neighborhoods

 car insurance study

A car insurance study in four states found that drivers living in some minority neighborhoods were charged higher rates than similar drivers in mostly white areas, even when the average risk of a claim was similar.

The Car Insurance  report,  by the nonprofits ProPublica and Consumer Reports, covers rates in California, Illinois, Missouri and Texas, the states that made data available. The report examined quoted insurance premiums, as well as average claims paid by insurers — the first use of payout data to examine racial disparities in car insurers  premiums, the researchers said. The analysis found that pricing disparities between neighborhoods that were mostly white and those inhabited mostly by minorities were wider than differences in risk could explain.

In some cases, the car insurance report  said, major insurers charged premiums that were on average 30 percent higher in minority ZIP codes than in comparable nonminority neighborhoods. “This overpricing,” the report said, “may amount to a subtler form of redlining,” a term that refers to denial of services to minority areas.

The car insurance  report, published Wednesday by Consumer Reports, said it was not entirely clear why insurers charged more in minority areas. It could represent a “vestige” of the days when racial discrimination by businesses was routine, researchers of the car insurance report  said, or it might be that proprietary algorithms used by individual insurers “inadvertently” penalized minority areas.

However, “The car insurance report raises the question of whether those rates are justified,” said Julia Angwin, a senior reporter at ProPublica and one of the report’s authors.

The car  insurance industry and some state regulators criticized the report, saying it oversimplified the way companies set rates. Car Insurers  “do not discriminate on the basis of race,” James Lynch, chief actuary of the Insurance Information Institute, a trade group, told the researchers.

In a call with reporters on Wednesday, Mr. Lynch said the institute had commissioned its own actuarial analysis of ProPublica’s data and determined that the car insurance  conclusions drawn from the study were “flawed.” The institute did not make its analysis available because it was in draft form, he said, but expected to make it available when the report was completed.

The car insurance  report resonated with consumer advocates. “I’m not surprised” by the findings, said Robert Hunter, director of insurance at the Consumer Federation of America. The federation has conducted a series of studies raising questions about the fairness of using nondriving criteria, like education and occupation, in setting car insurers rates. In 2015, the federation Published a story finding that rates are much higher in minority ZIP codes.

The federation’s studies did not include insurer payout data, which is “good addition” to the analysis, Mr. Hunter said.

How can I find more affordable rates on my car insurance?

Individuals must aggressively comparison shop, experts say. Consumer Reports suggests using, an online tool that offers estimates from a dozen or more insurers, depending on the state. Drivers should compare rates often, said Tobie Stanger, a senior editor at the magazine, because the supposed benefit of getting a discount by remaining with the same insurer for a long time is “mostly a myth.”

Typically, one or two car insurers will offer lower rates in a given state. The magazine’s website offers a list of which insurers to check first, by state.

Can I lower my auto premium by raising my policy’s deductible?

Yes. Increasing your deductible — the amount you must pay before your insurance policy does — can help lower monthly premiums. Just be aware that if you have a claim, you will be responsible for more of the cost of any repairs.

Mr. Hunter said he considered mileage to be an “underreflected characteristic” in setting auto insurance rates, but some insurers are starting to weigh it more heavily. So if you don’t drive much, you might be able to lower your premium. charge a monthly base premium, plus an additional rate based on the number of miles you drive each month. The company installs a device in your car to track mileage.

Insurance in the USA

Insurance All Types

Insurance, Liability coverage.

Liability coverage, sometimes known as Casualty Insurance, is offered for bodily injury (BI) or property damage (PD) for which the insured driver is deemed responsible. The amount of coverage provided (a fixed dollar amount) will vary from jurisdiction to jurisdiction. Whatever the minimum, the insured can usually increase the coverage (prior to a loss) for an additional charge.

An example of property damage is where an insured driver (or 1st party) drives into a telephone pole and damages the pole; liability coverage pays for the damage to the pole. In this example, the drivers insured may also become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company), depending on the jurisdiction. An example of bodily injury is where an insured driver causes bodily harm to a third party and the insured driver is deemed responsible for the injuries. However, in some jurisdictions, the third party would first exhaust coverage for accident benefits through their own insurer (assuming they have one) and/or would have to meet a legal definition of severe impairment to have the right to claim (or sue) under the insured driver’s (or first party’s) policy. If the third party sues the insured driver, liability coverage also covers court costs and damages that the insured driver may be deemed responsible for.

In some states, such as New Jersey, it is illegal to operate (or knowingly allow another to operate) a motor vehicle that does not have liability insurance coverage. If an accident occurs in a state that requires liability coverage, both parties are usually required to bring and/or submit copies of insurance cards to court as proof of liability coverage.

In some jurisdictions: Liability coverage is available either as a combined single limit policy, or as a split limit policy:

Combined single limit.

A combined single limit combines property damage liability coverage and bodily injury coverage under one single combined limit. For example, an insured driver with a combined single liability limit strikes another vehicle and injures the driver and the passenger. Payments for the damages to the other driver’s car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage.

Split limits.

A split limit liability coverage policy splits the coverages into property damage coverage and bodily injury coverage. In the example given above, payments for the other driver’s vehicle would be paid out under property damage coverage, and payments for the injuries would be paid out under bodily injury coverage.

Bodily injury liability coverage is also usually split into a maximum payment per person and a maximum payment per accident.

The limits are often expressed separated by slashes in the following form: “bodily injury per person”/”bodily injury per accident”/”property damage”. For example, Tennessee  requires this minimum coverage:

  • $25,000 for injury/death to one person
  • $50,000 for injury/death to more than one person
  • $15,000 for damage to property

This would be expressed as “$25,000/$50,000/$15,000”.

Another example, in the state of Oklahoma, drivers must carry at least state minimum liability limits of $25,000/$50,000/$25,000.[5] If an insured driver hits a car full of people and is found by the insurance company to be liable, the insurance company will pay $25,000 of one person’s medical bills but will not exceed $50,000 for other people injured in the accident. The insurance company will not pay more than $25,000 for property damage in repairs to the vehicle that the insured one hit.

In the state of Indiana, the minimum liability limits are $25,000/$50,000/$10,000,so there is a greater property damage exposure for only carrying the minimum limits.

Rental coverage.

Generally, liability coverage purchased through a private insurer extends to rental cars. Comprehensive policies (“full coverage”) usually also apply to the rental vehicle, although this should be verified beforehand. Full coverage premiums are based on, among other factors, the value of the insured’s vehicle. This coverage, however, cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured’s vehicle, assuming that a rental car may be worth more than the insured’s vehicle.

Most rental car companies offer insurance to cover damage to the rental vehicle. These policies may be unnecessary for many customers as credit card companies, such as Visa and MasterCard, now provide supplemental collision damage coverage to rental cars if the rental transaction is processed using one of their cards. These benefits are restrictive in terms of the types of vehicles covered.

Maine requires car insurance to rent a car.

Full coverage.

Full coverage is the term commonly used to refer to the combination of comprehensive and collision coverages (liability is generally also implied.) The term full coverage is actually a misnomer because, even within traditional full coverage insurance, there are many different types of coverage, and many optional amounts of each. “Full coverage” is a layman’s misnomer that often results in drivers and vehicle owners being woefully underinsured. Most responsible insurance agents or brokers do not use this term when working with their clients.

One common misconception in the United States is that vehicles that are financed on credit through a bank or credit   union are required to have “full” coverage in order for the financial institution to cover their losses in case of an accident. Insurance requirements vary between financial institutions and each state. Minimum deductibles and liability limits (required by some leasing companies) would be outlined in the loan contract. Failure to carry the required coverages may lead to the lienholder purchasing insurance and adding the cost to the monthly payments or repossession of the vehicle. Vehicles purchased with cash or paid off by the owner are generally required to only carry liability. In some cases, vehicles financed through a  ‘Buy here pay here car dealership’ in which the consumer (generally those with poor credit) finances a car and pays the dealer directly without a bank—may require comprehensive and collision depending on the amount owed for the vehicle.


Collision coverage provides coverage for vehicles involved in collisions. Collision coverage is subject to a deductible.  This coverage is designed to provide payments to repair the damaged vehicle, or payment of the cash value of the vehicle if it is not repairable or totaled.   Collision coverage is optional, however if you plan on financing a car or taking a car loan, the lender will usually insist you carry collision for the finance term or until the car is paid off. Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) is the term used by rental car companies for collision coverage.


Comprehensive, also known as other than collision coverage, provides coverage, subject to a deductible, for cars damaged by incidents that are not considered collisions. For example, fire, theft (or attempted theft), vandalism, weather, or impacts with animals are types of comprehensive losses.

Additionally, the majority of insurance companies list “Act of God’  as an aspect of comprehensive coverage. By definition, it includes any events or occurrences that are beyond human control. For example, a tornado, flood, hurricane, or hail storm would fall under this category.

Uninsured/underinsured motorist coverage[

Uninsured/Underinsured coverage,  also known as UM/UIM, provides coverage if an at-fault party either does not have insurance, or does not have enough insurance. In effect, the insurance company pays the insured medical bills, then would subrogate from the at fault party. This coverage is often overlooked and very important. In Colorado, for example, it was estimated in 2009 that 15% of drivers were uninsured. Usually the limits match the liability limits.] Some insurance companies do offer UM/UIM in an umbrella policy.

Some states maintain unsatisfied judgment funds to provide compensation to those who cannot collect damages from uninsured driver. Typically, the payout is not more than the minimum liability limits and the negligent driver remains responsible for reimbursing the state’s fund.

In the United States, the definition of an uninsured/underinsured motorist, and corresponding coverages, are set by state laws. In some states it is mandatory. In the case of underinsured coverage, two different triggers apply: a damages trigger which is based on whether the limits are insufficient to cover the injured party’s damages, and a limits trigger which applies when the limits are less than the injured party’s limits.29 states have a limits trigger while 20 states have a damages trigger. Another variation is whether a particular state requires stacking of policy limits of different vehicles or policies.

Loss of use

Loss of Use coverage, also known as rental coverage, provides reimbursement for rental expenses associated with having an insured vehicle repaired due to a covered loss.

Loan/lease payoff

Loan/lease payoff coverage, also known as GAP coverage or GAP insurance, was established in the early 1980s to provide protection to consumers based upon buying and market trends.

Due to the sharp decline in value immediately following purchase, there is generally a period in which the amount owed on the car loan exceeds the value of the vehicle, which is called “upside-down” or negative equity . Thus, if the vehicle is damaged beyond economical repair at this point, the owner will still owe potentially thousands of dollars on the loan. The escalating price of cars, longer-term auto loans, and the increasing popularity of leasing gave birth to GAP protection. GAP waivers provide protection for consumers when a “gap” exists between the actual value of their vehicle and the amount of money owed to the bank or leasing company. In many instances, this insurance will also pay the deductible on the primary insurance policy. These policies are often offered at auto dealerships as a comparatively low cost add-on to the car loan that provides coverage for the duration of the loan. GAP Insurance does not always pay off the full loan value however. These cases include but are not limited to:

  1. Any unpaid delinquent payments due at the time of loss
  2. Payment deferrals or extensions (commonly called skips or skip a payment)
  3. Refinancing of the vehicle loan after the policy was purchased
  4. Late fees or other administrative fees assessed after loan commencement

Therefore, it is important for a policy holder to understand that they may still owe on the loan even though the GAP policy was purchased. Failure to understand this can result in the lender continuing their legal remedies to collect the balance and the potential of damaged credit.

Consumers should be aware that a few states, including New York, require lenders of leased cars to include GAP insurance within the cost of the lease itself. This means that the monthly price quoted by the dealer must include GAP insurance, whether it is delineated or not. Nevertheless, unscrupulous dealers sometimes prey on unsuspecting individuals by offering them GAP insurance at an additional price, on top of the monthly payment, without mentioning the State’s requirements.

In addition, some vendors and insurance companies offer what is called “Total Loss Coverage.” This is similar to ordinary GAP insurance but differs in that instead of paying off the negative equity on a vehicle that is a total loss, the policy provides a certain amount, usually up to $5000, toward the purchase or lease of a new vehicle. Thus, to some extent the distinction makes no difference, i.e., in either case the owner receives a certain sum of money. However, in choosing which type of policy to purchase, the owner should consider whether, in case of a total loss, it is more advantageous for him or her to have the policy pay off the negative equity or provide a down payment on a new vehicle.

For example, assuming a total loss of a vehicle valued at $15,000, but on which the owner owes $20,000, is the “gap” of $5000. If the owner has traditional GAP coverage, the “gap” will be wiped out and he or she may purchase or lease another vehicle or choose not to. If the owner has “Total Loss Coverage,” he or she will have to personally cover the “gap” of $5000, and then receive $5000 toward the purchase or lease of a new vehicle, thereby either reducing monthly payments, in the case of financing or leasing, or the total purchase price in the case of outright purchasing. So the decision on which type of policy to purchase will, in most instances, be informed by whether the owner can pay off the negative equity in case of a total loss and/or whether he or she will definitively purchase a replacement vehicle.


Vehicle towing coverage is also known as roadside assistance coverage. Traditionally, automobile insurance companies have agreed to only pay for the cost of a tow that is related to an accident that is covered under the automobile policy of insurance. This had left a gap in coverage for tows that are related to mechanical breakdowns, flat tires and gas outages. To fill that void, insurance companies started to offer the car towing coverage, which pays for non-accident related tows.

Personal property

Personal items in a vehicle that are damaged due to an accident typically are not covered under the auto insurance policy. Any type of property that is not attached to the vehicle should be claimed under a home insurance or renters insurance policy. However, some insurance companies will cover unattached GPS devices intended for automobile use.

Rating plans

Main article: Auto Insurance
Insurers use actuarial science to determine the rates, which involves statistical analysis of the various characteristics of drivers.

Public policy considerations

px Japanese car accident


In the United States,   automotive insurance covering liability for injuries and property damage is compulsory in most states, but different states enforce the insurance requirement differently. In Virginia  where insurance is not compulsory, residents must pay the state a $500 annual fee per vehicle if they choose not to buy liability insurance. Penalties for not purchasing insurance vary by state, but often include a substantial fine, license and/or registration suspension or revocation, and possible jail time. Usually, the minimum required

Vehicle insurance, in the United States and elsewhere,  is designed to cover risk of financial liability or the loss of a motor vehicle the owner may face if their vehicle is involved in a collision resulting in property or physical damages. Some states require a motor vehicle owner to carry some minimum level of liability insurance. States that do not require the vehicle owner to carry car insurance include Virginia, where an uninsured motor vehicle fee may be paid to the state; New Hampshire, and Mississippi which offers vehicle owners the option to post cash bonds (see below). The privileges and immunities clause of Article IV of the U.S. Constitution protects the rights of citizens in each respective state when traveling to another. A motor vehicle owner typically pays insurers a monthly fee, often called an insurance premium.  The insurance premium a motor vehicle owner pays is usually determined by a variety of factors including the type of covered vehicle, the age and gender of any covered drivers, their driving history, and the location where the vehicle is primarily driven and stored. Credit scores are also taken into consideration. Most insurance companies offer premium discounts based on these factors.

Insurance companies provide a motor vehicle owner with an insurance card for the particular coverage term which is to be kept in the vehicle in the event of a traffic collision as proof of insurance. Recently, states have started passing laws that electronic versions of proof of insurance can now be accepted by the authorities.


Independent Insurance Agent

Insurance, Tailored To Your Needs

  Every American Needs The  Independent  Insurance Agent.

 The Independent insurance agent are coming one of the best-kept secrets of the industry. While America is being bombarded with cute TV commercials, witty billboards and ear-catching radio announcements from direct writers promising to save us $400 on our current rates, consumers are forgetting about their advocates, the independent insurance agents. We are there to make sure that saving $400 does not jeopardize our clients’ insurance needs. 

A direct writer solicits and services business directly with the public through its own employees, the mail or the Internet. On the other hand, an independent insurance agent is a licensed individual who typically represents multiple companies and acts as the middleman, negotiating insurance products and services on behalf of their clients with one or several of their available markets. Agents have local offices where our clients can speak with someone face-to-face about their insurance needs.
The independent insurance agent can be a consumer’s best friend when it comes to securing insurance for many reasons:

Independent Insurance agents do all the work. We are advocates who can check several markets for clients to ensure they have the best premiums and plan provisions based on their information and needs. Clients only have to give us their information once, and we take it from there. For consumers, it’s like having a personal shopper for insurance.

The Independent insurance agent are a one-stop shop. By having access to multiple insurance markets, consumers can typically secure coverage for their home, auto, boat, life and whatever else they may need, all through one agency. Our clients have just one contact for all their insurance, even though it all may not be with the same insurance company.
Every policy is different. As if it’s not hard enough for consumers to know what insurance they need to buy (i.e. a dwelling fire versus a homeowners policy), they also have to understand the little nuances between each insurance company to make sure they are insured properly. We take that extra step for our clients.
Independent Insurance agents deliver outstanding service. When our clients have a coverage question or need to report a claim, they get to speak with a live person that they know and trust. We can quickly help our clients with a tricky coverage question or get them the assistance they need for a claim.
Insurance is complicated. By going online and filling out some information for a direct writer, how do consumers know they are getting the proper coverage they need? A great example is state minimum auto limits. While minimum limits are appealing because they are cheap and are all that are required, they typically are not enough. In South Carolina, our minimum limits are $25,000 per person, and $50,000 per accident for bodily injury and $25,000 for property damage. Think how quickly those limits would be exhausted in a head-on collision involving two cars where two people have to go to the hospital. This is where independent agents can help guide our clients to what is best for them.
While there are many positives to using an independent insurance agent, agents are human, and mistakes can happen. When this occurs, clients do have options such as contacting the Department of Insurance. It is not necessarily what a client would want to do, but at least they have options. If they secure the coverage themselves though and are not adequately covered, they have only themselves to blame.
Also, not all independent Independent agents are created equal. Each agency has access to different insurance carriers, some more than others. Consumers need to find an agent and agency they feel comfortable with and trust. Consumers should think of their insurance agent as a trusted advisor just like their accountant or lawyer. We want to be there for our clients and their needs!
It is obvious that we have something to offer the consumer, but how do we let them know? We need to mutually support and respect each other as independent agents. We must ban together to show strength in numbers compared to the direct writers. In addition, better marketing on the benefits of an independent agent at the local and national level is crucial. Technology is our friend, and harnessing the Internet’s marketing power is critical for the independent agent. We are the insurance experts, and we need to showcase this knowledge in our local communities and build trust with consumers that we know what we are doing. So let’s rally together and really show the public what we are made of!
This article written by Rachel Livingston Popkowski and taken from the IA (Independent Agent) Magazine, July 2013.

Young Driver Car Insurance , Ways to Save.


Insurance Increased after a Not At Fault Accident

Auto Insurance Increased after a not at fault accident ?  Your Insurance May Still Go up It’s  almost an oxymoron. If you’re under 25, it’s essentially a given that you’re going to pay more for car insurance.  From joyriding with that feeling of invincibility to the learning curve that we all went through when we first started driving, young drivers undeniably present a greater risk ,  There are also several things that can be done to minimize the cost  commonly seen with car insurance for young drivers.  companies aren’t out to punish younger drivers, especially those who display maturity beyond their years.

Still, finding cheap coverage  for young drivers is not an easy task. Here’s what you need to know to lower your costs  that are out of your control.
High premiums for young drivers
Drivers between the ages of 16 and 25 are involved in 26 percent of all car accidents, despite the fact that they account for only 11 percent of all drivers on the road.

Many  companies charge much higher premiums that even these numbers suggest drivers under the age of 19 pay rates that are often more than 100 percent higher than drivers between the ages of 50 and 74, another high risk group. companies themselves account for a good chunk of this discrepancy,  Some companies have determined that offering relatively cheap prices for young drivers can help them corner this market and generate solid profit margins. Other companies have decided the risks are simply too great.

As young drivers hold the potential for larger profits and greater financial risk, the calculus for insuring young drivers is quite similar to other investment prospects.

So, what does this mean for young drivers and their families,  for one it means that you need to get quotes from as many different reliable companies as you can find. It’s not uncommon to find prices for young drivers that differ by hundreds of dollars.

Strategies to get cheap auto insurance for young drivers.

  • Look for common young driver discounts including lower rates for good grades, completing a driver’s ed class, and low-mileage discounts.
  • A good credit rating helps lower the cost  for young drivers and older drivers, but younger people generally have no credit so start accruing points as soon as you can.
  • Maintain a clean driving record. Even a single speeding ticket can frequently raise your rates by 10 to 20 percent.
  • Drive a safe car with less horsepower. No matter how old you are, the type of car you drive will have a big impact on your car insurance costs.

Putting a young driver on a family plan is a double-edged sword. It typically yields cheap insurance for young drivers, especially if the parent can list the child as a secondary driver. To list a child as a secondary driver, however, the young driver can’t own his or her own car, or even be the primary driver of a vehicle, no matter whose name is on the title.

However,  if your child starts racking up traffic violations and/or is at fault in an accident, the entire insurance policy may get cancelled.

Shopping around for car insurance quotes

Again, your best strategy for finding cheap car insurance as a young driver is to get quotes from as many different e companies as you can and by asking for quotes for a number of different types of policies. Shopping for insurance is never a stress-free proposition, and even drivers who start their search motivated to stay diligent can quickly become discouraged and jump at the first reasonable-sounding quote By shopping for car insurance  referral service, such as the one offered by an independent agent , you can still  get connected to several companies this way, much of the legwork and stress is removed from the process, as this agency  will take the initiative to contact you after rating you with several companies

Better yet, you can review these quotes from the comfort of your own home, allowing you to make a confident, carefully considered choice for your car insurance.http://eastern insurance

car crowded parking place


Auto Insurance Cost

Tailored to your needs, auto insurance

Auto Insurance Cost, Choose the Right Car; It’s simply a matter of economics. Some cars cost more to repair and replace than others. There are also some cars that are more likely to be stolen and others that protect passengers better in a crash. Combined, these three characteristics have a lot to do with how much you’ll pay for the collision and theft portions of your policy.

There are several ways to choose the least expensive car to drive. First, Your insurance broker or company can also help you find the best rate for the cars you’re considering,  If you’re considering several vehicles, call and ask for a price quote on each.

Midsize family cars are the cheapest to insure.  You want a car that’s easy to drive and highly protective. Those are the cars that are going to keep your teen safe and cost the least to insure.

You may also want to consider a car that doesn’t need collision insurance, which will cut your rates considerably and either way, the age of your car may lead to more discounts.

“Some companies offer a utility discount for cars older than a 2002 model year,  make sure any older car you purchase has a solid crash rating and all of the safety features that a newer car might have including airbags, an antilock braking system (ABS), daytime running lights and (for SUVs) electronic stability control.

Adjust Driver Assignments
When you call the insurance company to add your child to a policy, the representative will ask you to designate which car will be driven by each member of your family most often.

You can save money by choosing and having your child drive the vehicle that’s the least expensive to insure.  Driver assignment can affect your rates.

If you get someone on the phone who is willing to work with you, he or she can take you through all the different scenarios. Rates for four people and four different cars: two parents and two kids. If paired correctly,  could often save money.

Finally, all full-time high school and college students who get good grades may benefit. Most companies offer discounts for good report cards. You may also see rates drop as your child advances in school. Seniors in college have better rates than freshman, so if your child takes college credits over the summer or in high school, let your insurance company know when he or she reaches the next college milestone.

Wait an Extra Year Before Licensing.
Some teens may not like this idea, but you can save a lot of money simply by having your son or daughter wait an extra year to get a driving permit.

“Wait until they are as old as possible before they get their permit.  For instance, in some states, you can get your learner’s permit as early as 16, but you’re probably not going to be driving [without restrictions] until you’re 18. Why pay for insurance those two years unless you have to?”

Delaying the process is more common than you may think, according to several recent studies. The AAA Foundation for Traffic Safety reports that just 44 percent of teens get their licenses within 12 months of the minimum age and only 54 percent get their licenses before they turn 18.
Tracking for Discounts and Better Driving Habits.
In recent years new devices that connect to a car’s computer and use GPS technology to track driving habits and routes have flooded the market. While they can be very useful for parents who want to make sure that their teen isn’t speeding or driving outside an approved area, they’re also being used by insurance companies to help set rates for drivers of all ages in an approach called use-based insurance.
Some companies are offering the device for parental tracking but without an instant insurance discount. Its use could result in lower rates going forward.  Parents getting the monitoring can get text messages if their teens are doing things like hard braking. It enables the parent and the teen to have a conversation around safe driving habits. The first few years are so critical. The devices help build better driving behaviours.”

Take a Class.
Adults and teens alike can save money by taking a six-hour driving safety course either online or in person. Some insurance companies are offering teen-specific courses that can help reduce the number of crashes that involve teens by providing realistic driving simulations.

Finally, driver-training classes can also contribute to lower your premiums by up to 10 percent, depending on your insurer.

Make Smart Choices.
Even if they apply every discount imaginable, most people will find there’s no getting around the fact that rates will go up with a teen driver on the policy, at least for a little while. And while it might be tempting to simply forget to inform your insurance company that your child has a license, take note: Doing so can have serious consequences if your child is in an accident.

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Insurance At Eastern, We've Got You & Your Money Covered.
At Eastern, We've Got You & Your Money Covered.

Insurance. Bundle And Save

People buy insurance for reasons of convenience as well as, of course, initial price. As a result, a lot of people end up with a more than one carrier,  This can be confusing paying bills to three separate carriers every month, and possibly overpaying for your combined premiums. So read on to find out how bundling your policies can help you save big.

The Benefits of Bundling
Many of the big companies price their rates to attract a particular segment of the market. They usually price their insurance to attract homeowners who need to insure not only their cars, but also their homes and their lives (and other things). Many other companies can beat them on price if it’s left to a head-to-head price check on a single line of insurance (such as auto or home), but these big companies want customers who will stay with them for years instead of shopping around for a better deal . To accomplish this, companies give the best deal to clients who will use their company to insure all three main lines of insurance Auto, Home and Life Insurance, as people who buy one type of insurance usually have additional items that need insuring and end up paying much more in total annual premiums than the single-line customer who only insure a car or a house.

Companies offer “multiline discounts” to attract customers who will need more than one type of policy These companies offer a cheaper rate to insure both your house and car than if you insured each one separately with different companies. The same goes if you add a second car or a life policy – the discounts keep adding up.

How Much Do You Actually Save?
When combining auto, home and life insurance, it wouldn’t be unusual for many families to spend between $3,000, 5,000 or more per year.

What’s the Catch?
For just one line of insurance, most large multiple line companies aren’t  price competitive.  By combining your policies the companies benefit by getting additional total premiums. In other words, they have more of your money to work with and therefore can justify charging you less.

As for life insurance, people who have a life policy are much less likely to switch carriers. because of the difficulty of changing policies. This difficulty is due to medical issues, age and the possible need for further medical exams, so people usually keep their life policies in place. For this reason, many large companies emphasize to their sales teams that life insurance sales are a critical product.

Companies also want to give discounts in order to retain customers because it is expensive for companies to continually process  a revolving door of new customers. Due to expense associated with customer turnover, companies prefer to have customers who carry multiple lines of insurance and keep these policies in place for years. bringing all of the policies from a particular household diversifies the company’s risk.

The Bottom Line
Combining all of your policies with one company can save you money.  It’s also important to remember, that when one company is handling all of your policies, that’s less time that you must spend sorting through and paying each policy. And as they say: time is money.


insuranceinsurance policy

Insurance Contract

  • Declarations – identifies who is an insured, the insured’s address, the insuring company, what risks or property are covered, the policy limits (amount of insurance), any applicable deductibles, the policy period and premium amount. These are usually provided on a form that is filled out by the insurer based on the insured’s application and attached on top of or inserted within the first few pages of the standard policy form.
  • Definitions – define important terms used in the policy language.
  • Insuring agreement – describes the covered perils, or risks assumed, or nature of coverage, or makes some reference to the contractual agreement between insurer and insured. It summarizes the major promises of the insurance company, as well as stating what is covered.
  • Exclusions – take coverage away from the Insuring Agreement by describing property, perils, hazards or losses arising from specific causes which are not covered by the policy.
  • Conditions – provisions, rules of conduct, duties and obligations required for coverage. If policy conditions are not met, the insurer can deny the claim.
  • Endorsements – additional forms attached to the policy form that modify it in some way, either unconditionally or upon the existence of some condition. Endorsements can make policies difficult to read for nonlawyers; they may modify or delete clauses located several pages earlier in the standard insuring agreement, or even modify each other. Because it is very risky to allow nonlawyer underwriters to directly rewrite core policy language with word processors, insurers usually direct underwriters to modify standard forms by attaching endorsements preapproved by counsel for various common modifications.
  • Policy riders – A policy rider is used to convey the terms of a policy amendment and the amendment thereby becomes part of the policy. Riders are dated and numbered so that both insurer and policyholder can determine provisions and the benefit level. Common riders to group medical plans involve name changes, change to eligible classes of employees, change in level of benefits, or the addition of a managed care arrangement such as a Health Maintenance Organization or Preferred Provider Organization.
  • Policy jackets – The term “jacket” has several distinct and confusing meanings. In general, it refers to some set of standard boilerplate provisions which accompanies all policies at the time of delivery. Some insurers refer to a package of standard documents shared across an entire family of policies as a “jacket.” Some insurers extend this to include the standard policy form itself (i.e., everything which is preprinted and then attached without modification), so that the only parts of the policy not part of the jacket are the endorsements and declarations. Other insurers use the term “jacket” in a manner closer to its ordinary meaning: a binder, envelope, or Presentation folder with pockets in which the policy may be delivered, or a cover sheet to which the policy forms are stapled or which is stapled on top of the policy. The standard boilerplate provisions are then printed on the jacket itself.

Industry standard forms

In the United States, property and casualty insurers typically use similar or even identical language in their standard insurance policies, which are drafted by advisory organizations such as the Insurance Services Office and the American Association of Insurance Services.  This reduces the regulatory burden for insurers as policy forms must be approved by states; it also allows consumers to more readily compare policies, albeit at the expense of consumer choice. In addition, as policy forms are reviewed by courts, the interpretations become more predictable as courts elaborate upon the interpretation of the same clauses in the same policy forms, rather than different policies from different insurers.

In recent years, however, insurers have increasingly modified the standard forms in company-specific ways or declined to adopt changes to standard forms. For example, a review of home insurance policies found substantial differences in various provisions. In some areas such as directors and officers liability insurance and personal umbrella insurance there is little industry-wide standardization.

Manuscript policies and endorsements

For the vast majority of insurance policies, the only page that is heavily custom-written to the insured’s needs is the declarations page. All other pages are standard forms that refer back to terms defined in the declarations as needed.

However, certain types of insurance, such as media insurance, are written as manuscript policies, which are either custom-drafted from scratch or written from a mix of standard and nonstandard forms. By analogy, policy endorsements which are not written on standard forms or whose language is custom-written to fit the insured’s particular circumstances are known as manuscript endorsements.http://Insurance Contract




Car Insurance

Couple Driving a Convertible

Car Insurance



Myths are common in the Car Insurance industry because of the mystery surrounding the criteria for car insurance rates and the variety of coverage options available. In this post we’ll debunk some of the most common myths of auto insurance and lay out some of the important realities.


Red cars are more expensive to insure.

Insurance companies don’t ask for the color of your car when calculating quotes because it isn’t a necessary factor.

Cheaper or older cars cost less to insure.

It depends. If your cheaper or older car is, for example, an unusual model, it can cost more to insure than a pricier car. Simply put, car insurance rates depend on several factors.

Comprehensive coverage protects drivers in all situations.

Comprehensive coverage protects your car against damages outside of a collision. This can include a wide range of events like falling objects, fire, vandalism, theft and weather (floods, hail, etc.), but what it exactly covers is dependent on your car insurance policy.


An accident can make insurance rates go up.  

Generally speaking, the severity of the accident and the cost of the claim will determine if there will be an increase in your rate. If you are in an accident where you’re found at fault, there can be an increase in your Car Insurance rate at its renewal period based on the claim.

Personal information, vehicle information and driving history are used to determine auto insurance rates.

Insurance companies generally consider a variety of data including personal information such as age, sex, marital status and additional drivers on the policy, vehicle information (make, model, year), and driving history such as how often and how far an insured drives and their driving record. Many insurance companies also ask for credit score, but Eastern Insurance Inc. works with companies that don’t use credit history so insureds are eligible to receive the best rates, even if they don’t have the best credit score.

City dwellers pay more for auto insurance.

Where you live influences your auto insurance rate. People who live in cities generally pay more for car insurance than rural residents because there’s a higher risk for claims due to increased traffic, accidents and theft.

It’s important to know the myths and realities of auto insurance because auto insurance is mandatory for all drivers.



Family Packing for a Road Trip

Call for insurance before that Summer Road Trip

HomeInsurance in ClarksvilleTn Xjpg
HomeInsurance in ClarksvilleTn Xjpg

Home Insurance, Homeowners Insurance.

Home Insurance, Homeowners Insurance,Your personal best home insurance, homeowners insurance coverage will evolve over the years. Trying to keep your coverage forever is a lot like trying to find highest point on a sand dune that’s perpetually buffeted by high winds. Sure, you may be able to with a ton of effort locate a “best fit” solution. But unforeseen events can easily and radically alter your insurance calculus. Today’s “best home insurance” solution may be tomorrow’s so-so solution. For instance, your credit score can change, you may get married or divorced, you may purchase a new automobile, you may install a new sprinkler system, you may suffer a break in or a busted pipe, and so on. All of these dynamic factors can change your needs, for home insurance, homeowners insurance, screw up your budget, and perhaps even fundamentally change the way you view risk.

What Can Be Done

Home Insurance, Homeowners Insurance

Forget about isolating the best home insurance and seek the “good enough” insurance. This isn’t to say that you should lower your standards. Rather, it’s to say that you should find a satisfactory solution that protects and avoids excessive budgetary waste. To that end, below are some tips about how to get your rates down and simultaneously tailor your policy, so that it really is the best home insurance, homeowners insurance that you can reasonably expect to have.

Maximize Savings with Minimal Effort

Home Insurance, Homeowners Insurance

Take a beat to explore the full pantheon of discounts that may be available to you. If you are a retiree over 55 years of age, you can get a senior discount, for instance. Consider making home improvements, such as installing storm proof windows, fixing up your dilapidated roof, putting in sprinkler and burglar alarm systems, and getting rid of potential dangerous nuisances, such as trampolines and open air swimming pools. If you really want to dive deep here, you can get everyone in your family to quit smoking. Insurers charge smokers more because they present a greater fire hazard. Also, consider setting aside a fund to pay for home repairs, so that you can opt for a very high deductible and thus save on your premiums.

Tailoring Coverage to Get the Best Home Insurance, Homeowners Insurance premium.

Some homeowners prefer to live on the edge –opting for little or no insurance in the hopes that good fortune will see them through. Statistically, however, from a pure “game theory” standpoint, this is a bad idea. Let’s say you own a $10,000 diamond engagement ring. You refuse to add it to your policy because you want to keep your rates low. This works fine for 9 years, but on the 10th year, you lose your ring while on a trip to Madrid. The cost of replacing that ring extrapolated over that 10 year period would be about $1,000 a year –far less than what you would have paid, had you opted for insurance. Obviously, there is no guarantee that you will lose your ring within 10 years. But say the probability of doing so is 25%. That means that an appropriate policy to mitigate this risk would be around $250 a year worth of insurance. Of course, this is a rough example to illustrate a general point; namely, to tailor your coverage, you want to look deeply at specific risks –and you want to look at risks in probabilistic terms.

Colleting Quotes to Assess Your Best Home Insurance, Homeowners Insurance Options

Once you’ve completed a little soul searching about your risk tolerance and best home insurance, Homeowners Insurance preferences, it is time to collect and analyze quotes from your  insurer. Simply answer a questions and See how much you could save today on your home insurance, homeowners insurance. Get your free home insurance quotes today!