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Because of the ever rising cost of auto insurance claims in Ohio, auto insurance premiums have went up right along with it. As a result, more people are looking at ways to save money on their auto insurance. As an agent, what I'm discovering is that many people are leaving money on the table and not realizing it. This article is to provide you with 10 keys to save money on your auto insurance policy. Not all of these 10 keys that will apply to you. And likewise, no one auto insurance company has all 10 of them. But I'm hoping that you will at least get two or three good nuggets here that can be helpful for you. There are of course things you can do in the long run to keep your auto insurance down such as driving carefully, buying a home, etc. But this article is going to focus more on things you can do in the short-term between now and in the next six months. 1. Paying policies in full Paying your policy premium in full as opposed to paying month-to-month saves you a nice chunk of money. I know sometimes that can be a lot of money to come up with upfront, but if at all possible, it will save you the most regarding payment options. If paying in full is not an option, see the very next key below, which is the next best thing. 2. Automatic bank withdraws If paying in full is not an option, the next best thing you can do is set up automatic bank withdrawals. Although you won't quite save as much as you would paying in full, you still save a considerable amount versus paying manually every month. 3. Shopping around Shopping around with other auto insurance companies is most likely biggest money saver of all of the 10 keys mentioned here. It is recommended that you shop around for auto insurance every two years. However, very few people do that. And it just so happens that the people who shop around the least tend to save the most when they finally do shop around. Getting an auto insurance quote with an independent agent will get you multiple quotes with just one quote request. This is the most efficient way to get quotes from multiple companies at once. 4. Paperless Discount All you need for the paperless discount is a valid email address. Companies vary on whether or not they offer paperless discounts, or how much of a discount they offer if they do. But with some companies this can save you 5 to $10 a month, sometimes more. 5. Prior coverage The prior coverage discount is also very significant. Although it does take some's time, having six months of continuous prior insurance coverage provides a big discount!  6. Good student discounts
If you have drivers listed on your policy that are in high school or college that gets good grades, be sure to look at the discounts that your auto insurance company might offer. Insurance companies vary greatly in how they apply this discount. But I have seen the discount be quite significant at times. Find out if you qualify for your company good student discount. It usually only requires submitting a report card, transcript, or honor roll certificate. 7. Driver behavior discounts While driver behavior discounts are somewhat new, they do offer very good opportunities to save money. Many people shy away from these thinking that the rate could go up. But I have found with my customers that this is not true! In many cases this involves plugging a device into your vehicles diagnostic port. But there are other discounts such as installing devices or apps that prevent you from texting or using your cell phone while driving. While this concept is still somewhat new, it can take a good chunk off of your auto insurance premium. 8. Quoting in advance If you know when your current auto policy expires, getting a quote a week to 10 days ahead and setting the start date as the same day as your old policy expires can sometimes award you in advance quote discount. While this discount isn't as significant as other discounts posted above, it can still save up to 5 to 10% with some companies. Be sure to ask your agent if your company. 9. Knowing exact dates of past accidents, violations and claims Bottom line, if you can't remember all of your accidents, violations and claims that you've had in the past 3 to 5 years, you're putting yourself at a disadvantage! Knowing exactly what's on your driving record and their corresponding dates is very important for getting an accurate quote. If you're not sure about what is on your driving record, https://services.dps.ohio.gov/BMVOnlineServices/DL/Abstract" target="_blank">you can access a copy online here. The Ohio BMV offers free two year unofficial abstracts for those who know your only violations have been within two years. Or you can get an official three year abstract for $5. 10. Look for discounts unique to your auto insurance company Companies continue to find creative ways to market to customers. Many new ideas involve discounts. Your company may offer other discounts not mentioned on here. The problem is that many people never bother to ask about them! Don't make this mistake with your company. Always make sure you're taking advantage of everything possible. Summary: as I said before not all of these keys will apply to you. But I see too many people making this mistake of not at least asking or checking up on available discounts that they may be missing out on. The bottom line is it never hurts to ask! Get an Ohio Auto Insurance Quote with Lyles Insurance Call me for a Quote Related Blog Articles: Video: 8 Short Term Ways to getting cheaper Auto Insurance Video: 10 Most common Auto Insurance Myths/Lies you hear people say Video: 13 Deadliest Driving Behaviors Top 10 Ohio counties the State Highway Patrol cracks down the most & least on DUI’s 10 Keys to Buying Auto Insurance in the Portsmouth Ohio area with a bad driving record Recent changes to the Ohio BMV's Auto Insurance Random Selection Letter Program
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For years, the Ohio BMV has been sending out random selection letters to vehicle owners. While this is nothing new, there have been some recent changes made as far as how the process works. This article will explain what you need to know about these changes, and also make you aware of potential pitfalls that I see many drivers getting burnt by. Each week the Ohio BMV randomly selects 5400 vehicles and requires their owners to prove that they have at least state minimum liability coverage on the vehicle that was selected. Furthermore, the coverage had to be effective on the date that the vehicle was selected. Waiting to buy coverage once you get a random letter is too late. Of course as long as you're carrying the required coverage on that vehicle on the selected date, there are no worries. All you need to do is send in proof of insurance showing that you had coverage on that vehicle on that day and you will be compliant. (**Note: If you're one of my current customers and need help with getting the documentation you need, give me a call or email, and I will send it right out to you) What has changed recently?
 Avoiding common pitfalls
The most common mistake I see vehicle owners make with this random letters selection program has to do with additional vehicles that they own that aren't currently being used. This primarily falls into two categories:
In either of the situations above, the only way to be safe from violating a random letter selection is to either keep liability coverage on it, or turn that vehicle's license plates back in to the Ohio BMV. Excusable exceptions: There are circumstances in which the Ohio BMV will exempt the vehicle owner from this obligation. But be warned! They only allow for very valid reasons and required documentation to go along with it. And some of the documentation they require to be exempt can be a real pain in the ass to come up with (see the example I mentioned earlier with disabled vehicles). The most common reasons for being excused and include but are not limited to:
To see the entire list of valid reasons for exclusion, visit the Ohio BMV website, which goes in to more detail about what all is excused, and the documents required to support that. Summary: If you own a vehicle and drop liability coverage on it while it has live tags, you are subject to a random letter drawing. You need to be very aware of the laws, or you might get burnt. Get an Ohio Auto Insurance Quote with Lyles Insurance Call me for a Quote Related Articles: Video: Ohio BMV Random Letter Auto Insurance Check SR22 Auto Insurance in the Portsmouth Ohio Area: Are you setting up your policy correctly? Top 10 Ohio counties the State Highway Patrol cracks down the most & least on DUI’s 10 Keys to Buying Auto Insurance in the Portsmouth Ohio area with a bad driving record Ohio BMV Random Letter Selection Auto Insurance Check: FAQs A named operator policy is a way for drivers who do not own vehicles to have at least state minimum liability auto insurance coverage. It also works for drivers who are trying to get their drivers license back, and need either an SR22 or an SR50 state filing. A Named Operator's policy (AKA Non-owners policy) can be purchased online fairly easily if you search in the right places. But before you buy a named operator auto insurance policy online, you need to be aware of what it does and doesn't cover. This article will explain what you need to know, so you won't have any unpleasant surprises later on. What a Named Operator Policy Covers:
What a Named Operator policy does NOT cover:
 FAQ's
I need an SR22 / SR50 filing but my current auto insurance company doesn't handle them. Can I keep my current policy active, and buy a named operator policy just for my SR22 or SR50 requirement? Yes. Although it is normally cheaper just to combine them into one policy with a company that does handle state filings. there are exceptions to where carrying two separate policies is a better idea. This is especially true for homeowners who have their auto policy bundled with their homeowners policy.... Since a named operator policy is much cheaper than a regular auto insurance policy, sometimes it comes out better. I don't own a car now, but plan to buy one very soon. How will this affect my policy? When this happens, you simply need to call your agent, and add a vehicle to the policy.... This automatically converts a named operator's policy into a regular auto insurance policy. It only takes a five minute phone call to change it. But be sure to do that before you drive the new vehicle, because coverage won't apply until you call and change it. What's the best way to buy a named operator's policy online? The best way is to contact an independent agent that has multiple companies to quote you with. This way, one quote request can get you multiple quotes at once. This is a lot more efficient than getting a quote with one company at a time. If you would like help finding a named operator's policy, I would be more than happy to help. Simply click on the link below and fill out the short quote form.... I will then compare prices with several companies and find you the one with the best rate. And as always, I handle all quotes personally and privately. Get an Named Operator Auto Insurance quote with Lyles Insurance Call me for a Quote Related Blog Articles: Video: Basics of a Named Operator Policy Video: Named Operator Auto Insurance with an SR22 Filing Video: Buyer's Guide: Indiana SR50 Auto Insurance Indiana Named Operator Auto Insurance Policy: Key Points to Know Buyers guide for buying an Indiana SR50 or SR22 auto insurance filing What is a Named Operator (aka non-owner) Auto Insurance Policy? Ohio has many auto insurance companies that don't insure classic / antique vehicles properly. It is very important that you get the right kind of coverage you need on your classic car or antique car. While finding coverages for these vehicles are easy, there is a big difference in what is covered from one classic car insurance policy to the next. This article is going to show you what you need to know, and what to look for in finding the best policy. You need to be able to identify a good classic car insurance policy from a lousy one. And what will surprise you is that you'll probably end up paying the same or even less than you would with a policy that has lousy coverage! First step: Understanding the difference between a classic car insurance policy versus insuring a classic car on your regular auto insurance policy. This is where I see most people go wrong. If your vehicle qualifies for classic car insurance coverage, an exclusive classic car insurance policy is far better coverage than insuring your classic car on your regular auto insurance policy.  There are several key reasons why an Exclusive Classic Car policy beats a regular car insurance policy: 1. Agreed value coverage versus actual cash value coverage - With an exclusive classic car insurance policy, you can insure your vehicle on an agreed value basis. When insuring your classic car on your regular insurance policy, agreed value coverage is almost never offered. If you were to wreck and total your classic car, you would then realize that there's a huge difference between the two. With agreed value coverage, you would know exactly how much your classic car insurance company will pay out if you were to total your vehicle. If you only have your classic car insured on a regular auto insurance policy, you're likely going to get much less than that. Regular auto insurance companies use the actual cash value basis for valuing vehicles. This basically means the market value of your vehicle. As you're well aware, classic cars can be some of the most difficult vehicles to determine market value. In many cases a lot of classic car owners have been screwed this way 2. Zero deductible - You will find very few companies on a regular auto insurance policy that offers a zero deductible. And if they do, it is going to be very pricey because it classifies your classic car as if you're using it every day. Any good classic car insurance company will offer a zero deductible at very little extra cost, to where it's worth it for having a zero deductible. 3. Better claims adjusters - If you insure your classic car on a regular auto insurance policy, you will deal with a regular auto insurance claims adjuster if you have an accident. While many claims adjusters do a great job, very few of them have any of the training or expertise in handling classic/antique cars. These claims adjusters only deal with market value and treat all vehicles the same. That can make a huge difference in how a damage claim is estimated. 4. More flexibility in choosing body shops - Classic car insurance companies understand that your vehicle requires more care when it comes to repairing damage. An exclusive classic car insurance policy will be much more flexible than a regular auto insurance policy in selecting the body shop that handles the claim. 5. Coverage for additional parts and accessories - A regular auto insurance policy does not offer all the additional coverage that a classic car insurance policy offers. 6. One liabilty charge - This only applies to those who own more than one classic vehicle.... If you happen to own multiple classic or antique cars, you will have to pay liability coverage on every vehicle under a regular auto insurance policy. With an exclusive classic car insurance policy only one liability charge is assessed to all of your vehicles.  Qualifications. The qualifications required to insure a classic car on an exclusive classic car insurance policy are very simple:
• Vehicle needs to be at least 25 years old. There are exceptions made on some types of exotic models. But for most classic cars, 25 years is the standard. • Vehicle can NOT be an every day use vehicle. Classic car insurance companies will require you to provide proof of regular auto insurance that shows you have other vehicles insured as your regular every day vehicle for every driver in your household. For 90% of classic cars owners, this isn't a problem. But if you drive your classic car on a regular basis, you will be stuck with insuring the vehicle on a regular auto insurance policy. Premium difference between an exclusive classic car policy and a regular car insurance policy. • Although an exclusive classic car insurance policy values your vehicle more than what a regular auto insurance policy does, the difference in use usually more than offsets the premium to where a classic car insurance policy costs less than a regular auto policy. • A regular auto insurance policy assumes that you are using your classic car on a daily basis. A classic car insurance policy assumes you're only using your classic car on an occasional basis. Thus the lower risk of an accident, and less premium. Finding the right Classic Car Insurance company. Armed with knowing the key points above, you now know what you need to distuingish between a good classic car auto insurance policy and a lousy one. Now it's just a matter of finding agents that sell the best classic car policies. Need Help getting an Ohio Classic Car Insurance quote? I would be more than happy to help. I carry three leading companies in the classic car insurance industry, all of which satisfy the key points above: • Hagerty • American Collector's Insurance • T.C. Taylor Fill out one short quote form, and I will quote you with all three companies, and find you the lowest rate. And as always, I handle all quotes personally and privately. Get a Classic Auto Insurance Quote with Lyles Insurance Call me for a Quote Related Blog Articles: Video: Why Classic Car Insurance beats regular car insurance Video: Comparing Classic Car Insurance Cost and Coverage vs. Regular Auto Insurance Video: Basics of a Classic Car Insurance Policy I need an Ohio SR22 Filing but my Auto Insurance Company doesn't offer SR22's. What should I do?1/8/2017 Many drivers get into this situation. Something happens to where your drivers license get suspended, and you need an SR22 state filing to get your license back. But you soon discover that your current auto insurance company does not handle SR22's. What to do now?
Once you're at this point you have basically two options: Option A: Change your auto insurance company to a company that does offer SR22's. This will combine regular auto insurance coverage and your SR22 requirement together onto one policy. You will only pay for one policy versus paying for two separate polices Option B: Purchase two 2nd separate auto insurance policies, one policy covering your vehicle(s) and another policy that takes care of your SR22 filing. This allows you to keep your current auto insurance policy, and the 2nd policy will be a special type of auto insurance policy to take care of your SR22 requirement. These 2nd policies will satisfy your SR22 requirement and cost much less than your primary auto insurance policy that you have now. Which Option is Better? For the vast majority of people, Option A is the better option. However, the small percentage of people who would be better off going with Option B tend to share the same characteristics. If 3 or more of these apply to you, Option B would probably be better:
Key things to keep in mind: If you go with Option A: Be aware of any changes in coverages switching from your old auto insurance policy and your new auto insurance policy. Try keeping all coverages the same. But with going from one company to the next, that isn't always possible. If you go with Option B: You will want to take out a Financial Responsibility Bond to satisfy your SR22 requirement. A Named Operator's policy or a Broad Form Named Driver policy will also work. If you are unsure of whether to choose Options A or B: There's no reason why you can't look into both options. Get a quote on both a regular auto insurance policy and a financial responsibility bond, and then compare prices for yourself. Final Step: The Quote Process Those who select Option A need a quote for a regular auto insurance policy, with an SR22 filing attached to it. Those who select Option B need to quote for a Financial Responsibility Bond, with an SR22 filing attached to it. Not all auto insurance companies will file SR22's. So the most efficient way to find the policy that you need for the lowest premium is to find an independent agent who specializes in high risk auto insurance. These agents know which companies are SR22 friendly and which ones are not. Quoting with an independent agent also helps you find the lowest possible rate. One quote gets you prices with multiple companies at once. This is much more efficient than only quoting with one company at a time. If you would like help getting quotes, I would be more than happy to help you. Click on one of the two links below, and I will find the company that offers you the best rate for the coverage that you need. And as always, I handle all quotes personally and privately. Get an SR22 Regular Auto Insurance Quote with Lyles Insurance (Option A) Get an SR22 Financial Responsibility Bond Quote with Lyles Insurance (Option B) Call me for a Quote Related Blog Articles: Video: Finding affordable auto insurance with a DUI Where can I buy an out-of-state SR22 auto insurance filing? SR22 Auto Insurance in the Portsmouth Ohio Area: Are you setting up your policy correctly? What is an Ohio SR22 Bond? How much does SR22 bond insurance cost in Ohio? As we were all warned , 2016 has turned out to be a tough year for many auto insurance companies. While the final statistics for 2016 haven't been tabulated, we knew it was coming since the first quarter of 2016, when many companies reported severe losses from big catastrophes. Winter storms and other storms particularly had a lot to do with that. But the major factor that caused this money crunch was the increase in the average dollar cost per claim. This is due to primarily two things:
Combine all of that and you have a very tough year for the auto insurance industry. No Fear! 2016 Was NOT completely all Doom and Gloom! There's also some good news to report in 2016. Although many auto insurance companies either lost money or barely squeaked by, there are other auto insurance companies that did quite well in 2016. In fact, some companies did well enough to report that no increases in premium are planned anytime in the near future.  2017: How the auto insurance companies will adjust for the bad year, and what to expect next.
Of course, some companies lost money to the point to where they have no other choice but to raise rates. Again, some of it's due to higher health costs and some of it is due to higher repair costs. Repair repair costs seem to be the fastest growing problem. But even between some of those companies who struggled in 2016, not all of them will be raising premiums in 2017. Some of them are making other adjustments so that they don't have to increase rates. While some of these adjustments might get annoying and require the insured to jump through some extra hoops, I'm sure that you will all agree that's better than paying a higher premium. Some of these adjustments include: Stricter underwriting Proof of garaging address. As most of you know, with all other things being equal, people who live in smaller towns pay less for auto insurance than people living in big cities. Insurance companies have noticed a spike in claims in which the insured was found to be living at a different address then what was listed on the policy. The difference between one town to the next can make a big impact on your premium. And companies are getting wise to the fact that more drivers are trying to cheat the system. As a result, more insured are being asked to provide documentation to show that they live where they say they're living. I've had several of my own customers get flagged for this. For those of you who are being honest about where they live, this really isn't a big deal. Just an extra hoop you'll need to jump through. Household drivers. Again this is another area in which more claims are happening from drivers not listed on the auto insurance policy that should be. This can be very common with teenagers and drivers with bad driving records. Companies are getting more proactive proactive at finding the problems before there is a claim. All people living in your household of driving age should be listed on your auto insurance policy. I have also had customers flagged for this, but it hasn't been a big problem. Just another hoop to jump through. Pay plan adjustments.
Steps you can take to keep your auto insurance rates low: Shop Around! This concept is very simple: The more auto insurance companies that you get quotes with, the more likely you are of finding your lowest possible rate. Insurance experts recommend that you should shop around for lower auto insurance rates at least every two years. Statistics show that most fall well short of that recommendation. Those who stay with the same auto insurance company for years tend to find the highest amount of savings when they finally do shop around. Take advantage of any available discounts Many people don't take advantage off all the discounts they're eligible for. Companies vary in what discounts they offer. But if you don't look into what discounts you're eligible for, it's like leaving money on the table. More to come in 2017: Driver behavior discounts
SUMMARY: Don't be afraid to shop around with other companies. You may be amazed at how much this could save you. Especially if you haven't shopped around in a long time. Inquire about and take advantage of any available discounts a company offers. Many discounts are available that are easy to apply to your policy. Keep an open mind about new technologies coming out. These can be big money savers in the future. Get an Auto Insurance Quote with Lyles Insurance Call me for a Quote Related Blog Articles: Help! A Vin Number mismatch is causing a snag in buying Auto Insurance Right Way and Wrong Way to Cancel Auto Insurance Policies when Switching Companies |
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Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia.. Archives
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