Transcription Slide 1: Hello, I’m Dan Lyles with Lyles Insurance. In this video, we’re going to go over how auto insurance companies differ in how they calculate auto insurance rates. Slide 2: I’m sure you already know that auto insurance companies calculate rates differently from one another. But what will probably surprise you is how much differently they calculate rates from one another. In this video, we’re going to go over the five biggest differences. Slide 3: So number 1: Your credit score. 92% of all companies use credit at least to some degree in calculating your rates. But to what degree is where the big difference lies. On one extreme some companies won’t sell you auto insurance at all if you have bad credit. Others will but they will charge a high premium for it. On the other extreme, you’ve got companies that go very easy on credit. So if you have a good credit rating, that will probably help you get a low rate. But if you don’t have a good credit rating, don’t sweat it because there are companies that take it very easy on drivers with bad credit. You just need to shop around and look for them. *** And one quick note, as of this coming July 2, 2020, for those of you who live in the state of Michigan, credit will no longer be a rating factor in calculating your rates. But this will still apply to my customers in Ohio, Indiana, Pennsylvania, Virginia and West Virginia. Slide 4: Number 2 is driving record. There are two ways in which companies factor in driving records differently. The first part deals with how far they go back. Some companies go back only three years, while others go back five years, and you also have companies that do somewhere in between. And the second part, how each company treats an accident or violation varies greatly as far as each different type of violation. For example, companies decide which violations are more severe than others, and they charge that premium accordingly. Slide 5: Number 3: Age. While prices are usually expensive for drivers who are 25 and under, and older drivers who are over 75, there are companies that go easy on those age groups. So if that applies to you, it’s extra important that you check with as many companies as you can in order to find your lowest rate. Slide 6: Number 4 is prior auto insurance coverage. There are a few companies that will not sell you insurance if you haven’t had liability coverage for the past six months, but most companies will. They just won’t offer you a discount like some companies do. And there are some companies that offer big discounts for having prior coverage. Now to get this discount, you’ve had to have liability coverage at least for six months. And you can get bigger discounts if you’ve had it longer or if you have higher levels of liability coverage. And keep in mind, it doesn’t have to be with the same company. It just has to be consistent with no lapse in between. Slide 7: Number 5: Liability only versus liability plus comprehensive and collision coverage. This is what most people refer to as having “full coverage”, when you have comprehensive and collision coverage added onto your policy. I don’t like to use the term “full coverage” because it is misleading. But whenever you’re increasing or decreasing your level of coverage, it’s important that you know how much differently companies look at liability only policies versus liability plus comp and collision. And some go easy on liability, not so much with comprehensive and collision and vice versa. So any time that you change your level of coverage whether it’s increasing or decreasing, now’s a great time to check prices with other companies, or at least by your next renewal date. Slide 8: So I’m sure you’ve noticed a common theme in the last several slides. Companies weigh differently the major factors that go into calculating your auto insurance premium. And so the key point to take away here is that it’s very important to shop around with other companies. It’s recommended that you do so at least once every two years, and I would add in there also after any time that you make a major change to your policy. And the most efficient way to shop around for auto insurance is to go through an independent agent like myself. That way, you only have to enter your quote information once, and you get prices from multiple companies. Slide 9: For those of you who live in Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia, if you would like for me to personally run you a quote, I’ll be very happy to do so. I’ve posted a page from my website where you can get an online quote, and I will get back to you with prices. Or if you would rather just get a quote over the phone, I’ve also posted my phone number. Thank you for watching and have a great day! Related Blog Articles: Video: Should I add/increase deer coverage on my auto insurance Video: The best way to buy auto insurance online
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Transcription Slide 1: Hello! I’m Dan Lyles with Lyles Insurance. In this video, we’re going to cover seven frequently asked questions regarding auto insurance and older drivers. Slide 2: There are many questions that older drivers have when it comes to auto insurance. And in this video, were going to focus on seven questions that relate to how you can save money. Slide 3: Number one: How do older drivers rank in terms of price? Well, from the age ranges of 50s and 60s, you pay the lowest rate of any age group. And then once you hit your lower 70s to mid 70s, that’s a middle gray area that varies from one company to the next. Some will continue to pay low rates, others may start to see gradual increases on their policy premium. Then once you hit your upper 70s to mid 80s, then those increases get sharper over time. And by the time you’re in your mid-80s and older, you’re paying high rates, about the same as what a newly licensed 16-year-old driver would. Slide 4: Number two: Do older drivers get a price break for driving less miles? The answer is Yes they do, but more indirectly because that’s automatically figured into their rate anyways. However, most older drivers aren’t taking full advantage of new technologies that can lead to further discounts. You’ve heard of these things that basically observe your driving habits, and they reward those who score well. Some of these devices you plug into your diagnostic port. There are some you can download an app on your phone. A lot of older drivers are hesitant to try this. I highly recommend you do. In fact, I’ve done this myself and saved 11% on my own auto insurance. Slide 5: Number three: how much does my credit score affect rates? The answer to this depends on the company. Because some companies rely heavily on credit scores when they calculate your premium, where other companies barely use it at all. But overall, 92% of all companies do run credit at least to some degree. So having a higher credit score definitely helps. But it doesn’t mean you can’t find a good rate if you have a bad credit score. *** And just for my customers in Michigan, as of this coming July 2, 2020, you will no longer have to worry about credit scores because the new Michigan law is banning companies from using credit as a rating factor. Slide 6: Number four: does the payment option you choose matter? Yes, it certainly does! There are basically three options you have when you pay for your auto insurance. Option one is the cheapest way to go, it’s to pay the whole six-month policy in full. The second option is to make monthly payments automatically through either your bank, or some companies will allow you to use a card. The third option is to just pay monthly manually as you go. This is the most expensive way to handle things. But not surprisingly, it’s the most popular method of the three. Just understand that you’re paying more money this way then you would with options one and two. Slide 7: Number five: Should I or drop comprehensive and collision coverage on my policy? This question is tricky because there is no right or wrong answer. It’s just a matter of personal preference. But drivers need to know the numbers in order to make that decision. And many don’t even bother to crunch the numbers beforehand. What you need to know is, number one, what is the market value of your vehicle? And number two, how much extra premium are you paying for comp and collision on your policy compared to if you lowered coverage down to just liability? What are those differences in price? And then you can make a decision based on that. How long would it take for the extra premium to add up to the market value of the vehicle minus the deductible? You’ve got to know this to actually crunch the numbers. And you’d be amazed at how many people do not do it. Don’t make this mistake. At least know the value of your vehicle and how much you’re paying extra for comprehensive and collision coverage. Otherwise, you don’t know if it’s a good idea or bad idea to drop or keep your coverage. Slide 8: Number six: Does staying loyal with the same auto insurance company help my rates? And with many companies, it does a little bit. However, you’ve got to understand that this is mostly a marketing gimmick. It’s no different than if you saw the same two items in a store, and one says $75, the other says $100 with a 25% off “on sale” tag. It’s the same price, same item. That’s basically the way auto insurance companies handle company loyalty discounts. And also understand that you can still shop around before you leave your current auto insurance company. So don’t ignore the competition because you can be missing out on some big savings. Slide 9: Number seven: What’s the single best way for older drivers to lower their auto insurance rate? The answer is to shop around! Absolutely! If you only remember one thing from this video, make this it. Because companies are constantly adjusting their rates. Some go up, some go down. They constantly change. And it’s recommended that you shop around at least once every two years. Older drivers are usually the worst at not doing that. And you’ve got to keep an eye on other prices because if not, you may be way overpaying on auto insurance and not even realize it. Slide 10: For those of you who live in Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia, if you would like for me to personally run you a quote, I’ll be very happy to do so. I’ve posted a page from my website where you can get an online quote, and I will get back to you with prices. Or if you would rather just get a quote over the phone, I’ve also posted my phone number. Thank you for watching and have a great day! |
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Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia.. Archives
March 2021
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