If you drive a vehicle, you are legally required to have insurance. Through your insurance policy, you are protected from excessive financial liability both in the case that you cause or suffer from an accident. When looking into the insurance market however, many individuals are overwhelmed by the numerous types of coverage provided, often unsure of how much coverage they really need.

In the article below, we will explain the differences between the 5 major categories of car insurance in addition to a few other add-ons you may need in extenuating circumstances.

Liability Insurance

Liability insurance is made to help cover the costs of an accident you created— hence the title liability. As we are all prone to making a mistake at some point, states require all drivers to meet a minimum amount of liability coverage, also known as state minimum coverage plans.

These coverage amounts are:

• $25,000 in bodily injury liability insurance per driver
• $15,000 in property damage liability

While this minimum amount is usually offered at affordable rates, we recommended that most divers purchase a higher grade of insurance when possible. This is because liability coverage does more than protect against property damage to a vehicle. Rather, this insurance category is well rounded, also offering coverage on car repairs and medical bills resulting from the accident.

Collision Coverage

Collision coverage is a base level insurance type that protects only the vehicle itself. If the vehicle is damaged in a collision, your insurance policy will pay for the damage up to the full policy amount. If your vehicle repairs exceed its market price, then the insurance company will write off the accident as a total loss and compensate you for the market value of your vehicle.

This offers individuals some flexibility with coverage amount for cost-conscious individuals. An older car with a lower market value doesn’t need as much insurance as a new sports vehicle. As such, you can still purchase collision coverage, have the added security, but not get gouged on the added price.

Comprehensive Coverage

There are several types of vehicle damage that can occur to a car even if you don’t experience an accident. Many of these damages are from unavoidable daily events like a hail storm, car theft, or vandalism. To cover damage to your car in these situations, you need comprehensive coverage.

Unfortunately, because of the wise range of hazards this type of insurance covers against, it also it’s the most cost prohibitive.

Personal Injury Protection (PIP)

When you are involved in an accident, your overall expenses quickly add up. PIP insurance, also known as no-fault insurance, aims to help keep these experiences under control. This is accomplished through covering the medical expenses of yourself and your passengers, lost wages, and in some cases, funeral expenses.


Unfortunately, not all states offer this type of insurance coverage. As such, if this type of liability coverage appeals to you, it’s likely you may need to purchase several other types of optional coverage in order to achieve the same end.

Underinsured and Uninsured Motorist Coverage

While we previously mentioned that Arizona implements state minimum coverage for all drivers, not everyone is able to meet this demand. This creates a financial risk for both you and other drivers were you to get into a car accident with a person who lacks adequate insurance.

If you are involved in an accident with a driver who lacks proper insurance, this type of coverage will buffer the financial burden on your end.

Miscellaneous Insurance Coverage

The types of insurance we have already covered thus far are some of the most common policies an individual can purchase. These are policies that reflect some of the most common coverage needs of average drivers without any of the bells and whistles found in other types of supplementary plans.

However, for individuals who need added coverage for one reason or another, a few additional options exist.

• Full Coverage Insurance
  This type of insurance is most common in situations where you are leasing your vehicle. The objective in full coverage insurance is to protect your lender from losing valuable assets in a crash and protecting you from making unnecessary payments.
  
  If you were to total a leased car without full coverage insurance, you would also be responsible for the remaining payment balance on the vehicle. This could be catastrophic for your personal finances. As such, many dealers will not lease you a vehicle without this level of insurance coverage.
  
  
• Gap Coverage
  Similar to full coverage insurance, gap coverage helps to bridge the gap in payments when you total a car that is not yet paid off. When purchasing this type of coverage, make sure that the amount you purchase is enough to fully satisfy the outstanding balance on your car so, in case of a total loss, you can still walk away with a fresh start.

Independent Insurance Agents in Arizona

When looking at the various types of insurance coverage on the market, it is sometimes difficult to know exactly what you need. Even more challenging is finding who offers the policy at a price you can afford.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those looking to purchase life insurance. If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring yourself and your family.

Auto Insurance coverage recommendations for every lifestyle.

Automobile insurance provides financial compensation in case of accidents. However, with so many different choices on the market, it is often challenging for individuals to know which insurance policies are right for them.

As insurance experts, we have put together this quick guide to outline different coverage levels offered by major insurance carriers. Use this as a starting point to your potential coverage options.

Why Is Auto Insurance Important?

In Arizona, annual losses stemming from fatal crashes alone exceed $1 billion. The majority of losses from vehicle accidents result from medical expenses and the often lengthy absences from work that occur. Having an insurance policy helps bridge these expenses on both sides of the crash, providing assistance with property damage, medical bills, and even more depending on your policy.

What Are the Minimum Requirements in Arizona?

Most states clearly defined levels of state minimum coverage. These are the minimum levels of insurance required by law to operate a motor vehicle.

Drivers are required to maintain “15/30/10” in minimum coverage as follows:

• $15,000 in coverage per person in bodily injury liability
• $30,000 in coverage per accident in bodily injury liability
• $10,000 in coverage for property damage liability

These minimum insurance requirements apply cars, trucks, motorcycles, mopeds, and personal golf carts.

Optional Forms of Auto Insurance to Consider

Once you meet state minimum requirements, additional car insurance coverage is technically optional. While this is true, most individuals find benefit in purchasing additional coverage that can protect them from a wider variety and higher limit of damages. These include many of the following categories.

Collision Coverage

Collision insurance is a form of liability insurance used to repair or replace your vehicle in the event of a crash. As the name implies, this coverage is applicable if you were to collide with another vehicle, tree, or another object.

Comprehensive Coverage

Car insurance companies offer this type of insurance to help afford vehicle repair or replacement when your accident did not involve a collision. Some common experiences within these coverage limits include vandalism, theft, and environmental damage.

The premium amount for collision and comprehensive coverage may vary significantly depending on the value of your vehicle. Generally, the higher the repair or replacement cost of your vehicle, the higher your monthly premium.

Personal Injury Protection (PIP)

There is also an option to add coverage that specifically will pay for medically-related expenses in case you or a passenger is injured. Because this coverage predominantly focuses on medical expenses, it is the most frequently purchased by individuals who do not have a health insurance plan.

Uninsured or Underinsured Motorist Coverage

Underinsured motorist coverage is becoming increasingly common as more and more individuals cannot afford the coverage required by state minimum plans. Similarly, many state minimum plans have very narrow coverage limits, meaning individuals with more expensive vehicles may not have adequate insurance in the event of a crash.

Having Sufficient Insurance to Satisfy a Lender

85% percent of vehicles are bought through a lease or financing plan. To protect their interest in the vehicle, the lienholder will require the driver to maintain “full coverage.” This same requirement also applies to leased vehicles. This coverage is critical if the car you are financing is damaged.

Without this coverage, you may be responsible for making the remaining payments on a vehicle that is inoperable in the aftermath of a crash.

GAP Insurance

This type of auto insurance coverage ensures you receive enough compensation to pay off your car loan if the vehicle is a “total loss.” If your vehicle is totaled, the insurance company will compensate you based on your vehicle’s current estimated market value. Automobiles tend to depreciate or lose value each year. What can occur is that the market value is less than the remaining loan balance—”a gap.”

Umbrella Coverage

The term “umbrella” refers to a supplemental or secondary policy that may be used if your liability exceeds the policy limits. Those with significant assets that they wish to protect may consider this option. Often the minimum limit of these policies is $1 million.

Local Arizona Car Insurance Agencies

As you can see, navigating the various types of insurance is a challenge. In addition to this, one must also keep in mind the price differences between various insurance companies and the annual fluctuations in price from year to year.

The benefit of working with an independent insurance agency is their ability to offer you a wide variety of well-researched and well-understood options. This allows you to streamline the shopping process and look at only those options that are best suited to your needs.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring yourself and your family.

In 2017 in Arizona, there were over 127,000 vehicle accidents. Among these accidents, roughly 919 were fatal and over 37,000 injuries were incurred. These crashes caused approximately $10.7 billion in losses.

These figures show just how important having the correct auto insurance is for anyone out on the road— the risk of an accident always near. Unfortunately, this reality has caused some shifts in the insurance market, making car insurance costs increase as time goes on.

A report early in 2019 showed that drivers in Arizona saw a roughly 3% increase in auto insurance premiums. As a state that requires minimum coverage from all drivers, finding the right policies at affordable prices could have a significant impact on your personal finances.

It is important to note that these increases are happening across the board, with drivers experiencing an increase even if they have not received a speeding ticket, accident, or other moving violation.

With this reality ever present, it’s more important now than ever to understand how to lower your car insurance and why your current plan might be so costly.

Minimum Requirements in Arizona

Arizona requires that all drivers maintain a “15/30/10” auto liability insurance policy. These policies indicate certain dollar amounts of coverage that are in $15,000, $30,000, and $10,000 dollar blocks.

• Bodily Injury Liability: $15,000 per person / $30,000 per accident
• Uninsured Motorist Coverage for Bodily Injury: $15,000 per person / $30,000 per accident (may be waived)
• Underinsured Motorist Coverage for Bodily Injury: $15,000 per person / $30,000 per accident (may be waived)
• Property Damage Liability: $10,000

These state required minimum coverage levels in Arizona also apply to personal golf carts, motorcycles, and mopeds.

Types of Automobile Coverage

Not all coverage types are the same. Some policies cover a greater or lesser extent of damage than others, thus changing the overall car insurance rates you pay as a driver. Generally, more coverage results in a higher expense.

While the right policy for you ultimately depends on your car, its age, and your driving records, most individuals opt for one of the policy types listed below.

Liability (Bodily Injury/Property Damage)

These forms of coverage are mandatory for all those operating a motor vehicle with the “15/30/10” minimum previously discussed. They apply exclusively when you are deemed as “at-fault” in an accident.

This type of insurance includes both Bodily Injury Insurance and Property Damage insurance.

Bodily Injury policies used to pay for costs such as medical expenses and lost wages for those injured. Property damage liability is used to repair or replace someone’s vehicle or other physical damage caused.

Collision

Collision coverage is used to repair or replace damage that occurred to your vehicle. It applies whenever your vehicle strikes any moving or fixed object.

Collision coverage is most common on financed, leased, or rented vehicles as a way to protect the lender from loss. As such, the more expensive your vehicle, the more expensive the potential repairs and the more expensive the overall insurance premium.

Comprehensive (a.k.a. Full Coverage)

As the name suggests, comprehensive coverage policies cover miscellaneous damage caused from non-collision accidents. Types of covered events could be theft, fire, vandalism, and extreme weather.

Both collision and comprehensive coverage typically include a predetermined deductible amount ranging from $500-$1,000 dollars.

To lower your monthly auto insurance rates, you may increase the amount of your deductible. This offers added financial flexibility for policies that might otherwise be too costly.

Uninsured/Underinsured Motorist

This type of coverage may apply when you are involved in an accident with a “hit-and-run” driver or a collision with someone who does not comply with state-minimum coverage requirements. Underinsured coverage is used when the damages in an accident exceed the maximum limits of the at-fault driver’s liability insurance. The minimum amount of coverage that may be offered by insurers is equal to the state’s minimum liability requirement.

Other Factors in Car Insurance Cost

While the type of policy coverage you have likely has the largest impact on the overall cost of coverage, there are many other factors that ultimately contribute to your rate. These include whether or not you are a young driver, financial history, accident history, and even your location.

Cost of Vehicle and Deductible Amount

The value of the vehicle you are insuring is of obvious importance to insurance companies when issuing comprehensive and collision policies. The replacement cost of many of today’s newer vehicles is sizable. In most cases, your premium will decrease as your deductible amount increases. For example, you may notice that changing your deductible from $500 to $1000 results in considerable savings.

Demographics

Your age plays a major role in the amount of your policy premium as represented by the following chart.

Teenager		25-Years-Old		30-Years-Old		45-Years Old		60-Years-Old
$344.78		$111.89		$100.44		$95.78		$91.44

Teenagers are viewed by insurers as being higher-risk motorists. This is because of their lack of driving experience and also their tendency to demonstrate risky behavior.

Driving Record and Claims History

A car insurance company will typically place great emphasis on your history of traffic violations and filed insurance claims. The Comprehensive Loss Underwriting Exchange (C.L.U.E) is a database that shows any claims that a driver has filed with their insurance company for the prior seven-year period.

Location

Your zip-code has a larger impact on insurance premiums than many understand. While initially this seems unfair, the raised cost seen in urban location is grounded in the increased liabilities in those areas. Cars in an urban environment, even those that don’t get much road-time, have a higher likelihood of being involved in an accident or experiencing theft. Because of this liability, insurance companies must charge for the added risk.

The same is true for your overall location— the state in which you live.

The following analysis is based on “full coverage” for a 40-year-old male with policy limits of 100/300/50 ($100,000 for injury liability per person, $300,000 for all people injured, and $50,000 for property damage). The policy has a $500 deductible for collision and comprehensive coverage. The driver has a clean driving record and satisfactory credit score.

			Average			National Rank
New Mexico			$1,382			# 27
Arizona			$1,449			# 22
National Average			$1,457			–
Nevada			$1,525			# 19
Colorado			$1,761			# 12
California			$1,846			# 6

As you see, it’s easy to pick out which states represent a higher accident liability to insurers than others. For Arizona residents specifically, this shows we are ranking just under the average national cost.

How To Ensure Your Rate is Lower

The final step after reading all the above is determining whether the policy you find is as cost effective as possible. There are several resources and manners with which you can do this, both through state-level departments and through practical matters like bundling policies.

Arizona Department of Insurance (ADOI)

The ADOI encourages competition among insurance companies. When shopping for insurance, use this resource to compare key variables across different policies. This includes the limits of coverage and the deductible amounts—when applicable. While you want a good price, choosing the cheapest car insurance is not advisable if it does not cover your needs.

Multi-Policy Reductions

Multi-policy discounts are often available when “bundling” different types of insurance from the same company. This means that if you take out an auto insurance policy with State Farm, you also use them to insure your home, your boat, and your RV. By getting all your policies with a single company, the cost of insuring each individual asset decreases.

Demographic Discounts

Finally, most companies offer discounts based on certain key demographic markers such as age, profession, or behavioral categories. These include discounts for having good credit, being a good student, being a senior, or being part of the military. If you fall into more than one category, these smaller benefits can quickly add up, making even higher coverage plans more affordable.

Casa Grande Insurance Agents

Finding the right car insurance in Arizona can be challenging due to the overwhelming number of choices on the market today. For this reason, it’s recommended that you use an independent insurance agent to help navigate the market and find the best policy for your needs.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those who are looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

Car insurance is a necessity for anyone who drives. For most driving Americans, however, the cost of an insurance plan puts a painful dent in the monthly budget. In times of great economic hardship, this strain can sometimes be too much to bear.

The good news in all this is that getting a lower rate is possible for most individuals, it’s just about knowing how to get it and where to look. In the article below, we will show you exactly that.

Search the Market

For most individuals, searching for car insurance is something that happens infrequently at best. Typically, once they pick a provider, they stick with the same company for years on end.

While this is the easy way out, it’s not always the smartest decision for your pocketbook.

Like any type of insurance, car rates fluctuate over time, meaning the company that saved you money last year might now be more expensive than its competitors. As such, taking time once per year to shop around for the best rates is a simple way to maximize your savings.

The work may be tedious but can save you hundreds if you find a plan that works better for your situation.

Balance Premiums and Deductibles

Similar to health insurance, auto policies with higher deductibles normally have lower monthly premiums. These lowered premiums reflect that you are responsible for a larger out-of-pocket payment if you are in an accident. Since the insurance company has less to lose, they give you a break on your rate.

However, there are considerations to make when opting for lowering premiums in this manner; it’s not the right choice for everyone.

The most important thing to remember is that you must have your full deductible amount available in case of an accident. With needing $1,500 or potentially more in savings should you get into an accident, it makes the high-deductible route impossible.

Change Your Coverage Amount

Reducing your coverage may sound like a bad idea, but it might be a smart option if you drive an older vehicle. The reason for this rests in how insurance companies decide whether to fix a vehicle or call it a total loss.

When an older vehicle is involved in a collision, the damage they receive is often more expensive to fix than the car’s market rate. No matter how much insurance coverage an old vehicle has, an insurance company will never pay you more than the value of your car.

Thus, overinsuring an old vehicle is almost always a waste of money.

Behavior-Based Discounts

One of the most accessible ways to earn cheaper car insurance is by taking advantage of behavior-based discounts. These are discounts given to good drivers, good students, and those with a clean driving record free of violations.

The logic behind these plans is that good behavior in one area of life indicates good behavior in others. As such, if you pay your bills on time, have a good credit score, are a safe driver, and qualify for a good student discount, insurance agents will assume you are a lower-risk driver overall.

Most major insurance companies offer some type of behavior discount, meaning you should check which best fits your needs and driving history.

Usage-Based Insurance

Some drivers, especially stay at home parents, the elderly, and those who work from home may benefit from mileage-based insurance coverage. These plans calculate your insurance rate based on the average number of miles you drive, meaning some can save hundreds per year depending on their driving habits.

Drive a Low-Risk Car

Car insurance companies determine their pricing based not only on you but also on the type of car you drive. When you drive a statistically safe car, it’s common that you see a drop in your car insurance rates. Start driving a sports car and the opposite happens.

So why does a safe car offer an answer on how to lower car insurance premiums? The logic is in the risk pool.

Like all types of insurance,  companies set their rates based on the risk factors of the individuals they insure. Cars that prove their worth in safety testing like the MSRP are ultimately categorized in a lower risk pool than vehicles that under-perform. As such, insurance companies charge lower rates for safer vehicles, knowing that even if an accident occurs, it’s less likely to result in serious injury.

Defensive Driving Courses

Taking a defensive driving course in the near future might show your insurance company that you are a lower risk on the road, thus scoring you a car insurance discount. While the cost of a defensive driving course may not pay off right away, the lasting impact it has on your insurance when coupled with a safe driving record can grant you substantial savings.

Casa Grande Insurance Experts

Arizona residents are hard-working individuals who need to make their paycheck stretch around their busy lifestyles. This is why at the Gebhardt Insurance Group, we are dedicated to helping residents find the lowest insurance rates around.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the right coverage for your business. Give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

When you need it and What it Covers

Anytime you operate a vehicle you are assuming a large amount of risk. While we have culturally made driving a coming-of-age milestone and a normal part of our daily routines, we can’t lose sight of the fact that any vehicle is still considered heavy machinery.

In case of an accident, not only will you cause damage to your vehicle, but you could cause damage to other drivers. The result is unexpected damage, repair, and medical payments resulting from bodily injury.

When driving a personal vehicle, we protect against this liability through personal auto insurance. Unfortunately, when operating a vehicle for business purposes, our personal plans often do not provide the correct amount of coverage we ultimately need.

This is where commercial auto insurance becomes important.

In the article below, we will outline the benefits to drivers and business owners alive when opting for business auto insurance including some of the most useful types of coverage your insurance company likely provides.

The Difference Between Personal and Commercial Insurance

Just like renter’s insurance doesn’t cover business liabilities, personal auto plans don’t cover commercial vehicles. This is because the needs of each group are different in both scope and price. Business insurances often have higher coverage limits to account for the increased liability of day-to-day operations while protecting a fundamentally different class of work vehicles.

While it’s best to check with your policy provider to determine whether any of your existing liability insurance covers your business vehicles, this will likely not be the case. As such, you need to purchase commercial vehicle insurance to protect your business against staggering losses should a claim occur.

Generally, you will need commercial auto insurance if your business actions qualify in any of the following criteria:

• Transport of materials needed to complete your duties (cleaning supplies, building materials, etc.)
• Transport of hazardous or flammable materials
• Transport of passengers who pay for said service
• Transport of goods paid for and delivered to a customer (such as pizza delivery)
• Tow, freight, and trucking vehicles
• Any company owned vehicle 
• Any vehicle with a gross weight of over 10,000 pounds or a carrying capacity over 2,000 pounds

However, make note that each company treats their policies differently. As such, it’s important to check your individual policy to ensure you fully understand the limits of your coverage.

What Does Commercial Auto Insurance Cover?

Commercial Auto Insurance acts as an umbrella term for several different types of policies that protect you from liability in various areas of operation. These categories of coverage are similar to those found in personal policies, but commonly have higher limits to adjust for the higher expense business liabilities can create.

Collision Coverage
This type of coverage does not take fault into account and instead allocates funds to the sole purpose of fixing damage resulting from a collision.

Comprehensive Coverage
This category covers damages not caused by collision, such as harsh weather or other environmentally uncontrollable outside factors.

Liability Coverage
The broadest coverage classification, liability coverage can range across several different categories of liability. Of particular importance are Bodily Injury Liability and  Property Damage Liability, both of which protect against damage occurring to either your employees or your clients.

Personal Injury Coverage
Applied to only the drivers and passengers of vehicles under your policy, this allocates funds to treating bodily injuries that are resultant from an accident.

Uninsured Motorist Coverage/Underinsured Motorist Coverage
Covers damages caused to you by a motorist who did not have adequate insurance to compensate their action.

Preparing for the Cost

Unfortunately, with higher risk comes a higher price tag. As such, commercial policies are often more expensive than their personal counterparts to account for the added cost should property damage or bodily harm occur.

As with personal insurance, your commercial premium varies. Variance is based on a variety of factors including which insurance company you choose and what extent of coverage you need. Furthermore, policy pricing is influenced by the driving records of employees, number of vehicles insured, and even the general risk involved in your industry.

Finding the Policy That’s RIght for You

Whether you run a large corporation, a small business, or even are a sole proprietor, having commercial auto insurance is an important part of financial protection. All it takes is one mistake to send even the best business owner into a spiral of claims, lawsuits, and the perils of inadequate coverage.

We know that finding the right insurance policy is difficult, especially with the vast number of policies there are to choose from. This is why it’s important to work with an insurance specialist who is knowledgeable about the market and who can guide you to the best policy for your situation.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those who are looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

Everyone who owns a vehicle needs insurance coverage in case of an accident or unexpected damage. Not only does this help you financially if you do experience an accident, it wards off fees you will acquire if you are pulled over while uninsured.

If you are reading this article, it is probably safe to assume that you have suffered such an event, filed an insurance claim, and are not looking at ways to lower your rates following the accident.

While the unfortunate reality is that it sometimes takes years of being violation-free for your rate to be returned entirely back to normal, there are many ways to lower your car insurance without relying on your driving record alone. Keep reading to see how.

Shop Around

Insurance shopping is a perennial activity. Even if you found the best rate a couple years ago, there are several factors that may have changed since then. As such, it’s a good idea to keep an eye on what other insurers offer to ensure you don’t miss out on a potentially better rate.

Factors to keep an eye on while rate shopping include:

• Offering a discount for good grades 
• Safe driver discounts
• Vanishing deductibles 
• Car insurance premiums and deductible ratios 

While this list is non-exhaustive, it gives individuals a good starting point to compare one car insurance company to another.

Raise Your Deductible

If the premium of your policy is unaffordable, opting for a high-deductible plan can help lower overall costs. Let’s look at a quick example to explain how this works.

Let’s say you originally had a deductible of $500 on your comprehensive plan. Raising this deductible over this amount could award you a reduction of up to 30% of your overall premium cost. If you opt to raise your deductible even further to $1,000 or more, that premium percentage decrease can become as high as 40%.

This means that if you had a premium of $130 per month, raising your deductible to $1,000 could save you $52 on each payment. That leaves you with a premium of only $78 a month.

A word of caution: when opting for a higher deductible, make sure you have enough funds put aside to cover the cost should an accident occur. While some policies allow you to pay a high deductible in installments, many do not. Without paying this amount, you could potentially face delays in getting your vehicle repaired.

Know When to Reduce Coverage

Insurance cost depends on more than just your driving record. In many cases, a large percentage of your rate will depend on your age, the age and type of vehicle you’re insuring, and any added safety features.

However, this is a two-way street.

When your car is old, lacking safety features, or worth very little, it may be a better idea to scale back on your coverage. After all, if your car is worth less than the premium and deductible for comprehensive coverage, it won’t be worth fixing if you get into an accident. Knowing how to balance these variables are key to ensuring the best rate for your specific scenario.

Other Options

The options above are often the most common for individuals seeking to quickly reduce their coverage expenses. However, there are a few more options that can provide savings in more creative ways.

1. Accident Forgiveness
   If you are a safe driver and have a clean record, sometimes asking about accident forgiveness is the easiest way to ensure that your policy rate remains the same. While not all auto insurance companies offer this kind of benefit, the ones that do can be a lifesaver.
   
   Generally, these policies work by offering individuals with a safe driving record one freebie at-fault accident. While this normally doesn’t cover large collisions, it can definitely save you from increasing car insurance rates after a minor accident.
   
2. Coverage Bundles
   For individuals who have multiple vehicles, a home, or both, bundling your different insurance plans with the same provider can save money across all of your policies.
   
3. Good Credit
   Finally, when shopping for policies some insurers will give you a discounted rate based on your credit history. While credit history may initially seem unrelated, there are statistically significant correlations between individuals with a good credit history and individuals who make fewer insurance claims overall. Simply put, having a good credit report shows you’re responsible and therefore less likely to get involved in an accident.

Finding a, Arizona Car Insurance Expert

As you can see, finding your perfect policy is not a one-size-fits all matter. There are many variables in each individual situation and many different ways these factors interact to create your overall rate.

We also understand that sometimes, crunching the numbers yourself and trying to think of every possible option is just too complicated. This is why we build our company around helping individuals find the best and most affordable coverage for their personal needs.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those who are looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

Why is it important to shop and compare various deals available for your car insurance? One reason is that car insurance rates risen significantly. In the United States, premiums have risen by an estimated 23% since 2011. This rise stems from factors such as higher costs of repairing vehicles involved in a car accident and an increase in distracted driving accidents.

U.S. Auto Insurance	2015	2016	2017	2018
% Annual Increase	4.2%	6.9%	5.0%	2.3%

Finding Affordable Car Insurance

Car insurance is a required expense for all drivers. It is important to protect you in case your car is damaged, you are involved in an accident, or you your car is stolen. You want to find coverage that provides adequate coverage.

In this post, we will discuss some terms to know and trends to understand as you look for auto insurance and provide some of the best car insurance deals.

Ways to Find Great Deals

There are various ways to shop and compare your car insurance options. You may directly visit insurance company websites or call them to obtain a price quote. One uncommon approach is one you have probably seen in ads from Progressive: they show the rates of their competitors when you obtain a quote.

Shopping directly through the insurance company’s website can be time-consuming, as the process of visiting multiple sites or calling them and repeatedly entering or providing your information is redundant. When you shop directly through the insurer, they will likely have various policies for you to consider. The drawback is that the presented options are all from that carrier.

Shopping Through a Captive Insurance Agent

Many large national auto insurance companies sell their policies through captive agents. These are professional, local agents that may offer various types of insurance, but only represent one carrier.

Many people choose a captive insurance agent because they prefer personal service and support from a local agent. The drawback with a captive agent is they are unable to shop multiple carriers to find you the best rate.

Finding Deals Using Comparison Sites

There are various websites such as QuoteWizard that specialize in comparing options from multiple insurers in your area. Many shoppers find these sites to be an efficient way to shop. Oftentimes, these sites only represent the large national carriers, limiting your ability to consider policies from many local or regional insurers.

The Minimum Coverage Requirements in Arizona

All Arizona motorists are required to maintain the state minimum levels of liability coverage. This does apply to those operating a motorcycle, moped, and even a golf cart. The mandatory insurance requirement, which is often abbreviated as “15/30/10,” is as follows:

• Bodily injury insurance coverage of $15,000 per person
• Bodily injury insurance coverage of $30,000 per accident involving multiple people
• Property damage liability coverage of $10,000 

Bodily injury liability insurance is used when you are found to be responsible for causing an accident that injures someone else. The property damage coverage applies when you are responsible for causing an accident that damages someone else’s car or other property. It is important to recognize that liability insurance does not pay for your injuries or damage to your vehicle.

Recently passed legislation will raise the required minimum levels of liability insurance in Arizona. This is the first increase in decades and it will take effect in July of 2020. The new minimums will be as follows: bodily injury insurance of $25,000 per person and $50,000 per accident. The property damage liability coverage minimum is increasing to $15,000.

Collision Insurance

This type of coverage will pay for repairs or replacement of your vehicle when in an accident. If you cause an accident, your liability coverage covers injuries and property damages that other motorists incur. Meanwhile, your collision coverage would be used for your vehicle repairs. Collision coverage is also for situations such as a collision with a pole or tree.

Rising Costs of Collision Insurance

The cost of the average brand new car today exceeds $37,000. This potential replacement cost significantly increases the cost of insurance coverage because the insurer knows that if the vehicle were totaled, they would be paying upwards of $30,000 to replace it. Aside from the overall replacement cost, the price of repairing a newer vehicle involved in a collision is higher than an older vehicle.

Data from the U.S. Bureau of Labor Statistics indicates that vehicle repair costs rose by more than 61% between 2000 and 2017. The way that car manufacturers are building newer vehicles contributes to the increase in repair costs.

The days when cars had a sturdy steel bumper on the front and rear are gone. Instead, the body panel materials tend to be some form of lighter-weight, composite material. After a moderate collision, these exterior body materials generally need replacement rather than repairs.

Newer vehicles today also contain sensors, cameras, and other safety features that are integrated into the exterior body. For example, regulators now require that all new vehicles have a rear backup camera. If these vehicles are in a rear-end collision, the repairs will likely involve replacing these electronic systems in addition to the body panel.

Insurers deem a vehicle that is involved in a collision to be “totaled” when the repair costs plus the scrap value exceed the current value of the vehicle.

Comprehensive Insurance

Comprehensive coverage is similar to collision because it is used to repair or replace your vehicle. The difference is that this coverage applies when the damage is incurred in some way that does not involve a collision while operating. For example, comprehensive coverage is used to replace your vehicle if it were stolen. Keep in mind that certain types of vehicles are more likely to be stolen and insurers adjust their rates accordingly.

Other examples of when comprehensive coverage would apply include hail damage or vandalism. Those who have auto loans are required by the lender to maintain full insurance coverage for their protection. The financial institution that you are making payments to is using the vehicle as collateral if you default on the loan.

Are You Shopping for “Full” Coverage Insurance?

Those with a car of moderate value will generally obtain “full” coverage insurance. This term refers to having at least liability, collision, and comprehensive policies.

Those with a vehicle that is only worth a couple of thousand dollars may consider maintaining only liability insurance coverage. Lenders require full coverage in the event that something happens to the vehicle, so you have to have paid off your loans in full to decline comprehensive coverage.

How Deductibles Impact Insurance Costs

If you are comparing potential auto insurance options, it is important to consider the deductible amount. A deductible is the amount that the insured party must pay “out of pocket” when an insurance claim is made. The auto insurance deductible applies to your comprehensive and collision coverage.

Failing to consider the deductible amount would result in an inability to do an “apples to apples” comparison, as common deductible amounts range from $500 to $2,500. Those seeking to save money on the cost of their insurance premiums may choose a higher deductible amount.

We will consider the following example to illustrate how this works. You are driving a car valued at $10,000 and have a $1,000 insurance deductible. When your insurer deems your car totaled after an accident that results in tremendous damage, you must pay the $1,000 deductible amount and then your insurer will pay the remaining $9,000.

Uninsured and Underinsured Motorist Coverage

Uninsured motorist coverage is used to repair or replace your vehicle if involved in an accident with a motorist without liability insurance. This coverage may apply if you were involved in an accident with a “hit-and-run” driver that flees the scene.

Underinsured coverage commonly occurs if you are involved in an accident with a motorist who has state-minimum liability insurance coverage. If the other motorist is determined to be responsible for the accident, you will file a claim with their insurer. Underinsured coverage will pay any amount necessary to repair or replace your vehicle beyond the limits of their liability coverage.

What Factors Do Insurers Consider to Calculate Rates?

• Demographics: Insurers use data such as your age, gender, and marital status to determine their rates. For example, teenage males pay among the highest premiums based on their lack of driving experience and potential for risky behavior. 
• Location: Your zip code provides insurers with insight into whether you are likely to be driving in urban or rural areas. They also may consider the rates of automobile theft in your area for calculating comprehensive coverage premiums.
• Credit: Data suggests that those with a poor credit history are more likely to file an insurance claim, so insurers would raise their premiums. 
• Claims history: There is a central database called CLUE that contains any insurance claims individuals has filed in the prior seven years. Insurers generally consider a driver’s history of insurance claims as an indicator of their likelihood to have future claims. Similar to your credit report, consumers are eligible to receive one copy for review each year.
• Your vehicle: Insurance companies may consider that those driving high-performance or sports cars as more likely to drive recklessly. The value of your specific vehicle is critical to insurers, as they may potentially have to pay to replace higher-priced vehicles. Certain models are also most likely to be stolen; often this results from known security flaws that thieves are aware of.

Most Common Car Insurance Discounts Offered

Those who are members of certain organizations may be eligible for discounts. Examples include those who are employees of a certain company, active military members, or those in certain professional organizations.

Insurance companies typically will offer discounts for those who “bundle” multiple types of insurance. For example, if you purchase both your auto insurance and home insurance from the same company, the premiums for both will be slightly less expensive than they would be otherwise.

Some insurers may offer loyalty discounts. An example would be for young drivers that are added to their parent’s existing auto insurance policy. “Safe driver” discounts, such as offered by Liberty Mutual, may be available for those with an excellent driving record.

Best Car Insurance Deals Available from Insurers in Arizona

Here are some examples of current special offers that are available for Arizona motorists that qualify.

• Progressive: They are offering a 10% discount on car insurance for those who also purchase home insurance. 
• Foremost: The company is promoting discounts for those who will be switching from another insurer
• Travelers: Those who have no accidents, traffic violations, or insurance claims for the past three years may save 10%
• Safeco: Recent promotions include a Low Mileage Discount for those who drive less than 8,000 miles per year.

Usage-Based Insurance Deals

Car insurance companies such as Progressive are now offering auto insurance that is often referred to as being “usage-based.” The company may have some type of application or device that tracks your driving habits for a period of time. Progressive’s Snapshot Program is one popular example. The company claims that many drivers can save $130 annually on premiums.

Shopping for Insurance Deals With a Local Independent Agent

Consumers who are exploring their options for car insurance should consider a local independent agency. Unlike a captive agent that exclusively represents a single carrier, an independent agent can consider options from multiple insurers. They will shop on your behalf to find a competitively priced policy that is suited for your specific needs.

Established Automobile Insurance Provider in Pinal County

The Gebhardt Insurance Group began operations in 2005 in Casa Grande. Over the years, we have witnessed the population of the county nearly double in size. We are proud to offer affordable insurance products from the leading carriers and excellent customer service. We encourage you to contact our team of professionals today at (520) 836-3244.