Automobile insurance is used to provide financial compensation in case unexpected events occur involving our vehicles. A policyholder and an insurer enter a legal contract outlining various provisions such as the length of the policy, maximum coverage amounts, etc. Each state adopts laws pertaining to auto insurance.

Most states have some clearly defined minimum levels of coverage that all drivers must maintain. Drivers regularly buy policies with much higher limits than the state minimum requirements for various reasons. Those who purchase higher amounts of coverage obviously will pay a higher rate, known as the insurance premium. We will address the many factors to consider when determining how much car insurance to purchase.

Why is Auto Insurance Important?

One reason that states mandate car insurance coverage is that accidents are common. Many collisions are “fender benders” where there is only minor vehicle damage; however, severe accidents are also common. The National Safety Council reported that roadway fatalities exceeded 40,000 across the country for the third consecutive year in 2018.

The costs that are associated with car crashes are staggering. In Arizona, annual losses stemming from fatal crashes alone exceed $1 billion. The majority of losses from vehicle accidents are attributed to medical expenses and the often lengthy absences from work that occur.  

What Are the Minimum Requirements in Arizona?

The Arizona Department of Insurance is the primary state agency that regulates the vehicle insurance market. 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

Although policyholders may decline the coverage, the state requires that insurance estimates (quotes) must include uninsured and underinsured motorist coverage. These may be used if you are involved in an accident with a motorist who either lacks coverage or a sufficient level of coverage. Arizona’s minimum insurance requirements also apply to motorcycles, mopeds, and personal golf carts.

Optional Forms of Auto Insurance to Consider

Collision Coverage

Liability insurance covers injuries and property damage that other drivers incur when you are at-fault in an accident. If another party is at-fault in an accident you may file a claim for repairs with their liability insurer. Collision coverage is used to repair or replace your vehicle in the event of a crash. This coverage, as the name implies, is applicable if you were to collide with another vehicle, tree, or another object.

Comprehensive Coverage

This form of coverage is used to repair or replace your vehicle when incidents occur that do not involve a collision. Some common examples would be acts of vandalism or if your vehicle was stolen and is unrecoverable. Other scenarios may include that your vehicle catches fire or a tree falls on the car.

The premium amount for collision and comprehensive coverage may vary significantly depending on the value of your vehicle. The insurance company knows that there is a possibility they may need to replace your car. Another costly factor on many newer vehicles is the often high price of replacing all safety and technology equipment now included.

Medical Payments Coverage or Personal Injury Protection

There is also an option to add coverage that specifically will pay for medically-related expenses in case you or a passenger is injured. Accidents occurring at high speeds are more likely to result in severe injuries that may require surgical, dental, or rehabilitative care. Individuals who do not have health insurance coverage are the most likely to purchase these plans.

Those without health insurance should be aware that medical treatment can be very expensive. For example, a broken leg can cost a total of roughly $7,500. A three-day stay in the hospital may easily exceed $30,000. Having to pay these expenses “out of pocket” can be financially devastating.

Uninsured or Underinsured Motorist Coverage

State laws require that motorists maintain the required minimums of liability coverage. Uninsured motorist coverage will provide financial compensation if you are in an accident with a driver who lacks coverage. It also may be used if another motorist flees the scene of an accident, referred to as a “hit-and-run”.

Underinsured motorist coverage is becoming increasingly important in many areas including Arizona. This is because the current minimum requirements have remained the same since 1972! In the meanwhile, the cost of passenger vehicles has risen considerably. This combination of factors makes underinsured coverage very helpful to cover repair costs that exceed the policy limits.  

Having Sufficient Insurance to Satisfy a Lender

With the high cost of new vehicles, it is no surprise that roughly 85% of those purchased are financed. The lienholder will require the driver to maintain “full coverage” to protect their collateral. This same requirement will apply to any leased vehicle. This coverage is critical in the event that the car you are financing is damaged. You could potentially be responsible to make the remaining payments on a vehicle that is inoperable.

Having Sufficient Insurance to Protect Your Assets

If you cause an accident that results in a significant injury, property damage, or a fatality, you could potentially face a civil suit. In this situation, another party sues you personally for damages that exceed the limits of your liability coverage. This is particularly important for those with significant assets such as a home.

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 the current estimated market value of your vehicle. 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.”

Coverage for Custom or Aftermarket Equipment

Those who purchase upgrades for their vehicle, such as an elaborate sound system, may consider adding coverage for protecting your assets. This will generally require an added specification in your insurance policy provisions.

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.

Premium Affordability

A key consideration when determining how much insurance coverage you need is affordability. In Arizona, the average premium for a “50/100/50” policy is $621 annually. If you increase the limits to 100/300/100, the premium increases to $686.

Why Purchase Insurance Through an Independent Agency?

We all experience some changes throughout the course of our lives. During this journey, our insurance needs also may change. A great benefit to working with an independent insurance agency is their ability to offer you a wide variety of options. They are able to compare policy options from various insurance carriers to save money and provide adequate protection

Agency Offers Customized Car Insurance for Pinal County Drivers

One reason motorists in the Casa Grande area continue to purchase insurance through the Gebhardt Insurance Group is our personalized service. Our team of insurance professionals will find a policy that is a perfect fit for you! Please contact us today at (520) 836-3244.

Arizona law requires drivers to maintain liability insurance to cover the potential for financial liability if involved in a car accident. This mandate also applies to motorcycles, mopeds, and golf carts. The current minimum levels of coverage required for bodily injury is $15,000 per person and $30,000 per accident. A minimum of $10,000 in coverage specifically for property damages is also required.

Need for Car Insurance

Why does the law require you to have insurance? One reason is that driving is dangerous. In 2017, there were about 1,000 fatalities and 55,000 injuries incurred on Arizona roadways. The total number of crashes in 2017 was estimated as 127,064.

Auto Insurance: Expensive and Volatile

Across the U.S., there are more than 600 auto insurance companies serving the market of roughly 250 million drivers. According to a 2018 State of Auto Insurance report, the national average annual car insurance premium is $1,427.  Since 2011, the price has risen nationally by about 20%. Rates have changed in some states in one-year by as much as 60%.

Average Annual Rates Among Neighboring States

Avoiding Lapses in Car Insurance Coverage

The Arizona Department of Transportation has a Motor Vehicle Division (MVD) that enforces the laws pertaining to the liability insurance requirement. If you are canceling your auto insurance and will still be driving, it is critical that your coverage does not lapse. If involved in a traffic stop or accident, members of law enforcement will ask you to provide evidence of current coverage. In addition, insurers are required to notify the MVD when a policy is canceled or not renewed.

If you are caught operating a vehicle without the required coverage, your vehicle registration and driver’s license could be suspended. In order to restore your driving privileges, the state will require you to maintain an SR22. An SR22 is a certification of Proof of Future Financial Responsibility. This certification must be maintained for a three-year period.

Lapse of Coverage Impact on Rates

One of the many factors that may have an effect on car insurance rates involves prior coverage. Insurers tend to look favorably on those who have a history of continuous (uninterrupted) coverage. California is the only state that prohibits this from factoring into rate calculations.

Out-of-State Coverage

All those who register a vehicle are required to have liability coverage from a licensed insurer in Arizona.  The MVD requires that proof of legal coverage is received no later than 30 days after registration.

Updating Changes to Your Car Insurance in Arizona

Earlier we mentioned that insurers are required to notify the MVD when a motorist’s policy is terminated. The same requirement applies when an insurer issues a new policy.  It is possible that your new insurer may not send this MVD notification in a timely manner. This could trigger an alert that suggests you do not have the mandated insurance requirements.

To prevent potential headaches from failures in communication, the state has implemented ServiceArizona.com. This is a website that allows direct access to your MVD record. Those who are canceling or otherwise changing their vehicle insurance to visit the site and enter your new policy details.

Temporarily Discontinuing Vehicle Insurance

What if you will be out of state for an extended period or otherwise not driving your vehicle? If you discontinue your insurance coverage for any reason the insurer will notify the MVD. If no new insurance policy information is received, your registration and driver’s license may be suspended. In this situation, you must complete a De-insured Certificate, a form that can be easily completed online.

Ways of Cancelling an Auto Insurance Policy

• Over the phone: You may call your insurance company’s customer service department or your insurance agent. This tends to be a quick and easy way to cancel unless they require your signature.
• By mail: You may simply send your cancellation request in writing through the mail. It will be important to properly reference your policy number and the effective date of the cancellation.
• Visiting a local office: If your insurer or agent has a local office location you could stop there for cancellation. They will likely have you complete a form to finalize the process.
• Assistance from a new insurer or agent: They may be able to assist with canceling your existing policy by sending a fax. Make sure that you provide the policy number to avoid any confusion.

Cancellation for Non-Payment

It is possible that your policy is expiring and you simply allow it to lapse.  Keep in mind that some companies have a grace period that automatically extends coverage beyond the policy termination date. It is possible that you could be responsible to pay for this period of coverage. Keep in mind that if your policy is set up for automatic electronic billing you should formally make contact to cancel.

Obtaining a Refund for Remaining Period

If you have paid in advance for your insurance you will be eligible for a refund on the unused premium amount.  If you pay monthly it may be easiest to simply make your new policy effective date at the month’s end. If eligible for a refund, you can expect a check by mail in several weeks or electronic refund to your bank account.

Established Independent Insurance Agency in Casa Grande

The Gebhardt Insurance Group has been a trusted source for insurance among those in the greater Pinal County area for years. We are an independent agency that represents dozens of insurance companies and maintains a commitment to customer service. You benefit because we have the options available to ensure you obtain affordable coverage that is well-suited for your individual needs. Contact a member of our team of insurance professionals today to get started at (520) 836-3244.

If you own a vehicle in Arizona you are required to maintain the state’s minimum for automobile liability insurance coverage. Automobile insurance is important because accidents commonly occur and they may have significant financial consequences. In 2017 in Arizona, there were over 127,000 total accidents. Among these accidents, roughly 919 were fatal and over 37,000 injuries were incurred. Crashes involving motor vehicles in 2017 in Arizona caused approximately $10.7 billion in losses.

Premiums on the Rise

A report early in 2019 showed that drivers in Arizona saw a roughly 3% increase in auto insurance premiums. Many of those who have experienced increases had not been involved in an accident or had a traffic violation. Drivers in the Phoenix area have experienced the most dramatic increases. This is largely attributed to population growth, more traffic, and more accidents. In the U.S., the recent rise in the number of accidents is partially attributed to the widespread problem of distracted driving.

Minimum Requirements in Arizona

The state requires that all drivers maintain a “15/30/10” auto liability insurance policy, which is as follows:

• Bodily Injury Liability: $15,000 per person / $30,000 per accident
• Property Damage Liability: $10,000
• 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)

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

Full Coverage

Motorists also have the option of adding comprehensive and collision insurance coverage. Collision coverage is used to repair or replace your vehicle when involved in a car accident while operating. Comprehensive is used to repair or replace your vehicle from other occurrences such a theft, vandalism, etc.

It is important to remember that these coverages may not really be optional. Those who are financing the purchase of their vehicle are required to maintain this coverage to protect the lender until the loan is paid off. These types of insurance have a deductible amount. This is a set amount that the insured must pay “out of pocket” before the insurance company assumes responsibility for the remainder.

Neighboring State Cost Comparison

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.

Importance of Accurately Comparing Policy Quotes

The market for car insurance in Arizona is overseen by the Arizona Department of Insurance (ADOI). ADOI encourages competition among insurance companies. When shopping for insurance it is critical that your comparisons are true “apples-to-apples.” This means that you will need to identify the key variables that we discussed earlier when comparing. This includes the limits of coverage and the deductible amounts—when applicable. Remember that just choosing the cheapest car insurance is not advisable if it does not truly cover your specific needs.

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.

Cost of Vehicle and Deductible Amount

The value of the vehicle you are insuring is of obvious importance to insurance companies in 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.

Credit Score and Other Demographic Factors

Data has traditionally shown that those with good credit are less likely to file an insurance claim. Your age is likely to play a major role in the amount of your policy premium. The following chart (example) illustrates how one individual’s costs changed based on their age. 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 more risky behavior.

Location

In a previous chart, we looked at a state-to-state average cost comparison. Your specific location, which is typically determined by your zip code, will also impact the premium cost. Those in urban areas have a higher likelihood of being involved in an accident. Certain cities have relatively higher rates of auto theft and other factors may be considered.

Multi-Policy Reductions and Other Discounts

Multi-policy discounts are often available when “bundling” different types of insurance from the same company. For example, you may insure your car and home with the same company. Look for the many different types of discounts that are available in the market. Some of the common types include those for seniors, students, those in the military and others. Some insurers offer members of certain groups such as professional organizations and alumni associations discounts to incentivize these individuals.

Importance of Using an Independent Agent

A captive insurance agent is one who represents a specific insurance company. Unlike captive agents, independent insurance agencies or brokers are able to offer policies from various insurers. The advantage of shopping through an independent agent is that they are better able to assess your individual policy needs and match you with a policy that is best-suited and most cost-effective for you.

Affordable Car Insurance for Arizona Drivers

The Gebhardt Insurance Group has been proudly providing insurance for individuals, families, and businesses in Casa Grande for many years. Our team of insurance professionals delivers customized insurance solutions and superior customer service.  We encourage you to contact us today at (520) 836-3244 for all of your insurance needs.

[1] https://www.insure.com/car-insurance/car-insurance-rates.html

A recent U.S. study reported that roughly 33% of Americans have never shopped around or compared prices for automobile insurance. Among these individuals, the leading reasons mentioned were a lack of time and a dislike of paperwork. However, it is wise to make car insurance comparisons by obtaining quotes either online or through your agent. Always maintain adequate levels of coverage to repair or replace your vehicle and to protect you from potential liability. As a precaution, be sure to review the “fine print” on policies that appear overly affordable as well.

Arizona Legislation Could Raise Insurance Rates

The Arizona Senate Committee on Transportation and Public Safety have proposed a measure that could soon cause premiums to rise meaning the time to consider and compare car insurance options is now. Arizona currently requires motorists to maintain a minimum of $15,000 in bodily injury liability per person ($30,000 per accident) and $10,000 in property damage liability coverage. SB 1087 would increase these levels from $30,000 per accident to $50,000 and increase property coverage from $10,000 to $15,000.

This would be the first increase in the liability minimums in over 40 years. Lobbyist Rob Dalager estimates that monthly premiums could rise by as much as $8.00 per month. A similar proposal passed in 2018; however, it was vetoed by the governor who cited affordability concerns among those with low income. Senator Lupe Contreras supports the measure because most vehicles today are unable to be replaced for $10,000.

Shopping Around

As with most consumer products, searching for the best deal is often the smart thing to do. Prior to comparing policies, you should have a basic understanding of auto insurance. Check with friends, relatives, and co-workers to see if they have any recommendations.

Choice of Vehicle

Your choice of vehicle is likely to impact your auto insurance rates. Cars that are expensive will be more costly to repair and replace. Expect sports and performance cars to be more expensive to insure. Certain models have minimal theft prevention measures and are commonly stolen. Be sure to check insurance pricing before purchasing your next vehicle.

Reduce Coverage

Look for opportunities to safely reduce your coverage. Those will an older car may consider no longer maintaining optional collision and comprehensive coverage. You can use tools online including Kelley Blue Book or Edmunds to estimate the value of your vehicle.

Selecting a Higher Deductible

Raising your deductible on your auto insurance policy can reduce your premium. However, you need to be sure that you will be able to comfortably afford paying the higher deductible if necessary. An increase from $200 to $500 may save you up to 30%. Raising the amount to $1,000 could potentially result in a 40% savings.

Multi-Policy (Bundling)

Consider available ways to save through “bundling” policies. You may be eligible for savings if you have multiple vehicles on the same policy. You may be able to switch your homeowners, renters, or life insurance to the same company and get better rates. Consult with your insurance agent to identify potential offers.

Drive Safely

Those who maintain a clean driving record through safe driving are typically afforded lower rates. Similarly, those who do not file any claims for a period of several years may be eligible for better rates. Keep in mind that insurers will look for any claims in the prior six-year period.

Maintaining Good Credit

Insurance companies use statistical data as a means of determining rates. Data has shown that those with good credit are less likely to file an insurance claim. It may be helpful to review a copy of your credit report to check for any errors that may hinder your credit standing.

Look for Discounts

Auto insurance companies routinely advertise discounts that you may qualify for. Students are often eligible for a discount by maintaining good grades. Senior adults or active members of the armed forces are often provided discounts as well. Some companies will offer a discount if you complete a defensive driving course.

Low Mileage Policies

According to the Federal Highway Administration, motorists in the U.S. currently drive an average of 13,476 miles annually. Those who drive well below average should consider a policy geared for low mileage drivers. It is estimated that these policies could save up to 10% on auto insurance premiums.

Potential Group Discounts

Those who are members of a professional organization or involved in an alumni group may be eligible for certain discounts. You should check with your employer to see if they have any group discount arrangements as well.

Consider Buying from an Independent Agent

Unlike captive insurance agents who represent a specific carrier, independent agents offer insurance through various carriers. Having an independent agent compare car insurance rates through multiple companies may end up saving you some money. These professionals are also likely to be aware of discounts that you may qualify for.

Established Agency for Auto Insurance in Arizona

The Gebhardt Insurance Group located in Casa Grande has been providing insurance solutions in the region now for over 15 years. We remain committed to providing our customers with excellent coverage at affordable prices. We now represent over 40 of the top insurance carriers. Contact our office today at (520) 836-3244.

Why is it important to shop around and compare your auto insurance options? First, state law requires all motorists to maintain minimum levels of liability insurance to cover injuries and property damage. Also, the price of automobile coverage continues to escalate and can be costly. The Insurance Information Institute reports that the total average annual cost of ownership for a new car is roughly $8,000. Part of this ownership cost is the annual insurance premium. According to AAA, the annual average cost of insurance (premium) for a mid-level sedan is $1,232.

Arizona Department of Insurance (ADOI) Publication

The ADOI oversees the market and they investigate consumer complaints. In 2018, they published the Premium Comparison and Complaint Ratios for Automobile Insurance. This report shows it is worthwhile to do some “comparison shopping”. They obtained hundreds of quotes from insurers using varying sets of consumer information such as age, the model of vehicle, prior driving record etc.

Importance of Comparing “Apples to Apples”

Automobile insurance policies contain many variables; therefore, you must identify these factors to accurately make comparisons. We will go through these many considerations to be sure you can determine if you need them or not.

Comparing Coverage Types

One key aspect that must be considered when comparing auto insurance policies is what types of coverage you are selecting. The primary types are:

Bodily Injury Liability: This covers injuries that you may cause to others when at-fault in an accident. The state requires that you maintain a minimum of $15,000 of coverage per person and $30,000 per accident total.

Property Damage Liability: This covers property damage that you may cause to others when at-fault in an accident. The state requires that you maintain a minimum of $10,000 in coverage. When referring to the state’s minimum required liability coverage, you may see it specified in an abbreviated format as 15/30/10.

Collision: This form of optional coverage is used to repair or replace your vehicle in the event of an accident. An example would be if you struck a tree with your vehicle. This coverage generally will apply to any vehicle that you are operating—not just your own.

Comprehensive: This form of optional coverage is used to repair or replace your vehicle following some other event than a collision. An example would be if your car was stolen or vandalized. When financing a vehicle, lenders require you to maintain both collision and comprehensive coverage to be sure their collateral (your vehicle) is protected.

Medical Payments: This coverage is also commonly referred to as Personal Injury Protection. It is used to pay for medical expenses that may result from accident injuries. This coverage may extend to passengers that are in your car at the time of an accident. This may be a coverage selected by those who do not have health insurance coverage.

Uninsured and Underinsured Motorist: Some motorists fail to comply with the mandated liability coverage requirements. Uninsured coverage will pay for your costs if the other motorist lacks coverage. It also may apply in a “hit and run” or “hit-skip” accident. Underinsured motorist coverage is used for covering losses that may exceed the limits of the other driver’s policy coverage.

Recent Legislation: AZ Minimum Liability Coverage

The state’s mandatory minimum for bodily injury and property damage liability coverage of (15/30/10) was implemented in 1972. In 2018, the legislature proposed increasing the minimum requirements to (25/50/25). Governor Doug Ducey vetoed this legislation, citing concerns that the increase would make insurance coverage unaffordable to many low-income motorists.

Understanding Deductibles in Comparing Policies

Deductibles are a fairly standard component of collision and comprehensive auto insurance policies. This is the amount that the insured must initially pay “out of pocket” before the insurance coverage assumes payment. Common deductible amounts range widely from $250 to $1500 and beyond. An example to consider is if you had an accident that caused $2,000 in damage. If your policy deductible was $500, the insurance company would pay $1,500 after you have satisfied the deductible.

Understanding Repair and Replacement Cost

Auto insurance companies will typically adjust their rates of collision and comprehensive coverage according to the vehicle you are insuring. Some market reports have shown that recent rate increases have been attributed to the many added features included in today’s vehicles. Features such as on-board electronics and safety features such as rear-bumper cameras make it more costly to repair a damaged vehicle. Similarly, you can expect your rates to increase based on the replacement cost (value) of your vehicle.

Rate Changes Based on Location

Insurance companies may adjust their rates based on where you live. For example, those in highly populated urban areas may pay a higher premium compared to those in rural areas. This is due to increased traffic and likelihood for a collision. Certain areas also have higher rates of crime and vehicles may be more likely to be stolen, vandalized, etc. When using online tools to obtain a rate quote you will clearly notice rate fluctuations among different zip codes.

Driving Record

Insurance companies are likely to consider your recent history of traffic violations in calculating rates. They generally see those with multiple tickets or other driving infractions as being higher risk.

Credit Score

Statistics have shown that those with good credit are less likely to file an insurance claim. In some states, a driver’s credit standing is not permitted to be considered by insurers; however, it is permitted in Arizona.

Various Demographics

Insurers view statistical data when determining rates. For example, teenage drivers are more likely to drive in a risky manner and they have less experience driving. Young male drivers are among the most expensive to insure. You may notice as you reach the age of 25 that your premiums tend to decline.

Household Exclusion

Those residing with other family members should be aware of potential policy coverage limitations that apply to other members of your household. For example, parents with a teenage driver at home may pay a higher premium. Insurers recognize that family members are likely to borrow each other’s car. Arizona law allows insurers to limit their liability to state minimum amounts (15/30) for bodily injuries occurring when another driver is operating the vehicle. It may be possible to reduce the policy premium by specifically excluding another member of the household from policy coverage.  Consult with your insurance agent for details when applicable.

Impact of Comprehensive Loss Underwriting Exchange (C.L.U.E) on Cost

When shopping, keep in mind that insurers are likely to raise rates on those with an insurance claim in the last seven years. How do they make this determination? Insurers maintain a database to exchange information regarding those who have filed claims. If it seems that your rate quotes are high it may be attributed to this.

Sources of Auto Insurance

There are different sources where you can shop for and obtain auto insurance.

• Captive Agent: A captive insurance agent represents a single insurance carrier. Many of the largest carriers use them to market their policies.
• Independent Agent: Agents who are independent may offer policies from multiple carriers. They are able to shop on your behalf to find the most suitable and best-priced policy for your individual needs.
• Buying Direct: Typically this involves going to the insurance company site to compare rates and buy directly. Many consumers feel that not having a local agent is a drawback.

Benefits of Purchasing Insurance Through Independent Agents

Often, purchasing insurance through an independent agency gives you the “best of both worlds.” You have the local service and personal support from an agent, while still allowing you to minimize costs. For example, if your agent knows that a carrier they represent is raising their rates they may proactively identify other options for you. You will also still potentially have access to “multi-policy” car insurance discounts.

Agency for Automobile Insurance in Casa Grande

The Gebhardt Insurance Group recently received a “Best Customer Service” award. We are able to shop and compare policies from over 40 carriers to find you a great value. Our agency also provides insurance solutions including homeowners, life, commercial, and more. Contact our office today at (520) 836-3244.

Car insurance may not be something that you give much thought to—until you need it. In 2017, there were over 127,000 motor vehicle crashes in Arizona. Among these collisions, there were nearly 1,000 fatalities and over 50,000 injuries. The majority of these accidents are preventable. The actions of one or more drivers are the primary cause in over 90% of collisions.

The average cost of auto insurance in Arizona is estimated to be between $1,247 and $1,355. In comparison, the national average is reported to be between $1,365 and $1,425. Insurers calculate auto insurance premiums based on various factors including your location, driving record, credit score, gender, age, and more. The majority of insurers offer different types of discounts. These discounts may be small or potentially save you up to 25% on your car insurance.

Why Do So Many Insurers Offer Discounts?

As this posting will illustrate, there are various discounts available from most carriers. One large reason for this is that drivers are mandated to buy car insurance. There is a tremendous amount of potential business in the market and insurers offer discounts to be more competitive. The chart below shows how many millions of car insurance policies are issued.

Number of Insured Drivers: Neighboring State Comparison

Asking for Available Discounts as Existing Policy Expires

If you have an existing policy you may be able to obtain a discount and remain insured with the same company. Contact them to see what types of discounts they currently offer. The result may be beneficial because you will save money and they will retain an existing customer. Often the insurer does not offer discounts in their advertisements, but they may still be available. This is particularly a good option if you are very satisfied with this company.

Discounts to Offset Rising Premiums

According to ABC15 News in Phoenix, auto insurance rates in Arizona rose by almost 30% from 2014 to 2018. Janet Ruiz, with the Western Insurance Information Institute, explained that some increases are the result of new forms of technology being added to vehicles. Features such as rear cameras and heated seats are common in new vehicles. Insurers recognize that these advancements lead to higher costs for replacement parts following an accident. Ruiz says that prices may stabilize as the new advanced safety features begin to reduce the volume and severity of crashes. In the meantime, consumers are encouraged to determine what potential discounts they may qualify for to reduce insurance price increases

Memberships and Affiliations

One of the most widely promoted auto insurance discounts is those for current or retired military members. There are potential discounts available based on your employer, such as if you are a federal employee. Those in professional organizations such as the Chamber of Commerce may be eligible for discounted rates. Group-related discounts may be available to members of AAA or a fraternal or alumni association that you are involved in.

Another type of discount that is similar because it applies to a group of individuals is those geared for seniors. For example, The Hartford has special discounted policies specifically for seniors. These are often marketed together with AARP and they also offer coverage for golf carts.

Multi-Policy or Bundling Policies  

Car insurance companies may offer other types of insurance that can be “bundled.” Examples include renters insurance, homeowners insurance, life insurance, etc. In addition to multi-policy discounts, there are multi-car discounts, such as those from Progressive that average a 10% savings. Some people find that having the same carrier for multiple types of coverage makes it easier to manage, such as having a single login to view policy details and make payments.

Demographic Discounts

In business, demographics are sets of characteristics that statistically identify populations and segments of the marketplace. One type of discount that insurers commonly offer is marketed as “senior” or “retiree” discounts. Often, these discounts are geared towards those over the age of 55 or 65. Another commonly seen discount applies to homeowners. Those who own a house or condo may find offers that provide some savings. Some insurance companies offer discounts to those who bundle their auto and homeowners insurance policies, as long as the policies are with the same company.

Students may receive discounts as well. Those in high school or college may qualify for “good student” discounts as long as they maintain good grades. Many insurers think students with higher grade point averages are more responsible and are less likely to be involved in accidents. Qualifying for these academic discounts may be based on grade point averages or other academic thresholds. Insurance companies may seek to attract young drivers who could potentially develop into loyal, long-term customers.

Legacy or Loyalty Discounts

A loyal discount may be an option for young drivers that still reside at home. You would simply need to be added to your parents existing policy. In this scenario, both you and your parents may be able to obtain reduced auto insurance premiums. This discount may help to offset the often higher car insurance rates younger drivers encounter.

Discounts based on loyalty are increasingly common, as insurers obviously want to maintain long-term customers. Some of these discounts are available in a short time, such as only one-year.  Consult with your insurance agent for details.

Good Driving History

Maintaining a “clean” driving record with no recent traffic violations or accidents is one of the keys to getting lower rates. For example, those with multiple tickets for speeding are likely to see rate increases. In Arizona, the Department of Transportation’s Motor Vehicles Division keeps a record of points that have been assessed against you. For example, a speeding violation is a three-point violation. More severe offenses such as driving under the influence of alcohol are eight-point violations.

Vehicle Safety Features

Some insurers will offer discounts when your vehicle has certain security or safety features. There are various anti-theft devices that significantly reduce the likelihood that your vehicle will be stolen. Keep in mind that insurers are likely to be aware of the vehicles that are most commonly targeted by thieves.

Today’s vehicles are increasingly equipped with advanced safety technology. Some of these features are likely to be included as standard equipment such as anti-lock brakes and airbags. Many newer vehicles are equipped with various sensors that are capable of notifying drivers.  For example, when another vehicle is traveling in your “blind spot” or if you are approaching an object that could result in a collision.

Progressive Snapshot Program

Progressive Insurance recently implemented a new Snapshot program. It is a new form of “usage-based” insurance that considers how safely you drive. The program has a mobile “plug-in” app that assesses your driving behavior in real-time. Initially, those who enroll receive a participation discount that serves as an incentive to join. Further details are available by visiting their website or consulting with your insurance agent.

How Independent Agents Offer Affordably Priced Policies

There are a host of potential benefits that insurance customers may recognize from using an independent agent including:

• Unlike a captive agent, who represents a specific insurance carrier, an independent agent is able to offer policies from various carriers
• Your agent will assess your individual needs and find a policy that is best suited for you at a competitive price
• They will keep abreast on potential discount opportunities that may provide significant savings
• You receive personal service and support from a local professional

Arizona Auto Insurance Agency

The Gebhardt Insurance Group in Casa Grande has been a trusted independent local insurance agency for many years. Our team of insurance professionals can assist you with automobile insurance; in addition to insurance for your home, life, business, and more. We encourage you to contact us today at (520) 836-3244.

An auto insurance deductible is a specific amount that you will “pay out of pocket” when you file a claim. Your car insurance deductible will likely impact your insurance rate, often referred to as your insurance premium. You will need to pay your deductible before your car insurance company will pay to repair your car. Common deductible amounts are between $250 and $1000. Understanding deductibles is critical because auto insurance coverage is a necessity for drivers that continues to be more and more expensive. When shopping for car insurance, it is recommended that you seek help from a professional insurance agent. The Gebhardt Insurance Group in Casa Grande will be sure you save money and help you fully understand your insurance coverages.

Example Scenario

In this scenario, we will assume that while parking your vehicle you struck a fire hydrant. It is then determined that the repairs will cost $5,000. If you have a $500 deductible on your collision policy, you will need to pay $500 first. Your insurer will then pay the remaining $4,500 needed for the repair.

When Do Deductibles Apply?

All drivers in Arizona are required to maintain liability insurance. This coverage pays for injuries or property damage to others if you are deemed financially responsible for an accident. Deductibles do not apply to this form of mandatory coverage. Other optional types of insurance where deductibles generally do apply include collision and comprehensive coverage.

• Collision coverage is used for repairing or replacing your vehicle if you strike another car or object.
• Comprehensive is for repairing or replacing your vehicle in the event of some other circumstance such as theft, vandalism, fire, etc.
• When a driver adds collision and comprehensive coverage to their policy they are considered to have “full coverage”.

The Rising Costs of Auto Insurance

One reason why deductibles are important is that the cost of repairing or replacing a vehicle continues to rise. Recent data from Arizona insurers shows the average annual premium for full coverage ranges from roughly $2,264 to nearly $5,000 annually. Your premium is calculated based on many potential factors. Your insurer may consider your age, past driving history, history of insurance claims, the replacement value of the vehicle and more. Where you live is also a critical factor. Rates tend to rise in larger urban areas for reasons such as increased traffic volume and likelihood of theft.

Deductible Impact on Premium

There is an inverse relationship between your car insurance deductible and your premium. A recent study looked at how rates from USAA Insurance varied according to a higher deductible amount. They estimated that raising a $500 deductible to $1000 would save policyholders approximately $170 per year.

Deductible Affordability

While many people will certainly choose high deductibles to minimize premiums, the decision should be made wisely. It is critical to choose a deductible amount that you can realistically afford. Equally as important is to review the coverage limits on your policy. If you purchased a $20,000 car and your coverage limits are $15,000, you will need to have an emergency fund.

How Claims Impact Premiums

Those with a recent history of filing an insurance claim generally pay higher rates. Claims made through a collision policy in 2017 led to a 43% average premium increase. For this reason, many people prefer to pay for minor damage out of pocket. What about claims you file that are not truly your fault? The Arizona legislature has addressed this concern. Arizona’s 20-263 provisions prohibit insurers from increasing rates when an accident is “not caused or significantly contributed to” by the insured.

Deductibles When Financing a Car

When you are leasing or making payments toward purchasing your car there may be deductible restrictions. Lenders need to ensure their investments are protected. Many finance agreements will require that the deductible be no greater than $500.

No Deductible Options

Arizona statute also requires that insurers offer an option for coverage of damaged safety components without a deductible. The state’s 20-264 provisions apply to comprehensive policies for private passenger vehicles. This requires that insurers make a zero deductible option available for purchase; however, this applies only to the windshield, other exterior glass and lights.

Agency Provides Auto Insurance in Casa Grande

Are you finding that shopping for car insurance in Arizona is somewhat confusing and time consuming? The Gebhardt Insurance Group is an independent agency that is deeply rooted in the local community. Our agents are experts at identifying policy options that offer tremendous savings and excellent coverage. We encourage you to contact our office today at (520) 836-3244).

It is essential for a driver to understand their car insurance policy, yet car insurance can be quite confusing. There are a wide variety of factors that affect car insurance. In this article, we will explore some car insurance FAQs that you may have.

What does auto insurance cover?

Car insurance covers different things depending on the type of policy. The minimum car insurance requirement is liability coverage, which covers damages that you inflict on other vehicles and medical bills for anyone injured. You can also purchase comprehensive plans that cover damage to the other person and their vehicle, as well as yourself and your vehicle.

What are the types of auto insurance?

Choosing what your plan covers can be overwhelming. There are six main types of auto insurance:

• Bodily injury liability
• Property damage liability
• Collision
• Medical payments coverage or personal injury protection
• Comprehensive auto insurance
• Uninsured or underinsured motorist coverage

To learn more about these types of auto insurance, check out this page.

What’s the difference between liability coverage, collision coverage, and comprehensive coverage?

• Liability coverage: This is the type of insurance that the law requires all drivers to have. In the case that you cause an accident, liability insurance will cover the loss, damages, and injuries to the other driver and and their vehicle. Liability coverage does not cover your vehicle damages or medical bills. It is also the cheapest of insurance coverages.
• Comprehensive and collision coverage: Each of these types of insurance can protect your bank account when your vehicle is damaged. Collision coverage gives you protection for any collisions that you are involved in, including collisions with another car, a tree, or any other stationary object. Comprehensive coverage is for things like theft, vandalism, and natural disasters.

What happens if I don’t have auto insurance?

Most states require auto insurance, and Arizona is one of those states. Driving without insurance is illegal in Arizona, and if you are caught, the punishments are severe. According to the article from Tyler Allen Law Firm, the penalties include:

• Fines
• Suspension of your driver’s license for a designated amount of time
• An SR-22 certificate, which tells insurance companies that you are a high-risk driver. This will result in higher premiums.

The point is, you should have car insurance. It may cost you now, but it protects you from a huge financial hit down the road.

How much does auto insurance cost?

In the state of Arizona, the average car insurance premium is $843.92. However, the cost of auto insurance depends on factors such as:

• Type of coverage and deductibles
• Driving experience
• Driving record
• Age
• Gender
• Vehicle type and use

What is a deductible?

One term that insurance agents and plans emphasize is “deductible.” In short, a deductible is the decided amount of money that a person must pay before their insurance begins paying. When deciding on a policy, you must choose the dollar amount of your deductible wisely.

What is the relationship between my monthly premiums and my deductible?

The relationship between your monthly premiums and your deductible plays a major role in determining the overall cost and coverage of your plan. The higher your deductible, the more money you will have to pay before the insurance company takes over remaining payments, and the lower your monthly premiums will be. If you choose a lower deductible, you will pay less in the case of an accident, but you will also pay higher monthly premiums.

For high-risk drivers, it makes the most sense to pay higher premiums to provide a better deductible. For confident drivers who have not been in previous accidents, paying lower monthly premiums may be the better choice.

Do auto insurance companies deny service?

Unfortunately, insurance companies can deny car insurance coverage to certain drivers. Most often, companies simply raise the premiums to match each individual’s driving record, but they can deny anyone coverage outright. The DMV provides some common reasons for denial.

• DUI/DWI conviction
• Having a serious accident
• Several traffic violations
• Poor credit
• A history of violating insurance policies
• A high performance vehicle

Generally, it is not common for companies to deny coverage. Nonetheless, it is important that you avoid the reasons above so that you can find a plan favorable to you.

What are insurance claims?

In short, an insurance claim is a request to the insurance company for compensation or coverage for a loss that is already included in the policy. If you are involved in an accident, contact your insurance company immediately.

What is bundling?

Bundling can be a great way to save money and simplify your insurance. Many companies will combine homeowner’s insurance with auto insurance to form one package. This helps you efficiently track your different insurance policies. Our team at Gebhardt understands the different bundling packages on the market and would love to help you find one that is right for you.

What happens if I’m driving a friend’s car or a rental car?

People often drive cars that don’t belong to them, whether it be a friend’s vehicle or a rental car. It is important for drivers to understand how their policies apply to cars that do not belong to them.

If you are driving a rental, make sure that it has roughly the same value as your own car. If the car is damaged in an accident that you cause, then your insurance will cover the costs as if it were your own.

Are there any car insurance discounts?

Auto insurance can be quite expensive, and this is particularly true for younger drivers. Most insurance providers have a good student discount, which can be helpful in alleviating some of the cost. Talk to one of our insurance agents to find out if there are any car insurance discounts you qualify for.

We hope that these car insurance FAQs help you to understand the intricacies of auto insurance. If you are looking for an auto insurance plan that meets your exact needs, contact us for a free insurance quote today. Our team at Gebhardt Insurance Group is knowledgeable about the workings of auto insurance and is passionate about helping you find the right plan.