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.

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.

The purpose of car insurance is to provide economic compensation if something unexpected happens involving your vehicle. The insured party enters an agreement with an insurer, that contains the terms. This includes details such as the policy coverage period, the maximum limits of coverage, and the cost (premium). As with most types of insurance, states develop their own set of rules and provide some oversight in the market.  

Why Is Auto Insurance Important?

Maintaining car insurance is critical for several reasons. First, Arizona law requires that all motorists maintain minimum liability coverage. Secondly, automobile accidents are fairly common, so having this financial protection in place is important. Data from the Arizona Department of Transportation indicates there were 127,056 reported vehicle collisions in 2017. These crashes claimed 1,010 lives and caused more than 53,000 injuries.

More than 90% of car accidents are the result of human error. In recent years, we have recognized the dangers of distracted driving. The Centers for Disease Control and Prevention estimates that distractions cause nine accident fatalities each day in the U.S. The problem is largely the result of drivers who are using mobile devices. Newer vehicles also are being equipped with more sensors that create visual and audible distractions as well as onboard electronics.

The prices of newer vehicles continue to rise. Many people do not have the cash-on-hand to repair their car if it is significantly damaged in an accident. In fact, 40% of Americans would be unable to pay for an unexpected expense that exceeds $400 without borrowing. Between 2015 and 2017 there were 7.4 insurance claims filed for every 100 people. Lenders require those who are financing a vehicle to maintain “full” insurance coverage.

Arizona Car Insurance Requirements

Those registering a vehicle in the state will need to have proof of liability insurance coverage. This covers other people and their property in an accident. Insurance companies in Arizona must notify the Motor Vehicle Department when a policy is canceled, not renewed, or a new policy is issued. Drivers must have proof of insurance with them in case they are stopped by law enforcement. This proof may be shown using a smartphone.

*Uninsured and underinsured coverage is required to be offered as part of all liability insurance policies. Policyholders may opt-out of this coverage.

Bodily Injury and Property Damage Liability

The state-mandated bodily injury coverage is used when a driver causes injuries to others. This coverage does not pay for injuries sustained by the party who is at fault in an accident. The property damage coverage pays for damage caused to other vehicles, objects, etc. It is worth noting that the mandated minimum liability coverage also applies to motorcycles, mopeds, and personal golf carts.

Legislative Update

The Arizona Legislature has determined that it is time to increase the minimum requirements that have been in place since 1972. Governor Doug Ducey signed a new law that raises the bodily injury liability requirement to $25,000 per person and $50,000 per accident. The minimum property damage liability requirement will be increased to $15,000. Last year he had vetoed a similar measure citing concerns with affordability.

Penalties for Failing to Maintain Coverage

Those operating without the mandated insurance that the state requires will face a driver’s license and registration suspension, in addition to fines. To restore driving privileges, the motorist must obtain an SR-22 Certificate of Insurance and it must be maintained for a three-year period. Those who do not reinstate their Arizona license from failing to have insurance will be unable to obtain a driver’s license in another state.

Other Types of Insurance Coverage

• Uninsured and underinsured motorist: Uninsured motorist coverage is used in case you are involved in an accident caused by a driver that is uninsured. Underinsured coverage applies when the driver responsible for the accident has insurance coverage limits that are insufficient to cover the full cost of damage.
• Collision: This coverage is used to pay for car repairs or replacement of your vehicle when involved in an accident. It is most commonly used when you are the at-fault driver in the accident. It also may apply if you were to strike a tree or other object while driving.
• Comprehensive: This form of coverage is commonly referred to as “comp.” It is purchased in conjunction with collision coverage to obtain “full” coverage. It is used to repair or replace your vehicle stemming from an event other than a collision. Common examples include theft, vandalism, or fire. Full coverage policies often contain a provision that covers the cost of a rental car when necessary during repairs.
• Medical Payments: This coverage is commonly referred to as “Med Pay” or Personal Injury Protection. This is an option that will cover any medical bills for you and typically any passengers in your vehicle. Examples would include if you needed an expensive surgical procedure or rehabilitation. Those who lack health insurance coverage are among those most likely to purchase it for medical expenses.

Local Agency for Car Insurance in Pinal County

It is important to gain a good understanding of how car insurance works. The Gebhardt Insurance Group is an independent insurance agency that represents many of the leading auto insurance companies. Our customers benefit from our personalized approach. We will look closely at your individual circumstances to make sure you have proper coverage for you and your family. Contact our office today at (520) 836-3244.

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