When trying to figure out how to buy car insurance, the options can seem overwhelming. There are many companies to choose from and even more advertisements trying to convince you that one company is better than another. Every auto insurance company has their own auto insurance rates and individual formulas for calculating those rates. Unfortunately, most companies try to keep their formulas very secretive therefore it can be difficult to compare car insurance quotes and assess what factors may make one one quote higher than another.

There are many businesses and websites dedicated to offering comparison tools and evaluations each year, but to be sure that you are getting accurate information, it is advisable to do the research yourself or to hire an independent insurance specialist whose only goal is to find you the best deal.

In order to compare car insurance rates, there are many factors to be aware of. At Gebhardt Insurance Agency, we want you to make the most informed decision to save money. Keep reading to find more information about what factors may be affecting your rate and how to compare auto insurance quotes.

Factors That Affect Your Rate

Driving Record

The number one factor that car insurance companies use to determine your rate is your individual driving record. There are many aspects that play into this factor such as a limited history, claims, at-fault accidents, and other incidents. It is rare to find a company that will not use a checkered history against you when determining rates, but different companies definitely factor this into account in different ways therefore it is worth it to shop around if your driving record is affecting your premiums in a negative way.

Accident Record

At-fault and no-fault claims affect your rates in different amounts but each will play a role in your rate. Typically, having one or more at-fault claims or violations on your record will cause your premiums to increase for at least 1-3 years. Some companies vary in this therefore it is good to assess quotes for future possibilities.

Checking how rates fluctuate with an at-fault accident on your record at one, three, and five years after the incident will give you a good indication of how an accident will affect you. It is sometimes the case that you would actually save money paying for a low-cost accident out of pocket rather than reporting a claim to your insurance because of rate increases.

Many insurance companies now offer accident forgiveness options to be added to policies that will give you a locked rate if you have under 2 no-fault claims on your record.

Incident Record

Incidents may include a DUI, DWI, reckless driving, or any ticket for something similar. Depending on the severity of the incident, your rate may be affected significantly even so much as disqualifying you from purchasing insurance from certain companies. In this case you may need to carry non standard insurance and those options will vary by company. Typically an incident of this nature on your record will affect your rate from 3-10 years therefore it is necessary to assess these options if you have an incident on your record. Sometimes switching companies may lower your rate if you are currently being penalized for an incident.

Age

It is commonly known that age plays a factor in auto insurance rates. Teen drivers notoriously have the highest rates of any age demographic, followed by senior citizen drivers. Adding a teen to your policy or aging can sometimes double your rates therefore changes in your life status should always be cause to go shopping for car insurance.

On the flip side, drivers between the ages of 25-60 may see a drop in rates with a clean driving record therefore reassessing your insurance company when you reach any age milestone could be beneficial.

Gender

Some states such as California, Hawaii, Massachusetts, Montana, North Carolina, Pennsylvania and Michigan have passed laws banning the practice of using gender as a rate determining factor for car insurance rates.

In other states though, companies use this as a factor based on accident and incident data. For instance, sometimes, adult women drivers are charged a certain percentage higher premium than their male counterparts while the reverse is true for teen drivers. Teenage males are typically deemed more reckless drivers therefore their rates will be higher than a teen girl without violations.

Vehicle

The type of vehicle being insured plays a huge role in your insurance rates. This is because the cost to replace your vehicle in the case of an accident will be much higher with pricier cars. Typically high priced vehicles such as luxury vehicles or trucks incur higher rates than a sedan or used vehicle. This is a factor to consider when comparing auto insurance rates but also when purchasing a vehicle.

Location

Your area of residence or area where your car is driven the most will play a factor in the rate you receive from any insurance company. Typically, larger cities with a higher concentration of people and vehicle traffic will have higher insurance rates across most companies. The other side of the coin is that rates will be lower for areas that are more rural or that have higher foot than vehicle traffic.

Your home type can also play a factor in your rate regardless of city. For instance, insuring a vehicle that is typically parked in a closed garage in a neighborhood is less of a claim risk for insurance companies than a vehicle that is parked in an open lot at an apartment community with higher risk for theft or accidental damage.

Credit Score

The last but not least major factor that is considered when calculating insurance rates is your credit score. Having a good credit score will provide you with better rates because the insurance company sees a higher chance that your bill will be paid on time and in full. Likewise, having a low credit score with a history of non-payment can affect your premiums and options for coverage negatively. This is not necessarily a factor that all companies use though so if you are concerned that your credit score may affect your rates it is wise to check with a few companies for their policies.

Process of Comparing

When beginning the process of comparing insurance rates it is good to start with a plan of action. Knowing these steps and what to expect will be helpful in ensuring a smooth and easy process.

Know Your Information

Now that you know there are many factors that will affect the rate you are offered from different companies, before beginning your search, you should make a list of all your personal information that could affect your rate. Have on hand your information such as age, address, and vehicle make, year, and model. Also having a description and date of any accidents or incidents will help you to ask better questions when comparing rates.

Having a general idea of your credit score ahead of time can also be helpful because working towards building your credit for a few months before switching to a new plan may help you to lock in a better rate.

Before making any comparisons or phone calls it is a great idea to write down any questions or concerns you may have that way you do not leave anything out when assessing and you will know that you were thorough in your inquiries.

Choose Coverage

Most places have a state minimum of liability coverage that every motor vehicle must carry without exception. It is wise to do your homework and research what your state requires before having conversations about the coverage you need.

Arizona state law requires that drivers carry a minimum of $25,000 per person and $50,000 per accident in bodily injury liability insurance and a property damage liability coverage of $15,000 minimum.

These laws do sometimes change so if you have not assessed your coverage in sometime it is wise to look over your coverage and decide if you need to make some changes.

Collect and Compare

Unfortunately, collecting rate information and comparing prices is the most tedious part of the process of shopping for insurance. If you wish to truly assess all of your own personal information this may require making many phone calls to go through the process of collecting quotes from every insurance company that is popular in your local area.

It is a good idea to seek out which companies are most popular with your friends and neighbors and start from there, you may find that rate differences are negligible or easy to choose from.

Gebhardt Insurance Group

At Gebhardt Insurance Group it is our desire to earn your trust by finding the best rate available for you and your insurance needs. We do not sell our own insurance but shop most major and local companies to compare prices for your specific needs.

If you would like to compare insurance plans but do not wish to do the legwork yourself, we would love to partner with you. Call us at (520) 836-3244 to begin the conversation of buying car insurance today.

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.

“How do I make my car insurance affordable?” is one of the most frequently asked questions about auto insurance.  The key to understanding how to make insurance affordable is understanding how car insurance works.

Why Is Auto Insurance Important?

It’s a Requirement if Your Vehicle is Leased or Financed

If you are thinking about skipping insurance in the name of pinching pennies, think again. If you are leasing your vehicle or have a loan, your finance company will require you to have insurance. The lending company needs to ensure that your insurance will cover the cost of repairs or replacement if the vehicle is damaged.

Many lenders and finance companies require insurance in the amounts of 100/300/100. This means you have $100,000 bodily injury liability insurance per person, $300,000 total bodily injury liability insurance per accident, and $100,000 property damage liability per accident. You will usually have to have proof of the minimum required insurance before a lender will finance your vehicle.

It’s a Requirement by State Law

Finance companies aren’t the only ones that require car insurance. The government also legally requires you to insure your vehicle. This is determined at the state level. Each state has its own minimum requirements so if you move, make sure that your insurance meets your new home’s insurance minimums.

For Casa Grande residents, the state of Arizona requires minimum coverage of $15,000 bodily injury liability per person and $30,000 per accident. There is also a property damage minimum coverage of $10,000. When it comes to types of car insurance, the bare minimum can be dangerous.  

If you only carry the required state-level amounts, an accident can cost you much more in bills and expenses than your insurance will cover. Work with a skilled agent to make sure you have enough coverage at a price you can afford. There are many ways to bring down car insurance premiums without sacrificing the coverage you need. Having financial protection will give you peace of mind.

It Provides Assistance When Accidents Happen

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 mostly the result of drivers who are using mobile devices. Newer vehicles are also equipped with more sensors that create visual and audible distractions and 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.

Know Your Policy and State Requirements

You need to read your policy and understand your type of coverage. If you purchase a policy without understanding it, you may not realize your coverage gaps until it is too late. Liability, personal injury, and property damage insurance are all crucial facets of your policy. What you don’t know can hurt you and your wallet.

For instance, if you are in a car accident, your insurance policy may only cover your vehicle’s value. If your car is fairly new and the rate of depreciation is high, the car’s estimated value may be much lower than what you owe.

This means that the reimbursement from your insurance company might not be enough to pay off your damaged vehicle, much less help you get a new one. Your comprehensive coverage will only cover the damage to your car if caused by something other than accidents like theft or fire.

Gap insurance is designed specifically to help bridge the “gap” in circumstances like this. It can help you pay off the remainder of your vehicle so that you can start fresh. This is just one example of possible policy gaps and why you need to know what is and isn’t covered.

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. They may show this proof using a smartphone.

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 insurance 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.

Understand the Money Mechanics of Insurance

Understanding how car insurance works helps you make informed, affordable choices. Car insurance companies make their money by collecting more in premiums than they pay out in claims. Many factors go into your insurance rates.

Statistics: All insurance companies will compare your basic information to current statistics. If you are a male, 18-year-old driving a sports car, your insurance rates will most likely be much more expensive than a female in her 30’s driving a minivan. This is primarily because of statistics.

The numbers show that women and more experienced drivers are less likely to be in an accident. Similarly, a minivan driver is much less likely to be in an accident than a person behind the wheel of a Ferrari. While you may be a very responsible, law-abiding teenager with a new sports car, your insurance rates will initially reflect statistical averages and not your specific situation.

Driving record: Generally, the better your driving record, the better rate you can get. Additionally, as you become more experienced behind the wheel, you will be eligible for the best possible rates. Insurance companies prefer responsible drivers with few or no claims.

Suppose you have an accident or traffic violation such as a speeding ticket. In that case, your insurance company may automatically increase your rates. The best way to keep your rates down is to keep your record clean.

Affordable premiums: There are ways to make your premiums affordable. A good agent will review your policy with you and help you stay within your budget.

For instance, you can usually decrease your premium by increasing your deductible. This should be done strategically. While a lower monthly premium is tempting, you need to make sure you have a deductible you can afford.

You can also save money by bundling in one company. By using one company for multiple policies, you will usually be able to take advantage of deep discounts, giving you lower overall premiums. Also, don’t be shy about shopping around. There is lots of competition in the insurance industry, which is good for the consumer.

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 they must maintain it for three years. 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 Auto Insurance Coverage

• Uninsured and underinsured motorist: Uninsured motorist coverage is used if you are involved in an accident caused by an uninsured driver. 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 your vehicle’s replacement when involved in an accident. It is most commonly used when you are the at-fault driver in an 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 covering 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 option 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.

Questions About How Car Insurance Works?

We’ve got answers! Knowing how car insurance works helps you get the coverage you need for a price you can afford. 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.

The primary thing that’s on the mind of every person shopping for auto insurance is what type of rate they can get. For many, car insurance costs can be cut through the application of one or more discounts. Luckily, many insurance carriers offer discounts because car insurance is legally mandated, and companies want to remain competitive in the insurance industry. This leaves drivers with multiple options for insurance companies and types of discounts for which they can apply.

While auto insurance premiums should be a consideration when choosing a policy, make sure you consider each policy’s coverage. By only having the legally required amount of coverage, you may expose yourself to financial trouble if you cause a terrible accident.

Tips for Examining Auto Insurance Discounts

Before getting into the different types of discounts available to drivers, it’s important to note some possible stipulations attached to each one. Here are things to consider and speak to your insurance provider about when researching car insurance discounts:

Maximum Amounts May Apply:

Pay attention to language like “up to _% off,” as there may be specific requirements to qualify for the highest discount offered. However, you may still receive a portion of the discount, so it is essential to ask before banking on it.

You may also notice that you could qualify for several of the discounts we will discuss below. But, many insurance companies have a maximum value you may receive overall.

Discounts May Vary:

The type of discounts offered can vary from company to company, as well as from state to state. Some state laws mandate specific discounts, while others do not.

Pay Attention to How Discounts are Applied:

You may need to ask for your discounts to be applied, as some are not automatic. Also, some discounts may apply to your insurance bill overall, while some may only apply to specific aspects of your coverage. Be sure to ask for clarification on how your discounts are applied.

Types of Auto Insurance Discounts

Cutting car insurance costs is possible with auto discounts. The first step is assessing your current policy to understand your current coverage and car insurance premium.

Next, check out the following auto insurance discounts and consider the values for which you may qualify. For more information, contact our agents today. They can assess your needs and check for possible deals.

Good student discount: 

It pays to be a good student. Aside from maintaining good grades (at least a B average,) you must supply your insurer with your grades and be a full-time student to qualify.

Accident-free driver discount:

A clean driving record can help you save significantly. Drivers that have not been in accidents typically have lower premiums and may be eligible for accident-free driver discounts. Some carriers will automatically apply this discount after a certain amount of time has passed where you are accident-free, giving you further incentive to drive safely!

Low-mileage discount: 

You’re less likely to be in an accident if you don’t often drive, as this decreases your chances for a collision. Low-mileage drivers often are rewarded for this with insurance discounts.

Affiliation discount: 

Teachers, firefighters, police officers, college alumni, and military members may qualify for specific discounts due to their affiliations. Some employer-specific deals exist as well. Ask one of our agents for more information and to see if you are eligible.

Defensive driving discount: 

A driver that takes a certified defensive driving course will typically receive a 10-15% discount on their car insurance. Not only will the course prepare you to be a better driver and keep you safe from harm, but it will also save you money in the long run. Check with your insurance company before signing up for a class and see if there are any classes they specifically require to receive the discount.

Bundling discount: 

Some car insurance companies offer bundle discounts if you have multiple cars insured with them. For homeowners, you may be able to bundle your home and car insurance with the same company for a discount as well. Some carriers will even allow you to bundle your policy with life insurance too.

Anti-theft devices discount:

Stolen vehicles can be difficult to recover. Safety features such as GPS systems, car alarms, VIN etching, and trackers can help recover stolen vehicles. Insurance companies reward the installation of these features through discounts, anywhere from 5-25% off.

Car Safety discount: 

Depending on your carrier, you may qualify for a discount if you have anti-lock brakes, daytime running lights, or extra airbags in your vehicle. If your car has any added safety features, notify your insurer to see if you qualify for a discount.

Eco discounts: 

Electric vehicles have proven to be less likely to be involved in accidents. Owning a hybrid or electric vehicle can save you up to 10% on your car insurance, providing further incentive to go green!

Safe driver discount: 

Your driving habits can directly impact the amount of money you will save on your car insurance. Drivers who find themselves being pulled over and ticketed frequently will not qualify for this discount. The more claims you file and the more tickets you receive, the more your car insurance rate will increase.

Paid-in-full discount: 

If you choose to pay your auto insurance premium in full and up-front, many carriers are happy to give you a discount. The discounted premium option will often be listed on the bill you receive, showing you how much you could save if you pay in full instead of paying in installments throughout the year.

Paperless billing discount: 

While paperless billing discounts are usually smaller in size, they still may help you cut costs. Helping your carrier save money on paper and printing is excellent for not only the environment but for your wallet as well.

New car discount: 

Newer cars generally have the most up-to-date safety features installed, resulting in new car discounts. Sometimes, you can save 10-15% on your insurance premium if your car is less than three years old.

College student discount: 

Young drivers, often college students, may leave their vehicles at home when they go to college, significantly reducing the risk of a car insurance claim. Policies with this discount applied may see reductions of up to 25%.

Customer loyalty discount: 

Customer retention is vital for any business, and the insurance industry is not exempt. Many carriers offer customer loyalty discounts when you renew your policy.

Credit stability discount: 

Insurers like to see stability with your credit score. A credit score is often important when purchasing a house or a car or trying to qualify for a loan, but your credit score may also benefit your car insurance rates. Studies show that people with lower credit scores tend to have a higher rate of claims.

Senior discount: 

Some carriers offer a discount specifically for seniors. If you’re a senior citizen, contact our agency for more information.

How Independent Insurance Agents Can Help

Shopping for car insurance can feel like a hassle, especially if cutting costs is at the forefront of your mind. Independent insurance agencies can find you the best insurance coverage at the lowest prices because they can compare policies from multiple carriers. Where you may not qualify for a discount with one carrier, you may be eligible with another.

Our agents can find a car insurance policy that fits your needs and is priced competitively. Discounts vary depending on your carrier. We may even be able to offer you a deal for which you didn’t know you qualified! Give us a call for a free car insurance quote and learn more about lowering your insurance premium.

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

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

Liability Insurance

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

These coverage amounts are:

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

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

Collision Coverage

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

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

Comprehensive Coverage

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

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

Personal Injury Protection (PIP)

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


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

Underinsured and Uninsured Motorist Coverage

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

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

Miscellaneous Insurance Coverage

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

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

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

Independent Insurance Agents in Arizona

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

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

Auto Insurance coverage recommendations for every lifestyle.

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

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

Why Is Auto Insurance Important?

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

What Are the Minimum Requirements in Arizona?

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

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

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

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

Optional Forms of Auto Insurance to Consider

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

Collision Coverage

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

Comprehensive Coverage

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

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

Personal Injury Protection (PIP)

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

Uninsured or Underinsured Motorist Coverage

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

Having Sufficient Insurance to Satisfy a Lender

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

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

GAP Insurance

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

Umbrella Coverage

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

Local Arizona Car Insurance Agencies

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

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

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

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

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

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

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

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

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

Minimum Requirements in Arizona

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

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

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

Types of Automobile Coverage

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

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

Liability (Bodily Injury/Property Damage)

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

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

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

Collision

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

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

Comprehensive (a.k.a. Full Coverage)

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

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

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

Uninsured/Underinsured Motorist

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

Other Factors in Car Insurance Cost

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

Cost of Vehicle and Deductible Amount

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

Demographics

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

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

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

Driving Record and Claims History

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

Location

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

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

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

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

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

How To Ensure Your Rate is Lower

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

Arizona Department of Insurance (ADOI)

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

Multi-Policy Reductions

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

Demographic Discounts

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

Casa Grande Insurance Agents

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

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

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

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

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

Search the Market

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

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

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

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

Balance Premiums and Deductibles

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

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

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

Change Your Coverage Amount

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

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

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

Behavior-Based Discounts

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

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

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

Usage-Based Insurance

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

Drive a Low-Risk Car

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

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

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

Defensive Driving Courses

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

Casa Grande Insurance Experts

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

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

When you need it and What it Covers

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

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

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

This is where commercial auto insurance becomes important.

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

The Difference Between Personal and Commercial Insurance

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

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

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

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

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

What Does Commercial Auto Insurance Cover?

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

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

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

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

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

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

Preparing for the Cost

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

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

Finding the Policy That’s RIght for You

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

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

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

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