Category: Auto Insurance

What Does Cancelling Your Auto Policy Mean for Your Future Rates?

Posted on by butlervetinsurance

Here’s what you can expect after cancelling your auto policy.

While there are many reasons why you might have to cancel your auto policy before your term is officially over, you may be concerned about how your premature cancellation will affect your future car coverage. Contrary to what you might believe, cancelling your policy for a legitimate reason should not have negative effects.   Read on to learn more about the repercussions of auto policy cancellations.

Voluntary Cancellations

As mentioned above, cancelling your auto insurance for a legitimate reason should not affect you negatively. For instance, if you need to cancel your coverage because you are selling your car or moving out of state, your auto insurer will not hold it against you. This means you should not experience difficulty securing affordable car coverage in the future.

Coverage Gaps

That being said, if you cancel your policy and then go without auto insurance for a while, this coverage gap could have negative effects. Anytime a driver goes without coverage, they are considered riskier to insure. As always, higher risk translates into higher insurance costs. If you would like to avoid this, make sure you secure an auto policy immediately after cancelling your old one.

This is what you need to know about policy cancellations and your ability to secure affordable auto insurance in the future. Do you have additional questions regarding your auto insurance? If so, contact the experts at Stromsoe Insurance Agency in Murrieta, California. We are ready to get you the coverage that you need today.

What Separates Car Insurance from Car Warranties?

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Here’s what makes car insurance coverage different from car warranty protections.

While car insurance and car warranties both offer auto protections, the types of coverages that they offer varies widely. Curious to learn what differentiates an auto insurance policy from a car warranty? Here is a breakdown of their most significant differences.

Car Insurance

Car insurance is specifically designed to offer the policyholder financial protection in the event that they are responsible for causing third-party damages, injuries, or other losses. However, there are also other insurance options that allow the policyholder to secure coverage for their own repairs and medical treatment.

Car Warranties

Car warranties are generally issued on brand-new cars by the auto manufacturer. Essentially, a warranty is a guarantee that the car will operate as advertised. Warranty coverage only applies to mechanical issues with the car.

Major Differences

  • While you do have to secure your own car insurance coverage, this coverage is ongoing. So long as you pay your premiums, you will have the coverage that you need. On the other hand, car warranty coverage comes standard on new cars, but this coverage is limited. Warranty coverage will expire once a certain number of years or miles are met.
  • Car insurance will offer coverage for the damages and injuries you cause to another party. In contrast, car warranties only offer coverage for the car that they are issued on.
  • Finally, car insurance will offer coverage for the damages that your car might sustain as a result of an accident, act of vandalism, fire, extreme weather, or other external event. A car warranty offers coverage for a car’s internal issues. For instance, it will cover mechanical breakdowns, equipment malfunctions, and the like. A good way to think about it is that car insurance will cover things that happen to a car while car warranties cover issues within a car.

This is what differentiates car insurance from a car warranty.  Looking to secure the right auto insurance coverage for your vehicle?  Then don’t hesitate to contact the experts at Stromsoe Insurance Agency in Murrieta, California.  Our dedicated team is ready to assist you with all your insurance needs today.

Handling an Accident with an Uninsured Driver

Posted on by butlervetinsurance

Here are some of the things you need to remember when dealing with an accident with an uninsured driver.

It’s no secret that dealing with an accident is a hassle; and finding out that the other driver doesn’t have insurance only makes things worse. If you ever find yourself in this situation, there are certain steps that you need to take. Here’s what you should do to effectively handle a car accident with an uninsured driver.

Call the Police

You should contact the police anytime you get into an auto accident. However, it is especially important to do so when the accident involves an uninsured driver. Having the police at the scene of the accident has several benefits. To start, calling the police will ensure your personal safety. When the police are present, you can prevent the uninsured driver from fleeing the scene or acting aggressively towards you. Additionally, when the police document the accident, they will do so accurately, ensuring that the other driver doesn’t lie, provide false information, or change their story later on.

Do Not Accept Money

Sometimes, an uninsured driver might offer you money to stop you from calling the police or reporting the accident to your insurance company. However, you should never accept this bribe. Accepting this money would constitute insurance fraud and, if your insurer found out, they would have rights to revoke your policy. Additionally, you might be short-changing yourself by accepting this money. There’s no guarantee that the money they offer you will be enough to cover your car’s repairs, so you might be forced to cover the rest of this expense yourself. Rather than jumping through these hoops it’s more ethical and cost-effective to address the accident with the appropriate legal channels.

These are two of the most important things you need to remember when handling an accident with an uninsured driver.  Remember, the best way to protect yourself from an accident with an uninsured motorist is by having the proper auto insurance coverages in place.  For assistance with your car insurance, contact the experts at Stromsoe Insurance Agency in Murrieta, California.  We are ready to get you the coverage that you need today.

What to Do in the Event of a Hit-and-Run

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Here are some of the things you should do after getting into a hit-and-run accident.

An accident is deemed a hit-and-run when an involved driver flees the scene of the accident. Unfortunately, these accidents tend to happen so quickly that you probably won’t have a chance to react. If you are involved in a hit-and-run, here are some of the things that you should do to handle the situation.

  • Do Not Pursue the Other Driver

While you might be tempted to, you should not chase after the fleeing driver. In your pursuit, you are likely to drive recklessly, placing yourself, your passengers, and other innocent parties at risk. Rather than pursing a fleeing driver, you should pull over and make sure that everyone in your vehicle is okay.

  • Remember the Details

After getting into an accident, you are bound to feel shaken and overwhelmed. However, it’s important that you calm yourself down and try to recall anything you can about the accident. For instance, you should try to remember the color of the vehicle, the state on the license plate, and any physical characteristics of the driver. Keep in mind that even the most seemingly minor details can help your case.

  • Call the Police

Even if you feel like you have nothing to report, you should still call the police. This is because having an official police report documenting the incident will help you with your insurance. When the police arrive at the scene, recount what happened without assigning blame or admitting guilt. Make sure you request a copy of the police report for any insurance claims you may file down the line.

These are some of the things you should do after being involved in a hit-and-run accident.  The best way to protect against the damages caused by a hit-and-run is by having the right auto insurance protections in place.  To find the right policies to meet your needs, contact the professionals at Stromsoe Insurance Agency in Murrieta, California.  We are ready to get you covered today.

How My Auto Rates are Determined

Posted on by butlervetinsurance

Learn how your auto insurance rates are calculated.

Have you ever wondered how your auto insurer calculates your rates? When determining your premium, your insurance provider takes into account a wide range of individual factors. Curious to learn about some of the factors that they are considering? Here are some of the things they will include in their calculations.

A car insurance carrier considers many factors when evaluating risk, including:

  • Age.
  • Gender.
  • Location.
  • Vehicle type.
  • Marital status.
  • Accident history.
  • Driving record.
  • Annual mileage.

These factors help insurers form a composite look at their customers, and evaluate which ones are most likely to cost them money through higher-than-average claims rates. Those deemed most likely to file a claim from an action they caused get tagged with higher insurance premiums.

Like it or not, that’s how the system works.

Who Gets the Cheapest Car Insurance Rates?

Generally speaking, insurers offer cheaper car insurance rates to those who:

  • Are female.
  • Are over 25 years old.
  • Are married.
  • Drive an older, less expensive car.
  • Drive a car with a good safety record.
  • Live in a rural area.
  • Have no chargeable accidents.
  • Have no moving violations.
  • Meet insurance low mileage standards for your state.
  • Have a high credit score.

Drivers with these characteristics have been shown to – on average – cause fewer accidents, report fewer claims, and cost insurers less money. That’s why those who fit into most of these categories pay a cheaper car insurance rate than other drivers.

However, insurers don’t weigh these factors equally. For instance, your driving record, age, and gender are more important than your marital status or credit score.

How to Lower Your Car Insurance Rate

When it comes to lowering your premiums, you have a lot of options.

Not all of the following actions may be feasible or possible for you, but they can have a positive influence on the price you’ll pay for insurance:

  • Increase your deductibles.
  • Combine your policies (Home & Auto).
  • Take a safe driving course.
  • Maintain a high grade point average.
  • Have the newest safety features in your car.
  • Drive a vehicle with a good safety record.
  • Improve your driving record.
  • Have fewer chargeable accidents (i.e., accidents you caused).
  • Move to a more rural location.
  • Drive fewer miles.

 These are some of the factors that your auto insurer will take into account when calculating your rates.  Do you have further questions regarding your auto insurance coverage?  Then don’t hesitate to contact the professionals at Stromsoe Insurance Agency in Murrieta, California.  We are always ready to assist you with your coverage needs.

What Happens After Your Car Has Been Declared a Total Loss

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Here’s what you should expect after your car has been deemed a total loss.

Sometimes after getting into an accident, your car is damaged beyond repair. In this case, you would get a call from your insurance provider informing you that your car has been declared a “total loss.” Not sure what this means for you? Here’s what will happen with your total loss settlement.

Pay Your Deductible

If another driver is at fault for the accident, his or her insurance will likely cover your total loss settlement. However, if they do not have adequate insurance coverage, or if you were the one who caused the accident, then you will need to cover it yourself. To gain access to your insurance coverage, you will first have to pay the deductible that you owe. Once your deductible is paid, your insurance coverage will kick in and assist you with the settlement. Keep in mind that if you only carry liability insurance, you do not have the coverage to deal with your damaged car.

Assign Ownership

After your car is confirmed to be totalled, you will essentially sign ownership of the vehicle over to your insurance provider so they can settle the claim. In return, you will receive the settlement to which you are entitled. The insurance company will then handle the proper disposal of the vehicle. Just make sure that you keep your insurance coverage on the car until it is officially taken off your hands.

Receiving Your Settlement

Your car’s ACV (actual cash value) refers to the amount, after fees and deductions, that your insurer will pay to cover your total loss settlement. If you own your car, this payment will come directly to you. However, if you were financing or leasing your vehicle, this payment will go to your financing or leasing company. Keep in mind that your settlement might be more or less than what you owed on your car. If it’s more, you will receive the differential; if it’s less, you will have to pay the remaining balance.

This is what you should expect after your car has been declared a total loss.  Do you have more questions regarding your auto insurance?  Then don’t hesitate to contact the experts at Stromsoe Insurance Agency in Murrieta, California.  Our dedicated team is ready to assist you with all your coverage needs.

Why Your Auto Insurance Rates are High

Posted on by butlervetinsurance

Here are some of the factors that can raise your auto insurance rates.

While no one wants to pay more for their auto insurance than they have to, sometimes there are legitimate reasons that explain why your insurance rates are on the higher side. Curious to find out why your car insurance is more expensive? Here are some of the reasons that could explain your higher rates.

  • You Drive a Specialty Vehicle

If you drive a specialty or high-maintenance vehicle, you shouldn’t expect your financial investment to end at the dealership. Drivers who own specialty vehicles tend to have higher insurance rates than drivers who own standard vehicles. This rate disparity is because specialty vehicles tend to require specialty parts, specialty services, and have higher repair costs when compared to standard cars.

  • You Set a Low Deductible

Your insurance deductible refers to the amount of money you agree to pay towards a claim before your insurance coverage kicks in. For instance, if you have a deductible of $500 and get into an accident, you would have to pay $500 worth of repairs before you could access your insurance coverage. It’s important to understand that your deductible and premium have an inverse relationship. This means that the lower your deductible, the higher your insurance premiums will be. If you want to reduce your auto insurance rates, consider raising your deductible.

  • You Have a Poor Driving Record

Finally, if you have a history of traffic violations or filing insurance claims, you should expect to have higher insurance rates. This is because your spotty driving history will cause insurers to see you as a reckless driver. Reckless drivers are riskier to insure, and this increased risk will translate into higher insurance costs. If you would like to reduce your rates, focus on improving your driving record. Over time, you should start to see your rates drop.

These are some of the reasons why your auto insurance rates  might be on the higher side.  Do your have more questions regarding your auto insurance?  Turn to us at Stromsoe Insurance Agency in Murrieta, California.  Our dedicated team is ready to assist you with all your coverage needs.  Contact us to get started today.

What You Need to Find Out Before Renewing Your Auto Policy

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Get the answers to these questions before you renew your auto insurance this year.

The beginning of January means that it’s time to start thinking about renewing your auto policy.  However, before you simply sign up for another year, there are some things you need to find out.  Here are some of the questions you need to ask your insurer and yourself before renewing your insurance.

Am I getting the best rates?

You should never pay more for your car insurance than you have to.  That’s why it’s important that you ask about possible reduced rates or discounts.  Ask your insurance provider what you can do to lower your premiums and ask about any discounts that you might qualify for.  Even if you’ve asked before, it’s worth it to ask again.  Changes in your circumstances and shifts in your policy can mean that you may qualify for discounts that were previously unavailable to you.

Have my circumstances changed?

It’s extremely important that your insurer have your most accurate and up-to-date information.  Ask yourself if there have been major changes in your circumstances.  Did you add or remove a driver from your policy?  Did you purchase a new car?  Have your driving habits changed drastically?  If you haven’t already reported these changes to your insurance provider, be sure to do it now.  Making sure that your insurer has your updated information will ensure that you are getting the right amount of coverage when you renew your policy this year.

These are some of the questions you should get answers to before renewing your car insurance.  If you have any questions regarding your auto policy, don’t hesitate to contact the team at Stromsoe Insurance Agency.  Located in Murrieta, California, our dedicated professionals are ready to assist you with all your insurance needs

What to Look for When Car Shopping for Your Teen

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Choose the perfect car for your teen driver.

Looking to surprise your teen with their very own car this holiday season?  Then make sure you choose the right car for their needs.  If you aren’t sure where to start, here are some considerations that will help you narrow down your search for the perfect vehicle.

New or Used

One of the first things you will have to decide is whether to get your teen a new or used car.  New cars are good options because they offer updated safety features, are reliable, and do not usually require much maintenance.  However, new cars are expensive and they can be costly to insure.  Used cars present a more affordable option; they are generally cheaper to buy and insure than new cars.  Additionally, many newer used cars offer safety features comparable to brand-new cars.  However, keep in mind that used cars can be unreliable and may require costly maintenance.

Size

Another thing you should determine is whether a large or small car will be better for your teen.  While big cars provide more security in the event of an accident, they are difficult for inexperienced drivers to handle, which can make your teen more likely to get into an accident.  On the flip side, small cars are generally very easy to drive and park.  However, they may not do as much to protect your teen if they are in a collision.

Safety

While your teen might be dreaming of a sports car, what your teen wants isn’t always what’s best for them.  Sporty cars, or cars with powerful engines are often too fast for a teen to safely handle.  Additionally, these types of cars might encourage your teen to drive recklessly in an attempt to “show off.”  Instead of a flashy sports car, narrow your car search to vehicles that offer safety features such as anti-lock braking systems, electronic stability control, and side and curtain air bag systems.

Keep these factors in mind to help you select the perfect car for your teen driver.  Once you find the right car, make sure it has the insurance protection it needs.  To find the best policy to fit your needs, contact the experts at Stromsoe Insurance Agency in Murrieta, California.  Our dedicated team is ready to get you covered today.

Car Insurance Mistakes that Could Cost You

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Don’t cut corners with your car insurance; these mistakes could really cost you.

While dealing with your car insurance isn’t fun, it’s still important that you handle the process carefully.  If you rush through things, then you could make expensive mistakes.  Don’t pay more for your car insurance than you have to; avoid making these costly missteps with your car insurance.

Mistake 1: Setting a Low Deductible

Many car owners set a low deductible to make sure they can afford coverage if they need it.  However, setting too low of a deductible could be costly.  The lower your deductible, the higher your premium will be.  If you avoid filing a claim, then you could be wasting money by consistently paying for your high premiums.  Avoid this issue by assuming the highest deductible you can comfortably afford.  This way you can still afford coverage while paying a lower premium.

Mistake 2: Buying Minimal Insurance

Each state requires drivers to have a minimum amount of car insurance.  To save money, many car owners only purchase this minimum coverage.  However, simply relying on minimum insurance can be a costly mistake.  If you ever get into an accident, then the state minimum insurance will do very little to help you.  This means that most of the repair costs will come straight out of your pocket.  Instead of only buying insurance minimums, a more cost-effective strategy is paying for the coverage you actually need.

Mistake 3: Not Reviewing Your Policy

Occasionally, your car insurance company misses changes in your circumstances.  This means that your policy might not be up-to-date.  That’s why it’s so important to review your car insurance policy before you renew it.  Failing to review your policy could result in you paying more for your car insurance than you need to.  Always check your policy to make sure you get all the discounts and lower rates that you qualify for.

Avoid making these car insurance mistakes and you could save some serious cash on your policy.  To find the best policy to fit your budget, contact the professionals at Stromsoe Insurance Services in Murrieta, California.  Our dedicated team is ready to assist you with all your insurance needs.