Tag: Personal Insurance

Know Your Insurance: Why Are Auto Insurance Prices Rising

Auto insurance prices rising slowly is due in large part to inflation, but you may have noticed that your auto insurance has risen more than normal lately. Most lines of insurance cycle between soft and hard markets over a number of years, which has a direct impact on the price you pay. Now, the auto insurance market is currently hardening after many years of a soft market, which has resulted in higher prices for personal auto policies. Download the PDF version All rights reserved. This Know Your Insurance document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2020 MyTPG.com. Between 2011 and 2016, competition between insurance carriers created a soft, buyer-friendly market. Since then, however, a number of factors have caused carriers to exit the auto market or increase their prices in order to make a profit once again resulting in auto insurance prices rising.  More Drivers Lead to More Accidents Thanks to low gasoline prices and rising employment rates, more Americans can afford to drive. However, more vehicles on the road have led to more accidents that must be paid for by insurance carriers, and many carriers have transferred this cost to policyholders by raising premiums. The number of accidents has also risen because of an increase in unsafe driving practices. According to the AAA Foundation for Traffic Safety, about 87% of drivers admitted to engaging in at least one risky behavior while behind the wheel, including using their phones and not wearing seat belts. Claim Severity The number of accidents isn’t the only factor affecting auto insurance claims. The size of the average insurance claim—also known as claim severity—has increased as well. The three largest drivers of claim severity include the increase in the costs of medical care, auto repairs and auto parts. According to a recent study by CarMD, the largest repair cost comes from replacing the expensive technology that’s common in newer vehicles, as body shops struggle to afford the special equipment and training required to perform the repairs. Uninsured Motorists Auto insurance is required in most states as a way to cover your own liability and provide compensation to others in the event that you’re responsible for an accident. Despite this, approximately 13% of drivers drive uninsured. Unfortunately, it’s the drivers who follow required insurance laws who end up paying the price in the form of uninsured motorist coverage. According to the Insurance Research Council, uninsured claim payments have risen by 75% over the past 10 years, resulting in a $14 premium increase for every insured individual. Autonomous Vehicles Although autonomous vehicles that can drive themselves have the potential to save lives and reduce injuries, they could also decrease the personal automobile insurance sector to less than 40% of its current size. While this change should be gradual, many insurance carriers have been slowly increasing their rates in anticipation of the shrinking market. Insurance Fraud Insurance is meant to protect you in the event of an accident, but many criminals try to illegally use insurance policies for their personal gain. Most fraud schemes involve a policyholder faking an injury and blaming a third party, or conspiring to cause an accident that can be blamed on someone else. Although insurance carriers attempt to uncover the truth during all insurance claims, the Insurance Information Institute estimates that insurance fraud costs the United States $32 billion per year. Unfortunately, much of this cost is transferred to law-abiding policyholders. Price Optimization Insurers commonly use applicants’ credit history as a factor in determining car insurance rates. However, they also use a practice called price optimization to see how much they can raise their customers’ rates before they decide to choose another company. For example, customers who tolerate small, regular increases to their internet or cable bills are more likely to stay loyal to their insurance carriers when premiums increase. How Can You Save During a Hard Market? With auto insurance premiums on the rise for the foreseeable future, it’s more important than ever to be aware of the steps you can take to save on your premiums. Contact us at 909-466-7876 to discuss your options for saving on your auto policy, even during a hard market. Download the PDF version […]

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[Video] Understanding Collision Coverage

Do you need help understanding collision coverage? When shopping for auto insurance, terms can sometimes be confusing. We are here to help you. So, what exactly is collision coverage? Understanding collision coverage better will help you to protect your vehicle regardless of who was at fault. Watch the video below for a simple overview. Though state laws may not require you to purchase collision coverage for your policy, doing so can protect your financial well-being. Collision coverage provides a financial safety net in the event that your vehicle is physically damaged and needs to be repaired or replaced. Also, if you are financing a loan for a car, your lender will most likely require both collision and comprehensive coverage as part of your car insurance policy. Collision coverage pays for the cost to repair damages to a vehicle due to an accident, either with another vehicle or an object. Typically, you will collect only the actual cash value of your car versus the replacement cost value. Gap insurance protects you in the event you owe more than your vehicle is worth. Collision coverage is generally the most expensive portion of a car insurance policy. Premiums are based on a number of factors, including your deductible, driving record and the type of car you drive. If your driving record is fairly clean (no or very few tickets or accidents), your premiums will be lower because you are less likely to have a collision. We’re Here to Help Call our office today at 909-466-7876 to learn more about collision coverage, and how we can protect you against losses. If you are contemplating changing your auto insurance policy, feel free to contact us for a competitive quote in less than 10 minutes. Also, don’t forget to ask us about the many discounts we have available—your savings can really add up! […]

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[Video] Understanding Uninsured and Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage protects you if you’re in an accident with an at-fault driver who doesn’t carry liability insurance or if their limits of liability are too low to cover the damage or medical expenses caused by the accident. Watch this video to learn more. […]

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Home Matters: Swimming Pool Liability Precautions

Did You Know? Fun in the sun is even better when you have a swimming pool in your backyard to stay cool on hot, summer days. Despite all the entertainment that a swimming pool offers, there are also homeowner liabilities. To help you minimize your risk, we’ve gathered some safety tips to keep you in the know as you swim. Download the PDF version This flyer is for informational purposes only and is not intended as professional advice. © 2020 MyTPG.com. All rights reserved. To Minimize Drowning Risks: Install safety fences around the pool with a locked latch and place a cover over the pool when you are not using it. Always supervise welcome swimmers at all times. Keep lifesaving equipment near the pool and learn how to properly use it. Do not allow swimmers to horseplay in the pool. To Minimize Disease Risks: Keep the pool water properly filtered and chemically treated. Do not allow swimmers to drink pool water. Keep pets out of the pool. Do not allow swimmers with open wounds or illnesses to go in the water. Do not allow babies to swim unless they are wearing swim diapers. To Minimize Chemical Risks: Avoid over-shocking the pool; keep chemicals at the proper levels. Follow manufacturer’s instructions carefully when adding chemicals to the pool or filtration system. Store chemicals in a cool, dry place where they are away from fire hazards and lawn care products. Safety First As the homeowner, you are liable for the safety of all swimmers. To ensure that you can adequately protect people on your property, consider taking lifeguarding, CPR and first aid courses so you know what to do in an emergency. Download the PDF version […]

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Managing Your Chronic Condition During the COVID-19 Pandemic

If you’re one of the 133 million Americans with a chronic condition, you’ve probably experienced disruptions to how you manage your condition due to the coronavirus (COVID-19) pandemic. Despite the challenges presented by the COVID-19 pandemic, managing your chronic condition shouldn’t be put on the back burner. Download the PDF version: Managing Your Chronic Condition During the COVID-19 Pandemic.pdf This Know Your Benefits article is provided by TPG Insurance Services and is to be used for informational purposes only and is not intended to replace the advice of an insurance professional. Visit us at www.MyTPG.com. © 2020 MyTPG.com. All rights reserved. Following the Doctor’s Orders Has Never Been More Important Patients who do not follow their doctors’ orders, especially patients with chronic conditions, may experience health complications, rapid disease progression, decreased quality of life and even premature death. Not following orders can include not filling a prescription, not taking medication as directed and not attending or scheduling a follow-up appointment. Fortunately, there are some simple ways you can manage your condition during quarantine: Use telehealth services—Telemedicine makes it possible for you to talk to a doctor about your condition, receive a prescription and obtain treatment recommendations from the comfort and safety of your home. As a reminder, telemedicine shouldn’t be used for emergency care situations. Despite the challenges presented by the COVID-19 pandemic, managing your chronic condition shouldn’t be put on the back burner. Don’t forget to fill or take prescribed medication—Keeping up with prescribed medications is essential for successfully managing a chronic condition. If you’re unable to go or uncomfortable going into a pharmacy to fill or pick up a prescription, transfer your prescription to a pharmacy that has a drive-thru option. You may also be able to sign up for a mail-order pharmacy service to get your medicine delivered to your doorstep. Lead a healthy lifestyle—Combining a healthy lifestyle with your treatment may be able to help you better manage your condition. Some simple things you can do during the pandemic include eating a well-balanced diet, exercising, reducing stress and avoiding tobacco and excessive alcohol consumption. Prioritize Your Health Failing to keep up with your chronic condition treatment can put you at risk for long-term consequences. Using telemedicine, drive-thru and mail-order pharmacy services, and leading a healthy lifestyle throughout the pandemic can help you prioritize your health. Download the PDF version: Managing Your Chronic Condition During the COVID-19 Pandemic.pdf […]

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