Check Out Our Most Recent Articles:
Looking for a New Car?
How to Know Which Insurance Policy is Right for Me
Ultimate Guide to Understanding Homeowners Insurance
Understanding Commercial Insurance
What should you be looking for in a new car? Is now the right time to buy a new car? What is the market outlook? What about additional costs like insurance?
In this blog, you will find out what to consider when seeking to buy a car, the current market environment, and how that purchase will affect your insurance.
When is the best time to buy a new car?
- According to Marketwatch, the best time to buy a new car is on a Monday or Tuesday, at the end of the month.
- The best months to shop for a car are October to January, particularly the month of December.
- Shopping on holidays at the end of the year can also offer significant discounts.
Evaluate your finances before buying a car.
- Marketwatch recommends evaluating your budget and trying to improve your credit score prior to car shopping.
- According to CarTalk, a long-standing radio show all about cars, “roughly 80% of car shoppers take out a loan for their auto.”
- For a more favorable loan and better bargaining power, Marketwatch recommends getting preapproved for a loan.
What about the current market?
- Purchasing a vehicle is more expensive than it used to be, following the COVID-19 pandemic. Though rates are still high, CNBC reports, they are decreasing a little bit.
- GoBanking predicts a better market for the individual new car buyer in 2025.
- It is more affordable to purchase electric vehicles due to a decrease in demand.
- Forbes's Global Automotive Outlook: Predictions for 2025 forecasts an increased demand for hybrid vehicles.
- Consumer Reports and USA Today suggest that if you are willing to spend a bit more, buying a new car might be a better value overall.
How will it affect my insurance?
Another factor important in the purchase of a new car is insurance.
- While some dealerships offer a grace period for insuring your new vehicle, others require proof of insurance before driving off the lot.
- It is advantageous to compare multiple carriers for the best price and the best coverage for your new car. According to Marketwatch’s research, State Farm and Travelers rank among the best companies for a new car.
- Most lenders require both collision and comprehensive coverage. Additional coverages just for new cars are new car replacement insurance and gap insurance. Both coverages provide additional funds to pay the full value of the new car in the event of an accident.
Contact Mid State Insurance Agency to discuss getting your car covered today.
The task of shopping for the right insurance can be a challenging one. There are many factors to consider, and it can be difficult to know which ones are most important in choosing the best policy for you.
In this blog post, we will be walking through some helpful factors to consider when evaluating insurance options based on an article produced by MarketWatchGuides.com
Cost
- The article linked above offers some estimated costs for top insurers in different categories, but the best way to determine how much a policy will cost is to submit a quote. Several insurance companies offer free or low-cost quotes with no obligation to insure with their agency.
- The cost of an insurance policy depends on several factors, such as:
- Location
- Driving history
- The vehicle to be insured
- The number of drivers on the policy.
- Age
- Gender
- Credit score
Coverage
- Coverages are the specific categories for which the insurance company will pay on your behalf in the event of a loss.
- While the breadth of coverages depends on the policy, some common coverages as expounded upon in III’s article What is Covered by a Basic Auto Insurance Policy? are listed below:
- Bodily injury liability pays for “injuries that you or the policyholder cause to someone else.”
- Medical payments or personal injury protection pays for injuries suffered by you or your passengers as a result of an accident.
- Property damage liability pays for “damage that you or another driver whom you permitted to use your vehicle cause to someone else’s property.”
- Collision coverage pays for damages to your vehicle caused by colliding “with another car, an object, such as a tree or telephone pole, or as a result of flipping over”
- Comprehensive coverage goes towards covering damage to your vehicle that is “not caused by a collision with another car or object”
- Uninsured/underinsured motorist coverage will pay for injuries you sustain in the event of being hit as a pedestrian/hit and run or damages that would not be paid if the motorist with whom you collide is underinsured or not insured.
Reputation and Experience
- It is important to consider the reputation of the agency, the longevity of the business, and the experience of the agency.
Availability
- Availability of insurance might depend on the state and your personal eligibility.
Customer Experience
Some questions to ask with regard to the customer service of an agency are:
- What have other customers said about their experience with the agency with whom you hope to do business?
- Have they won any awards for their customer service?
- It is important to evaluate multiple factors when making your final decision, as each insurer will have pros and cons to their policy offerings.
If we can be of service to you as you shop for auto insurance, give us a call to speak with an agent about your options. You can also receive a free instant insurance quote here.
Understanding Homeowners Insurance
Homeowners insurance can be complex, but understanding the basics will help you choose the right coverage for your needs in Columbia, Tennessee. Here’s a comprehensive guide to help you navigate through the essential aspects of homeowners insurance.
Coverage Forms
- There are multiple coverage forms to choose from, but the most common one is the HO-3 form or homeowners special form.
- The homeowners special form is an open peril form, protecting the home and structures from any peril that is not specifically excluded. Personal belongings are protected from 16 named perils.
- Perils are causes of loss. Examples include fire, wind, hail, falling objects, and more.
- Limits of coverage are indicated by the letters A-E and determine how much is allocated to different items under the insurance policy. Coverages B-D are percentages of Coverage A.
- Under the special homeowners coverage form, the structure is paid for on a replacement cost basis, meaning monies are provided “to rebuild your home or repair damages using materials of similar kind and quality.”
- Some endorsements, or additional coverages that can be added to your homeowners insurance include scheduled personal property (extra insurance for high value items), water/sewer backup, earthquake, windstorm, flood insurance, identity theft, law/ordinance.
- Premiums are the amount you pay in exchange for the insurance policy. Deductibles are the preselected amount you pay prior to the policy disbursing funds for damages.
- When filing a claim, you are required to notify the insurer as soon as possible.
- The amount and frequency of claims can impact your insurance rate.
- If you disagree with the insurer about the price determined by the adjuster to be paid out for your claim, you can dispute it. Either party can ask for an appraisal of the damage by a third party.
- If there is a loss, you must provide proof of the loss to the insurance company, protect your home from further damage, take an inventory, cooperate with the insurer, and provide additional evidence as needed.
- Cancellation and nonrenewal are two terms to be aware of in the process of purchasing and renewing insurance.
Factors Affecting Insurance Rates
- Several factors determine the rate of insurance such as claims filed, the characteristics of the house, its location, and protective devices.
- Coastal areas or other disaster-prone areas are seeing increases in their insurance rates due to the increased number of losses.
- Additionally, the current market impacts the rate of insurance.
By understanding these key components, you can make informed decisions about your homeowners insurance in Columbia, Tennessee. Ensure you review your policy regularly and update your coverage as needed to keep your home protected.
Click Here for Our Complete Guide
Your Guide to Understanding Commercial Insurance
Insurance is essential for protecting your business in Columbia, TN, preventing you from paying out-of-pocket in case of a loss.
Types of Commercial Insurance
- There are two main types of commercial insurance: property and casualty.
Property Insurance
- Commercial property insurance protects buildings, business personal property, fixtures, machinery, and stored personal property.
- The coinsurance clause is in effect, requiring you to insure your property at its full value.
- Inland marine covers property in transport.
- Boiler and machinery covers breakdowns and related legal fees.
- Crime protects against criminal activity losses.
Casualty Insurance
- Casualty insurance, also known as liability insurance, covers negligent acts causing injury or damage.
- Commercial automobile covers liability that may arise out of operating a vehicle for business purposes.
- General liability insures buildings, business activity, and liability relating to property damage, bodily injury, and legal advertising.
- Umbrella policies provide additional coverage for losses over the limits of other commercial insurance policies.
- Workers compensation covers job-related injuries.
- A business owners policy (BOP) combines casualty and property insurance for small businesses.
Types of Policies
- Special peril policies cover specific losses.
- Open peril policies cover all except excluded ones.
Other Policy Features
- Loss valuation types include actual cash value, agreed value, and replacement value.
- Endorsements add more coverage.
- Coinsurance ensures full value coverage.
Policy Ratings and Premiums
- Policy ratings depend on business exposures, underwriter experience, history, and premises conditions.
- Loss control plans also help to reduce premiums.
Check out the comprehensive guide our team has created to help you better understand commercial insurance coverage.
Our dedicated insurance professionals are ready to assist you with understanding the ins and outs of the proper coverage you need for your business. If you own a business in Columbia, Tennessee, or the surrounding areas, contact us today to discuss your current coverage and ensure your business is fully protected.