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Is your Auto Insurance Creeping Up?

3/27/2019

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Reasons for an Auto Insurance Rate Increase
Have you noticed your auto insurance rates increase over time? Believe it or not, there's a reason for that. Rising insurance rates are an insurance company's way of trying to balance its risk-to-reward ratio, so you can expect your rate to go up if you have a driving history that indicates you may pose a greater risk on the road. Fortunately, many insurance companies will remove minor violations and accident claims from your record after a designated period of time. However, there are some conditions we have no control over, like state auto insurance laws, that can also cause a rate increase. The first step you need to take to help safeguard your rate is understand the different factors that can affect it. 
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Traffic Violations
This is one of the most common reasons for an auto insurance rate to go up. Violations are typically classified as either minor or major. Minor traffic violations include things such as speeding, failure to yield, driving without a license, using an uninsured vehicle, following too closely, improper backing/passing, running traffic lights or signs, failure to signal, parking violations, etc. Some examples of major traffic violations are reckless driving, driving under the influence, leaving the scene of an accident, failure to stop for a police officer, driving with a suspended/revoked license or vehicular homicide. If you do receive a traffic violation, there are a couple of things you may be able to do to avoid an increase in your premium. If you fight a ticket in court and win, it should not affect your driving record. Traffic school, which involves taking a course and passing a test, is another option in some states to avoid an insurance rate increase.

At-Fault Accident
If you are the cause of an accident and a claim is filed, you can expect your insurance rate to go up. Some insurance companies offer accident forgiveness which allows each driver to have one at-fault accident claim, or a buffer that allows for a small payout (usually under $500) without a premium increase. However, you will be charged more for this type of coverage without knowing if you'll need it or not. Know what kind of driver you are and check with your insurance provider to see if this coverage is available and how much it will cost.

Aging
Growing old is out of our control unfortunately. Elderly drivers, typically over the age of seventy, may pose a greater risk on the road due to sight or hearing loss, fading memory, medication with dangerous side effects, stiff muscles and joints, or slower reaction time and reflexes. Because of this, it's common for insurance rates to climb after a certain age.

Moving
Some people don't know that insurance rates are often based on claims in an area. Moving out of state, or even to a different city, can sometimes cause your rate to change. For example, you would likely have a higher rate if you lived in a major metro area rather than a suburb or a rural town. The likelihood of an accident happening or a traffic violation occurrence is greater the more cars and people there are on the road.

Lapse in Insurance
You are instantly pegged as a potential risk taker if you have a lapse in your car insurance. This is any period of time that you have registered a car, but do not have auto insurance. Being uninsured will result in fines and various other penalties, depending on the state. Your rate will be more expensive the longer you wait to renew your auto insurance policy. Many insurance carriers do not allow a grace period for a lapse in coverage unless you are trying to reinstate your existing policy.

Drop in Credit Score
It is common for insurance companies to use your credit score as a contributing factor when selecting your premium. Credit scores are used to determine a person's financial risk and creditworthiness, and studies have shown that there's a good reason to use credit-based scoring when it comes to insurance rates. If your credit score suddenly plummets, there is a chance your insurance rate will go up. California is currently the only state that prohibits insurance companies from utilizing credit scores for this purpose.

There are many factors that go into calculating premiums, and any of the scenarios mentioned above can make a significant impact. The better you understand what causes a rate increase, the better off you will be in preventing it from happening to you.

Let's talk auto insurance! Give ALINK Insurance Services a call today to discuss your insurance needs. We are "Your Link to Security!"

​​Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Surrounding States: 877-643-6148


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Parent-Teen Driving Contract

3/7/2019

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"Do your homework. Clean your room. Help with dinner. No phones at the table. Be back by nine. Go the speed limit and drive carefully."
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Many parents know that it's important to set certain guidelines and rules in the home - especially when there is a teenager living under the roof. By doing so, it sets an expectation for everyone and helps maintain structure in a household. It also teaches children and teens order, responsibility, obedience, and discipline if needed.

While household chores and curfews are some of the more common house rules, parents should also make it a priority to set driving rules with their teen. Since teenagers are still learning the ways of the road and trying to get comfortable behind the wheel, newly licensed drivers can benefit from having some limitations on their driving privileges. Creating a parent-teen driving contract is a great way to discuss what you expect from your teen driver and set clear rules for when they are driving without adult supervision.

Jointly coming to an agreement with your teen on a list of household driving rules is the best approach. Some obvious and nonnegotiable rules should include wearing a seat belt at all times and not using a cell phone while driving. Other items can be modified over time, depending on if the contract is being upheld. For example, a curfew could be extended an hour or two. New driving privileges can be introduced as teens gain more driving experience and maturity. Likewise, privileges can be taken away when the rules defined in the driving contract are not followed.

ALINK Insurance Services wants your teen, their passengers, and everyone else sharing the road to be safe. Click here to access our Parent-Teen Driving Contract form and talk to your teen today about their responsibilities behind the wheel.
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​Feel free to give us a call to discuss your auto insurance needs with one of our insurance professionals.

​Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Surrounding States: 877-643-6148

We are "Your Link to Security!"
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TALKING POINT TUESDAYS

3/5/2019

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When should you review your insurance coverage?

Review your auto & home policies every year         
Colorado is one of the most volatile states in the US when it comes to insurance. You may have had adequate coverage a few years ago but prices to rebuild homes or repurchase items inside your home are constantly rising. Likewise, for auto insurance, rising medical and repair costs might mean you are are under insured. Double-checking will save you money, heartache, and frustration in the future.

Your premiums went up again
If you compare your renewal pricing to the previous year, you will probably notice that your premium has increased. It is important to remember, rates differ from company to company.  When working with an independent agent, they can provide you with the power of "CHOICE". They can offer several options that can save you money and still provide you with comprehensive coverage. 

Adding or removing a car
When adding or removing a car, it's a great opportunity to review existing coverage. Perhaps, your older vehicle still has full coverage (comprehensive and collision) but it may not be worth the amount you are paying for the coverage. When adding a car, be sure you are meeting any requirements your financing company may have. 

Adding a teen driver
Teen drivers have the highest rate of accidents and file more claims compared to the average driver. Making sure you have proper coverage is critical. Be sure to ask for discounts to mitigate your cost.

Marriage or divorce
A change in your marital status could possibly affect your insurance rates and coverage needs.  Be sure to update this appropriately to ensure you are receiving the best discounts available. 

Refinancing you home
Refinancing your home can provide you another great opportunity to make sure you have all the possible discounts and adequate coverage. Prices change and your bank may even require you to review this.

You drive for Uber, Lyft, etc…
​Many companies will not cover your vehicle or passengers in an accident unless you report you are a driver for one of these companies. Not all carriers will allow this type of use but some have special endorsements for your protection.
Click here to Schedule A Review
Please call us to be connected with one of our insurance professionals for a free review today.

​Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Surrounding States: 877-643-6148

We are "Your Link to Security!"
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