Archive for the ‘savings’ Tag

Motorcycle Insurance – coverage review   Leave a comment

Motorcycle season

It’s motorcycle season!!

Good morning everyone!

For those in Western PA, motorcycle season is very nearly upon us, and if you’re like me, that’s an exciting and gratifying thing indeed.  Four to five very long months of waiting can get rough on us all.

One thing that tends to sit on the backburner is the motorcycle insurance renewal that almost always also comes through at this time.  As such, now is as good a time as any to give a quick run-down on motorcycle coverage and things to consider.

Some of the coverages on a motorcycle policy will mirror those on your auto policy – bodily injury and property damage liability are good examples.  Liability coverage pays for the medical expenses and damages others suffer, for which you are responsible (in an accident).

Uninsured & underinsured medical provides coverage for you and your passenger’s medical expenses in the event of an accident where someone else is at fault and either doesn’t have sufficient coverage, or any insurance at all, to pay for your bills.  And, of course, you can buy physical damage coverage on your motorcycle itself if it’s stolen or damaged.

Beyond that, though, is where the differences start to appear.  For example, many first party benefits coverages either are unavailable or very expensive to obtain.  These coverages provide protection for you in the event that you are injured in an at-fault accident for things like medical bills, lost income, or funeral expenses.

Roadside assistance and/or trip interruption can function differently on a motorcycle policy – depending on the company you go to, you can get coverage for a flatbed tow (not typically available on regular auto policies) or other motorcycle-specific services.  On occasion, you can even get coverage for unexpected expenses resulting from an accident or breakdown – such as the cost of staying in a hotel.

There is also more readily available coverage for accessories and “carried” contents on your bike.  Several insurance companies provide a small amount of accessory coverage automatically when you buy physical damage coverage on your bike.

If you have done a great deal of modification, have an antique or custom bike, make sure to go over the best way to properly insure your baby – otherwise, you might be in a position where you have to cover most of the cost of those same mods out of pocket in the event of a claim. 

One final thing to consider – keep your safety courses up to date (within the past three years).  This will you provide you with a moderate to major discount on your coverage, and is a great refresher for those safety skills you learned years ago.  For Pennsylvania riders, head to the PA MSF website to find and schedule a class.

Shameless plug – as a licensed rider & Harley owner who is registered to provide motorcycle coverage through multiple insurance companies (like Rider, Progressive, AIC, and more!), I am excited to work with you to provide competitive quotes.  We can re-evaluate your coverage, and potentially get you better coverage for less money.  Do business with someone who knows and understands the passion and dangers involved so you can ride with peace of mind.  The quoting process takes approximately 15-20 minutes.  Please complete the following form, and I will get in touch with you soon to begin the process. 

4 ways NOT to save on your insurance (and what you should’ve done!) – part 1   4 comments

expensive insurance

Got those payin’ too much blues? Sammy’s here to help!

Hello one and all, and happy Fourth of July!  Today we are going to start a four part series addressing common mistakes people make while attempting to save money on their insurance.  Rather than quick blurbs, Sammy’s idea was to go a bit more in depth each week.  Off we go!

This week we are going to cover one of the main ways that we all attempt to save money – by adjusting the coverages on our policies.  We’re going to cover both general and specific tips, and we DEFINITELY would like some feedback – questions and comments are invited!

Sammy suggested that we should title this week’s installment “Adjusting the wrong coverages,” and while it may be a bit negative, it does hit on our central focus.  There are many changes that you can make to your policy to save money.  The problem arises when the money that you save, versus the reductions in coverage you are accepting, do not make it worth while.

In general, when reviewing potential reductions in coverage, always consider what you are losing.  Does the amount of premium you are saving really pay for itself, when compared to the coverage you lose?  For example, if you are increasing your deductible from $500 to $1,000 to save $50 annually, is it worth it?  In order to make up for the extra $500 you will pay in the event of a loss, you would have to save $50 a year for ten years to make up the difference!  And that’s just to break even!

In addition, if you are looking at removing a coverage completely, make sure that you are comfortable that if you were to have a loss, you would be able to pay for it out of pocket.  For example, if you remove comprehensive coverage on your car, and it’s stolen – could you afford to buy another car to replace it?

Other things to consider BEFORE making changes:

  • If you are going to increase your deductible on your auto policy, make sure that you increase the right one.  Increasing your comprehensive deductible, in general, will not save you NEARLY as much as the collision deductible.  In addition, it will dramatically increase your out of pocket cost on smaller claims like cracked windshields.
  • If you are going to remove physical damage coverage completely, consider at least leaving comprehensive on the policy.  It doesn’t cost much, and provides lots of good coverages for the price – repairing cracked windshields (usually for free) or replacing them if necessary, hitting an animal, if your vehicle is stolen, vandalized, or catches fire.  It also covers unusual claims like if your vehicle is damaged or lost in a flood, hail damage, trees falling on vehicles, animal damage (such as a rodent taking up residence in your vehicle!), or if your vehicle gets painted accidentally by a line crew.  If you heard about the paving truck on the PA turnpike who leaked tar all over the road and damaged hundreds of vehicles – comp claim!
  • If you are considering reducing the building limit on your homeowner’s policy, you might do better by increasing your deductible.  Oftentimes, when you jump from one deductible level to the next, the building coverage rates drop dramatically more than if you just reduce your coverage.  Thus, you will accomplish two things – save more money on premium, and have better coverage in the event of a total loss – you will pay more for the deductible, but will not have diminished limits to contend with!  And, there is the nasty possibility of a co-insurance penalty – which I can address in comments, if you have questions!
  • If you are considering reducing the liability limit on your homeowners, look at a smaller reduction, but on the auto policy instead.  This one is “hairy”, though – it’s not often a good idea to reduce your liability limits – this is the protection you have in the event someone else sues you.  If you are dead set on reducing liability limits, get information on how much you would save by taking a smaller reduction on the auto policy.  In other words, you will likely save more money by reducing your auto liability limit by $50,000 ($100K to $50K) than reducing your homeowners by $200,000 ($300K to $100K).  Again, though, this is a LAST RESORT recommendation ONLY.

This is a lot of information.  Bottom line when looking to save money on your insurance, spend an extra 20 or 30 minutes to discuss your options with your agent.  Most agents are more than willing to see what they can do to keep their clients happy!  And if you end up saving money, while not losing much coverage-wise – all the better!

insurance savings

I’m tuckered out! That’s a lotta typing!

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