What is Liability Insurance and Why Do You Need It?

Have you ever looked at your insurance policy and wondered just exactly what it is you are paying for?

  

Everyone knows that they are legally required to carry liability insurance.  But many people don’t really understand what that means or how it works.  

In simple terms, liability insurance pays to fix damage that you cause to someone else.  

Auto Insurance Liability Coverage

On your auto insurance policy, this is split into three pieces.  Here is an example:

Bodily Injury:  50/100

Personal Property: 50

Let’s say that this was your coverage amount and you hit another car in an accident.  Your insurance would pay up to $50,000 per person for injuries, up to a maximum of $100,000 per accident.  And it would pay up to $50,000 in property damage to fix the other car.  

Remember, liability only covers the person that you hit.  It doesn’t cover your vehicle or anyone inside your car.  

There are many different amounts of liability coverage.  We work directly with our clients to determine how much you need.  This will vary based on factors like how many assets you have, your income, and home's value.  

Not having enough liability insurance is one of the biggest financial mistakes you can make!  Carrying only the Washington state minimum of $25,000 per person/$50,000 per accident/$10,000 property damage, could leave you open to a lawsuit.  Think about those cars you’ve seen on the road worth easily over $40,000!  If you don’t have enough property damage coverage, then you are at risk.  

Homeowners Liability Coverage

There is also liability coverage on your homeowners or renters insurance.  It pays if someone is injured on your property due to your negligence.  One common example is a dog bite.  This is another time when it’s good to have enough liability insurance!

Hopefully this clears up any questions you have about how liability insurance works.  If you need help determining the right amount of coverage for your family, give SAV-ON a call at 888-867-2866 for a no obligation review and quote.  

9 Ways to Save on Auto Insurance

Looking for ways to keep your auto insurance premiums manageable?  Here are 9 ways you can save on your insurance (without sacrificing coverage.)

1. Your Driving Record

Your driving record plays a big role in how much you pay for insurance. By keeping a clean record for 3-5 years, you can save hundreds of dollars! Be a cautious driver, don’t speed, and you'll lower your premiums.  

2. Defensive Driving Course

Defensive driving courses are an easy way to achieve an extra discount. They can also help keep a ticket from showing up and messing up your clean driving record. Make sure to call us before taking the class if you're using it for a discount so we can verify that your policy qualifies.

3. Anti-Theft Devices

Installing an alarm or other anti-theft device can lower premiums on your vehicle. Make sure to discuss all features with us, sometimes even power locks and a remote can count!

4. Your Credit Score

While insurance uses a different formula than the credit bureaus, your credit still affects the rate you pay. Good credit can save you hundreds (even thousands) on your premiums! Make sure to review your report on a regular basis and have any mistakes corrected.

5. Where You Live

Rural areas pay less for insurance than the big cities do. It's all about risk, and with a large population there is more chance for an accident. Therefore, where you choose to live can impact your rates. Consider contacting SAV-ON before purchasing a home if you’re concerned about the costs (it is based on your zip code).

6. Your Vehicle

The vehicle you choose to purchase also makes a difference! Some vehicles cost a lot more to repair than others, which drives up their rates. Easy way to avoid buying a money-sucker? Call us first and let us quote the vehicle before you sign on the dotted line.

7. How Often You Drive

If you take public transportation and only drive on the weekend, you'll pay less than someone with a long commute. Make sure to review your annual mileage and daily commutes with us (especially if they change) so that you can receive the extra savings.

8. Raise Your Deductible

A higher deductible (your out-of-pocket cost in a claim) means a lower monthly rate. If you have $1,000 in savings and could afford to use it if you had an accident, then you’ll save on your insurance cost by having a $1,000 deductible instead of $250. We can help you review the costs and benefits in your specific situation.

9. Your Insurance Agent

And the best way to save? Work with a local agent! You'll get the coverage you need plus you'll have an advocate working on your behalf to find the best rate, all the discounts, and an easy explanation of any gaps in your coverage. It's the #1 way to control your risk, maximize your savings, and protect your family.

SAV-ON wants to be your agent! Call us at 888-867-2866 to discuss your policy today, or schedule an appointment online at www.sav-on.com!

Someone Broke Into My Car and Stole Personal Items; Is It Covered By My Auto Insurance?

Today we’d like to answer a question we hear all the time - “Are my personal belongings covered if someone breaks into my car?”

Unfortunately, they typically are NOT covered!  Your auto insurance covers your car from damage and accidents, but not the items left inside from theft.

This happens a lot during the holidays, when people are out shopping and put gifts in their car between stops. Thieves roam parking lots and parking garages, knowing that busy shoppers often leave their just-purchased gifts in their car. Many times the result is a broken windshield and stolen items.

There are still ways to protect yourself.  

First, and most obvious, is to avoid keeping expensive items in your car in the first place.  This includes things like your laptop, iPad, and any new gifts. Also, if you're not taking your purse with you, hide it in a locked trunk or some other out-of-sight area.  You're just asking for someone to break into your car when you have nice things (or money and credit cards) on display, and it only takes seconds for them to get them!

If you’re out shopping, always keep your doors locked and hide items away in the trunk.  

But this isn’t always possible; some vehicles don't have trunks and, in other cases, some items are too large to fit in the trunk.  So you also want to make sure you’re covered by carrying renters or homeowners insurance for your personal belongings.  These policies include a certain amount of coverage for property off premises.  These are subject to your deductible, so make sure to discuss this with your SAV-ON agent to see what kind of coverage you currently have. 

With a little bit of prevention and good insurance, you’ve won’t have to worry about items being stolen from your car.  Have questions?  Give SAV-On a call at 888-867-2866 to discuss them anytime!  

Why You Need Renters Insurance

If you are just moving into a new apartment, or already renting a home or apartment and don't have renters insurance, it’s time to learn more about it!

Homeowners insurance covers the house itself and the items inside.  But if you don’t own the home, you don’t need insurance to cover it.  All you need is coverage for your actual personal belongings.

It might not seem like a lot, but all those little items add up!  When you think about the cost to replace your furniture, dishes, sheets, clothes, books, and everything else filling up your home, it’s probably a lot more than you thought.  

Renters insurance is an affordable way to protect what you’ve worked hard to acquire.  And it’s probably a lot cheaper than you’d expect!  In fact, many times the discount you receive on your auto insurance for having multiple policies can almost pay for the entire renters policy! 

Renters Insurance will cover personal belongings within your home as well as a limited amount of property off premises (such as items in a storage building) or your laptop when it’s in the car.  

It also includes important liability coverage.  If you accidentally cause a fire that burns down the property, your insurance pays the landlord to replace it (protecting you from a damaging lawsuit).  In fact, many landlords now require that tenants carry a certain amount of liability insurance before they approve the lease.  

So if you’re renting, it’s time to look at protecting your valuables.  Give us a call today and ask for a no obligation quote on renters renters insurance.  

And don’t forget to find out how much you’ll save on your auto insurance too! With more than one policy with us you can qualify for big savings with a multi-policy discount!

Call SAV-ON Insurance today at 888-867-2866 to find out more.

How Long Does an Accident Stay on Your Record?

Unfortunately, you’ve been involved in an accident. Thankfully, no one was hurt, but you’re at fault. Right away you naturally wonder how this will affect your insurance premiums. 

We hear questions like this a lot.  Tickets and accidents usually cause spikes in your car insurance rates and no one wants that. 

The good news is that they eventually drop off and your rate goes back down; the bad news is that it typically takes 3 years for that to happen. 

SAV-ON’s 'Goal Date' Program to the Rescue!

With SAV-ON’s 'Goal Date' program, we’ll get you back to lower cost preferred rates faster than anyone! We’ll work with you, and as soon as you qualify for reduced rates, we’ll let you know and get you saving again! No other insurance agency has this program.

If you get a ticket, you may be able to avoid having a surcharge on your policy by taking a defensive driving course and getting the ticket removed.  This will depend on your past record and what the court offers, but it is a good option!

Reduce Premiums with a Multi-Policy Discount

If your rates do go up, make sure you are taking advantage of all other discounts to offset the increase.  Bring all of your insurance to SAV-ON so you take advantage of our generous multi-policy discounts.  

Another option is to raise your deductible for a while so you pay more out-of-pocket in an accident, but get a lower monthly rate.  

Have questions?  We're always available to help! Just give SAV-ON Insurance a call at 888-867-2866 and schedule a free review to see what is available and how we can keep your rates manageable even after an accident. 

How to be More Likable During a Job Interview

Here are some do's and don'ts for being a likable candidate:

1. Be respectful when offering your critique. For example, you might be asked to look at a company's website and offer your opinion about it. If you hate how the site looks and feels, remember that the person who asked the question may be he one who designed the website. Instead of saying, "your site is terrible," you might say instead, "I can see what you are trying to do here, but there are some things I could focus on to improve it."

2. Show up on time. Think of your interview as a time when you model the behavior you will exhibit after you are hired. No boss wants to be ready for a meeting and have key people keep him or her waiting to begin.

As a sign of respect, you must honor your commitment to be at every business meeting without wasting other people's time. If you are driving to an interview and aren't familiar with exactly where you are going, it's best to make a dry run the day before to see traffic patterns and how long it will take you to get there.

3. Show up prepared. It is a good idea when you are having an in-person interview to proactively ask the person who is inviting you into the company what topics will be covered and what materials the person or interview panel might want to see.

If you will be giving a presentation, make certain that if you bring it on a laptop or thumb drive, you save it in multiple formats (such as PowerPoint and PDF), in case there is a computer glitch.

4. Avoid overconfidence. Well-seasoned human resources staff and recruiters are experts at making you feel welcome and comfortable. They may say some flattering things as a part of their job of assembling a pool of highly-interested and motivated candidates. And, truth be told, they likely are impressed with you, or else you wouldn't be invited for the interview.

Don't assume from any of this that you are a lock for the job. Friendliness and compliments do not constitute a job offer, and other candidates are probably receiving similar messages. So, don't be lulled into complacency. The people interviewing you should be friendly, but they aren't your friends yet.

5. Make friends with the receptionist. The people who greet you at the door and usher you to a seat while you are waiting to be called into your interview are often quizzed about your words and behavior with them. Avoid saying anything to them you wouldn't want the CEO to hear. Your interview begins when you push the door open to the office, and it's important to act professionally at every moment.

6. Speak with your interviewers, not at them. Remember that your interview is a structured conversation. While you may have a whole song-and-dance prepared and messages you are convinced you must convey, slow down and listen. People can easily tell when you are spouting out a canned response to a question. Moreover, they get annoyed when you are off point in your responses to their questions.

Good luck with your interview!

Teen Drivers and Marijuana: A Dangerous Trend

A growing number of teen drivers don’t see smoking marijuana as a problem. A recent study found that nearly one in five (19%) admit to driving after smoking the drug. Only 13% reported driving under the influence of alcohol.

With the legalization of marijuana in Washington state, many teens think it’s “no big deal” to smoke a joint or eat marijuana-laced candy or brownies, since it’s "only" considered a recreational drug.

A study of nearly 2,300 11^th and 12^th graders across the U.S., commissioned by an insurance company and SADD (Students Against Destructive Decisions) found that 70% of teens now say marijuana use is “very” or “extremely” distracting to their driving abilities, down from 78% in 2009.

These and other surveys reflect a “dangerous trend toward the acceptance of marijuana and other substances compared to our study of teens conducted just two years ago,” says Stephen Wallace, senior advisor for policy, research and education at SADD.

The new study's findings are disturbing "both in terms of the increased use of marijuana and from the perspective that many think this is not a danger," Wallace says.

Among teens who have driven after using marijuana, more than one third (36%) say it presents no distraction when operating a vehicle, while only in five (19%) say alcohol is no distraction.

As 18-year-old who drove after getting high explains, "When you're high, you're supposed to be relaxed. But when you're driving, you technically can't be. I went numb! I wasn't sure if I was pressing the gas or the brakes or if I was moving at all. It was really intense, and the colors from the cars and the headlights were all blurring."

In fact, a recent review in medical journal BMJ found that high drivers are twice as likely to get in a serious accident than sober drivers, debunking anecdotal evidence and prior research to the contrary.

Even though marijuana is legal in Washington, penalties for DUI pertain to marijuana use, and THC, the drug in marijuana, can stay in a person’s system for up to two weeks. In addition, in Washington, where it was legalized, you must be 21 years old to legally partake.

Complicating matters further, the federal government still considers pot to be an illegal drug, and most businesses have a zero tolerance for drug use. An employee who is drug tested could be fired immediately, depending on the company’s drug policy.

If you are convicted of a DUI, you will lose your drivers license, get fined and be sentenced to jail time. If your employer tests you and you're high, you may lose your job. Is it worth the risk?

Sources: USA Today, Teen Vogue, KIRO TV

Lots of Bad Things Can Happen When You Let Another Teen Borrow Your Car

Teens are considered high-risk drivers for numerous reasons. They’re notoriously poor drivers due to the fact that they don’t have much experience on the road, are much more likely to be involved in an accident because of overconfidence about their driving skills or distractions, and tend to display elevated emotions when under pressure. And driving can be a pressure-packed activity!

So, it’s never a good idea to let a teen “borrow” your car, especially if you’re a teenager yourself. Most insurance policies typically cover the vehicle for any bodily injury or property damage ONLY if it’s being driven by the registered owner or if it’s being driven with the permission of the registered owner. Parents -- not teens -- are most often the registered owners, so when teens lend cars to teens there might be no insurance coverage in that situation.

To make matters worse, if a teen is a passenger in the car their parents own, they themselves may not have coverage if involved in an accident, since the teen driving the car is not on the policy!

Another reason to not lend the car to a teenager is that passengers get hurt, too, in many cases worse than drivers. So, letting another teen who may not have as much experience as you drive you around is taking a big chance. Why do they want to borrow your car? Maybe they don't have one or it’s been damaged in an accident they caused? If they decide to “show off” or drive recklessly, you are the one who could pay the price, either with your life or a damaged vehicle.

Here are some important tips to consider:

• Don’t ride with anyone again if you didn’t like their driving the first time• Wear a seat belt, even if no one else does.
  
• Don’t distract the driver, and don’t encourage speed, loud music or goofing around in the car.
  
• Avoid alcohol or drugs in the car, even as a passenger. It only increases distractions, noise and bad behavior.

These are all difficult things for teenagers to adhere to, especially in a group with its typical peer pressure to conform. It means being responsible and sensible. These are not qualities that most teens deem “cool”. But, it’s the right thing to do. The smart thing to do.

You may even find out that other passengers felt the same way, but were afraid to say so.

Progressive Insurance information contributed to this blog.

What to Do When You Get Into a Crash

You're driving your car and suddenly you get in an accident. Thankfully, no one seems to be seriously injured, but the cars involved have suffered damage. What are you supposed to do?

Clear the roadway

If the cars aren't damaged too badly and can be moved, then the first course of action is to move all vehicles involved in the accident out of the way of traffic and turn on hazard lights.

Call Police

As soon as possible call the police, even if it is a minor accident. If anyone is injured, request medical assistance at that time. If there is a fire, request fire department aid. If one or both of the vehicles are on fire, DO NOT approach the vehicles and attempt to retrieve anything you left in the car. If the fire gets to the gas tank, it could cause an explosion and even more injuries.

Exchange Information

Make sure you get all the other drivers' license and car insurance information. Don't forget to write down license plate numbers of all vehicles involved in the crash. If it is safe to do, take pictures of the accident scene and the damaged vehicles.

Report Your Claim

Make sure to report your claim as soon as you can using the method of your choice, as many insurance companies now offer multiple options, such as: phone, online, or even an app that allows you to file on the spot and add photos. In the case of minor damage, you may even be issued a check without an estimate!

Contact Information

You can access contact information for your insurance provider, as well as a host of other claims resources online. If you need help, or would like to review your coverage, call SAV-ON Insurance today at 888-867-2866 or request information online by visiting www.sav-on.com.

What is Rental Reimbursement Coverage (and Do You Really Need It?)

As you look through your auto policy documents, you might have seen a coverage called Rental Reimbursement. What is this? And do you really need it? 

Basically, Rental Reimbursement coverage is there to help you obtain a rental car while your car is unavailable due to a covered insurance claim.

For example, if you had a fender bender and your car is in the shop for a few days getting a new bumper.  Or after a major storm, you’ve got hail damage that needs to be repaired.

While the Car is Being Repaired, What Will You Drive?

That’s where Rental Reimbursement coverage comes into play. With this coverage, the insurance company will pay a certain amount per day (based on your policy) towards a rental car. That way, you’re not inconvenienced while the repairs are being made.

We highly recommend that you have this coverage, because if your car takes a week or more to get repaired you could save a considerable amount of money over being forced to rent a car without that coverage. However, there are a few situations where it might not be necessary.

Times When You May Not Need It

If you own multiple vehicles and could easily drive another while your car is in the shop, you may not need rental coverage.  And if you rarely drive your vehicle, don’t have a job that requires you to drive daily, and could easily stay home for a week and walk where you need to go, you may not need rental coverage either.

If you’re not sure what’s best for you, then give SAV-ON Insurance a call at 888-867-2866 to discuss exactly how much the coverage will cost you each month and what different levels are available.  We look forward to helping you choose the right insurance coverage! 

When is the Cheapest Auto Insurance Rate a Bad Idea?

So you’ve been shopping for auto insurance and have received several quotes.  There is a variety of companies, coverages, and prices.  Which one should you choose? 

A lot of people just pick the cheapest one and go with it immediately, but this can be a BIG mistake.  Let’s take a look at a few things to consider when comparing quotes.

#1 – Compare deductibles.  Review each quote and if a vehicle has comprehensive and collision coverage, look at what deductible is listed.  The deductible is the amount you will pay out of pocket before your insurance kicks in.  A higher deductible (like $1000 or $500) will result in a cheaper monthly premium.  Look and see if all of your quotes use the same deductible on each vehicle. 

#2 – Compare Liability coverage.  The liability coverage will be listed as Bodily Injury and Property Damage on your quote.  Look at the numbers and see if they are the same on each quote.  This is the total amount the policy will pay out if you cause an accident.  A higher number means more coverage and will cost slightly more.  Are all of your quotes using the same amount of liability coverage? 

#3 – Compare extras.  Next see what extras are in the policy.  Is there coverage for a rental car?  What about towing if you break down?  Does the policy forgive your first accident or offer other perks?  Make notes of all the extras for each quote.  Consider if these are things you need on your policy and make notes to ask additional questions if you aren’t sure what’s included.

Next step, get an apples to apples quote.  You can’t compare an apple to an orange right?  They’re totally different.  That’s why you only compare prices on insurance quotes that include the SAME coverage.  Call those companies back up and ask them to adjust the coverage as needed to get a better comparison.

Also, take into account the reputation of the company you are working with.  If you’ve never heard of the insurance company, ask for information from the agent about their rating in your state and how reliable they are in paying their claims.  A few extra dollars per month can be worth it for a reputable company that you can trust.  SAV-ON Insurance Agencies has been doing business for over 50 years in the state of Washington.

Have questions? Give SAV-ON a call today at 888-867-2866 for a free rate quote! When you refer someone to us, whether or not they buy a policy, we contribute to a local charity that raises funds to find a cure for cancer!

Also, make sure to visit our Facebook page and 'like' us. If you do, you'll be entered in our 'FB Like' contest, where you could win valuable prizes!

When Do I Need My Own Insurance?

We get a lot of questions from drivers in their teens and 20s about auto insurance when it involves being on their parents' policy or having their own.  When is it time for you to get your own policy?

There are Several Factors to Take Into Consideration: 

The first thing to look at is WHO lives in the household.  If you still live in your parents' home, then you can be listed as a driver on their policy, regardless of your age.  If you do NOT live in your parents' household, then you will need to obtain your own policy.

We also have to look at who is the titled owner of the vehicle.  If your parents own the car, they'll want it on their insurance OR they’ll need to be listed as an Interested Party on your auto insurance policy.  That means that if you were to quit paying on the policy and it canceled, they would be notified.  (As the owner of the vehicle, they could be held responsible if it was being driven without insurance.)

If you are the sole owner of the vehicle, it can only be added to your parents' policy if you still live in their household. If you live elsewhere, you must have your own policy.

(Some of these rules will vary depending on the age of the driver and if they are away at college or living out of state.)

This can all sound confusing, which is why we always recommend working with SAV-ON Insurance agency to go through the details.  We’ll make sure that your policy is set up correctly and that everyone is getting the best possible rate.

Call us today at 888-867-2866, text us at 206-592-6007 or visit www.sav-on.com!