Insurance Basics: How to Choose an Auto Deductible

Deductibles are a big part of your insurance policy and it’s important to know what they mean and to choose the right amount.  Let’s talk about the basics!

The collision and comprehensive coverage on your vehicle will each have a deductible listed. The deductible is the amount YOU will pay out of pocket if you have an accident before your insurance kicks in.

So, if you choose a $500 deductible and have an accident, then you are responsible for $500 and your insurance will cover the rest (up to your policy limits). If you don't already know your policy limits, ask us for specifics. Deductible options vary from $1000, $500, $250, to as low as $50 in some cases.

So how do you choose the right one for you?

First, it’s important to see how your deductible affects your rate. The lower amount you pay out-of-pocket after an accident, the higher your insurance premium.  This means you’ll pay more each month for insurance if you choose to pay less after a claim.  We can quote your policy with different deductibles to give you an idea of the cost range.

Second, you want to look at your savings.  If you have a good amount of emergency savings and could easily pay out $1,000 after a claim, then you would probably want to look at a higher deductible in order to save money very year on your premiums.  On the other hand, if you have very little savings and couldn’t pay out that much after a claim, you might want to look at a slightly lower deductible that stills fits in your budget.

And finally the best option - ask your agent for help!  We can sit down and explain ALL the options, rates, and discuss your personal situation in detail.  This way you know that you’ve got the best coverage at the best possible rate.  Call SAV-ON Insurance today at 888-867-2866 for a free rate quote!

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AfrikaansAlbanianArabicArmenianAzerbaijaniBasqueBelarusianBengaliBosnianBulgarianCatalanCebuanoChichewaChinese (Simplified)Chinese (Traditional)CroatianCzechDanishDutchEnglishEsperantoEstonianFilipinoFinnishFrenchGalicianGeorgianGermanGreekGujaratiHaitian CreoleHausaHebrewHindiHmongHungarianIcelandicIgboIndonesianIrishItalianJapaneseJavaneseKannadaKazakhKhmerKoreanLaoLatinLatvianLithuanianMacedonianMalagasyMalayMalayalamMalteseMaoriMarathiMongolianMyanmar (Burmese)NepaliNorwegianPersianPolishPortuguesePunjabiRomanianRussianSerbianSesothoSinhalaSlovakSlovenianSomaliSpanishSundaneseSwahiliSwedishTajikTamilTeluguThaiTurkishUkrainianUrduUzbekVietnameseWelshYiddishYorubaZulu

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What Does 'Full Auto Coverage' Really Mean? (You May Be Surprised)

Confusion abounds about what 'full coverage' means, especially with new drivers. Many new drivers aren't sure what constitutes full coverage, and they want to know if they have 'full coverage' or 'liability only' on their auto insurance policy.  Unfortunately, there is no such thing as full coverage insurance!

Here’s the problem --  'full coverage' has become a common term in the insurance business, but it can mean lots of different things.  If a bank tells you that you need full coverage, they typically mean Collision and Comprehensive coverage.  But you might think that 'full coverage' means you have every kind of insurance coverage for your vehicle. That is not the case.

Collision and Comprehensive Insurance

Collision and Comprehensive are commonly used auto insurance terms, but they are only basic coverages. Collision is what fixes or replaces your vehicle if you have an accident. Comprehensive is what fixes or replaces your vehicle after storm damage, theft, vandalism, or other situations that don’t involve an accident. Both have deductibles that require you to pay a certain amount of the repairs.

These two coverages are usually required by lenders and are sometimes called 'full coverage'.  But there are other things you may THINK you have when you say full coverage, that aren’t included, but are very important!

One of those items is Rental Reimbursement.  This is the coverage that supplies you with a rental car while your car is in the shop for repairs due to a claim.  Without it, you pay out-of-pocket for a rental car all the while your car is being repaired. This could cost you hundreds or even thousands of dollars!

Another is Towing coverage, which tows your vehicle if it breaks down or even runs out of gas.

Another important coverage that is only pennies a day is Uninsured Motorist. If you are hit by a driver who has no insurance coverage, you may have to pay for the repairs yourself! Even though auto insurance is mandatory in Washington, many drivers either choose to go without it, have let it lapse, or cannot qualify for it due to previous accidents or citations. Without insurance, the other driver may not be able to afford the repairs on your vehicle. If there are injuries involved, that makes it even worse! If the driver doesn't have the financial ability to pay, your insurance company will not be able to collect and it will have to come out of your own pocket. With Uninsured Motorist coverage, you are covered (up to the amount of the policy).

So what should you do to make sure you’re protected?  The best recommendation is to work with your local SAV-ON agent, who can sit down and review your coverage line-by-line.  They’ll explain each item, make suggestions for gaps you may have in your coverage, and make sure that you know EXACTLY what you’ve got!  No more vague 'full coverage' nonsense.  Call us today at 888-867-2866 for a quote or to review your current policy!

Essential Winter Driving Tips

Now that we're in the grips of a particularly wet, cold winter, it's important to remember that it poses many driving challenges. Western Washington has lots of hills and steep grades, which cause treacherous driving conditions when combined with cold temperatures. Please slow down in these conditions!

Water from our frequent rains can turn to ice, and a thin layer on the roadway that can't be seen -- aptly named 'black ice' -- can, without warning, cause your vehicle to slide out of control. Since drivers don't see the danger, they're usually driving faster than the conditions allow.

Then, when we get even a thin layer of snow, roads quickly turn hazardous! Combining hilly roads with a lack of snow-removal equipment, snow gets packed down and becomes icy. Since drivers in Western Washington don't get much practice at driving in the snow and ice, you end up with a serious traffic problem!

But, you can make it through unscathed by adhering to a few important winter driving tips!

Top 10 Driving Tips:

1. Winterize your vehicle - Check your battery, front and rear defrosters, fill up the washer fluid and antifreeze, inflate your tires to the correct pressure, and keep your gas tank at least half full to avoid frozen fuel lines.

2. Clear your windshield - Never pour hot water over the windows to melt the ice and snow. This will typically shatter the windshield. Use a plastic scraper to avoid scratching the glass and use the front and rear defrosters to melt the ice. Avoid using your windshield wipers until after all the ice and snow have been removed.

3. Don't just clear your windshield - Don't forget to clear all of the other windows, as well as the roof, hood, mirrors, headlights and tail lights, license plates and the exhaust pipe. This will prevent accumulated ice and snow from becoming an airborne hazard for other drivers.

4. Keep a survival kit in the car - Blankets, water-proof boots and gloves, hats, and any necessary medications should be carried in the car. Keep a small shovel, jumper cables, and something that could be used for traction (e.g. cat litter, sand, etc.) in the car as well.

5. Test your limits in a safe environment - Take your car to a familiar, empty parking lot near your home after a rain, snow or ice storm. Practice emergency stops and turning at a safe speed. Be sure and watch out for light posts, curbs and parking barriers to avoid any damage to your vehicle.

6. Warm up the car the right way - To avoid carbon monoxide poisoning, never attempt to warm up your car in an enclosed area. Even when outside, be sure to clear your exhaust pipe before running your car.

7. Pump your brakes at the right time - If your vehicle is equipped with an Anti-lock Braking System (ABS), you should depress the brake pedal completely and keep it depressed. The ABS will rapidly pump the brakes for you in most situations if at least one wheel is still turning. If all four wheels have stopped turning and the vehicle is still sliding on ice, you should pump your brakes as the ABS has failed.

8. Drive in the existing tracks - To help traction, try to stay within the pathway already dug by other vehicles' wheels. If you end up stuck, remember to keep your wheels as straight as possible and don't just continue spinning your tires. Spread sand or cat litter around your tires and along the path you plan on taking. In a pinch, you can also use your floor mats for traction.

9. Don't turn while braking or accelerating - In rain, snow and ice, attempt to slow down before a turn and accelerate slowly after the wheel has already turned.

10. Catch a skid - If you do start skidding, stay calm! Don't slam on the brakes, don't hit the gas pedal. Turn your wheel smoothly in the direction that you intend to travel. You should be able to regain control of the vehicle once it has slowed enough to regain traction. Don't turn the wheel too much, a little goes a long way and you don't want to be pointed in a dangerous direction if traction returns suddenly.

Whatever your predicament, SAV-ON Insurance Agencies is there to help. We'll work with your insurance company to make sure you get back on the road again as soon as possible! Call for a free rate quote today at 888-867-2866.

Why You Need Renters Insurance

You finally moved out! Your new apartment or rental house is awesome, and you feel pretty good about living on your own. But, even though you don't own, you need to protect your belongings.  It’s time to learn more about renters insurance! 

Homeowners insurance covers the house itself and the items inside. 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, laptop, phone, 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 will approve the lease. 

So if you’re renting, it’s time to look at protecting your valuables.  Give SAV-ON a call today at 888-867-2866 and ask for a no-obligation quote on renters insurance.  And, while you're at it, find out how much you’ll save on your auto insurance, too!

How to Choose the Best Auto Insurance Deductible

When quoting auto insurance for clients, we frequently discuss how to choose the right deductible.  We thought it would be a good idea to take a few minutes to share this information here on our website too!

What is a Deductible?

A deductible is the amount you pay out-of-pocket when you have a claim.  If you have a $500 collision deductible and have an accident, then you would pay $500 towards repairing your vehicle and your insurance would cover the rest.

The deductible you choose directly relates to the amount of money you spend on premiums each month.  The higher the deductible ($250, $500 or $1,000), the lower your monthly cost. 

So How Do You Choose? 

Cheaper price or lower out-of-pocket expense?

First, look at your emergency savings.  Do you have enough cash available to cover a higher deductible if you needed to pay it?  If the answer is no, then you’re better off paying a little extra each month.

Compare the cost savings.  When we run a quote, we can show you several different options.  Ask your agent to run the premium based on several different deductibles so you can see the actual dollar cost savings.

You can always change your mind.  If you’re short on cash now, but know you could afford more out-of-pocket next year, you’re always able to change.  Keep your deductible in a comfortable range and you’ll always be well protected! 

Questions? Call SAV-ON Insurance at 888-867-2866 for more information and a personalized quote. We're here to help!

'Back to School' Insurance

School supplies and clothes have been purchased and schools are in session in most cases. If you're heading off to college, it's coming up quickly.  What does that have to do with insurance? Here are a few things to keep in mind:

Good Grades - Many policies allow discounts for students with good grades. It's important  to keep those grades up! These discounts can apply to college students too.

Driver Training - There are different discounts available for Drivers Education classes. At SAV-ON, we can review all the options and let you know which discounts will impact you the most.

Moving To The Dorm - If you're in college, will you be living in the dorm this semester? Your parent's homeowners Insurance may cover your belongings without additional coverage being needed. This is called Property Off Premises coverage. Discuss this coverage with your parents, and if they need clarification, call us.

Remember, any claims would be subject to the deductible which is usually higher on home policies! Have your parents contact us for a policy review to check for the specific amounts of coverage included.

Moving To An Apartment - If you have recently graduated and from the dorms to an apartment, your parent's homeowners Insurance will not cover your belongings and they would need their own renters Insurance policy.

Renters Insurance is very affordable, and covers all of the contents of the property. It also provides liability insurance if someone were injured in the property or if someone caused a fire, etc. By making sure you are properly insured, your parents are also protecting themselves from any liability.

We work hard to make sure all of our clients have the right coverage at all times. The fastest and easiest way to make sure you are receiving all the discounts you qualify for and that your belongings are covered at college is to have your parents schedule a review! Have them call SAV-ON Insurance at 888-867-2866 to review their policy and situation and we'll make sure all of your questions are answered!
 

Affordable Car Insurance for Teenagers

Do you have a teenage driver (or one soon to be)?  Back-to-school time is a great opportunity to think about car insurance savings!

Having a teenage driver can be stressful.  You worry, first and foremost, about their safety and then about the costs.  And there are a lot of costs!  Things like purchasing an additional vehicle, getting licensed, and paying more -- in some cases, considerably more -- for insurance are just a few. 

Fortunately, you still have options.

First, you want to think about the vehicle your teen will be driving.  Premiums are higher on vehicles with comprehensive and collision coverage, which pays to fix your vehicle after an accident.  When you have a car that has only liability insurance (which pays only for damage your driver does to someone else’s car), you pay a lot less.

Don't Buy New. If you are purchasing a car for your teen and need to watch your budget, consider buying an older reliable model for cash that will not require comprehensive and collision coverage.  We can help you weigh the cost and the risk to see if it is a good option for you.

Look for Discounts. You also want to take advantage of all available discounts.  These vary by policy but typically include a discount for driver's education and one for having good grades.  With school starting soon, it's a great time to setup an incentive plan with your teenager to make sure they keep those grades up and your premiums low!

Put Them on Your Policy. Putting them on your insurance policy will raise your rates, but will keep it lower than if they have their own policy. If you're paying their insurance, this will save money. If, on the other hand, you're having them pay for their own insurance, then have them pay you the difference between what you were paying before and what you now have to pay. This keeps your rates the same and teaches your teen some responsibility, too. They'll drive more carefully when it will cost them, too.

Still have questions?  Call SAV-ON Insurance at 888-867-2866 to review your current policy and look for ways to help you manage the cost of having a teenage driver.