If I file a claim on my car insurance, will the company raise my rate?

Why do I need to get my auto Insured?

What is considered a "California Good Driver"?

My license has expired. Am I considered a "California Good Driver"?

What is the "Califiornia Good Driver" discount?

What constitures a driving record point?

If I file a claim on my car insurance, will the company raise my rate?
That depends on where you live.  In some states, an insurer may eliminate your safe-driving discount. Or a company might raise your rate if the damage passes a certain dollar threshold. Sometimes an accident will be overlooked if you've been with the company for a certain number of years and have a clean record.

Also, the size of any rate increase can vary.  Companies usually charge more after accidents that involve drunk driving, expensive claims or multiple claims within three years. Even if you aren't at fault, a company may raise your rate if it decides that you have been involved in too many accidents. Some states, including Massachusetts, New Jersey and Texas, set specific limits on rate increase.

Should you even file a claim? Definitely, if another car is involved, or if someone else was in the car with you when the accident occurred. Your insurance company could hear about the accident later, so get your side of the story on the record. Otherwise, if the cost of repairs is close to your deductible, consider keeping mum and paying the bill yourself.

What is the "Califiornia Good Driver" discount?

It is a 20% discount of the company's base rate.

Health Insuarnce

Home Owners Insurance

If I file a claim on my homeowners insurance, will the company raise my rate?

It might. But with the insurance industry forecasting that premiums on homeowners insurance will rise an average of 9% this year, it would be hard to tell if your increase was the result of submitting a claim.

However, you stand to give up a 5% to 35% discount you may have earned for having a claim-free history. And more worrisome is the possibility that the insurer will drop you when your policy comes up for annual renewal. A history of repeated claims — as few as two over the course of two or three years — could prompt a company to dump you. So think twice before filing a claim that's close to your deductible if you can afford to cover the loss out of your own pocket.

How much property coverage do I need if I'm renting?

The amount of personal property coverage you need depends on how much your property is worth.

You may think your things aren’t worth much, but the average person has over $20,000 worth of stuff. Stuff that’s probably not covered by a landlord’s policy. This chart shows an example of typical personal property replacement values for a two-bedroom apartment. Your values may run more or less.

Take inventory

1. A great way to determine how much coverage you need is to take a complete inventory of your possessions:
2. List each item, when you acquired it and the purchase price or current value.
3. Total up the amounts of these items to give you a rough idea of what your property is worth.
4. Once this is done, put your inventory in a safe place away from home -- for example, in a bank safe deposit box.
5. Consider adding photos to your inventory -- they can help if you have a claim.
   

We can help you approximate the amount of personal property coverage needed.

Something else to keep in mind
Coverage for certain types of property has a dollar limit. Here is a typical list of the types of property that may have "special limits" in a renters policy:

• Money, bank notes, coins
• Business property (on and off premises)
• Securities, negotiable instruments
• Watercraft, including trailers, furnishings and equipment
• Trailers (other than boat trailers)
• Jewelry and furs
• Firearms (limitation applies to theft only)
• Silverware and goldware (limitation applies to theft only)
  
  If you have this type of property, you may need special coverage -- either an endorsement or a personal articles policy. Ask us about these items.

General questions to ask yourself regarding your renters insurance needs

• How much are my belongings worth?
• Can I afford to buy it all back again if it were destroyed in a fire or stolen?
  
  

Why do Fire and Homeowner insurance premiums change?

Fire and Homeowner insurance premiums change for the same reasons that the price of other goods and services you buy changes.
The cost of the goods and services that insurance companies must buy affect the prices the companies charge. Costs affecting the ultimate price of fire and homeowner insurance are:

• Costs of building materials and labor
  
• Costs to replace appliances, furnishings, etc.
  
• Costs to adjust claims
  
• Inflation
  

Although insurance companies can't directly control these costs, we regularly monitor them to see how they are affecting the costs of the claims we pay. As they change, fire and homeowner premiums must be adjusted. These costs can affect your insurance premium whether or not you have had a loss and filed a claim.

Sometimes the amount of homeowner insurance coverage changes

Replacement cost is the cost to build your home in its current location, from the ground up, with the going rate for construction taken into consideration. It does not mean the amount you paid for your home, the amount of your mortgage or your home's market value. All of these include the cost of the land on which your home stands.

The cost to rebuild a home varies as the local costs of construction vary. Our Underwriters work with local businesses to keep track of the latest construction and labor costs in our area. It provides us with the estimated minimum insurance amount we use in accordance with the terms of your policy.

The cost to rebuild a single home will not reflect the costs of brand new home construction where the builder enjoys economies of scale for construction. As the construction costs change, we must adjust the amount of insurance coverage on your home, too.

For your own peace of mind, you will want to be sure that your home is adequately insured. Let us know if you are remodeling or adding to your home so that the insurance coverage amount includes the value of the new construction.

We can't tell you in this brief message why your individual premium may have changed - give us a call or send us a message if you have any questions after reading this.

What can you do to help control your fire and homeowner insurance costs?

There are a few easy steps that you can take to reduce your risk:

Review your fire and homeowner insurance coverages with us as well as the rest of your insurance needs.

Keep your home or property in good repair - from the roof to the basement, inside and outside.

Check the water supply lines to sinks, washing machines, etc. at least once a year and replace them if there is any evidence of deterioration.

Help prevent fires by trimming back trees and brush, keeping flammables away from open flames and pilot lights, and replacing appliances with worn cords.

Check your smoke alarms monthly to be sure they are in good working order.

We would be happy to answer any additional questions you may have.

Send us your question

What can you do to help control your fire and homeowner insurance costs?

There are a few easy steps that you can take to reduce your risk:

Review your fire and homeowner insurance coverages with us as well as the rest of your insurance needs.

Keep your home or property in good repair - from the roof to the basement, inside and outside.

Check the water supply lines to sinks, washing machines, etc. at least once a year and replace them if there is any evidence of deterioration.

Help prevent fires by trimming back trees and brush, keeping flammables away from open flames and pilot lights, and replacing appliances with worn cords.

Check your smoke alarms monthly to be sure they are in good working order.

We would be happy to answer any additional questions you may have.Send us your question