Should I purchase the additional rental car insurance when renting a vehicle?

In short, yes. Even though your policy might have additional expense coverage and cover something that would happen to your rental vehicle. When you sign the rental form and take the keys from then you are saying that you will pay them back if anything happens to the car, along with other things. In the event of an accident, the company that you rent from might say that you caused them to lose out on some money while the car was being repaired. In that case you would have to pay that back to them. Other reasons would be, once a vehicle is in an accident it loses value. The rental company could hold you responsible for the value lost on the vehicle even though it was repaired. So we do say that it would be a good idea to pay the extra money for the insurance that they offer to you, even though you are covered through your policy with us at Baker Insurance Agency.

How do "points" affect car insurance rates, and when do insurance companies check driving records?

In most states, the motor vehicles department has a "point" system, which is used to track accidents and violations that affect your driving record. Insurance companies will order a copy of your driving history once you have purchased a policy, in order to confirm the information that you provided on the application. Your company may also check your driving record when your policy is scheduled for renewal. Each insurance company has its own method of evaluating applicants, so the points on your driving record may or may not have a direct impact on the rates you pay for auto insurance. And, you should know that only "moving violations" will affect your insurance rates. Parking tickets and other non-moving violations are not used by insurance companies. If a review of your driving record uncovers negative information, there's a chance your insurance rates will increase. Insurers typically use their own "point" system to determine the amount of the increase (if any).

My teenager just got his license. How can I insure him without going broke?

As you have probably discovered, insuring a teenage driver can be very expensive. Drivers under the age of 25 pose the greatest risk to insurers because of their high level of at-fault accidents. The least expensive option would probably be to add your teenager to your existing auto insurance policy once he gets his permanent driver's license (or whenever your insurer requires). Although this can still be an expensive prospect, your teen might be able to take advantage of certain discounts as a driver on your policy (e.g., Good Student, and Safe Driver, if eligible). If you drive an expensive vehicle, it will be even more costly to add your teen to your policy. In this case, you might want to help your son buy his own car (a safe but used economy model, of course) and insure it in his name, rather than add him to your own policy. Older vehicles generally pose less risk to insurance companies, because repairs tend to be less expensive than repairs to newer models. Lower risk for the insurer typically translates into lower insurance premiums for you.

To determine your most cost-effective option, compare some vehicles online or contact us at Baker Insurance. If you're thinking about purchasing a used car for your teen, be prepared with the make, model, and year of the cars you're considering. This way, you can get accurate, comparison insurance quotes, to help you decide whether to purchase separate insurance for your son or add him to your policy; they may also help you decide which car to purchase, if you go that route.

What information do I need to get a quote?

Your current policy is the best starting point for information like your current coverage and vehicle information. It might also help you remember the dates of any traffic tickets. Here's what we'll ask: General Information: Address and contact information, including email address. Vehicle Information: Make and model, annual mileage and ownership. Your Vehicle Identification Number (VIN) is helpful but not required for a quote. Driver Information: Age, education and occupation for each driver in the household. Incidents: This includes accidents, violations and claims in the last 5 years. Coverage: Name of current insurance company, policy dates and amount of coverage you wish to purchase.

Why do certain vehicles cost more to insure than others?

Insurance companies consider the likelihood that a particular vehicle will be stolen, vandalized, or involved in an accident. They also track the costliness of repairs. Insurance companies obtain their information by consulting various claim statistics. The Highway Loss Data Institute, for example, indexes the amount of money insurance companies have paid out (on average) for collision, injury, and theft claims for various types of motor vehicles. Therefore, the vehicle that is most attractive to thieves across the country will probably be more expensive to insure than the one that is stolen least often.

In addition to these industry wide statistics, insurance companies consider their own experience with claim payouts. For instance, if one company has paid numerous claims regarding a particular vehicle, it may charge higher insurance rates for that type of vehicle than another company would.