License, registration and insurance, please.
Now there’s a line nobody likes to hear! Insurance premium hikes are practically guaranteed as the result of a traffic infraction or auto collision. Daniel McLean of Farmers Insurance was kind enough to give us some sage advice about getting adequate coverage, keeping insurance rates low, and staying safe on the road.
But first: pop quiz! What is the most expensive traffic violation in Colorado?
While “DUI” might be a common assumption, in terms of insurance rate hikes, Hit and Run and Racing are actually higher. Hit and Run is the most costly, followed by Racing, then DUI.
While those might be the most costly, any driving violation is likely to have an impact on your insurance premiums, with increases as high as 73%!
Driver age also determines insurance premiums. In fact, 16 & 17 year-old drivers are the most likely to be involved in an auto-crash. Teen drivers cause more injuries and deaths than any other age group. For this reason, it is more expensive to insure teen drivers.
Training courses and choosing a reliable and safe pre-owned vehicle is a great way to offset the high insurance premiums. Some of the least expensive vehicles to insure are Ford Transit Connect, Jeep Compass, Ford Escape, and Subaru Outback.
Cost-conscious drivers also opt for higher deductibles and bundle with a home or renters policy. High credit scores, good grades, and mobile apps that reward safe driving habits can also reduce your rates.
Working with a trusted local agent also has many advantages. They will spend time getting to know you and your financial situation. They can offer the best coverage specific to your needs. This can save you money on premiums, but more importantly ensure that you have adequate coverage before problems arise.
Daniel shared one situation where he was able to help a client avoid potential bankruptcy – “I insured a client for $250,000 of Unisured/Underinsured liability coverage. He was hit head on by a distracted driver and needed a medi-vac flight to get to the hospital. The negligent driver was only covered for state minimum ($25,000) which didn’t cover the medi-vac flight ($40,000+). That’s when his Uninsured/Underinsured coverage kicked in and paid $250,000 towards his medical bills, saving him from financial catastrophe.”
Making wise insurance choices now can make all the difference when the unthinkable happens. Take a look at your policies, and contact a local agent to help review them to ensure you and your family have adequate protection. Your future self may thank you!
