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Car Insurance Terms Explained

Car Insurance Terms Explained

Planning on getting new Central Oregon Car Insurance but you’re not exactly sure what the terms mean? You’re not alone.

Sadly, most people don’t understand the car insurance terms or conditions and the purchase the worst car insurance policies possible.

Thankfully, in this article we’ve broken down car insurance terms so you can be more knowledgeable when you start or change your policy.

  • Collision: If you’re in an automobile accident, regardless of who is at fault, collision insurance provides protection to replace or repair your vehicle, subject to a deductible.

  • Comprehensive: In the event of hail damage or a tree limb falling on your car (risks not involving an automobile collision), this coverage insures you. Comprehensive coverage pays to repair your vehicle, subject to a separate deductible.

  • Personal injury protection: This type of insurance coverage is for medical and other expenses resulting from an automobile accident for the people specified in the policy, regardless of who is at fault in the accident.

  • Medical payments: This feature provides a limited amount of coverage for you and your passengers’ medical expenses as a result of an accident. The coverage pays regardless of who is at fault.

  • Bodily injury and property damage liability coverage: The insurer agrees to pay damages if you injure someone or his property in an auto accident.

  • Uninsured and underinsured motorists liability coverage: If you’re in an accident with another driver who doesn’t carry any or enough liability coverage, uninsured or underinsured motorists liability coverage allows you to collect damages that you personally experience from the accident.

Get Car Insurance Here

For affordable Central Oregon Car Insurance contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online.

 

 

 

Planning on buying a car? Don’t forget to estimate car insurance

Planning on buying a car? Don’t forget to estimate car insurance

Even the savviest car shoppers often forget to estimate car insurance costs before buying.

The type of car you drive is one of the key variables car insurance companies plug into their formulas to determine how much to charge you. Depending on the vehicle, the cost of car insurance can vary by hundreds of dollars a year for the same driver.

That’s why it pays to get some initial car insurance quotes for models you’re thinking about buying. Along with gas mileage and maintenance costs, car insurance premiums are an important consideration when calculating the long-term cost of owning a car.

Methodology

For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits, 100/300 uninsured motorist bodily injury coverage limits, and collision and comprehensive coverages each with a $1,000 deductible. We included additional coverage if it was required by state law. We used a 2013 Toyota Camry in all cases.Our sample retired driver was 67 and drove 50% fewer annual miles than other groups, as did our sample low-mileage driver. Our sample young driver was 22 and carried the minimum required coverage. These are sample rates generated through Quadrant Information Services. Your own rates will be different.

Why some cars cost more (or less) to insure than others

Insurance companies charge varying premiums for different car models. Here are some of the vehicle characteristics that affect the cost of insurance:

  • Retail price — Generally, the pricier the car, the more expensive it will be to insure. Assuming you buy comprehensive and collision coverage, the insurance company will be on the hook to pay out the car’s market value if the vehicle is stolen or wrecked beyond repair.
  • Cost of parts — High-end models such as sports cars often use parts made from carbon fiber and other specialized materials that are expensive to repair, which drives up the cost of damage claims.
  • Safety — Over time, cars that do a good job of protecting drivers and their passengers bring down insurance costs. Fewer injuries means fewer claims for medical payments and personal injury protection.
  • Typical driver — Vehicles that tend to attract safe drivers — think minivans — are generally cheaper to insure. Safer driving means fewer wrecks, which translates into fewer claims for injuries and property damage.

How to get car insurance estimates

In your search for a car, follow these steps for estimating the cost of car insurance.

  • Narrow down your top choices for vehicles.
  • Decide how much coverage you need. If you’re buying a new car, include collision and comprehensive, which cover damage or loss of the vehicle. Your lender will require you to carry them if you finance the car. If you’re buying a used clunker with cash, you may not need collision and comprehensive.
  • Get quotes for the same amount of coverage for the vehicles you’re thinking about buying. NerdWallet’s car insurance comparison tool can help you get started. You don’t have to provide personal information to get initial estimates.
  • Average the three lowest quotes to estimate the cost of insurance for each vehicle.
  • Factor in the cost of car insurance to help you make a final choice. If you can afford a Porsche 911, you probably don’t have to worry about a few hundred dollars’ difference in premiums. However, it’s still a good idea to know how much car insurance will cost.

Get Car Insurance Here

For affordable car insurance contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online.

 

 

Paying too much for car insurance? Click here!
car insurance myths you need to know

car insurance myths you need to know

There are a lot of car insurance myths that continue to be spread around by consumers. One of the biggest reasons for car insurance myths is that you do not exactly know how your car insurance is calculated by your insurance company. These calculations are a closely guarded secret by most car insurance companies, but there are a few clues as to what makes our car insurance rates rise.

It is important when you compare car insurance rates to understand as much as you can about how your car insurance rates are calculated and to debunk the popular car insurance myths in order to ensure that you are saving money on car insurance as much as possible. For every six months of accident-free driving you can earn a check from Allstate Auto! Quote Now!

Top Car Insurance Myths

MYTH #1 – THE COLOR OF YOUR CAR DOES NOT MATTER

The color of your car does not affect the price you way for your car insurance premium. This is one of the most popular car insurance myths that continue to circulate throughout the country and across generations. But, the fact of the matter is that car insurance companies do not car what color your car is when they calculate your car insurance premiums. There are many many auto insurance leads that you can check out to compare insurance premiums.

Red cars do not equate to a higher insurance rate simply for the fact of being red. Car insurance companies care about their historical data on the likelihood that your make, model, and year of car will be damaged. They care about your history of driving and the likelihood that they will have to payout a claim against your policy more than anything else when determining the price they will charge you for your insurance premium.

MYTH #2 – SPORTS CAR DRIVERS ALWAYS HAVE HIGHER CAR INSURANCE

Owning a sports car does not automatically equate to having higher car insurance. Studies have shown that there are many other types of car classes, certain makes, and models that are much more costly to insure than sports cars.

Car insurance companies set car insurance premiums based on the cost and likelihood of a claim based on each individual person and the type of car insured. Some cars have historically higher repair costs and higher replacement parts costs that can significantly increase the cost of their insurance premiums.

MYTH #3 – YOU ARE RESPONSIBLE EVEN IF YOUR FRIEND IS DRIVING

For most car insurance policies, the insurance policy remains with the vehicle and not the driver. So, if you allow your friend or someone else to drive your car, you and your insurance company could still be still responsible for any damages or injuries from an accident.

Once your insurance policy has been maxed out, you may be able to tap into the driver’s insurance policy in the event of an accident with a lot of damage and loss. Do not make the mistake in believing the car insurance myth that you are not responsible when you loan your vehicle to someone. You and your car insurance could still be on the hook.

MYTH #4 – I’M COVERED IF MY CAR IS TOTALED

Your car may not be completely covered by enough insurance to pay off your loan if it is totaled. Often borrowers roll old car loans into new car loans, and most new cars depreciate significantly as soon as you drive it off of the car lot. This can create a gap between the true value of the car and the amount of money that you owe the bank on your car loan.

Almost all car insurance policies have a clause that they will only payout the cost of your vehicle. They will not pay the amount of your loan balance if your car is worth significantly less. You need gap insurance which is a separate and specific type of car insurance used just for this purpose. Gap insurance covers that gap between the amount your car insurance will payout and the rest of your loan balance on the car.

MYTH #5 – MY CAR INSURANCE COVERS MY RENTAL CAR

You need to check with your car insurance company before you rent a car to ensure that you have the proper car insurance clauses that cover rental cars on your insurance policy. Not all policies cover rental cars. It is not an automatic entitlement. You need to have it added to your current car insurance policy, and typically this is a very inexpensive provision to add to your policy.

Depending on the credit card you use, you may already have car insurance as a credit card benefit. Many credit card companies offer car insurance coverage for rental cars when you use their credit card. You should check to see if you’re covered for rental car insurance by your credit card.

MYTH #6 – ITEMS IN YOUR CAR MAY NOT BE COVERED

You may find that your personal property, like a laptop or cell phone, may not be covered under your car insurance policy. These types of items are typically excluded from your car insurance policy, and claims must be filed under your homeowner’s insurance or renter’s insurance. This may not be very cost effective though depending on your homeowner’s insurance deductible which often tends to be higher than a simple car insurance policy’s deductible.

Get A Car Insurance Quote Here

For an affordable Central Oregon Car Insurance quote contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online. 

How to Save More on Car Insurance With Online Quotes

How to Save More on Car Insurance With Online Quotes

BEND, Ore. – Are you tired of overpaying for car insurance? Thankfully you can start saving money on car insurance as early as today by getting an online quote.

Before choosing a car insurance policy based on an online quote alone make sure you follow these simple tips for choosing the right car insurance agency and getting a low car insurance premium:

  1. Do an annual rate check. Check rates from other companies to make sure you are getting the best deal. Many state insurance departments offer guides to available services, and while online you can find insurance comparison tools. Of course, personalized quotes aren’t immediate and often require a call back from an agent, but comparison shopping online can be a time-efficient way to find a better deal.

  2. Pick a top-rated insurer. When we last surveyed readers/subscribers on their auto insurers, we found that all rated companies did well, but some were better than others with dealing with claims, payments, and non-claim problems. See our full Ratings of car insurers.

  3. Maintain good credit. Regularly check your credit score since a low score may impact your premium.

  4. Set the right deductable. A higher deductible reduces your premium, but you have to pay more out of pocket in the event of an accident. If you have a good driving record and haven’t had an accident that was your fault, you may want to gamble and opt for a higher premium. The reward for this risk could be up to a 40 percent savings.

  5. Review your coverage. Check to make sure you have enough liability coverage for bodily injury and property damage. Over time, costs and risk increase, and so should your coverage. Simply put, minimal coverage gives you minimal protection.

  6. Report reduced mileage. If you’ve changed jobs, are now working at home, or have become unemployed, call your insurer. By driving less, you may qualify for a lower premium.

  7. Watch crash repairs. Check to see where your insurer sends you for repairs, as the repair shop may push you to use cheaper replacement parts, rather than original equipment from the manufacturer (OEM parts). Tests have found that some non-OEM parts can fit poorly, are more prone to rust, and don’t necessarily meet federal safety standards.

  8. Choose the right car. Vehicle damage and the cost for repair is a big part of the price of auto insurance. When looking for a new car, compare the data on collision by vehicle model. The Insurance Institute for Highway Safety (IIHS) has information and losses by vehicle model at www.hldi.org/research/hldi/composite_intro.html. Your car dealer should also have a booklet on relative collision insurance cost produced by the National Highway Traffic Safety Administration (NHTSA). Also, estimated insurance fees are part of the owner cost information Consumer Reports provides online for all new models.

  9. Beware of scams. Crooks can rip off drivers with staged accidents, which could result in an insurance claim against you. To avoid this unpleasant scenario, follow good driving practices and if you are in a crash, photograph the crash scene and always call police to report the incident.

  10. Take advantage of discounts. Discounts are available for drivers considered to be lower risk (older, married, and/or long safe driving record) or those who take a driver-training course. Anti-theft and certain safety equipment can also reduce your cost. Bundling insurance with auto and home is another option to consider, but check out the total costs with and without combining policies to see which scenario is cheaper.

Get A Car Insurance Quote Here

For an affordable car insurance quote contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online. 

Paying too much for car insurance? Click here!
Common Car Insurance Questions And Answers

Common Car Insurance Questions And Answers

It doesn’t matter if you have an existing car insurance policy, or if you’re are planning on getting car insurance for the first time, there are always common car insurance questions that need to be answered.

To save you the time and hassle of searching for answers to your car insurance questions online we’ve compiled a list of the most common car insurance questions and answers.

I’m Going to _______. Is It Covered?

Pull a parade float. As long as you are doing it as a volunteer and are not being paid, insurance will typically offer protection. In the event that something occurs, make sure you know how your insurance may help protect you. Read more >

Rent a car. A personal auto insurance policy typically extends to a rental car as long as you’re in the United States. If you pay for a rental car with certain credit cards, you may find they offer free insurance, according to the Insurance Information Institute (III). However, it’s important to review your insurance coverage to make sure you have the appropriate coverages in place before saying no to that extra insurance offered by the rental company. Read more >

Rent a car abroad. Typically, your own auto insurance will not cover you abroad. Every country has its own requirements. Before traveling you may want to contact your destination’s U.S. embassy to learn of any rental car insurance requirements. Read more >

Rent a moving truck. Some auto insurance policies may help cover a moving truck, but there may be certain exclusions depending on the truck size, according to the National Association of Insurance Commissioners (NAIC). Be sure to speak to your agent to know what size trucks are covered under your insurance policy. Read more >

Drive for a ride-sharing company. The NAIC explains that personal auto insurance may not cover you if you use your car for business purposes. There may be gaps in what your personal car insurance covers and what the ride-sharing company’s insurance covers. Some personal auto insurers do offer optional coverage, however, to help fill those gaps. Read more >

Does Car Insurance Cover …

Hail damage? Typically, the answer is yes, if you have comprehensive coverage. Comprehensive coverage may help pay to repair dents in your car, broken windshields and even interior water damage caused by hail. Read more >

Pothole damage? Generally, collision coverage may help pay for damage to your vehicle caused by hitting a pothole, but car insurance policies typically do not cover normal wear and tear to tires due to potholes. Read more >

Windshield damage? Your insurance may be able to help if you have comprehensive or full glass coverage. These coverages may help pay for the costs of repairing or replacing your windshield. Read more >

Tree damage? If you have comprehensive coverage, insurance may help pay to repair or replace your vehicle, as long the damage doesn’t exceed your car’s worth. Read more >

Hitting a deer? Typically, damage to your vehicle after hitting a deer is considered a covered loss under comprehensive coverage. Read more >

Squirrel damage? If a squirrel chews on your car’s wiring, comprehensive coverage may help pay for repairs. Read more >

A hit-and-run? Auto insurance may help protect you if you’ve been hurt or your car has been damaged in a hit-and-run. Collision coverage may help pay for car repairs after a hit-and-run. Uninsured and underinsured motorist coverage and medical payments coverage may help cover your medical bills after a hit-and-run. Read more >

Catalytic converter theft? Typically, comprehensive coverage may help cover the theft of car parts. Read more >

A stolen car? Comprehensive coverage typically helps cover losses such as theft. In the event your car is stolen, call the police and file a report, notify your insurance company after you’ve filed the report and if your car is leased or financed you should notify the lender. Read more >

A friend wrecking my car? If your friend was involved in a wreck while driving your car, typically your insurance policy (not his) would likely be tapped to pay for damage or injury costs resulting from the accident. However, the way this plays out depends on the specific coverages and limits of your insurance policy. Read more >

Keep in mind that the coverage you may receive will depend on the type of auto policy you have. In the event of an accident, note that you may be required to pay a deductible in order for your coverage to fully kick in.

If you’re unsure what your car insurance policy covers, or what types of protection you may need, talk to your local agent. That way you can be prepared for future plans as well as accidents or damage.

Get Car Insurance Here

For affordable car insurance contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online. 

 

 

Allstate Insurance Co. logo. (PRNewsFoto/Allstate Insurance Co.)
What Does Central Oregon Car Insurance Actually Cover?

What Does Central Oregon Car Insurance Actually Cover?

If you’re like most drivers who have car insurance you also want to know what your Central Oregon Car Insurance actually covers because in the event of a car accident or injury you want to know how your car insurance protects you when you need to use it.

In this article, we will provide you with a breakdown of what your Central Oregon Car Insurance covers so you can be better prepared for the next time you get behind the wheel.

What Central Oregon Car Insurance Covers

Hail damage? Typically, the answer is yes, if you have comprehensive coverage. Comprehensive coverage may help pay to repair dents in your car, broken windshields and even interior water damage caused by hail. 

Pothole damage? Generally, collision coverage may help pay for damage to your vehicle caused by hitting a pothole, but car insurance policies typically do not cover normal wear and tear to tires due to potholes. 

Windshield damage? Your insurance may be able to help if you have comprehensive or full glass coverage. These coverages may help pay for the costs of repairing or replacing your windshield. 

Tree damage? If you have comprehensive coverage, insurance may help pay to repair or replace your vehicle, as long the damage doesn’t exceed your car’s worth. 

Hitting a deer? Typically, damage to your vehicle after hitting a deer is considered a covered loss under comprehensive coverage. 

Squirrel damage? If a squirrel chews on your car’s wiring, comprehensive coverage may help pay for repairs. 

A hit-and-run? Auto insurance may help protect you if you’ve been hurt or your car has been damaged in a hit-and-run. Collision coverage may help pay for car repairs after a hit-and-run. Uninsured and underinsured motorist coverage and medical payments coverage may help cover your medical bills after a hit-and-run. 

Catalytic converter theft? Typically, comprehensive coverage may help cover the theft of car parts. 

A stolen car? Comprehensive coverage typically helps cover losses such as theft. In the event your car is stolen, call the police and file a report, notify your insurance company after you’ve filed the report and if your car is leased or financed you should notify the lender. 

A friend wrecking my car? If your friend was involved in a wreck while driving your car, typically your insurance policy (not his) would likely be tapped to pay for damage or injury costs resulting from the accident. However, the way this plays out depends on the specific coverages and limits of your insurance policy. 

Keep in mind that the coverage you may receive will depend on the type of auto policy you have. In the event of an accident, note that you may be required to pay a deductible in order for your coverage to fully kick in.

Get Central Oregon Car Insurance Here

For affordable Central Oregon Car Insurance contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online.

what happens if my car insurance is cancelled due to nonpayment?

what happens if my car insurance is cancelled due to nonpayment?

What happens if you are late making auto insurance payment? While the rules vary from state to state and by provider, it is safe to say that paying your insurance premium on time should be a priority.

This page will go over what common consequences for nonpayment of premium.

Car Insurance Payments: How Late Is Too Late?

While there are many car insurance companies who won’t cancel your policy after one or two days, most often they will have the right to. You may get a notice that tells you your payment is late and will be canceled on a specific date if payment is not received.

If your auto insurance provider does elect to cancel your policy right away – for example due to a history of late payments – don’t count on them reinstating the policy once the premium is received. You may find yourself looking for a new car insurance company.

You may also face higher premiums in the future, as insurance companies base your rates on perceived responsibility and risk. Making late payments signals to your car insurance provider that you present increased risk to the company.

What About Grace Periods?

Whether to offer a grace period is up to the provider, but in most states, car insurance companies are under no obligation to extend extra time for payment of the premium.

If you are afforded a grace period, you will likely pay for it in late fees, effectively raising the overall cost of your policy. It is better to assume there is no grace period and pay by the due date.

Get Central Oregon Car Insurance

For affordable Central Oregon Car Insurance contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online.

Why Is Gap Car Insurance Important?

Why Is Gap Car Insurance Important?

If you have taken out an auto loan or lease before, you may have been recommended gap insurance. Gap insurance, or gap coverage as it is called sometimes, is essentially a debt termination agreement you purchase to cover the cost of totaling a loaned or leased car. Sometimes accidents happen, and sometimes they are particularly bad. If you total a car, there is no way to repair it, and if you have collision insurance on your policy your insurance company reimburses you for the cost of the car. The amount you are reimbursed however is the value of the car at the time of the accident. When you lease or loan, you are paying for the value of the car when you first get it. It is highly likely your car would have depreciated, or lost value, significantly by the time you total it. The difference between the value of the car when you bought it, and the value at the crash is the ‘gap’, and gap insurance pays for it.

Should You Get Gap Insurance?

Not everyone needs or should have gap insurance. If you completely own the car you drive, there is no need for gap insurance. Only those who finance or lease their car should have gap insurance, and even amongst those drivers, only a certain few should buy gap insurance. Gap insurance is meant for drivers who take out a loan that is close to the value of the entire car, take out a long loan/lease, do not put any down payment and/or your car is worth a lot of money. If one or more of those conditions apply to you, you should strongly consider gap insurance. The reason being, all of those profiles make it likely for a driver to be ‘upside down’ on their car payments.

To be ‘upside down’ on a car payment means you currently owe more than what the car is actually worth. That may seem counterintuitive, after all, how can a loan or lease become worth more than the car? The answer is depreciation. New cars can lose as much as 30% of their value in the first year. If you have a five year loan on the other hand, you likely would have only paid off less than 20% of it within a year. Simply, your car loses value faster than you can pay back your lease or loan. As time goes on that gap widens. Drivers with a large loan close to the value of car make it more likely to be upside down. As well, if you take a long loan, your monthly payments tend to be smaller, meaning you are paying back your loan slower. 

Learn More About Gap Car Insurance Here

Get Gap Car Insurance!

For the lowest rates on gap car insurance contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online

 

The Car You Drive Can Be Driving Up Your Car Insurance Rates

The Car You Drive Can Be Driving Up Your Car Insurance Rates

Whenever you fill out a car insurance quote form your company asks for a bunch of info, the type of car you drive being one of them. If you drive a luxury sports car, you are probably going to be paying more than someone who drives a Toyota Camry. To the insurance companies, pricing is all about risk. In their eyes the person who drives the sports car is going to be riskier than the one in the Toyota Camry. So how much of a difference does it make?

The Models That Cost the Most to Insure

In an analysis of about 70 of the most popular car models in the U.S. we found that cars like the Chevy Camaro and Acura MDX were toward the more expensive end to insure. About 13% more expensive than the cheapest model, a Toyota Tundra. Other cars which may be surprising were also on the more expensive side of the rankings. Cars like the Ford Fiesta, and Honda Fit were in the top 5 most expensive cars to insure in our study. So why are these cars more expensive? It all comes down to actuarial science.

Actuarial science is the science of risk. Insurance companies employee these large and complex formulas to determine who is most likely to get into an accident, thus costing the insurance company money. When drivers of a certain car keep getting into accidents, all drivers of that car may have to start paying more to insure that vehicle. We found there was actually only a slight correlation between the value of a car and how much it cost to insure. In addition to accidents, a relevant factor was how often the eyes of thief fall on a car. A stolen car is very expensive to replace, and cars that get stolen often are usually more expensive to insure. The Honda Accord for example, though an averaged price car, is stolen often, most likely leading to it being one of the more expensive cars to insure.

Learn More Here!

Get Affordable Car Insurance!

For an affordable car insurance quote contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here.

 

3 Things You Need To Know About Central Oregon Car Insurance

3 Things You Need To Know About Central Oregon Car Insurance

Are you thinking about buying Central Oregon Car Insurance? If so, you’ve come to the right place! In this article, we will provide you with 3 things you need to know about car insurance so you will be better prepared before you purchase it.

#1 – The Color of Your Vehicle Doesn’t Matter When You Buy Central Oregon Car Insurance

Although it’s one of the most common car insurance myths the reality is that the color of your vehicle doesn’t matter when you get Central Oregon Car Insurance because insurance companies always quote a policy based on things like your driving record, age, job, accident history, previous history of car insurance and marital status.

#2 – How You Use Your Car or Truck Will Affect Your Car Insurance Policy

How often do you drive? What will you use your vehicle for? These are questions you will be asked when you apply for Central Oregon Car Insurance because, how you use your vehicle will ultimately affect how much money you’re going to pay each month for your car insurance policy especially if you use your vehicle for work or side jobs like deliveries.

central oregon car insurance

#3 – Your Car Insurance May Not Cover Everything

Last of all, but most important, your car insurance may not cover everything since the type of coverage you choose will only provide you with a set amount of coverage for collision, personal property damage, medical payments or damage from uninsured motorists so if you have significant assets that you can’t afford to lose, especially if you get into a car accident, it’s best to work with an agent who specializes in Central Oregon Car Insurance so they can answer all of your questions and help you choose the best insurance policy.

Get Central Oregon Car Insurance

For affordable Central Oregon, Car Insurance contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online.

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