Insurance Agency | Massachusetts | C. Pina Insurance Agency - Blog #Auto Insurance

Decoding the Surge: Understanding the Factors Behind Rising Insurance Rates

Mon, 10 Jun 2024 17:05:45 -0400

A comprehensive guide on why insurance rates are increasing, including the historical trends, factors fueling the escalation, state-specific variations, and strategies for consumers to mitigate rising insurance costs.

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Factors Fueling Auto Insurance Rate Escalation
Repair Costs and Labor Shortages

Labor shortages in the auto industry have had a significant impact on repair costs, creating a ripple effect on insurance premiums. The correlation between increasing car repair costs and the overall spike in auto insurance rates underscores the challenges faced by insurers and policyholders. As labor shortages lead to higher labor costs, they become a contributing factor to the surge in insurance prices, highlighting the interconnected nature of the insurance ecosystem.

Moreover, let's delve into the insights provided by the TechForce Foundation, shedding light on the implications of labor shortages and supply chain disruptions in the auto industry. Understanding these dynamics can offer a comprehensive view of the challenges driving up insurance costs and the need for innovative solutions to address these issues effectively.

Vehicle Technology Advancements

Advancements in vehicle technology, such as sophisticated safety features and repair complexities, are driving up insurance costs. Insurers must adapt to these new technologies, which not only impact coverage requirements and claim settlements but also reshape insurance underwriting practices and risk assessment models. The evolving landscape of vehicle technology presents both opportunities and challenges for the insurance industry, requiring a proactive approach to stay abreast of these developments.

For a real-world example, let's look at the case of Alex, whose new car comes equipped with advanced safety features. While these technologies enhance Alex's driving experience, they also influence his insurance premium due to the increased repair and replacement costs associated with these cutting-edge features. Alex's situation highlights the impact of vehicle technology advancements on insurance rates and the need for insurers to adapt to these changes.

State-Specific Variations in Insurance Rate Trends

When delving into the state-specific variations in insurance rate trends, it becomes evident that the regulatory landscape plays a significant role in shaping the cost of insurance premiums. For instance, states like Nevada, experiencing the highest jump in insurance rates at 38%, are influenced by specific insurance pricing strategies tailored to local market conditions. These tailored approaches highlight the nuanced factors driving the surge in insurance rates, such as repair costs, labor shortages, and legal representation expenses, all of which contribute to the overall increase in premiums.

Furthermore, let's explore the insights provided by the research conducted by the National Centers for Environmental Information, which sheds light on how climate change impacts specific states' insurance markets. By understanding the implications of environmental factors on insurance rate trends, consumers and insurers can better prepare for the challenges posed by state-specific variations in premium costs.

Homeowners and Auto Insurance Premiums: A Comparative Analysis

When evaluating the percentage increase in homeowners' insurance premiums alongside the surge in auto insurance rates, a clear distinction emerges, showcasing the disparities in how these two sectors are affected. The accelerated rise in auto insurance premiums compared to homeowners' insurance can be attributed to various factors, including the evolving landscape of vehicle-related risks, repair costs, and industry-specific challenges. For instance, the rising costs of vehicle repairs due to sophisticated technology and supply chain disruptions have significantly impacted auto insurance rates, driving them up at a faster pace than homeowners' insurance.

To provide a tangible example, let's consider the case of Mark and Emily, who compare their insurance premiums for their home and vehicles. Mark notices a more substantial increase in his auto insurance premium compared to Emily's homeowners' insurance. This disparity prompts them to investigate the underlying reasons for the differential rate hikes, leading to a deeper understanding of the factors influencing premium adjustments in both sectors.

Consumer Response Strategies to Rising Insurance Costs
Comparison Shopping

Encouraging consumers to engage in comparison shopping helps identify competitive insurance rates and coverage options. Exploring multiple insurance providers can leverage discounts and tailor policies to individual needs. Navigating the insurance market effectively allows consumers to secure cost-effective coverage without compromising essential protection, empowering them to make informed decisions amidst rising insurance costs. As an independent insurance agent, C. Pina Insurance Agency, Inc. can shop across a broad range of insurance companies to help determine which companies can provide you with the best coverage at the best price.

Moreover, let's consider the case of Jessica, a savvy consumer who regularly engages in comparison shopping for her insurance needs. Jessica's proactive approach allows her to identify cost-effective coverage options, secure discounts, and tailor her policies to match her requirements. Jessica's experience serves as a testament to the benefits of comparison shopping in mitigating the impact of rising insurance costs and optimizing coverage.

Risk Mitigation Techniques

Educating consumers on risk mitigation strategies, such as improving credit scores and maintaining a clean claims history, can reduce insurance premiums. Understanding the impact of risk factors like driving violations and claim history on insurance rates enables proactive risk management. By taking actionable steps to mitigate insurance rate increases through prudent financial planning and responsible behavior, consumers can navigate the challenges of escalating insurance costs.

For a practical application of risk mitigation techniques, let's consider the example of Mike, who takes proactive steps to improve his credit score and maintain a clean driving record. Mike's efforts result in reduced insurance premiums, showcasing the positive impact of risk management strategies on mitigating the effects of rising insurance costs. Mike's experience underscores the importance of adopting proactive measures to safeguard against escalating insurance rates.

The Kia Boys Are Still A Problem For Car Owners

Mon, 05 Feb 2024 17:19:17 -0500

A social media trend that started in 2021 is still having a severe negative impact on owners of Kia's and Hyundai's. Many companies outright decline, others restrict coverage, there are still a few insurance companies we can turn to.

Hyundais and Kias, particularly certain models, have faced issues with theft and vandalism, significantly in part due to the actions of a group referred to as "The Kia Boys." The group gained notoriety for exploiting vulnerabilities in these vehicles' security systems, making them easier to steal. This trend escalated with the spread of information and tutorials on social media platforms, leading to a surge in theft rates for these brands.

From an insurance and risk management perspective, this situation presents several challenges:

Increased Risk of Theft and Vandalism: The widespread knowledge of the security flaws in certain Hyundai and Kia models has led to a spike in theft rates. This increase in risk makes these vehicles more expensive to insure, as insurers anticipate higher claims frequencies.
Higher Insurance Premiums: Insurance companies often adjust premiums based on the risk associated with insuring a particular vehicle. Given the increased theft rates of Hyundais and Kias, owners of these vehicles may face higher insurance premiums to offset the greater risk.
Brand Reputation Damage: The publicity around these thefts and the identification of the security weaknesses can damage the brand reputation of Hyundai and Kia. This situation can lead to decreased vehicle value, affecting both current owners and the companies themselves.
Policy Adjustments and Exclusions: In response to increased risk, insurance companies might revise their policies, including increased deductibles, limitations on coverage, or even outright refusal to insure certain models known for being targeted.
Regulatory and Legal Implications: The situation might draw regulatory attention, leading to potential legal challenges for Hyundai and Kia to enhance their security measures. Insurers will closely monitor these developments, as any changes can influence risk assessments and policy terms.

Insurance companies and risk management professionals must continually assess these evolving risks, adjust policies accordingly, and work collaboratively with automobile manufacturers to ensure that security measures are improved to protect against such vulnerabilities.

The "Kia Boys" phenomenon originated from a trend where individuals, often teenagers, exploited a specific vulnerability in certain models of Hyundai and Kia vehicles. The trend gained momentum through social media platforms, particularly through videos that demonstrated how to start these vehicles without a key, using tools as simple as a USB cable. The issue primarily affected vehicles that used a mechanical key rather than a push-button start and lacked an immobilizer system, a feature that prevents the engine from running unless the correct key is present.

The impact of this trend is multifaceted, affecting not just the car owners and the insurance industry but also the broader community:

Surge in Auto Thefts: Cities across the U.S. reported significant spikes in thefts of Hyundai and Kia vehicles. This trend not only affects the direct victims of theft but also contributes to a general increase in crime rates and law enforcement resource allocation.
Rising Insurance Premiums: As the risk of theft increases, insurance companies adjust their premiums to account for the higher likelihood of claims. This means owners of the affected Hyundai and Kia models may face higher insurance costs, even if their vehicle has not been stolen. In some extreme cases, insurers may even opt to stop covering certain models unless specific anti-theft devices are installed.
Residual Value of Vehicles: The popularity of certain car models for theft can diminish their perceived value in the market. This could affect all owners of these models, as potential buyers might be deterred, fearing higher insurance premiums or the risk of theft.
Comprehensive Coverage Costs: For owners of the affected vehicles, obtaining comprehensive coverage, which covers theft, might become more expensive or difficult to procure. Insurers might impose stricter requirements or deductibles for these models.
Community Impact: The trend can lead to broader community issues, such as an increased sense of insecurity, potential property damage related to car thefts, and strain on local law enforcement resources.
Manufacturer Response and Recall Costs: The manufacturers, Hyundai and Kia, have been pushed to address these vulnerabilities through recalls, software updates, and enhanced security features in new models. These responses incur costs and logistical challenges, not to mention the potential impact on brand reputation and customer loyalty.
Consumer Awareness and Behavior Change: The phenomenon has led to increased awareness among vehicle owners regarding the importance of anti-theft devices and comprehensive insurance coverage. Owners of the affected models may need to invest in steering wheel locks, car alarms, or tracking systems to mitigate the risk of theft and potentially lower their insurance premiums.

The "Kia Boys" phenomenon is a clear example of how a specific trend, especially when amplified by social media, can have wide-reaching effects on consumers, industries, and communities, highlighting the interconnected nature of modern risks and the importance of proactive risk management strategies.

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Why Home and Auto Insurance Rates Are Continuing to Rise in 2023

Tue, 18 Jul 2023 11:30:17 -0400

Why home and auto insurance rates are continuing to rise in 2023

Thanks to an unusual convergence of market trends, ushered in by the pandemic and followed by other disruptive events, you may see a bigger change to the cost of your home and auto insurance than usual when it comes time to renew your policies this year.

Insurance rates are based on what an insurer thinks it will cost to make you whole in the event of a loss – whether it’s roof damage during a windstorm or a vehicle totaled during a traffic accident. As you’ve likely noticed, pretty much everything costs more than it did even a few years ago.

What’s driving higher home insurance costs

If you’ve shopped at Home Depot or Lowe’s lately, you’ve certainly seen that the price tags on building materials have gotten pretty expensive. Last year, the cost of building materials rose 4.7%, reflecting a particularly strong uptick in prices on things like asphalt shingles (16.2%), concrete blocks (18.5%) and drywall (20.4%).

To make matters worse, the home-building industry is facing a shortfall of more than 300,000 skilled laborers, which is driving up construction-related labor costs. Combined with the high cost of construction materials and historically low housing inventory, this has been making home claims much more expensive for insurance companies.

What’s driving higher auto insurance costs

Ongoing supply chain issues are driving a shortage of car parts and equipment, which were 22.3% more expensive at the end of 2022 than they were two years earlier. The overall cost of maintaining and repairing vehicles increased 18.4 % over the same timeframe – exacerbated by a growing shortage of car repair technicians.

The same issues depleted the supply of new and used cars during the COVID-19 pandemic, and inventories have not yet recovered. As a result, the average price of new cars has risen 20% since 2020, while used car prices have skyrocketed 37%.

Rising medical costs are another key factor. While the number of injuries and fatalities from car accidents has somewhat declined from its peak in 2021, the rising cost of medical care continues to drive higher claims costs. Between 2020 and 2022, the overall cost of medical care in the U.S. increased 6.8%

Focus on value as you explore ways to save

Keep in mind that savings come in many forms. The value of the coverage you choose today may save you more in the long run than the lowest possible premium.

Contact us to review your current coverage. We’ll help you explore opportunities for discounts that could offset higher rates when it comes time to renew.

Sources: National Association of Realtors, Federal Reserve Bank of St. Louis, Home Builders Institute, CoreLogic, Consumer Price Index, TechForce Foundation

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How To Prevent Car Break-Ins

Tue, 07 Feb 2023 14:34:06 -0500

One of the most infuriating things that can happen to a car owner – and it’s one of the most common forms of larceny in the U.S. The “smash-and-grab” car break-in. They don’t even steal your whole car, just the valuable items in it – which you then have to painstakingly replace while dealing with the arduous and costly car-repair process.

While there’s no way to 100% deter these kinds of thieves, there are some common-sense steps you can take to make your vehicle a much less appealing target. Above all, thieves look for opportunities. Make them “work” for their pilfered prizes, and they’ll most likely just forget it and move on to an easier target.

Theft prevention starts before you even leave your vehicle

Smash-and-grab thieves typically aren’t criminal masterminds who craft clever schemes to swipe your stuff. Most are casual opportunists. They see something they like, so they break in and take it. So before you get out of your car, make sure your valuables are out of sight. Never leave these things lying out on your seats, dashboard or floor:

Phone
Purse or wallet
Laptop (or its bag)
A briefcase or backpack
Shopping bags
An MP3 player or other small electronics
CDs if you still use them
Cash – yes, even loose change/coins
Your keys – it actually happens!

Car smash-and-grabs happen out of sight

Most thieves go solo. The last thing they want is a crowd of onlookers with cell phones and pepper spray ready. So try to keep your car highly visible:

Park near other people. Go for busy lots where there’s plenty of pedestrian and vehicle traffic.
If you'll be away from your car after dark, park in a well-lit area or near a lamppost.
Choose a lot with an attendant over one without.

Discourage thieves with anti-theft measures

Thieves are also lazy. With car break-ins, they’re usually not looking for a huge payoff. What this type of thief wants is a quick thrill – or maybe a little extra revenue – for as little work as possible. By making your car a harder target for these people, you make it less desirable. So:

Always lock your doors and roll up your windows when you park.
Activate your security system if you have one.
Consider window tinting (if permitted by local laws), since it makes casing your car more difficult.
Use after-market measures, like mechanisms that lock the steering wheel to protect your car and alert thieves that you've taken extra security measures.
Don’t use the console or glove box as mobile lock boxes. These are obvious to thieves, too.
Don't hand them the keys

Again, car smash-and-grabbers don’t normally take the vehicle itself. However, there is always the chance that a key on the dash or in the ignition may motivate the more daring into outright auto theft. Also, remember that if you have a great hiding place for a key – say, in your wheel well or above the sun visor – a thief has also thought of it. So if you’re away from your car, keep your keys away from it too. Preferably with you.

Beware a watchful eye

While your trunk is better than the passenger compartment for shopping bags and laptops, an experienced thief will often stake out a parking lot and watch you transfer your things there. So before you even get to where you’ll be leaving your car unattended, move your valuables to the trunk or wherever they’re out of sight.

Be alert for signs of car thieves

See suspicious activity? Trust your instincts and don't park there. And never confront anyone yourself. If you're concerned, report your suspicions to an attendant or the police.

Learn more about how to prevent car theft

Again, theft is often an opportunity. If someone breaks into your car and realizes they have the opportunity to steal your vehicle as well as your valuables, you face a much larger loss. Here are five things you should always do for car theft protection:

Always lock your vehicle (even while driving)
When parked, leave all windows - including the sunroof - closed
Know where you're going and plan routes that avoid high crime areas whenever possible
Park in well-lit areas
Never leave your car unattended if it's running

Does Your Auto Policy Cover Theft and Vandalism?

Tue, 07 Feb 2023 14:34:06 -0500

Your car is parked safely in the parking lot as you run into the grocery store – but when you return you find that your vehicle has been broken into and your belongings inside were stolen. One of the first questions you ask yourself is, “does auto insurance cover theft?”

Whether or not insurance covers theft can vary depending on the situation and the type of auto insurance you have. Comprehensive coverage will usually cover theft, as well as repair costs from break-in damages. Liability insurance likely won't cover theft, as it usually protects against bodily injury and property damage resulting from an accident.

Let's explore a few different scenarios to give you a better idea of what your car insurance will cover in the event of car theft.

Car theft and insurance scenarios

Scenario 1: Your car was damaged as a result of a break-in.

If you have comprehensive coverage, you’re in luck. Comprehensive insurance will typically cover repair costs for your vehicle, which may include:

Broken door locks
Smashed windows
Broken ignition system

Scenario 2: Your car was stolen.

This situation also depends on the type of car insurance you have. If you have comprehensive coverage, your vehicle’s value will be covered.

Scenario 3: Your personal items were stolen from your car.

So, does car insurance cover stolen items? Unfortunately, it does not. Comprehensive auto insurance will only cover the components and features that are permanent, pre-installed parts of the car. It will not cover your own personal belongings left inside, such as an iPod or wallet. However, these items would likely be covered by a homeowners or renters insurance policy. If your car were stolen with personal items inside, you would need to file two different claims – one through your auto insurance and one through your homeowners insurance.

Does car insurance cover vandalism?

As long as you follow the appropriate steps, comprehensive car insurance will provide coverage in the unfortunate event your vehicle is vandalized. Here are the actions you should take immediately following the incident:

Call the police to report the vandalism, as your car insurance company will require you to file a police report.
Make note of all damages to your car and take pictures to document the destruction.
Contact your auto insurance company to submit a claim. You will need to have the list of damages you compiled, pictures of the damages, and a list of any items that were stolen.

Taking the proper precautions will help to keep your car safe and reduce your chances of theft or vandalism. Get tips on how to prevent these situations in the future.

How to Prevent Car Theft

Tue, 07 Feb 2023 14:09:59 -0500

**Originally posted by Nationwide Insurance**

How common are car thefts? There were 873,080 motor vehicle thefts in 2020 in the U.S., according to the National Insurance Crime Bureau.1 And when citizens are targeted in the most potentially dangerous of these crimes – carjacking – the attacker succeeds in roughly half of all attempts, according to the U.S. Department of Justice.

To find out how to prevent carjacking and car theft read on.

1. Don’t leave valuables in your car

You don’t display your cash, financial statements, and jewelry in your home’s windows, do you? So why would you do the same in your car? Hide those valuables, including purses, computer bags, and the ignition key. You’d be surprised how often people don’t. Two out of five people fail to hide valuables, according to a joint survey from LoJack and the National Insurance Crime Bureau.¹ One-quarter leave a purse or wallet inside, and one-third have left bank statements – all of which are appealing to car thieves. One-third say they’ve kept their vehicle running while unoccupied.

2. Park in a well-lit area

Not everyone has a garage. But many have the option of parking on a well-lit street – another deterrent for crooks. Also, etch the vehicle identification number on windows to discourage thieves from stealing the vehicle and selling it to a chop shop.

3. Lock your vehicle doors

The minute you step into an automobile, you’re vulnerable. So lock up right away, before starting the ignition or setting up your music, GPS, etc. (Buckling up is the second “to do.”)

4. Don’t leave your keys in the car

“It’ll just be for a second, I’m only running into the store for a couple things.”

Unfortunately, “a second” is all a thief will need if you leave the keys in the car for them. No matter where you are, or how briefly you’ll be out of your vehicle, always take your keys with you. It sounds obvious, but this is one of the most important ways you can prevent car theft.

5. Stay alert

Staying alert is the best example of how to prevent carjacking. When stopped or slowing down, you increase an opportunity for a carjacker. So at traffic lights, exercise caution. “When stopped in traffic, leave enough space to move forward,” says Brent O’Bryan, vice president of learning and development for AlliedBarton Security Services, a physical security firm.⁴

6. Know where you’re going

Just as you want to stay in well-lit areas while parking, you don’t want to “hide” in the darkness while driving. “Don’t head into remote or unfamiliar areas,” O’Bryan says. “If you feel like you’re being followed, don’t drive home. Don’t park next to a vehicle such as a van which could be hiding a suspect.”⁴

7. Install an anti-theft system

If someone does try to break into your car, you’ll want to make it as obvious as possible to anyone in earshot that this has occurred. Anti-theft systems emit loud alarms when they detect some kind of forced entry into your vehicle, alerting anyone nearby and potentially scaring the would-be thief from sticking around. You can also install a GPS tracking system that will show the location of your vehicle if the thief successfully makes off with it.

Having an anti-theft device in your vehicle may earn you a discount on your car insurance.

8. Stay cool during a crisis

Even if you do all the right things, you could still get involved in a carjacking. If so, the safety of you and your passengers remains the top priority. Stay calm – if you panic, it’s more likely a criminal will too. “Never argue; give up your car,” O’Bryan says. “Get away from the area as quickly as possible. Note the suspect’s appearance, and immediately report it to the police.”⁴

Most commonly stolen cars

You might expect thieves to go for the glitziest, most expensive-looking cars they can find, but the trouble with those vehicles is they stand out in a crowd. No car thief wants to be seen after they make their getaway, so the most commonly stolen cars are some of the most commonly owned models. More Ford F-series pickup trucks and Honda Civics are stolen than any other car in the US for this precise reason. Cars like Civics are also popular because they share parts with other Hondas, making them valuable for stripping and selling.²

What cars are targeted for catalytic converter theft?

Certain vehicles are also being singled out just to steal their catalytic converters. Hybrid cars like the Toyota Prius use expensive metals in the construction of their catalytic converters, making these cars prime targets³ Thieves will steal the catalytic converter and sell it for the value of its metal.

Does car insurance cover car theft?

So, you took all the precautions, but someone managed to make off with your car anyway. Are you covered? Simply put: it depends on your policy. Comprehensive policies will typically cover theft, however, policies like liability insurance do not.

Learn more about what your car insurance will cover in the event of car theft.

¹https://www.iii.org/fact-statistic/facts-statistics-auto-theft, Accessed October 2021.
²https://www.motortrend.com/features/most-stolen-cars-america?slide=17, Accessed August 2021.
³https://www.khou.com/article/news/how-to-prevent-yourself-from-becoming-the-latest-victim-of-catalytic-converter-thefts/285-d978572e-c12a-4142-b331-c782201b082b, Accessed August 2021.
⁴Nationwide Interview with Brent O’Bryan, 2016.

Disclaimer:
The information included is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide, Nationwide is on your side, and the Nationwide N and Eagle are services marks of Nationwide Mutual Insurance Company. © 2021 Nationwide.

CAR INSURANCE FOR NEW DRIVERS

Thu, 12 Jan 2023 16:05:08 -0500

Ok, car insurance for new drivers – this can be a touchy subject – especially if you are letting the teen make the decision. It is your choice and there are many auto insurance companies to choose from.

In Massachusetts, teens driving on their learner’s permits with a licensed adult supervising them do not need to have their own auto insurance policies. Once they start driving on their own, however, teens need auto insurance, so you will want to explore options to keep these costs reasonable.

Because the risk of a crash is significantly higher for young drivers, particularly during the first year of driving, your teen’s insurance rate likely will be higher than your own. Here are a few strategies to help you reduce insurance costs both now and once you add your teen driver.

The best way to go with a new driver – a teen driver – is to get her, or him (or have them save for) a “beater” car – like a 2000 Honda Accord or a 1995 Honda Accord – you know – a beater.

Then have them get just Liability insurance – including Part 5 – just to get it on the road. We always recommend higher limits of Liability like 50/100 or 100/300 – but with times being tight – not everyone can afford this when they start out.
So that is the angle I would take. Car insurance for a new driver or teen driver is very expensive in cities like Brockton – a bit less in the surrounding towns – you are looking at a substantial premium either way. Other ways to save on their auto insurance may include things such as;

Raise deductibles to lower premiums. Ask your auto insurance representative how much you could save by increasing your deductible. If you file a claim after raising your deductible, you’ll pay a larger share of the costs.
Investigate discounts. Many insurers offer discounts for students with a “B” or higher grade average and for teens who complete driver education or defensive driving courses.
Share vehicles. How you classify your new driver—as the main or an occasional driver of one vehicle, for example, will affect auto insurance premiums, so consider sharing vehicles.
Just say “no” to sports cars and SUVs. The kind of car your teen drives can impact safety. Many experts agree that mid-sized sedans are the best choice for teens. Small cars don’t offer as much protection in crashes, sporty cars may encourage speeding or recklessness, and SUVs and pick-up trucks are more difficult to maneuver and more likely to have roll-over crashes.
Practice, practice, practice. Now is the time to drive a lot with your teen under varied conditions so there will be fewer surprises (and potential crashes) when you’re no longer in the vehicle.
Be involved. Research shows that teens with more involved parents get fewer tickets and engage in less risky driving. Avoiding tickets and crashes will help keep your insurance rates down. A parent-teen driving agreement can help you set rules and stay involved.

Have your teen take the approved Drivers Education course while they have their permit – this course can be expensive – costs can range up to about $700 but you get that money back in the form of a discount over the first three years they are driving. After your teen has been driving for 3 years – their price will drop. Massachusetts changes pricing after 3 years of driving and after 6 years of driving.

Should a teen get their own policy? Or be put on their parent’s policy? I have always felt it is best to keep the policies separate. If the kid is on your policy and they have an accident causing bodily injury to others – you don’t want the insurance company to be able to go after you, your home and your insurance policy.

This is why it is best to have the kid have their own insurance – then in an accident situation – the insurance company will only be dealing with the teen’s policy and not the parents.

Many parents realize that it is less expensive to have their kids on their policy. If you choose this route I always recommend increasing liability coverages to $250,000/$500,000 and adding an additional $2 million umbrella. This will help keep you safe in case something does happen.

Ask your agent about all the discounts available including – ask if there is a “good student” discount available for your teen. Any good agent will automatically give you every discount available – but be sure to ask anyway. Be sure to discuss the rules of the road with your teen. Absolutely NO SPEEDING! This is what causes all the other problems.

In addition – no texting while driving – not only is it very dangerous but in Massachusetts it is also against the law.
Bottom line? You call the shots. Tell your teen the best way to go.

I see it all the time – teens wanting a real nice car right away – getting Full Coverage – insurance is can be upwards of $10,000 for the year – then they can’t afford both the car and the insurance – they effect their credit rating and on it goes.
Tell your teen the best way – and in the long run they will be happy you did! When looking for car insurance for new drivers call Craig Pina at C. Pina Insurance today!

Good luck!

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HANDS FREE: IT'S THE LAW

Thu, 12 Jan 2023 15:31:07 -0500

Posted by MAIA on February 4, 2020

Effective 2/23/2020, the “hands-free” law in MA makes it illegal for motor vehicle and bicycle operators to hold any electronic device or phone, including when stopped at red lights or stop signs! All devices must be properly mounted and can only be used in hands-free mode. Penalties start at $100 and go up to $500 PLUS mandatory distracted driving education AND an insurance surcharge. The state has created a downloadable pamphlet you can use to help notify your clients.

DOWNLOAD PAMPHLET: Hands-Free While Driving from mass.gov

This pamphlet provides an excellent overview of what the new law means for drivers under and over age 18, and the consequences they’ll face for breaking the law.
To summarize the key points…

Drivers 18 and over:

Can ONLY use electronic devices and mobile phones in hands-free mode
CANNOT touch phone except to activate the hands-free mode or enable GPS, and then ONLY if the device is installed or properly mounted to the windshield, dashboard, or center console in a manner that does not impede the operation of the motor vehicle.
CANNOT touch the device for texting, emailing, apps, video, or internet use
Can use voice-to-text communication to electronic devices ONLY when device is properly mounted; use of headphone (one ear) is permitted.
Handheld use is allowed ONLY if the vehicle is both stationary and not located in a public travel lane.
Handheld use is NOT allowed at red lights or stop signs

Drivers under 18 are not allowed to use any electronic devices. All phone use while driving is illegal, including use in hands-free mode.

In an Emergency
Operators may use a cell phone to call 911 to report an emergency. If possible, safely pull over and stop before calling 911.

INSURE CLASSIC CARS WITH SPECIALTY COMPANIES

Thu, 12 Jan 2023 14:25:00 -0500

Insuring a classic car is different from insuring a regular car, and it's important to use a company that specializes in classic car insurance. Two of the most well-known companies that offer this type of insurance are Hagerty and American Collectors.

Hagerty is a Michigan-based company that has been in the classic car insurance business for over 30 years. They offer a variety of coverage options, including agreed value, which guarantees that you will receive the full agreed upon value of your car in the event of a total loss. Hagerty also offers liability coverage, which is required by law, and optional coverage for things like spare parts and towing.

American Collectors is another company that specializes in classic car insurance. They offer a variety of coverage options, including liability, physical damage, and trip interruption coverage. One of the unique things about American Collectors is that they offer coverage for cars that are driven to events and shows, which is something that many regular insurance companies do not cover.

When choosing an insurance company for your classic car, it's important to do your research. Look for a company that has experience insuring classic cars and that offers coverage options that are specific to your needs. It's also important to read the fine print and understand exactly what is covered under your policy.

It's worth noting that many specialty classic car insurance companies generally require that you use your classic car infrequently (like for pleasure driving, only on weekends, or for exhibition/shows) and that it is well-maintained. If you plan on driving your classic car on a daily basis or use it as a means of transportation, it may be harder to find a classic car insurance policy that fits your needs.

When it comes to insuring your classic car, using a specialty company like Hagerty or American Collectors is the way to go. They understand the unique needs of classic car owners and offer coverage options that are tailored to those needs. With a specialty classic car insurance policy in place, you can enjoy your classic car with peace of mind knowing that it's protected.

One of the main benefits of using an independent agency like C. Pina Insurance Agency when insuring a classic car is that they have access to a wide variety of insurance carriers. Unlike a captive agent (who only sells products from one company), an independent agent can shop around to find the best coverage and rates for your specific needs.

An independent agency like C. Pina Insurance Agency can help you find a classic car insurance policy that fits your needs and budget. They can also help you understand the different coverage options available and explain the benefits and limitations of each.

Another benefit of using an independent agency is that they have the expertise to properly value your classic car. They can help you determine the agreed value of your car, which is the amount that you and the insurance company agree your car is worth in the event of a total loss. Having an agreed value can be beneficial in case of a total loss, you'll receive the full amount you agreed upon.

In addition, independent agencies can work with you to customize a package that includes endorsements such as extra coverage for vintage parts, events and shows, or even storage and transportation coverage.

Furthermore, an independent agency can also offer personalized customer service. They can answer your questions, help you file a claim, and provide ongoing support throughout the life of your policy.

Overall, using an independent agency like C. Pina Insurance Agency can provide a level of expertise and personalized service that can be hard to find with a regular insurance company. They can help you find the best coverage for your classic car, at a price that you can afford.

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Some Things To Consider When Your Teen Starts Driving

Mon, 09 Jan 2023 14:24:48 -0500

Just a couple days ago my family celebrated my younger daughter’s 16th birthday. Even in today’s Covid lockdown environment this is an exciting time for a kid, especially for a girl’s “Sweet 16”. I need to say that she is not at all disappointed that we can’t have a Sweet 16 party for her. She would much rather spend the entire day at the barn with the horses she loves so much! The ONE thing she IS very excited about is that she is now eligible to apply for her learner’s permit.

Being my second daughter, my wife and I have been through the stress of one of your children learning to drive. We are not at all looking forward to the inevitable increase in our auto insurance rate. All of that aside, the most important thing is being sure she is as safe as possible, and develops good habits when she’s behind the wheel.

We live in a city with some of the highest insurance rates in Massachusetts, the reasons for this can be seen every day when you see the horrible driving habits people have! Defensive driving is a must . . . being aware of your surroundings and other cars on the road is of utmost importance. With that being said, the major cause of teen accidents today is distracted driving.

Below is a look at how teens drive these days. This information will give you and your teen a better understanding of the risks teen drivers face so that you can help guide them through this important life event, provide ways for them to save money and most importantly, prepare them for a conversation with about driving safety.

Some Teen Driving Stats that Might Surprise You

Before your teen hits the road, set clear rules and expectations of their behavior while behind the wheel – such as a no phone rule and passenger limit. Reviewing and agreeing to this Parent-Teen Contract with them is a great place to start.

Clearly, there are strict rules in Massachusetts around teen driving and hands-free operation of all devices. As new drivers, teens should learn to put their phone in driving mode to reduce distractions.

As with everything else . . . Parents are the key to safer teen driving. Be sure to establish YOUR safe driving rules with your teen today!

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