Closing the Gap: Do I need Gap Insurance in Redmond, WA?

September 17, 2013 By Tosten

Congratulations, you just bought a new (or new to you) car! You were able to afford a down payment and now you are the proud owner of a new car and a monthly car payment. But, what happens if your car becomes involved in an accident and you owe more than your car is worth?

Imagine this scenario: While out enjoying your new car, you hydroplane and hit a guardrail damaging your new vehicle beyond repair. The insurance company is telling you that your new car is a total loss. While you may not be able to drive the vehicle, you are still responsible for the loan associated with vehicle. If you have gap insurance in Redmond, WA, you may be only responsible for your deductible.

How gap insurance in Washington works:

What is depreciation: Vehicles, especially new vehicles, begin to depreciate as soon as you drive them off the dealer lot. Depreciation can be quite surprising and is not necessarily tied to the base cost of the vehicle. Due to wear-and-tear, fluctuating market conditions and a number of other factors, depreciation in the first year is the steepest. Even with proper care and maintenance and no accidents, a vehicle will continue to depreciate. Even though the value of the vehicle will go down each year, the amount you owe on the vehicle will not. Depreciation will vary between make and model but here is a baseline comparison:

Year	Vehicle	Style	Base price	Depreciation year one
2013	Subaru Legacy	2.5i sedan	$21,295	$3,069
2013	Honda Civic	Base sedan	$22,715	$4,406
2013	BMW	328i sedan	$34,900	$5,198
2013	Ford	F-150	$28,595	$5,915
2013	Toyota	4Runner	$37,155	$6,380

*Figures courtesy of automobilemag.com

Why gap insurance: In the unfortunate event that your vehicle is totaled, and it is an event covered under your current auto insurance policy, your insurer may pay the actual cash value of the vehicle, which may be significantly less than the outstanding vehicle loan. In that case, you would still be responsible for the remaining balance between the loan and the insurance payout, which could be thousands of dollars. If you choose to purchase gap insurance in Redmond, Washington, your insurance company would cover the remaining balance between the actual cash value of the vehicle and the remaining loan balance, typically up to 25 percent, potentially saving you thousands of dollars.

Options for gap insurance: There are two options for purchasing gap insurance in Redmond, WA. It can be purchased from the dealership or through an insurance agent. If you choose to purchase gap insurance through the dealership you purchase your vehicle from, the gap insurance will be built into your loan. The average price for gap insurance from a dealership is around $1,000, but add interest and taxes and it can add up to much more. If you choose to purchase gap insurance from an insurance agent, on average it would add less than $10 per month to a policy! There may be certain stipulations associated with a gap insurance policy:

The loan may need to be through a financial institution rather than an individual
Your current auto insurance policy may need to include Collision and Comprehensive coverage
Your claim may need to be a covered Collision and Comprehensive coverage event
Your vehicle may need to be determined as a total loss

Before you purchase a new vehicle, make sure to check with your licensed insurance agent in Redmond, Washington to see how you can add gap insurance to your new vehicle policy. The local, independent agents at Chess Insurance Agency can assist you with adding or amending an existing policy or setting you up with a new policy. Their years of insurance experience can save you a bundle. You can also visit their insurance website 24/7 to learn more about auto insurance or the other insurance products they offer like classic car or home insurance.

Fact or Fiction: Five Auto Insurance Myths in Redmond, WA

August 1, 2013 By Tosten

Let’s face it; auto insurance can be confusing, especially when it comes to insuring new vehicles. When trying to look up information surrounding auto insurance in Redmond, WA, the internet can be full of myths and misinformation. If you are trying to disseminate fact from fiction the experts at Chess Insurance Agency can help. We have compiled some common insurance myths and facts; we like to think of it as our own insurance version of Mythbusters.

Five auto insurance myths in Washington:

Color: Have you always wanted a red car, but never did because you thought it might drive up your auto insurance premium in Redmond, WA? Not true. Insurance premiums factor in the make/model, age and power of the vehicle. Premiums are also based on the person being insured. The cost of the vehicle can also influence the price of the premium, as more expensive the car usually the more expensive it is to repair if it is damaged in an accident.
Mature Drivers: Heard that once you enter your ‘golden years’ your auto insurance premiums will increase? Not necessarily. Your local, independent insurance agent can assist you with senior discounts or get you resources for defensive driving courses which can also lead to a discount.
Optional Coverages: Basic auto insurance in Redmond, WA will cover theft or weather-related damage. Claims such as these are only covered under comprehensive coverage. Most car loans require that you carry both comprehensive and collision as these protect the vehicle fully. If your car is getting older and worth less than $1000, you may want to opt-out of these coverages, but you will want to talk this over with your agent before dropping these coverages completely.
Loaning your vehicle: Does your best friend need to borrow your car for the day or leaving your mom the car to pick up the kids from school? If they get in an accident, their insurance will cover it, right? Wrong. Typically insurance follows the vehicle, not the driver. However, that is not always the case. Rules and regulations for this specific instance vary by state, so you will need to clarify with your insurance agent before you loan out your vehicle. Additionally someone who has regular access to your vehicle, like a roommate or spouse, should be added to your auto insurance policy to prevent a messy claims process should they be involved in an accident while driving your vehicle.
Personal v. Business: Your vehicle is covered under your personal auto insurance policy whether you are using it for pleasure or business. Not entirely accurate. If you are using your vehicle often for business, purposes, a business auto policy may help protect your vehicle more thoroughly. If you are not self-employed but use your personal vehicle for work, make sure you covered by your employer’s commercial auto policy.

While these are the most common myths associated with auto insurance, others are out there. Your licensed insurance agent in Redmond, Washington can assist you with any questions or concerns you may have about your auto insurance policy. The local, independent agents at Chess Insurance Agency can assist you with adding or amending an existing policy or setting you up with a new policy. Their years of insurance experience can save you a bundle. You can also visit their insurance website 24/7 to learn more about auto insurance or the other insurance products they offer like classic car or home insurance.

Auto Insurance Premiums in Redmond, WA – What to know

May 8, 2013 By Tosten

You get a bill every month (or every six months depending on your preference) for your auto insurance premiums in Redmond, WA. Your policy details what is covered and what is not. What it may not detail is how the policy cost was determined. There are many factors that go into an individual auto policy price and likely, no two auto policies are the same since the factors largely depend on the insured driver.

Auto insurance premiums in Washington may be determined by:

Driving History: The most obvious factor is your driving history. Drivers that have accumulated many accidents and tickets typically pay more than those who don’t. Same goes for freshly minted drivers (of any age) and those who have not had insurance for an extended period of time regardless of the circumstance. While some of the factors cannot be mitigated, a few can. Staying alert and following the rules of the road can reduce the likelihood of accidents or tickets, thus potentially reducing the cost of your auto insurance premiums.
Age: Age is one of those factors that cannot be helped. The younger you are, they higher risk you are considered. While society considers you an adult between 18 and 21, the insurance industry considers you an adult at the age of 25 which is when insurance premiums tend to drop a bit for the matured driver. Another factor you can’t change? Your gender. In the great battle of the sexes, women take the lead on this one as they tend to be safer drivers as a whole. Women tend to take fewer risks when driving, giving females an advantage when it comes to insurance premiums as they tend to pay less than their male counterparts.
Location: Do you live in an area that is prone to car prowls or do you live a significant distance away from work? These are factors that will figure into your insurance premium. Statistically, the more you are on the road, the greater the likelihood that an accident may occur. So if you commute a long way to work (notice on your insurance application they ask you the distance from home to work?) you may incur a higher auto insurance premiums than someone who lives within a few miles of their workplace.
Make/Model: While that little red sports car is a tempting buy, you will likely end up paying more for your auto insurance than say a family sedan. Not that you should be discouraged from buying the sports car of your dreams, just make sure you talk to your insurance agent prior to your purchase so you can be aware of the potential rate change.
Type of Insurance Plan: Did you go for the “platinum” insurance package? You know the one: maximum coverage and a low deductible? A lower deductible means a higher upfront policy rate. Drivers who opt for the minimum coverages required by law in their state and a higher deductible may pay less for their policy. Make sure you ask your agent about your state’s required insurance coverages!
Credit : A final factor that determines car insurance premiums? A credit score. This is kind of a sensitive subject as there are some states like California that forbid the use of a credit information for an insurance policy. A credit score is used to assess risk, the thought being the higher the credit score the lower the risk, but that is not always the case. An overall driving history is the best indicator of risk, regardless of a credit score. You can check with your agent to see if your state allows the use of a credit score in determining insurance policies.

There you have it folks. There are so many factors that influence the cost of auto insurance premiums. Since most policies renew every six months, the cost fluctuates each time depending on your situation. Make sure you let your licensed insurance agent in Redmond, Washington know if you purchased a new car, had an accident or ticket, or if you changed your name (marriage, divorce, etc.). The local, independent agents at Chess Insurance can assist you with adding or amending an existing policy or setting you up with a new policy. Their years of insurance experience can save you a bundle. You can also visit their insurance website 24/7 to learn more about auto insurance or the other insurance products they offer like classic car or home insurance.

Do I need Rental Insurance for a U-haul?

February 7, 2013 By Tosten

U-Haul Rental Insurance in Washington

A common question we receive is whether or not our insurance would cover us for a rental motorhome or moving truck. And the answer really depends solely on the size of the vehicle (in addition to what coverage you currently carry, of course).

When talking about your collision and comprehensive coverage, your standard auto policy will cover the usage of a temporary replacement vehicle usually up to 12,000 GVW. If a vehicle is over this GVW, it would be excluded from coverage. Additionally, if the cab is separated from the bed, this will also create an exclusion from coverage for most auto insurance policies.

Truck rental companies typically offer four types of coverage.

Damage Waiver: covers you in case of damage to the truck. If you do not purchase this coverage, you are responsible for any and all damage to the vehicle, no matter what the cause. If you decide to decline this coverage, you may be responsible to pay the damages to the truck even if they are not your fault. Something to keep in mind is depending on the extent of the repairs, you may be held responsible for loss of use on the vehicle.
Liability Coverage: covers you in case you hit something or someone. Your auto policy may cover this, but please call us in advance before you rent a vehicle to make sure. Each company is different.
Cargo Coverage: Your auto policy will NOT cover any cargo that you are carrying. Period. If you are moving valuables, you may consider this coverage, depending on the values. If you’re moving a mattress or other item that will likely not be damaged, it would probably be wise to save your money, but only you can decide.
Personal Injury Protection: This is a no-fault insurance and can be used anytime you’re involved in a motor vehicle collision, regardless of the motor vehicle you’re traveling in.

With anything, please feel free to call us with questions. This article is meant to be informative, but not a means of advice. If you have questions about a rental vehicle, please contact our office and speak directly to a licensed agent.

Can you REALLY save money on car insurance?

October 3, 2012 By Tosten

“Switch now and save!” “15 minutes can save you 15 percent!”

You’re heard the countless commercials about saving money on car insurance in Redmond, WA. So, we decided it would be helpful to see where all of these discounts come from and how you can save money by buying from an independent insurance agency in Redmond, WA – Chess Insurance!

Safe Drivers Discount: Safe Drivers cost less because they’re safe and the risk to the insurance company is less. With most companies, safe drivers can pay up to 45% less on insurance premiums over their not-so-safe counterparts!
Advance Shopping/Advance Quoting Discount: You don’t have to wait until your insurance expires to get a renewal quote or to move companies. In fact, if you shop in advance, many companies will give you a discount as it shows you’re responsible and likely to pay your bills on time versus waiting until right before renewal to start shopping. This can save you upwards of 10% with some companies.
Disappearing Deductibles: While not a discount on the front end, certainly a way you would save money. Stay with the same company long enough and with some products, you deductibles will reduce each year until they are gone. This discount will only apply if you don’t have an accident. When you do, the deductibles start over and will again, start to disappear.
Good Student Discounts: Save up to 5% typically on this discount for students who maintain a 3.0 GPA and are under the age of 25.
EFT and Paid in Full Discounts: Save big, up to 10% by paying with recurring EFT or by paying your premium in full.
Prompt Payer Discount: Pay your premium on time for one year and you’ll receive a discount at renewal.
Safety Course (Motorcycle) Discount: Complete a safety course and receive a discount when you provide your certificate.
Multi-policy Discount: Save by bundling your auto insurance and home insurance with the same carrier. This discount often applies to other products as well such as auto and motorcycle. The discounts range from carrier to carrier, but are typically in the 10% off each product range.
Anti-Theft Devices: Having an anti-theft recovery device such as LoJack can save you up to 10% off of comprehensive premiums.
Previous Limits: Having your previous liability limits higher will actually give you a better “tier” with certain companies. For instance, if you have 25/50 liability previously you will often pay a higher premium than someone who has 100/300 liability previously. The companies consider this as a risk factor when taking on a new client.
Multi-car Discounts: If you have multiple cars in the same household, you can earn a discount on your insurance premium. These discounts vary greatly from carrier to carrier as well as state to state.
Snapshot Discount: Progressive has introduced a device called Snapshot that takes a look at your driving habits when installed in your vehicle. You can save upwards of 25% by installing this device in your vehicle.
Homeowner’s Discount: Receive a discount on your car insurance simply by owning your house, condo or mobile home.
Original Owner Discount (boat & RV): If you’re the original owner of a boat, you are eligible for a discount with some carriers.

There are even more ways to save on auto insurance in Redmond, but these hit the high notes. Be sure to talk to your local independent insurance agent in Redmond – Chess Insurance. They have the ability to shop you though several carriers at one time and can compare rates side by side. Call Chess today at: 425-392-1588

Chess Insurance: 425-392-1588