While your driving record is a major factor (and in some states the major factor) in the rate you pay for auto insurance, it is certainly not the only factor. Because Auto Insurance (and most other insurance) rates are derived by dividing customers into groups and charging some groups higher rates than others (a process known as rating classification), some factors which you may have not suspected can have a big impact on your auto insurance rate. The three that immediately come to mind are:

• Turning 25 years old. Most carriers have surcharged “young driver” rates which are significantly higher than those charged to more mature drivers. These surcharges diminish over time and decrease significantly by age 25, although age does affect the rate beyond that.

• Getting married. Experience shows that married drivers have (on average) fewer accidents than single drivers and therefore pay a lower rate.

• Relocation. Where you live and where you operate your automobile still has a major impact on your auto insurance rates. If you move from the mid-west to New Jersey and nothing else changes, be prepared for a significant rate increase. Why? New Jersey drivers have a much greater accident frequency than other states. Claims cost is therefore much greater…and so are premiums.

While these are factors that will impact your rate, one does not usually consider them in making the decision to relocate or to get married and your age is not within your control. Other factors that may impact your rate is number of miles driven, use of the vehicle, make and model of the vehicle and other drivers in your household.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

An Umbrella Insurance policy is coverage that (among other things) provides an additional layer of liability protection over your auto policy, homeowner policy, rental property policy or even boat policy.  For example your auto policy says that in the event of an accident they agree to pay, for instance, up to $500,000 in damages for bodily injury.  With an umbrella policy the umbrella carrier will pay up to an additional $1,000,000 (or more) if needed. 

Do I need an Umbrella Policy?  How likely are you to be sued?   And for how much.  The answer to this question depends on the public’s perception of your wealth.  If you drive a very expensive car and live in a nice house, you may be mortgaged to the teeth and teetering on the edge of bankruptcy but the public’s perception is that you are wealthy.  In the event of an auto accident or other liability loss you are, because of this perception, more likely to be sued than someone who lives more modestly.  When you are sued, again because of perception, it will be for a lot of money.  Someone is going to have to pay for the loss and your defense.  This is where you will be glad you purchased that umbrella policy.

Remember, it is not what you have but what the public perceives you have that may raise the need for the additional liability insurance found in an umbrella.  For more information or a no-obligation quote, contact PoliSeek at 866-540-7335 or visit us online at PoliSeek.com.