So, you go looking for car insurance.

You think you get a great rate.

You sign up and make a down payment.

Only afterwards you are told your rate jumped through the roof!

Want to know why?
Many insurance companies give you their best price BEFORE they run any driving history and/or credit reports. Based on the report ran AFTER the sale, the price you pay can dramatically INCREASE from the original quote.

Make sure you're comparing apples to apples
If that rate looks too good to be true, check to see if it's for a 6-month or 12-month policy period.

Don’t be fooled. If you want a more accurate auto quote — at the best rate — with the least surprises, ask a fully licensed Connecticut Insurance Exchange agent.

See Which Good Driver Discounts You May Qualify For BEFORE You Commit

• At Connecticut Insurance Exchange, we run reports BEFORE giving our best rate to see which good driver discounts you may qualify for
• Because we represent more than 20 A-rated insurance companies (not just one), chances are we can put you with a company that best suits your circumstances
• We save you time and money AND it won’t cost you a penny more

Get a surprisingly-affordable-without-big-surprises auto insurance quote from Connecticut Insurance Exchange and see how many discounts you qualify for. (Remember to ask us about home insurance, umbrella, pet insurance, wedding and travel insurance, business insurance and Workers Comp, too).

There’s nothing like purchasing a new vehicle. In fact, many people love them so much they even name them! But, they don’t love the fact that the value of their new ride drops as soon as it is driven off the showroom lot.

If you suffer a total loss, you may find you owe more on the remainder of your loan or lease than the settlement payout from your insurance policy. That’s because the amount outstanding may exceed the vehicle’s Actual Cash Value (ACV). In other words, there’s a “gap” between how much you owe on your vehicle and how much you’ll be reimbursed for it.

That’s Where Gap Coverage Comes In
Gap Coverage is an endorsement that is added to an auto policy. It would provide payment to the insured for the difference between the damage of the automobile and the amount still owed on it.

If you purchased your new vehicle with a loan, check with your Connecticut Insurance Exchange agent about adding Gap Coverage. You’ll find in almost all cases, gap coverage is far less expensive from us than from a dealership. Here’s why — not only can the dealership’s price be much higher, it gets added to the loan agreement so you would pay interest on it as well.

What You Need to Know About Gap Coverage…

• It is only available for new private passenger autos, pickup, or vans
• It must be requested within 30 days of purchasing your new vehicle
• It is not automatically included in loan agreements
  
• Most often, it is automatically included in a leased vehicle agreement
  
• It does not cover things like overdue payments, extended warranties, credit life insurance, or carryover balances from previous loans or leases

So, before you sign on the dotted line, contact your Connecticut Insurance Exchange agent and ask about low-cost Gap Coverage for your new vehicle today.

Consumers have lots of choices when it comes to looking for insurance:

• Online do-it-yourself (no agent);
  
• Direct company agents (represent only one company); and
  
• Independent Agents (represent multiple insurance companies).
  

So, what are the benefits of working with an Independent Agent? Studies show buyers appreciate how Independent Agents…

• Respond quickly when you have a question or need
• Ensure the most comprehensive coverage for a good price
• Share knowledge and expertise
• Identify and offer important policy options buyers may not be aware of
• Save buyers time from having to research and compare options
• Assist with processing a claim, if there is one

The biggest advantage to using an independent agent is they get to know you and your needs. As you grow your family, make life or professional changes, or have questions, your independent agent is there to help you.

Contact Connecticut Insurance Exchange today to put the value of an Independent Agent to work for you!.

Connecticut Insurance Exchange has recently begun receiving communications from its carriers regarding customer support efforts as we move together through the coronavirus situation.

Personal Auto Policyholders
All of our personal lines carriers are offering deferred payments and are waiving late fees. Most are also offering premium relief on personal auto policies as they have recognized a large number of these policyholders have sheltered in place and, therefore, are driving much less.

Please note: Even though each company is offering similar relief, there are slight differences. Your carrier will be sending out correspondence with the exact details within the next few weeks. Customers will not need to take any action to receive these benefits, as credits will be automatically applied.

Commercial Insurance Policyholders
For Commercial Insurance policyholders, most standard carriers are offering some form of billing leniency options and late-fee waivers. Regarding premium relief, you will be notified directly by your carrier if and when it becomes available.

For Commercial Clients with policies written on an adjustable basis, some Commercial Carriers may agree to a mid-term reduction of your general liability and workers' compensation payroll and sales estimates. However, as these policies remain subject to audit,  please contact your Commercial Agent to discuss your particular circumstance.

Sadly, National Highway Traffic Safety Administration (NHTSA) data shows there are more than 6 million police-reported automobile accidents annually — that's one accident in every five seconds. On average, one person is injured in one of these crashes every 10 seconds and one person is killed every 12 minutes.  A large percentage of these auto accident deaths happen on our nation's highways because of the higher rates of speed.

But there IS good news! When you practice safe driving habits, you help reduce the chance of having a highway accident.

How many of these tips do you incorporate into your highway diving?

• When merging onto a highway, you should be at average traffic speed
  
• If drivers are entering the highway and you are traveling in the right lane where they enter, move to the left lane; if that's not possible, then slow down to allow them to enter traffic
  
• The faster the speed, the more distance you need, so put plenty of distance between you and other vehicles. Many experts advocate the two-second rule, which means start counting when you see the vehicle ahead of you pass a fixed object, then count, "one-thousand one, one-thousand two." If you reach the fixed object before "two," then you are following too closely
  
• Try to maintain average traffic speed — vehicles going much slower or faster are at greater risk of having an accident, and — of course — use common sense regarding posted speed laws
• Use extra caution when driving at night or in bad weather; adapt your driving to roadway conditions
  
• Avoid sudden moves since it does not allow other drivers time to react
• Continuously scan the roadway ahead of you for signs of trouble, like construction and traffic slowdowns
• Be aware of other drivers around you, particularly those beside you or slightly to the rear; and remember semi-tractor trailers and big trucks take a longer time to break than a car, so use caution
  
• Make sure your rearview mirrors are properly adjusted before you drive
• If you're driving long distances, take a break every few hours as reaction time and overall driving skills decline as you get tired
  
• When exiting the highway, begin to signal well in advance and do not significantly slow down until you start to turn off the highway

Safe driving!

Not all auto insurance policies are the same. Types of coverage vary. So does the amount of coverage.

Ask yourself — Do I have the right coverage? That’s why it’s important to understand what is available and how much of it you need in order to get you back to where you were before your auto accident.

Here’s a breakdown of the five parts of an auto policy
Coverage for the other party:
1. Liability — provides coverage for the other party if you are responsible for the accident.

Coverage for you:
2. Other Than Collision (OTC) or Comprehensive — provides payment for the loss or damage to the policyholder’s vehicle caused by something other than collision such as:

• Fire
• Damage caused by severe weather events such as hailstorms, hurricanes, lightening, tornadoes, etc.
• Animal collision
• Flood
• Vandalism or riots
• Stolen vehicles

 
Although optional, Comprehensive Coverage is most likely mandatory by your lender if your vehicle is leased or still financed.

3. Collision — provides coverage for your insured vehicle if it is physically damaged due to colliding with another vehicle or object, or if the vehicle is overturned.

4. Uninsured/Underinsured Motorist — reimburses the policyholder, covered family member or your passengers for bodily injury if they are the victim of an accident caused by a hit-and-run. It also covers the same if a driver who doesn’t have any insurance (uninsured motorist) or a driver who doesn’t have high enough limits to cover the damages or injuries (under insured motorist).

5. Medical Payments — Covers costs for the treatment of injuries to the driver, passengers or struck pedestrians/bicyclists of the policyholder’s vehicle no matter who is at fault, up to the limit of coverage. It also covers ambulance transportation, which is NOT covered under an auto policy.

The takeaway
Choose coverage(s) based on your circumstances, the vehicle use and its age. Then, choose your deductible, which is the amount you pay before the policy reimburses you for your claim.
Ask a Connecticut Insurance Exchange licensed agent to help you choose the best options for your situation. They're here to help and it won't cost you a penny more for their expertise!

Auto Policy Tips

• The higher the deductible, the lower the premium
• Review your auto policy coverage when circumstances change such as buying a new car, adding a new driver, or buying a new home

You should also consider adding a personal umbrella policy to cover your assets when your auto policy coverage reaches its limits.

An umbrella policy works like this:
Let’s say you're at fault in a car accident that injures another driver. The other driver’s injuries are severe and cost $450,000. Your automobile insurance will cover the other driver up to the limit of your policy (let’s say that amount is $300,000), minus your deductible. Without an umbrella policy, you would be liable to pay the $150,000 difference out of your own pocket, but the umbrella policy would cover you for the difference up to the limits of its policy (usually $1,000,000).

No. A financial credit score factors in your payment history, the amount of credit you owe, the length of your credit history, the types of credit you have and the amount of credit for which you apply. On the other hand, an insurance score is a three-digit number used to estimate the likelihood of you filing a claim. Your insurance score is a combination of your credit score and your insurance claims history.

Insurance companies began incorporating financial credit scores a few years ago, because studies have shown people with a lower credit score have a greater chance of having more claims than those with a higher credit score.

Just like credit scores from companies Experian, TransUnion and Equfiax may be similar but not the same,  insurance scores differ as well because no two insurance companies use the exact same method to calculate your score. Some may also include information of other policyholders with similar traits to yours. Because Connecticut Insurance Exchange represents over 20 A+ rated insurance companies, we are able to match you with the best company in light of your credit score. So, having a low score is not necessarily a deal killer — having a good driving record and minimizing homeowner risks matter.

Want to improve your insurance score? Check out these tips:

For your auto

• Drive safely and avoid moving violations
• If possible, keep your car garaged or covered to avoid weather-related damage
• Tire traction matters — replace worn out tires, especially in the winter

For your home

• Discourage burglars by leaving a light on when not home; Better yet, install a security system
• Install smoke detectors and keep a fire extinguisher handy, especially in the kitchen
• Before a big storm, put away toys and tools, and secure patio furniture
• Keep your walkways, driveway and steps free of ice and anything that can cause slips and falls

 For your credit score

• Pay your bills in time
• Reduce the balances on the credit you owe

A borrower who has a good mix of secured credit (such as a home or car) and unsecured credit (credit cards) scores better than someone who has only credit cards

Some insurance companies are now treating distracted driving habits such as texting and/or holding a phone to your ear as a DUI “major violation.” Consequences could range from drastic rate increases or even cancellation.

Whether you've been driving for 30 years or 30 days, you cannot drive safely unless driving has your full attention. Any activity other than driving like playing with car controls, eating, applying makeup (you've seen that, right?) is a potential distraction which increases your risk of having or causing an accident.

The Connecticut Department of Motor Vehicles (DMV) does yet not penalize distracted driving with the same number of points as a major violation. But some insurance companies are starting to. And, many more are following suit.

Better Driving Habits and Rewards with Telematics
To help curb distracted driving and help customers improve their driving habits, many insurance companies offer Telematics by way of a smartphone app or plug-in device. Telematics helps drivers become more aware of and make improvements to their driving habits. Some offer 5- to 10% sign-up discounts and up to a 30% discounts either at the end of the telematics period or upon renewal.

If you — the insured and the occupants of your vehicle — were injured in an auto accident, who would cover medical expenses? Two coverage options are available — Medical Payments (Med-Pay) and Personal Injury Protection (PIP).

Med-Pay covers the insured, family members and passengers in a covered car for medical and funeral expenses (subject to per person policy limits below) if they are injured in a car accident by a vehicle designed principally for use on public roads regardless of who is at fault (1). It also pays medical and funeral expenses arising from the accident including accidents in which the victim is a pedestrian or bicyclist.

Med Pay also covers ambulance transportation, which is NOT covered under an auto policy.
 
In Connecticut, Med-Pay Limits apply per person and range from $1,000 to $10,000 for Personal Auto Policies and from $5,000 to $25,000 per person for Commercial Policies.

PIP provides the same coverage as Medical Payments for your medical expenses in the event of a claim without regard to fault (2).  However, PIP can also provide lost wages, transportation expenses, and miscellaneous household assistance expenses, like cleaning or lawn care, while you recover from your injuries.

Because PIP provides more coverage than Med-Pay,  it's a little more expensive.  

Who would benefit from purchasing Med-Pay or PIP?

• If the insured and passengers already have health insurance that cover similar expenses, Med-Pay may not be necessary. Check your health insurance policy for deductible and co-insurance requirements. Used in conjunction with health coverage, Med-Pay can pay health insurance deductibles and co-insurance, so Med-Pay may be worth buying even if you have health insurance should a car accident cause bodily injury.
• If you don't have short-term disability insurance, consider PIP because of the additional coverage it affords, like lost wages. 
• If you don't have any health insurance, then it is highly recommended to buy either Med-Pay or PIP.

Understanding Policy Limits
Minimum auto liability limits in Connecticut are 25,000 (bodily injury to one person), $50,000 (bodily injury total), and $25,000 (property damage). In many cases, minimum limits will not adequately cover losses. Considering the average cost of a new vehicle in the first quarter of 2017 was $31,400 (3), then these limits are inadequate for most people, especially when significant injuries result from an accident.

Read more about policy limits here or speak with a Connecticut Insurance Exchange agent.
    
Other Insurance
Uninsured and Underinsured Motorists (UM/UIM) coverage is mandatory in Connecticut, at the above minimum limits of $25,000 bodily injury per person and $50,000 bodily injury total. UM/UIM does NOT apply to property damage. It's a good idea to purchase a UM/UIM limit equal to your own liability limits.

UM/UIM protects you in the event that you and/or your passengers are injured by someone who:

• Does NOT carry insurance;
• Carries insufficient limits to pay for your injuries; or
• Is a hit-and-run driver

Resources:
Policy Limits
Car Insurance