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Archives April 2014

Sinking boat insurance myths

You don’t believe in the Loch Ness Monster. You don’t believe your friend caught Jaws fishing off the Florida coast. So why do most boaters believe boat insurance covers them wherever they go?

Progressive surveyed more than 1,000 boat owners. It uncovered a few insurance myths floating around. Here’s a sample of the findings and the facts behind each:

Myth: Everyone pays more for insurance because of the hurricanes from a couple of years ago.

Reality: Even though it’s believed by 74 percent of respondents, it isn’t true. Boat insurers generally price policies based on claims in each state. For example, Ohio customers won’t pay more for insurance because of hurricanes in Florida.

Myth: Boat insurance covers me anywhere I decide to go boating.

Reality: Seventy-six percent of respondents believed this one. The reality is some insurers only provide coverage where the boat is used most. Insurers may limit coverage to 100 nautical miles of your home port. Progressive provides coverage virtually anywhere you decide to go in the continental U.S. and Canada.

Myth: I’ll get a better insurance rate if I buy from the same company that insures my home or car.

Reality: Buying more than one product from the same insurance company doesn’t mean you get the best rate – even though 45 percent of respondents thought so. Boaters can save by shopping around and combining specialized policies from different companies.

“It’s important to understand what’s available,” said Dominic Mediate of Progressive. “You want to be properly protected in case your boat is stolen, you get into an accident or contents are damaged. We’re separating fact from fiction so boaters can make the best insurance decisions possible.”

For more information about boat insurance, contact us at (623) 243-4000.

Fact or Fiction: Uncovering Auto Insurance Myths

Like a teenager eager to try a new video game, playing before reading the rules, many drivers buy insurance without really understanding what they’re buying. In the rush to feel “covered,” they can skip the details. That can lead to frustration. Following are five insurance myths heard by some of the more than 13,000 claims people at Progressive, one of the country’s largest auto insurance companies:

Myth: I bought “full coverage” so everything’s paid for.
Reality: There is no such thing as “full coverage.” In most states, only liability insurance is mandatory. There are a lot of other coverage options out there, so select what you need and can afford based on your personal situation.

Myth: I need three estimates before my wrecked vehicle can be repaired.
Reality: Not necessarily. Very few insurers actually require this, although some might. If you decide to use a shop that’s in an insurance company’s “network” of pre-approved shops you may just have to get an estimate from that shop.

Myth: My insurance premium always increases if I’m involved in an accident.
Reality: It depends. Your rate can increase, decrease or stay the same. The information about your accident is combined with other information about you, your car and your driving history to determine your rate.

Myth: If I lend my car to someone and he/she crashes it, I’m covered.
Reality: Not so fast. If you or your friend don’t have optional physical damage coverages, damage to your vehicle generally won’t be covered.

Myth: If I buy a new car, my auto insurance company automatically knows; and my new car is covered.
Reality: No. Most insurance companies require that you notify them or your agent within a specified number of days. Generally, you have 30 days to add the new vehicle to your policy but some insurance companies only give you 7 days.

“Insurance can be complicated,” says Chuck Crist of Progressive. “It’s not something people deal with every day. So the more informed you are, the better choices you’ll make.”

To learn more, contact us at (623) 243 4000

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