All posts by John McLain

Insurance Education

Why was my claim denied?

On occasion, insurance claims do get denied. Sometimes it is a clerical mistake. Humans make mistakes. Sometimes it is a misunderstanding. Perhaps the claim is confusing, or phrased poorly. And sometimes claims are denied for legitimate reasons. So just because your claim is denied, doesn’t mean that’s the end of the road. All denied claims should be followed up. Understanding why your insurance claim was denied will enable you to determine if you have reason to dispute the decision. There are several reasons why an insurance company may deny a claim, and the following are some common examples:

  • The claim falls under coverage that you do not have. For example, you only have liability insurance and no collision coverage. But you submit a collision claim.
  • You made an Uninsured Motorist Claim under your policy and it turns out the other party to the accident was insured.
  • Your coverage has lapsed because you didn’t pay your premiums in time.
  • The amount of damage exceeds the limits of your policy. For example, you are claiming $15,000 in damages, but your policy only allows for $10,000.
  • You bought a new car, but didn’t contact the insurance company to add it to the policy within the specified time given in the policy.

If you still think your insurance claim was denied incorrectly after reviewing your policy, there are some steps you may take to try to appeal a denied insurance claim. You have certain rights under your policy and under state law. Most insurance companies have a legal obligation to respond to appeals, so if you think your claim has been wrongfully denied it is worth appealing.

If you have a question about a claim contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Why did my insurance rates change?

Insurance rates will fluctuate from time to time. Typically most polices are locked in for a year at time. That means your rates can’t change during that annual policy contract. But at the end of the policy, rates can change. Here’s why.

  • Driving record. Each year your insurance company reviews your driving record. If you are a reckless driver your rates may go up.
  • Previous claims. If you have submitted many claims within a 12-month period, then your rates may go up. So yes, that is what insurance is for. But sometimes people abuse insurance and submit many claims for things that may not be necessary. Remember, insurance is designed to protect you from large financial losses. If you are using insurance for minor repairs (to home or auto), then you’re probably going to see rate increase.
  • No fault of your own. Sometimes insurance companies have a bad year. That means they paid a lot of claims and lost a bunch of money. Typically this happens due to large weather-related events like tornados, floods, etc. In this case, the cost increases are typically industry-wide and all companies are raising prices.

To learn more, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Learning About Insurance

Can I change my insurance coverage any time?

Some people pay their insurance premiums monthly, some semi-annually. Regardless of how your pavements are structured, you can adjust your insurance anytime you need to. If the changes you make affect your premium costs then you will either owe more money or get a refund.

When to change insurance.

There are a variety of reasons for changing your insurance. A new car, a new home, a new driver (teenager, etc.) or the acquisition of a new piece of jewelry. If you are making changes to what you have already insured then your coverage can change too. Even if you don’t acquire a new car or home, you can still adjust your coverage. If you want to raise or lower your deductibles or the amount of coverage you have, it can happen at any time.

To learn more, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Compare Car Insurance Rates

How do I know if I’m getting a good deal on insurance?

That is the age-old question for any product or service. Am I getting the best price? And like any product or service, the only way to be somewhat sure about your insurance premiums is to shop around.

Annual comparison-shopping.

Experts suggest price-comparison shopping on a yearly basis. Take your exact policy and see what other insurance companies offer. That said, experts don’t suggest switching companies each year. If you can, take the information you learned during your price-comparison exercise and present it to your current insurance provider. Make them aware that other companies are charging less for the same coverage and ask them to match the price. Most insurance companies will do as you request. But you have to ask.

Things to think about.

When doing your price comparison there are a few things to keep in mind. First, make sure you are comparing apples to apples. Use your existing coverage as a baseline and get pricing for the exact same thing. Other companies may offer alternative coverage and that is fine, but at least get pricing on what you currently have. Second, consider customer service. Do an Internet search for customer service reviews for the companies you shop. A lower price may come with lower quality service.

Asking for a price reduction.

Once you have shopped other insurance companies and you have found lower costs. Take the information to your insurance provider. Call the customer service line and politely ask to speak to someone about your account. Don’t be demanding, angry or rude. This is business; it’s not personal. Tell them you have price quotes and would like them to adjust your premiums to match the best price. They may ask to see your pricing information so make sure you get it in writing from the other companies you shop. IF they won’t adjust your premiums, then be prepared to switch companies.

To learn more, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Is it smart or cost-effective to put all insurance needs with same company?

One of the easiest and most significant discounts you can receive is the multi-policy discount. By simply putting all your insurance needs with a single company, you can generally save much more than shopping for the best price for each insurance plan.

For example, if you own 2 cars and a home, combining those policies can typically yield a better price than having a single policy with three different companies. The more policies you add, the cheaper your rates.

Having all your policies with a single provider also makes things easier on you. Your payments are simplified and if you have a claim, there is only one company to contact.

There are a number of other discounts available, but the multi-policy is the easiest to get. But if you’re looking for other ways to reduce insurance costs, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Car Rental Insurance

Tips for insuring a teenage driver

Depending on where you live and what vehicle your teen will drive, adding them to your policy can double your rates (or more). Teens are expensive to ensure. They just are for the simple fact that they are inexperienced drivers and prone to more accidents. So what is a parent to do? Here are some suggestions to reduce the costs.

  1. First, don’t let them drive. Driving is a privilege and if they don’t need to, don’t let them. Bikes, buses or good ol’ foot power may work to get your teen from point A to point B. But if they are licensed drivers you need to add them to your policy. If you want to keep them off, don’t get a license.
  2. If driving is a must, then consider the vehicle. New, fast, expensive cars will increase your rates. If you can restrict your teen to a single vehicle, that is best. And if that vehicle is plain-Jane, even better. If you are buying your teen a vehicle, think cheap.
  3. Good grades pay. Many insurance companies offer good student discounts, so if you want to lower your premiums, shoot for As and Bs.
  4. Big brother can reduce costs. No, not an older brother. Big brother as in…someone looking over your shoulder. Several insurance companies offer monitoring devices to keep tabs on young drivers. These systems can reduce your costs because the likelihood of accidents is far less.
  5. College-bound teens. If your child goes to college 100 miles away (or farther) you may get a discount because they are less likely to drive your vehicle. But if they take their car to school (and it’s in a small town or rural area) ask about discounts for geography.

To learn more about the costs of insuring a teen driver, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Learning About Insurance

Does my credit score impact insurance costs?

Short answer, yes. Here’s why and how. In the 1990s, a few insurance companies starting using credit scores to create a “profile” of each person they insured. There are a number of other factors that also contribute to these profiles. Age, employment, where you live, income and driving record. After years of running the numbers and cross referencing against insurance payouts, many insurance companies followed suit and now all insurance companies use credit scores to help profile their customers.

What they discovered is that people with low credit scores are more likely to get into accidents. Therefore a low credit score can and will increase your premiums. So what can you do?

The best long-term solution – and one that will pay dividends in more areas than just insurance premiums – is to fix your credit score. There are many low-cost or even free credit-counseling services available in most communities and they work with folks with challenged credit to get things back on track. Not only will your insurance premiums go down, but also your ability to borrow money at a lower rate and qualify for other services will improve. It’s a win, win, win.

So if you’re concerned about your credit score and what it may be costing you, consider a credit score makeover. It will save you big.

To learn more about costs associated with your credit score, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Why am I considered an insurance risk?

Well, first off it’s not personal. It may feel that way, but it’s not. What it is, is a matter of statistics. If you’ve been labeled an insurance risk there are many factors, mostly related to past experiences. However, sometimes risk is assigned without a history, like teenage drivers for instance.

What are the risks insurance companies look at?

Age – Young drivers are a risk merely due to their inexperience. As you get older and prove yourself with a clean driving record, your insurance rates will decline. For many insurance companies 25 is the benchmark for significant premium reductions.

Driving record – If you have a lot of speeding tickets (or other driving violations), it can affect your insurance costs. Play it safe and drive smart…it will save you money in the long run.

Insurance claims – Even if you obey the speed limits and don’t drive recklessly, you may have a number of accidents on your record. That adds up.

Credit history – Bad credit could make you an insurance risk. It’s not a single factor, but if you have a bad driving record and bad credit, you may be labeled as high risk due to a lack of overall responsibility. Insurance companies love stable, responsible customers and they are rewarded with lower costs.

To learn more about insurance and the risk factors, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Does the type of car I drive impact my insurance costs?

If you’re in the market for a new car, you’ve probably already considered things such as styling, comfort, features and fuel economy. But have you thought about how much the car is to insure. It may not be obvious but the type of car you drive has a major influence on insurance costs.

Let’s review all the factors.
Your auto insurance is based on many factors. When it comes to those factors directly related to the vehicle itself, insurance companies consider the make, model, and age. Specifically they are looking at the value of the vehicle; it’s size, purpose and lifespan.

High-End Cars, Higher Premiums

Insurance is all about estimating replacement cost. If you drive an expensive car, it will be expensive to insure. Even it’s pre-owned, high-end cars can be more expensive to repair and result in higher premiums.

If you are on a budget and your insurance costs matter, then look to lower cost vehicles to keep your costs down.

Sporty = higher premiums

Sports cars have a higher incidence of accidents. It’s a fact. Therefore they are more to insure. Want a Mustang or Camaro with a big V8? Well, then be prepared for higher insurance costs. Sporty doesn’t always mean fast. Some cars with only 2 seats, like the Mazda Miata are considered sports cars even though they are not exceptionally fast.

Finally, where you live and drive also plays a part in how much your insurance will cost. People living in urban areas where theft and accidents are more likely to occur will usually pay more in car insurance premiums than people who live in the suburbs or rural areas. Where you live also impacts your driving patterns. Commuting long distances to work, for example, puts your car on the road more often and for longer periods of time, increasing your chances of an accident. Likewise, living in rural locations reduces costs.

To learn more about costs associated with your vehicle, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

What are the safest cars to drive?

A vehicle’s overall safety is determined by its crashworthiness. In other words, its ability to reduce injury in the event of a major collision. Each year the Insurance Institute for Highway Safety (IIHS) performs crash tests on many vehicles and rates their ability preserve the safety of the driver and passengers.

Things have changed quite a bit over the last 30 years. Several decades ago cars were built to prevent damage to the vehicle with little consideration for the occupants. Heavy bumpers and thick steel bodies and frames were employed to reduce the damage during an accident, which was great as long as there were no injuries. However, what insurance companies quickly figured out was that they were paying more in medical costs than they were to fix the vehicles and the medical costs were skyrocketing. Hence a new era was born.

Over the last 30 years or so cars have improved immensely when it comes to passenger safety. Seat belts, headrests, airbags, driver alerts and more all work together to reduce injuries during a collision. But even with all the innovation there are some differences in actual, real-world results. And that’s where the IIHS comes into play.

Safe doesn’t mean expensive.

The IIHS awards the best performing vehicles with its Top Safety Pick award. These vehicles range in price and are not reserved for higher-priced luxury brands. But, if you’re looking for the lastest in safety technology such as lane-change and blind-spot indicators, you may have to spend more to get it.

For a complete list and review of vehicles rated by the IIHS, check out this link: www.iihs.org/iihs/ratings

To learn more about discounts available for safety technology, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.

Compare Car Insurance Rates

What deductible should I choose

Altering your deductible is the quickest way to adjust your insurance costs. However, this comes with some challenges. So when it comes to saving money on your car, health or homeowners insurance policies, it’s worth discussing and giving some careful consideration. Here are a few things to consider…

Deductible Math 101

Auto insurance
Raising your deductible from say $500 to $1000 may only save $50 – $100 per year, which would take years to recoup in savings. But if you had an accident you’d be out $1000 instantly. If you are good with your money and a safe driver, this is an effective strategy. But if you have had a few accidents and money is tight, the lower deductible may pay out.

Your age also factors into the equation. If you are a mature 50-year-old driver with a clean driving record, you might only save $20 to $30 per year on your auto insurance premiums by raising your deductible from $250 to $500. But if you are a younger driver, you might be able to save as much as $250 or $300.

Home insurance
The differences in premiums when you raise the deductible for a home insurance policy are relatively small. You’d save around $85 per year by switching from a $200 to a $500 deductible and save around $80 annually by switching from a $500 to a $1,000 deductible.

Health insurance
Health insurance deductibles can get complicated for families. The best way to establish the ideal deductible is to review your family’s typical health costs, then discuss these with your insurance provider to identify the best scenario.

It’s up to you
Deductibles are largely a matter of preference. Some like them high. Some like them low. For those who manage their money well and have a little cushion in their savings account, higher deductibles will often save you money in the long run.

To learn more about adjusting your deductible, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.