All posts by John McLain

Should I insure a car I don’t drive much

It’s not uncommon to have a vehicle that isn’t driven very much. Maybe it’s an extra car or truck that is used only occasionally or maybe you simply don’t drive your only car very often. Regardless, you may find yourself questioning whether it’s worth insuring a car that very rarely sees the road. So, should you insure it? Absolutely, without out question, YES. All cars that are driven on the road should be insured. Your state may even require it.

But even if it’s not legally required, it’s simply a good idea. Accidents happen, whether your fault or not. And insurance is there to protect you. But ultimately you need to make good financial decisions. Maybe it’s worth considering getting rid of any vehicles that aren’t driven very often. Is it worth it to insure them? If you only drive a car a few times a year, but it costs $500 to insure is it worth it? That is a decision only you can make. If it is a collectible car and you enjoy it, then the answer may be yes. But if there is no value in keeping an extra vehicle, perhaps it’s time to shed all the expenses of ownership and get rid of it.

Insurance is about good financial decisions, and that means deciding if it’s worth keeping the vehicle at all. If you keep it, insure it. There are cost-cutting ways to reduce your insurance premiums, so be sure to ask about those.

To learn more about available discounts, 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.

Are there special discounts for insurance

Most insurance providers offer a variety of discounts. In fact, most TV insurance advertising promotes all of these discounts. But to determine what discounts are available to you, it’s best to contact your provider. In general, many companies offer the following discounts.

Vehicle Discounts

Safety Features Discount
Safety features, such as anti-theft and anti-lock brakes, adaptive cruise control, lane departure warning and collision preparation systems may earn you additional savings.

Hybrid Vehicle Discount
Gas-sipping cars are may earn lower rates.

Policy Discounts

Multi-Policy Discount
If you have more than one policy, such as car, home, RV, boat or life insurance.

Exclusive Group Savings
Many insurance companies offer discounts to a variety of employers, groups, credit unions or alumni associations.

Preferred Payment Methods Discount
Auto-pay programs often earn discounts to avoid late payments. These also ensure that your coverage never lapses.

Multi-Vehicle
Have more than one car? That can earn you another discount.

Stage of life discounts

Good Student Discount
Earn good grades? Cash them in for savings.

New Graduate Discount
Upon graduation your insurance provider may reward you with lower rates.

Newly Married Discount
Newlyweds earn special savings because married couples prove more responsible drivers.

Newly Retired Discount
Celebrate retirement with discounted insurance.

Bottom line, there are many ways to save, but the most important is to be a safe driver. To learn more about discounts available to you, 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 does “full coverage” mean

The term, Full Coverage, is a bit misleading mostly because it means different things to different people. It varies from company to company and from driver to driver (or homeowner to homeowner). To the average driver or homeowner, Full Coverage, may be equal to “The Works”…I want it all…max me out…cut no corners. But that’s not necessarily true or wise.

Generally Full Coverage means a comprehensive policy with appropriate amounts across all risk categories. It simply means you are covered properly for all likely events that could cause a loss. Full Coverage does not mean Most Expensive, or at least it shouldn’t mean that. When you talk to your agent and ask for full coverage, you should ask what that means to him or her.

At the end of the day you do not want to be over insured or under insured. Fully insured is the sweet spot. Particularly if you are fully insured at competitive rates.

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.

Will my policy be cancelled if I have an accident

The short answer is no, but maybe. Many drivers will experience an accident at some point in their life. It’s unfortunate but true. If, and when, an insurance company decides to cancel a policy is based on many factors, but mostly involves the individuals driving history.

If the driver has a record of accidents, speeding and poor driving, there is a good chance the policy will be cancelled. At the very least, his or her premiums will go up. So what that means to the average driver is that a single accident generally does not lead to a cancelled policy — particularly if the accident wasn’t his or her fault. Insurance companies generally never penalize customers for accidents that aren’t’ their fault. There are exceptions to this, but they are rare.

In short, if your policy is cancelled it’s because the amount of risk is too great. So to prevent this, be a safe driver. Be alert. Be cautious. Wear your seat belt. Drive the speed limit. Drive defensively. Simply don’t cause accidents. That’s the best plan to lower rates!

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.

How do insurance companies assess my risk

For insurance companies, assessing risk is all about numbers. Insurance companies do not charge the same price for all customers. Each customer is charged based on his or her calculated risk. So how do insurance companies calculate your risk? They look at a lot of data, including:

Credit history: People with good credit are statistically less risk. They drive more cautiously and have fewer claims. They are also more responsible toward home ownership.

Age: Youth = risk. Unfortunate but true. Younger drivers make poor decisions, and are more likely to be involved in an accident. The good news is that as you get older, your rates will decrease.

Address: Where you live is a factor. Live in the country? Then you’re less likely to have an accident. Live in the city? You’re more likely…because there are more drivers.

Driving record: This is obvious, but how you drive and what is reported on your driving record will haunt you. Are you a speeder? Reckless driver? DUI? If so, expect to pay for it…literally. Insurance rates go up for poor drivers. Just a fact.

Marriage status: Married drivers are considered more likely to drive with loved ones in the passenger seat; fewer accidents are reported in this group, perhaps because of a reluctance to take needless risks when children and family members are in their cars.

Gender: Men are more likely to have an auto accident than women. Sorry guys, women win again.

Health status: this typically only applies to life insurance. If you’re healthy, your rates are lower than if you have known health issues.

So insurance companies look at all this data and then crunch the numbers. This is performed by someone called an underwriter. It’s their job to assign a risk value to each and every insurance customer. If they do their job correctly, you don’t overpay or underpay.

Want to know 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.

Why do I pay more for insurance than my friend

Insurance rates are factored on an individual basis. Not only to insurance rates factor in your personal financial and insurance history, they factor the property to be insured. So if you and a friend are discussing auto insurance and he pays less than you do through the same company there are many reasons for this.

Here is a list of factors that affect the price of your auto insurance:

Driving record. A spotless driving record will provide lower rates.
Type of car. The value and performance rating will affect rates. Sports cars or rare cars can be more to insure than your average vehicle.
Miles driven per year. Driving more miles per year will increase rates.
Location. A person in the suburbs will pay less than a person in a large city.
As for homeowner’s rates, there are other factors that impact the cost of insurance:
Home replacement cost. This confuses people. It’s not what you paid for the home, but what it would take to replace it. For instance, if you live in a very popular area where home prices are driven by demand, then you may have paid a lot for your house, but the insurance costs are minimal because it may not be that expensive to replace it.

Location. Is your home in a flood zone or prone to earthquakes or tornadoes? These impact cost.

Value of possessions. Do you own a lot of expensive items?

Previous insurance history. Have you filed many claims before? This could make your rates go higher.

Deductible. A low deductible (the amount you pay if you file a claim) can increase your rates.

So, as you can see there are a lot of factors that influence your insurance rates and it’s not always easy to compare your policy to your friends. The bottom line is this. If you have questions about your policy and your rates, simply contact your agent.

If you have questions about your insurance, 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 to do if you need to file a renter’s claim

Filing a renter’s claim is not all that different than filing a homeowners claim. The key to both is advance preparation. So let’s rewind and discuss what you should do before damage happens. Once you have purchased homeowner’s insurance review the claim process with your agent. Most insurance companies provide information to the homeowner with instructions for filing a claim. Review this information and put it in a place where you can easily find it in case something does happen.

This is important because insurance companies all have different procedures. But they all have some things in common. First, file your claim as soon as possible. Delaying this step could lead to issues. So, if your insurance provider has a 24-hour hotline, call as soon as possible. This will put the claim wheels in motion and lead to a faster resolution.

You will be assigned a claim number and agent. The claim agent may come to your home to assess that damage and ask for more details about the incident. Be prepared to have receipts or any supporting details that the claims agent asks for. The claims agent will assess the damage and help with the process of repairs. Often times claims agents have preferred vendors that will repair the damage. Using these preferred vendors often provides many benefits. They are generally very responsive, and they guarantee with work.

The more prepared you are before an accident occurs, the better prepared you’ll be to file a claim and provide the information required to process your claim. That means understanding the claims process for your insurance company. Review the process with your agent and ask questions. You’ll be glad you did.

To learn more about renters insurance and the claims process for your insurance carrier, 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 to do if you need to file a homeowner’s claim

Before we discuss what to do when filing a claim there are a few things you can do to be better prepared if damage ever occurs. So let’s rewind and discuss what you should do before damage happens. Once you have purchased homeowner’s insurance review the claim process with your agent. Most insurance companies provide information to the homeowner with instructions for filing a claim. Review this information and put it in a place where you can easily find it in case something does happen.

This is important because insurance companies all have different procedures. But they all have some things in common. First, file your claim as soon as possible. Delaying this step could lead to issues. So, if your insurance provider has a 24-hour hotline, call as soon as possible. This will put the claim wheels in motion and lead to a faster resolution.

You will be assigned a claim number and agent. The claim agent may come to your home to assess that damage and ask for more details about the incident. Be prepared to have receipts or any supporting details that the claims agent asks for. The claims agent will assess the damage and help with the process of repairs. Often times claims agents have preferred vendors that will repair the damage. Using these preferred vendors often provides many benefits. They are generally very responsive, and they guarantee with work.

The more prepared you are before an accident occurs, the better prepared you’ll be to file a claim and provide the information required to process your claim. That means understanding the claims process for your insurance company. Review the process with your agent and ask questions. You’ll be glad you did.

To learn more about your claims process, 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.

Classic Car

Do I need special coverage for an antique car?

Yes you do. Especially if you drive your antique car. Any vehicle on the road should be insured. If not for your protection, for the protection of other people’s assets. If you hit someone else, it’s your insurance that will pay for the damage to their car and for their medical bills.

Antique cars require special insurance.
A rare car isn’t like a modern sedan. You just can’t repair it in a few days like you can a newer car. Antique cars may be so rare in fact that they could be rendered unrepairable. That is where specialty insurance comes in. But there are some factors that come into play. Insurance companies have definitions for collectible or antique autos and those definitions may vary from company to company. However, most agree that an antique auto must be at least 25 years old.

Other limitations apply:

  • Your antique or classic car must be used on a very limited basis, such as exhibitions, club activities, and parades or limited to certain annual mileage.
  • You need to have restored, maintained, or preserved your antique or classic car – meaning you must demonstrate you have taken care of it – not let it rot in a field.

To learn more about insuring your antique or collectible car, 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.

Tree Falls On House

Who’s responsible? Weird insurance scenarios that really happen.

Neighbors tree falls on your house.

So let’s say there is a bad thunderstorm and the strong winds take a large branch from your neighbor’s tree and it falls on your house, damaging the shingles and the gutter. Who is responsible? First a couple questions need to be answered. How did the branch fall? In this case it was a storm. Second question. Did the branch fall due to neglect? In other words, was the branch dead and did your neighbors know about it. Let’s assume the tree was healthy. Therefore there is no “blame” so your homeowner’s policy would cover the repairs to your house (minus the deductible).

If however, your insurance company saw that the tree was dead or dying and could prove your neighbors neglected the tree or refused to have it pruned, then your neighbors insurance policy would cover your damage.

Driver crashes into my house.

Let’s start with the number one rule concerning vehicle accidents: The party at fault is liable for any damages caused by that accident. So, if a vehicle crashes into your home, and the crash was the driver’s fault, then he or she is on the hook for the damages caused to your home (or any other property, for that matter). So unlike the tree branch that falls from your neighbor’s tree, an auto accident on your property is someone else’s fault.

This is where the property damage clause of an auto policy comes in to play. And it makes sense, doesn’t it? Damage to your home is damage to your property, right? So, the property damage coverage in a driver’s auto policy will pay for any repairs that need to be done on your house.

Kids damage a parked car.

Let’s say your car is parked in the driveway or even on the street and some kids are playing nearby. They accidently throw a baseball at your car and it smashes a window? Who covers the damage? It is damage to your car, so is it auto insurance? But you didn’t do anything, and the kids don’t have auto insurance. This likely falls to the parents of the children and their homeowner’s policy. Typically, most homeowner policies provide coverage for miscellaneous accidents that occur near the home.

To learn if you have the appropriate insurance, 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.