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.

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.

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.

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.

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.

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.

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.

Understanding how much insurance to have can be challenging. Let’s try to simplify things so that it’s easier to understand and even easier to buy. The ideal outcome is finding coverage that’s just right.

Insurance is all about protecting your assets. Yes it covers car damage and house damage, but at the end of the day, insurance is to help protect you from a large financial loss – one that could be catastrophic to your personal finances. So, insurance coverage isn’t just about what you own, it’s about covering what other people own too. Take auto insurance for example. Not only do you want to make sure you cover your auto’s value, but you need to make sure you have enough insurance for someone you may hit. Indiana requires a minimum of $10,000 insurance for other people’s property, but what if you hit a brand new BMW and it’s a total loss? If you only have the minimum insurance, you have to pay the difference. Do you have $40,000 or more to pay out of pocket? So that’s where insurance comes in.

Homeowner’s insurance is a bit more straightforward, but just as easy to underestimate. For the most part, you want to cover the replacement cost of your home and your home’s contents. Umbrella policies are available to cover accidents and injuries that may occur on your property. One thing with homeowner’s insurance is to make sure all of your possessions are covered. Many policies have limits on things like jewelry, computers, and electronics. Be sure to describe these items in detail when shopping for insurance. Your Provident agent will be sure to recommend the best coverage for your possessions.

In the end, insurance serves a purpose. It is designed to save you from large financial losses. If you focus your insurance dollars on protecting you from the biggest possible threats, then you can save money in the long run. If you’re looking for ways to save, consider a higher deductible. That way you can have the necessary protection, without paying as much in premiums…but if you do have a loss you will pay a little more out of pocket. Say, $1000 instead of $500. But that $500 difference is minimal compared to the thousands you’d pay if you’re underinsured.

To learn more about ways to save on 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.

Most insurance policies are comprised of many elements. Each element can contribute to the total cost of insurance. So on the whole, you do not want to skimp on insurance. But there are ways to reduce your costs based on your priorities and your needs. Where you absolutely don’t want to skimp is on those elements that are affected by a third party.

For instance lets say you cause an auto collision and a person in the other car is injured. You are protected by the Liability element of your auto insurance. However, if you skimp here and you are sued, good luck. People can survive financially if their car is totaled, but it may be very difficult to survive financially if you are sued and your assets and wages are attacked in the lawsuit.

But you may be able to reduce the cost of other elements of your auto policy. Comprehensive and Collision elements may be reduced to help save money. If something happens, you may have to pay out of pocket, but these are typically not costs that can ruin someone financially.

There are also ways to reduce the cost of your homeowner’s insurance without skimping on the important stuff. Your home is probably your single largest investment, so there is a lot to protect. So maybe you just need to raise your deductible? A higher deductible means you pay more out of pocket at the time of a claim, but it won’t ruin you financially. Moving from a $500 deductible to $2000 could save you thousands of dollars over the life of your policy. You should also review what exactly is covered to see if there is a way to reduce the cost even more. Most policies accommodate a variety of personal possessions. Perhaps you don’t even own something that is covered and can have it removed from the policy to reduce the price.

The bottom line is this. Insurance serves a purpose. It ultimately is designed to save you from large financial burdens. If you focus your insurance dollars on protecting you from the biggest possible threats, then you can save money in the long run.

To learn more about ways to save on 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.