5 questions about your Auto Insurance

When you are obtaining a new insurance policy for your auto do you know what questions to ask?  Do you know what kind of coverages you should carry?  You can always trust that our account managers will walk you through the process of the best coverages suitable for you.  But if you want to know a little more about what your policy entails, this blog is for you!

AAA has come up with 5 questions you should ask about your auto insurance policy.  And we are here to further explain it!

First things first, you’re a new customer and you have just walked in the door of Farquhar and Black.  We want to know, how did you come to find us?  Was it your friends or family that recommended us?  Did you see an ad in the paper?  When you sit down with your new account manager let them know.  Sometimes we may offer referral discounts, and that down the road could benefit you!

What coverage should I purchase?

Every state will carry different minimums you must carry on your auto policy.  There are two different categories that you must carry, liability.  Your liability coverage will cover any injuries that is done during your accident. Like we mentioned above you are only required to carry the states minimum coverage, which in Massachusetts is $20,000.

When you sit with our account managers we will always recommend carrying $100,000 in liability and if you own any property we recommend $250,000.  This is not for our profit.  This is so you will be fully covered if for any reason you get into accident.

After the minimum requirements of liability, there is collision coverage.  This is not required in the state of Massachusetts.  Though if you have a lean on your automobile the banks will require it because they have insurable interest in your car.  Customers who care the bare minimum for coverage it is $20,000/$40,000.  So as we mentioned about we recommend carrying a higher limit.  We like for our customers to carry $300,000 in collision or if you own property $500,000.

What affects my premium?

You maybe surprised to find that you and friend have the same car and same coverages but are paying different premiums.  Something you should know your zip code affects the price policy.  For example, if you live in a metropolitan area, insurance companies may charge more based on the level of hazards and vandalism to which your vehicle may be exposed.

But regardless of where you live, certain cars will be more expensive to insure based on how much it costs to repair or replace them.  A luxury car may be more expensive to fix, and certain models are stolen more often for their parts.  You can lessen the expense by adding on an anti theft system.

How is your driving?  If you are a safe driver, never had a car accident or a speeding ticket, of course you are going to be paying a lot less then someone who is not a safe driver.  If you are less likely to be putting in insurance claims the more desirable you are to insure.

Do you have any discounts?

People would be surprised to find out that there are discounts just about everywhere, including on your insurance policy.  Don’t worry though if you forget to ask, our agents will always ask you!  Many of our providers will offer a multi policy discount.  Which means you get will get a credit on having your home and auto policy together.  Do you only drive a certain amount of miles a year?  You get a discount for that too!  Want to know more about discounts?  Here is more!

Should I pick a high or low deductible?

Once you pick your coverages that are right for you and your car you choose your deductible.  What is a deductible?  Well this is the minimum amount you pay before your insurance pays for damages.  Most options are either $500 or $1000.

So if you are choosing a higher deductible your insurance premium will be lower than if you chose the one at $500.  This is because if an accident happens you are a paying more out of pocket before the insurance company covers the rest.  But an important thing that we always tell our customers is that, if you have to make a claim, high out-of-pocket costs may be difficult to afford, particularly if you are on a fixed income.  Sometimes an extra little bit on your monthly payments is worth it.  Here is a great link that goes into it a little further.

Does my rate increase after an accident?

Getting into an accident whether it is your fault or not can be a scary thing.  Our account managers will walk you through the process from start to finish while we handle your claim.  Each insurance company will handle this situation differently. Some have accident forgiveness policies, and others will look at  your driving record and how serious the accident was before raising your rates.  Ask us about these policies to avoid an automatic premium increase!

Always know that we are here to answer any questions you have about your new or existing policy.  The more you know the more confident you can feel behind the wheel when you’re driving.

Remember that your policy renews every year and its important to look over your coverages.  Your rates my increase or you may qualify for discounts.



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Are you ready to save time, aggravation, and money? The team at Farquhar & Black Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

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