How Much Car Insurance is Enough: Low vs. High Deductible

Many questions come to mind when you are getting your car insurance.  Questions like:

  1. What do all these numbers like 100/300/100 mean?
  2. What is an umbrella policy and do I need it?
  3. How much coverage do I really need?

That third question is one that we all face.  We know how much we want to pay — as little as possible so it doesn’t hurt the budget too much. We know how much the highway patrol requires — hopefully.  However, that might not be enough.  Let’s take a look.

Low Deductible vs. High Deductible

The most commonly chosen deductible for vehicles is $500.  We recommend, however, that you should do a break-even analysis.  You might consider raising your deductible to save money. The national average for car claims is 7 years.  Divide the change in deductible by the amount of savings. If it is greater than 7 years, it’s probably not a good thing to do.

The actual savings of raising your deductible can vary from one insurance company to the next and it depends on too many variables for us to actually use accurate numbers here.  However, let’s make up some numbers.

If you raise your deductible to $1000 per year, let’s say that saves you $50 per year.  Your break-even:

$500/$50 each year = 10 years to break even

The national average of having an auto claim is 7 years, so that’s probably not a good thing to do.  But what if raising your deductible saved you $150 per year?

$500/$150 each year = 3.3 years

Raising your deductible might be a good idea in this case.  You should contact us to get actual rates.  In addition, our experienced agents will be able to help you choose exactly the best coverage for YOU.  (And we’re also happy to answer all the questions you may have about it!)


How Much Insurance Do You Need?

Low vs. High Deductible
Liability Insurance
Collision and Comprehensive Coverage

5 Ways to Save on Your Car Insurance

Ben Johnson of Bob Johnson Insurance in TN

It can be easier than you think to put the brakes on high auto insurance rates. As an independent agency, Bob Johnson Insurance, Inc. can help! We can review your policy and possibly help you find a variety of illuminating ways to save money. Here are some things you may want to consider.

Ask us to check several companies’ rates.

This is the single most important thing you can do to get the best possible rate, and we can do it for you quickly and easily. The difference between the highest and lowest rate available to you from different companies could vary by hundreds of dollars.

Reduce or drop physical damage coverage on an older car.

Depending on your car’s age and where you live, comprehensive and collision coverage may not be worth keeping. We can give you advice on whether it makes sense to reduce or drop this coverage altogether.

Raise your deductible.

According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15 to 30 percent. In addition, because the average driver files a collision claim only once every ten years, odds are that over the lifetime of your car, a higher deductible will save you money. We can show you how raising your deductible will lower your premium.

Look for discounts.

Many insurance companies reduce premiums for certain driver traits or car features. For example: being a homeowner, students with good grades, senior citizens who have taken an approved defensive driving course, people who only drive for pleasure, antilock brakes, antitheft devices, air bags, etc. Ask us to check.

Don’t assume having your car and home insured by the same company is the best option.

Because auto insurance rates vary so much from company to company, it may make sense for you to have your car and home insured by separate companies. Let’s talk about it.

To learn more about all an independent agency can offer you, call Bob Johnson Insurance, Inc. at 865-922-3111 or click here to contact us.

Brake Safety Part 5: What to Look For When Buying Brake Pads

closeup of brake disc mounted on car

When it’s time to change your brakes, you might ask yourself, there are many factors to consider.  What types of breaks should you buy? What are the brands you can trust?

Unlike foods, there are no content labels for brake pads. The formulas for brake pads are highly-guarded secrets and vary even within a single brand depending on the use of the pad. For example, a truck may need more medal than smaller cars that can use organic pads just as effectively. A particular manufacturer may offer a number of different pads for the same type of vehicle, but it is not always clear which is best. Sometimes the most expensive is not the safest.

Consider Your Normal Load and Driving Situation

Normal, certified pads should be sufficient for regular driving.  You should consider upgraded pads if you tow (boat, trailer, etc.), carry heavy loads (including passengers) or travel regularly on roads with steep grades.

Types of Brakes

There are 3 different types brakes:

Organic

These types of brakes began to be used when asbestos became a problem. They are composed of materials like rubber, glass, carbon, fiber and many more.  These are affordable and quiet but they don’t last long as compared to other types of brakes.

Semi-metallic

These brakes are made of iron, copper, steel, or other metals with graphite lubricants. These perform better than organic brakes and do a good job of drawing heat away, but they are more expensive and noisier than organic brakes.

Ceramic

Ceramic brakes are the newest commonly-used pad. They are made of hardened ceramic material that is combined with copper fibers. They last the longest, and they are quiet, but they don’t perform as well as the semi-metallic in colder climates. They are also the most expensive among the types of brakes.

What Brand to Use

If possible, go with trusted name brands. Sometimes, the cheap ones are not always the best. Affordability may be a factor, but keep in mind that choosing the right brake pads could save your car and your life. Your mechanic or the representative at the auto parts store should be able to explain the difference in the brands and may be able to tell you the best for your car.

Check the Warranty

Some brakes offer them, others don’t. If they do not, some retailers offer warranty programs. You will also find lifetime replacement policies with some brands. While considering price, take into account the warranty info as well.

Check the Certification

Check for Certification. Look for D3EA (Differential Effectiveness Analyisis) and BEEP (Brake Effectiveness Evaluation Procedures) Certifications. Make sure they reach a certain minimum Standard.

BRAKE SAFETY:

Brake Safety Part 4: How to Know When to Change Your Brakes

closeup of brake disc mounted on car

If you have ever pressed the brake pedal and the car did not begin slowing down, you know the sinking feeling you get in your stomach as you begin pumping the brakes. By taking a few steps periodically to check your brakes and paying attention to warning signs, you can avoid the cost in time and money from an accident as well as ensure the safety of others.

Here is a short-list of common signs that it may be time to change the brakes.

Strange Sounds

Listen for sounds that are out of the ordinary.  One that you need to recognize is your brake pad’s wear indicator.  Your brake pad has a small metal piece that will produce a high-pitched sound when it is time to replace the brakes.  Sometimes, it can almost sound like a bird chirping.  If you hear this sound, it’s time to check the brakes.

Squeaks, squeals and grinding are also sounds that you may hear from your brakes.  If you hear a grinding noice, your brake pads may be completely worn off.  If so, there is a good chance your rotors are being damaged.

Visual Check

Watch your warning lights on your dashboard for indicators that your brake fluid is low or that there is an issue with the braking system.  However, be sure to visually check the brake pads themselves.

If you know what to look for, you can see when brake pads need changing. The pad will appear thin.  If you are not sure, go to a car tech who will recognize not only how the brake should appear but also will have an instrument to measure your brakes for wear.

Pulling to the Right or Left

If your car seems to be pulling to the left or right while driving — especially if it happens more strongly when you press the brake pedal — check your brakes. One of the brakes could be sticking. If so, the brakes will wear down more quickly and they could damage the rotor.  (Think more expensive fix!)  Pulling doesn’t always mean it is a brake problem.  It could be poor alignment, a suspension problem, or even worn/unevenly inflated tires.

Vibrations

Feeling a pulse or vibration in the brake pedal when braking is NOT normal.  It could be signal of a warped rotor.  A warped rotor is a sign that something has been wrong for some time.  You should notice other signs well before this happens, but if you feel a vibration, get your car checked as soon as possible.

Take Advantage of Every Opportunity

If you care for your vehicle properly, you probably change the oil regularly.  While you (or your mechanic) are working on the car, make use of the time to check the thickness brake pads, inspect the rotors for grooves caused by the pads, and look closely at brake lines for any leaks. (There should not be even a drop of brake fluid anywhere near the wheel.)

If it is time to change your brakes, you should now how to choose appropriate brakes for your vehicle. The next article will help you know what to look for.

BRAKE SAFETY:

Brake Safety Part 3: How to Spot Problems with your Brakes

Brakes are essential for your vehicle.  You use brakes to stop, yield and even change directions when driving.  If they are not working properly,  you may be putting your family and yourself at risk not to mention the cost of an accident or insurance claim.  That’s why it is very important to have a regular car maintenance check-up which includes making sure that your brakes are in fine working order.

Know the Signs of Brake Problems

Brake problems are a common cause of vehicular accidents.  By knowing the early signs of brake problems, you can  avoid possible accidents and their consequences.

Listen for Strange Sounds

When you tap on your brakes, listen for any strange or out-of-the-ordinary sounds.  These sounds could be a sign of brake problems.

Pay Attention to Stopping Power

When you press the brake pedal, you should be able to stop quickly.  If it takes longer than normal for your vehicle to come to a complete stop, you might have a brake issue.

Look at Your Dashboard

A light on your dashboard may turn on if you have brake issues. This brings up two good points. First, the lights on your dashboard depend on sensors on your car. If those sensors are not working properly, a light may not come on. Therefore, you should not depend on your dashboard light as the sole notification of brake issues.

Second, lights on the dashboard are usually icons — small pictures meant to communicate something to you.  Pull out your user manual and learn what the lights mean.  It will help you with other car systems in addition to your brakes.

Notice Car Behavior

Remember all those parts of the braking system from the last post? If your vehicle drags to the right or left when you stop the car, there is a good chance you have a problem in one of those systems.

What to Do if You Suspect Your Brakes are not Working Properly

Cars with brake problems should not be driven and should be brought to a vehicle mechanic for proper diagnosis and repair. However, every driver has a responsibility to check their car regularly and keep it in good condition. Knowing when to change your brakes can help stop problems before they start.

BRAKE SAFETY:

Brake Safety Part 2: How Brakes Work

closeup of brake disc mounted on car

We all know what brakes do–they stop the vehicle. What you may not realize is that knowing a little bit about how the brakes actually work will help you understand how important it is to maintain your brakes.

The amount of force that you apply to the brake pedal is not actually enough to stop the car.  Brakes use hydraulics which are a system of fluid-filled pipes that multiply force and move it from one place to another.  Here’s what happens when you press the brake pedal.

  1. You push the brake pedal.
  2. The brake pedal pushes as class 2 lever that increases your pushing force.
  3. The level pushes a piston into a narrow cylinder full of hydraulic brake fluid which squeezes the fluid out of the end.
  4. The brake fluid squirts down a long, thin pipe until it reaches another cylinder at the wheel which is much wider.
  5. The fluid pushes a piston in that wider cylinder with greatly increased force.
  6. The piston pushes the brake pad bringing the pad into contact with the brake disc which generates friction (and head).
  7. The friction slows down the outer wheel and tire, stopping the car.

All this happens with a simple push on the brake pedal.  All the different parts of maintaining your brakes are to help keep the above process happening.

In the next article, you will learn about how to tell if there is a problem in the brake system.

BRAKE SAFETY:

Brake Safety Part 1: A Short History of Brakes

closeup of brake disc mounted on car

Most people don’t even think about brakes on their vehicle except when they need to be changed but consider how necessary brakes are in your life.  Your brakes help you and/or your family arrive safely at your destination. They also help you avoid the cost of accidents and claims on your insurance.  So this month, let’s take a look at:

A Short History of Brakes

We all know that brakes help you stop the car. However, do you really understand how they work? Brakes use a system of fluid-filled pipes that multiply force and move it from one place to another, but this system has a history.

Late 1800’s – 1940’s

Years ago when wheels were steel (think late 1800’s), brakes were a block of wood with a lever to hold it against the wheel. Drum brakes came out with the emergence of rubber tire. By the 1920’s hydraulics were added to a four-wheel braking system that used fluids to transfer force placed on a pedal ultimate to the brake shoes.

1950’s – Today

Drum brakes had been very popular, but because of their inadequate heat distribution, disc brakes began to be used. (You might find it interesting that though disc brakes were patented in the early 1900’s, they were not predominantly used until the 1950’s.) The problem were that disc brakes required great effort by the driver to press the brake pedal hard enough to easily stop the car. For this reason, they were dropped for a short time; however, power brakes were introduced in the 1960’s so that drivers did not have to apply as much force to the brake pedal.

Today

Brakes are evolving much more slowly today. New technologies have emerged to aid the the same types of brakes.  We now have ABS,  electronic brake-force distribution (EBD), brake assist as well as other systems to help braking be as effective and safe as possible.  Even so, our modern-day brakes are still based on the same designs from the early 1900s.

 

Brake Safety:

Tips to Ensure Your ATV is Properly Covered

Tips to Ensure Your ATV is Properly Insured

The winter has been very mild in the Southeast this year, so you might be breaking out the “outdoor toys” a little early!  Before taking out your all-terrain vehicle (ATV), but sure that it is properly covered.

When it comes to your ATV, it pays to keep your feet on the ground when it comes to insuring it. You may think it’s covered by your home-owners policy, but are you really protected? Your “toy” wasn’t cheap, and lacking the right type of insurance coverage could lead to a sticky financial situation.

“Owners should think of ATVs the same way they think of motorcycles,” said Rick Stern, product manager, The Progressive Group of Insurance Companies. “You’d never consider getting on a motorcycle without the proper insurance, and you shouldn’t ride an ATV without the right coverage either.”

If you’re not sure what to do about your ATV insurance needs, here are a few things to consider.

Your homeowners policy might not be enough.

Most likely, your homeowners policy only covers your ATV if trouble occurs on your property. Anywhere else and you’ll be exposed. Look for an affordable ATV insurance policy that offers coverage no matter where you are. Trail riders should be aware that many states require ATV insurance for vehicles operated on state-owned land.

What about theft?

ATVs are portable and can be easy targets for thieves. You should consider ATV insurance that provides coverage for things such as theft, fire and vandalism just like the kind you can get for a motorcycle. Theft, fire and vandalism are covered by Comprehensive coverage, an optional physical damage coverage.

Consider uninsured and underinsured coverage.

You never know what can happen in the great outdoors. This relatively inexpensive coverage protects you if another rider causes damage to you and he or she lacks adequate coverage.

Keep your rates low.

You can do a number of things to save money on your ATV insurance, including maintaining a clean driving record, staying free of claims or choosing a less “sporty” ATV. In addition, most insurers offer a discount if you insure more than one vehicle on your policy, or have more than one policy with the company. This could mean additional savings on your car, motorcycle, boat or RV insurance.

For more information about ATV insurance or to find an independent agent, call Bob Johnson Insurance, Inc. at 865-922-3111 or click here to contact us.

8 Tips to Gear Up to Motorcycle Season

mechanic tightening the wheel nut on a motorcycle

To steer this riding season in the right direction, you’ll want to make sure your motorcycle — and your motorcycle insurance policy — are in good working order before hitting the open road.

While you should always check your owner’s manual for specific guidelines, here are some general tips for getting ready:

Change the oil and filter.

Many manufacturers recommend changing the oil and filter before storing a bike for any extended period of time and again when you bring it back out for riding season. Be sure to first start up the motorcycle to warm the engine and then shut it off before changing the oil and filter.

Check the belt or chain.

Make sure it is set to the manufacturer’s recommended tension. If you have a chain, lubricate it.

Check nuts and bolts.

Start off the riding season with a solid bike. Make sure everything is tight. “A well-maintained motorcycle not only assures a fun time, it can save you money by avoiding accidents, which helps to keep your insurance rates down,” says Rick Stern, motorcycle product manager, The Progressive Group of Insurance Companies.

Inspect tires.

Look for any damage and also make sure each tire is inflated to the correct pressure. You’ve only got two tires, so for maximum stability it is very important to avoid underinflation as well as overinflation.

Look for fluid leaks.

The easiest way to check for this is to look at the floor under the motorcycle. Leaking oil or brake, radiator or clutch fluid can cause their own special problems. For example, being low on brake fluid could make it hard to stop your motorcycle. You don’t want to find that out after you’re already on the road.

Check all lights.

Make sure headlights, taillights, brake lights and turn signals are all functioning properly.

Brush up on your riding skills.

Find a safe place to practice riding skills such as fast stops, figure eights, U-turns, etc., so you’re ready for the season. You’ll be glad you did.

Update your policy.

Perhaps one of the most important things you can do at the start of the season is review your insurance coverage to be certain you, and your bike, are covered. Talk to your local independent insurance agent.

Independent agents represent many companies and they can help you to understand the coverages you need. An independent agent can also help you find the combination of price and service that’s right for you. Call Bob Johnson Insurance, Inc. at 865-922-3111 or click here to contact us.

Motorcycle Insurance 101: The Essentials

motorcycle insurance considerations

A motorcycle is a significant investment. Before you get your motor running and head out on the highway this season, you owe it to yourself to make sure your insurance is up-to-date and you’re properly covered.

“Just as riding a motorcycle is much different than driving a car, riders should know that their motorcycle insurance needs are different, too,” said Rick Stern, motorcycle product manager, The Progressive Group of Insurance Companies.

Here are some tips.

Update your policy.

First, verify that all your coverages are still in force. Be aware that some companies have a winter layaway period during which some coverages are restricted. Check with your insurance company to see if you currently have any type of limited coverage. Next, note any changes such as additional riders or a new garaging address. A quick call to your independent agent or insurance company will ensure coverage that reflects your current needs.

Consider additional liability coverage.

If you have significant assets, it may be to your benefit to carry a higher limit just in case you are involved in an accident that causes injury to some-one else or damage to property.

Look into medical payments coverage.

Medical payments coverage pays your medical bills as well as your passenger’s and is available in limits up to $25,000 in most states.

Make sure custom parts and equipment are covered.

Additional parts such as chrome plating, a custom paint job, saddlebags or special rims usually increase the value of your motorcycle and may not be covered. If you’ve added any custom parts or equipment, you’ll want to check your policy or call your independent agent to make sure they’re covered.

Know your options.

Rates can vary, so shop around to see if another company offers you a better rate or if you qualify for any discounts. If you have comprehensive and collision coverage, consider raising your deductibles. Doing so can help to lower the cost of your policy.

Choose a company that specializes in motorcycle insurance.

For example, Progressive is one of America’s largest motorcycle insurers. Progressive agents and brokers understand the special needs of motorcycle owners and offer specialized coverages that are designed for them and their bikes.

As an independent agency, Bob Johnson Insurance, Inc. can help you decide if Progressive or another company is the best fit for you.  For more information about motorcycle insurance or to find an agent, call Bob Johnson Insurance, Inc. at 865-922-3111 or click here to contact us.