"Welcome, friends, to the first installment in our informative blog series. With insurance rates on the rise, it's crucial to tackle some tough conversations. Today, let's talk about claims.
You might think having insurance means you should use it whenever you can, but that's not always the case. Consider insurance as your safety net for catastrophic events. Small claims for things like minor home or auto repairs should ideally be handled on your own.
Now, let's focus on your auto insurance. It might seem convenient to have towing coverage, but those small claims can add up. Insurance companies are increasingly looking at the overall number of transactions, a concept known as "frequency." Even accidents where you're not at fault can raise concerns about your driving habits.
Behaviors like not using your turn signal, making sudden speed or direction changes, or parking in tight spaces, while technically not your fault, can still indicate a pattern. In the insurance industry, they say, "frequency leads to severity." In other words, if you have a history of small "fender benders," it's more likely that your next claim will be a big one. Insurers prefer clients who are cautious, attentive, and in control of their vehicles.
If your record shows a few of these minor accidents, it's time to reevaluate your driving habits. Telematics can help. It's a valuable feature in auto insurance that promotes safe driving. Our primary goal is your safety, and telematics can reveal bad habits you may not even realize you have, such as hard cornering, abrupt stops, rapid acceleration, and speeding.
Distracted driving is also a significant contributor to accidents, from eating in the car to dealing with children or using your cell phone. In fact, cell phone use while driving is almost as concerning to insurers as an actual accident. We strongly encourage you to embrace telematics as a family and even turn it into a friendly competition for the title of the best driver.
Some may argue against telematics, citing concerns about privacy, but resisting this technology could lead to higher costs in the long run. Modern vehicles can already transmit your driving habits to insurance companies, with or without your consent. Many carriers are willing to invest in this data because it's incredibly valuable to them.
Your driving behavior directly affects your rates, and insurance companies need accurate data to offer competitive pricing. Remember, they're in business to make a profit, and if claims get out of control, they'll find ways to rein them in, often through rate increases and by denying coverage to high-risk drivers.
Stay safe and keep your premiums low with telematic apps. We understand that this information may not be what you want to hear, but honesty is essential. How else will you truly know the facts?"