Auto Insurance Rating Myths

It’s not easy to wait for your new or renewal auto insurance rate quote. While you wait, all the driving sins you’ve committed over the past year or more rest heavily on your shoulders and you may become increasingly certain that every decision you’ve made, including the color you’ve chosen for your car, will backfire on you.

A lot of these worries are due to myths that abound about auto insurance rating. Let’s take a few moments to bust some of them.

Car color determines rates: When was the last time an auto insurance company or agent even asked you what color your car was? That answer should be never, because car color does not factor into auto insurance rates. While a sports car might be given a higher rate than a sedan, the color has nothing to do with it; it’s all about the propensity of a driver of one type of car to behave a certain way and, subsequently, introduce more risk to the insurer.

Personal ownership of the vehicle means personal insurance is needed: When you insure a vehicle, you are insuring it against the risks it faces while it is in use—not the risks it faces due to the name on the title. If you use your personally owned vehicle for your business, then you need commercial auto insurance, no matter what or what owns it.

Getting married makes auto insurance rates cheap: When underwriters determine your risk and decide how much you should be charged, they look for insights about your potential behavior based on your age, marital status and driving record. So while getting married definitely helps to make you look like a more conservative driver, your driving record could counter-balance that and leave you with no significant discounts due to marital status.

Having an accident will increase your rates: The nature of any accidents you have will go far in determining whether or not you suffer a rate increase as a result. If you have an accident and your driving did not contribute to it, but you have a claim against the uninsured motorist coverage on your policy, then there may be no rate increase at all. Insurance companies are looking for behaviors that deserve rate increases, not incidents beyond your control.

When it comes to something as intangible as an auto insurance rating system, myths are sure to abound. But there is a simple way to bust the myths and get to the truth—and that is to call your agent. He or she will help you determine what is fact and what is myth when it comes to your auto insurance premium.


Let Worthington Insurance help you with a Philadelphia Auto Insurance quote today!

Motorcycle and Scooter Insurance Basics

While drivers of motorcycles and scooters can likely speak for hours about the variances between these two vehicles, when you are looking at them in terms of insurance, these two bikes often have coverage options that are identical. Sure, when you ride, the power of the engine in a motorcycle is vastly greater than that of a scooter, but realistically, both machines subject their riders to the same types of risks. It is important to note that state minimums and maximums for each type of coverage can vary so check with your state’s department of insurance to get the details.

In general, drivers of both can expect to choose:

Bodily Injury and Property Damage Liability: This is a required coverage in 49 states. Bodily injury liability covers the injuries you might cause to others when you are at-fault in an accident. Property damage covers the property that you might damage in an accident that is your fault. These coverages ensure that an individual damaged by you either physically or financially has a means to seek reimbursement that does not rely on you having sufficient savings.

Comprehensive and Collision: If your motorcycle is damaged in an accident and you are at-fault, or if it is stolen or vandalized, then comprehensive and collision coverage is the way toward a new bike or repairs.

Uninsured Motorist Coverage: While insurance might be required for all drivers in your state, that doesn’t mean they will actually carry it. When you are in an accident and an uninsured motorist is at-fault, you need to get reimbursed by the uninsured driver unless you have uninsured motorist coverage, in which case you can get benefits from your policy.

Custom Parts and Equipment: Many motorcycles and scooters are upgraded by their owners and have custom parts and equipment. Because this changes the value of the bike from its stock value, additional insurance benefits may be necessary. Custom parts and equipment coverage is an optional coverage that is often part of your comprehensive and collision coverage.

Many of the largest differences in motorcycle and scooter insurance coverage will come in when rates are factored, because the size of the motor, weekly mileage and accident information for your area will all be factored in. Make sure you specify which type of bike you ride when you shop for the insurance and that you are familiar with all your state’s requirements.


Contact us today for your own Philadelphia Motorcycle Insurance quote!

The Real Cost of Auto Insurance Fraud

Fraudulent activities are an unfortunate fact of life. In the insurance industry, fraud often takes the form of overstated claims, the filing of multiple claims, filing a claim for an accident you weren’t actually involved in, illegally registering cars in areas that make auto insurance quotes less expensive, and more.

Many people assume that when they commit these types of fraud, the only people they are hurting are the insurance executives. Of course, that fact alone is still not a good thing, but the idea that only those at the top get hurt by insurance fraud is wrong, because it is all customers who must pay.

Increased Premiums

The worst fallout of auto insurance fraud is the increased premiums that it causes all insurance clients to pay. In order to cover the cost of the excessive or inappropriate claims, the cost of investigating claims, and the changes in risk that are assumed by the claims, insurers have no choice but to spread the losses by raising the premiums for all policyholders. This means the average customer ends up paying for the fraudulent activities of others.

Increased Paperwork

When frauds are attempted and found, or committed and later discovered, insurance companies understand that they must adjust their processes in order to try to prevent them from happening in the future. This means they will take great pains to have applications and claim forms that attempt to weed out potentially fraudulent activity. This increases your work, however, because all of their insurance policyholders will need to use this paperwork. It also creates an additional expense for the insurance company which is, once again, passed on to policyholders.

Increased Taxpayer Dollars

Some claims require police and arson investigations. When the claims are false, these investigations result in taxpayer dollars being wasted on paying the payrolls of those who must investigate them. This also ties up law enforcement officers when they could be out preventing actual crimes.

Insurance fraud is a problem that we all must consider, even if we are not guilty of committing it. We should take whatever steps are reasonable and safe within our own lives to ensure that those we know and love are not encouraged to commit fraud and that potential frauds are reported to the proper entities.


Make sure you're getting the best rate for your Philadelphia auto insurance with Worthington Insurance today!

Philadelphia Auto, Home & Business Insurance

SMART LOCATION
From the scale and size of our market, to the national and global access of our East Coast location, to our highly educated and diverse labor pool, Philadelphia is at the center of a dynamic and thriving region.


SMART COMPANY
Philadelphia's economy is driven by innovation with industry-leading companies and institutions across a wide variety of sectors such as life sciences, healthcare, telecommunications, advanced manufacturing, warehouse and transportation logistics, and education.


SMART LIVING
Philadelphia offers a remarkable quality of life with a vibrant Center City, world-renowned arts and culture, and accessible public transportation – all at an affordable cost of living.


WORTHINGTON INSURANCE
When you think of Worthington Insurance you think of choices. As an agency that represents various insurance companies, we can match you with an insurance company that is the best fit for your insurance needs. We’re local. If you have a problem, we are your neighbor. We welcome you to stop by and review your insurance accounts. We have the most up-to-date computerized systems and a staff of qualified licensed insurance agents waiting to serve you. Call us today for a FREE Philadelphia Insurance Quote at (215) 493-4170.


(Source: Phila.gov)

Contractors Insurance Overview

It isn’t easy to be a contractor. As the middle-man for any given project, you have all the stress of managing your client’s expectations, budget and timeline along with the fees, idiosyncrasies and scheduling issues of any subcontractors you need to hire. In addition, you have the ever-present stress of completing whatever portion of the job that you need to do yourself.

And while there is no real way around these struggles, there is something you can do to make your life easier. Contractors insurance is a must-have product so that your liabilities as a contractor are covered under your own policy and your wallet is protected. Also, since your clients are less likely to hire a contractor whose liabilities must be covered under their homeowners insurance policy, contractors insurance is likely to help you gain business over the years.

Find out more about Yardley Business Insurance with Worthington Insurance today!

Vehicle Theft Increases During the Holidays

Every year during the holiday season, your risk of vehicle theft and vandalism increases because, during the holiday months, many people drive around with valuable gifts in their cars, luggage from recent trips and items ready to be returned to their local store. This makes the season the perfect time for someone to break into your car and steal all that you’ve got lying within, or to take your car itself.

There are some things that you can do to reduce your risk of vehicle theft and damage and keep the holiday season (and post-holiday return season) joyous and as low-stress as the season itself will allow.

1. Do not leave valuables in your car. This is an easy one—and something that should be practiced year round. Leaving valuables in your car, what with its big, see-through windows, is like sending an engraved invitation to a thief. Keep your valuables at home or on your person. This includes shopping bags. If you can’t take them with you in between trips home, then at least leave them locked in the trunk where they can’t be seen and are less likely to encourage someone to try a smash and grab.
2. Park in well-lit, populated areas. If someone is going to break into your car and steal something, or hotwire your car in order to drive it away, they are not going to want to do that when they are in full view of passersby. Try to park in populated, well-lit areas of parking lots. Avoid parking next to bushes and shrubs and choose to park under street lights as often as you can.

Click to read more about you can prevent vehicle theft during the holidays.

Call usat 215-493-4170 for a free auto insurance quote in Yardley, Newtown, Bensalem or Levittown.