Does Your Teen Need Auto Insurance If They Just Have a Permit?

Before your teenager can obtain their driver’s license, they are required to have a permit. A learners permit has different rules than a drivers license, such as needing a licensed adult in the car with them at all times when they are driving. A permit is designed to give your teen the chance to learn how to drive before they get a license and can drive on their own. One of the questions that we at Schaller & Thomas Family Insurance, serving the greater Peoria, AZ area, are often asked is whether you need to add your teen to your auto insurance policy when they just have a permit. Read on to find out the answer. 

Most auto insurance policies do not require you to add a teen to your auto insurance plan if they only have a permit. Most require it only when your teen is licensed. However, you should never just assume that they do not need to be added. Calling your insurance carrier and asking is the best way to handle this situation. Your insurance carrier can let you know for sure if your teen needs to be added when they have a permit or whether they do not need to be added. 

In most cases, your teen does not need to be added to your auto insurance policy if they only have a permit. But soon enough, they will be getting their license and they will need auto insurance. Now is a great time to think about updating your policy and finding an affordable one for your teen. Here at Schaller & Thomas Family Insurance, serving the greater Peoria, AZ, we can help you find the right auto insurance. Give us a call now to get started. 

3 Tips for Buying Auto Insurance in Peoria, AZ

Life in Peoria, AZ comes with lots of sunshine, which means you’re probably on the road a lot getting from one beautiful destination to another.  If you’re looking to buy a new auto insurance policy or change an existing one, there are three ways you can save both money and time in your search.  Read on to learn about these three tips.

1.  Bundle your Policies

Do you own a home?  Perhaps you have another car or vehicle that is already insured?  If so, you can add these policies into a bundle package with one insurance company to save money on your premiums. Even if you own a recreational vehicle or a boat, these policies can also be lumped under an insurance company for extra savings.

2.  Compare Policy Quotes

To make sure you get the best auto insurance policy you are looking for, it is important to compare quotes. At Schaller & Thomas Family Insurance, the knowledgeable agents can help you with this. Together, you can go over each policy in detail to find the one that best suits your auto insurance needs.  Try to compare at least three quotes from different insurance companies.

3.  Work with a Reputable Agent

Before you buy an auto insurance policy on your own, you should consider working with a reputable agent. These agents have the experience to help answer any questions you may have about a policy.  

The team at Schaller & Thomas Family Insurance serves the Peoria, AZ area when it comes to purchasing auto insurance.  To learn more about how they can help you, contact them today at 623-580-8688.

Do You Need to Tell Your Insurance If a Teen With a Drivers Permit is Driving the Car?

There is a lot of confusion as to when you need to add a teenager to your auto insurance policy or let your auto insurance company know that your teenager is driving. Here at Schaller & Thomas Family Insurance serving the greater Peoria, AZ area, this is a question that we are often asked. Here is the answer that we provide to parents who have a teen who has just received their permit. 

Do You Need to Notify Your Auto Insurance Company?

In most cases, the auto insurance company does not require you to notify them that your teenager is driving until your teenage is a licensed driver. This means that, in most cases, you do not have to notify your auto insurance company when your teenager receives their permit and begins to drive. 

Should You Notify Your Auto Insurance Company?

While you are not required to notify the auto insurance company in most cases, it is still a good idea to reach out to your specific auto insurance company and let them know that you do have a teenager who received their permit. Some companies do require you to notify them of all drivers, including only those with permits. Reaching out to your insurance company allows you to add your teenager if it is required. 

Once your teenager is licensed to drive, your auto insurance needs may change. At Schaller & Thomas Family Insurance serving the greater Peoria, AZ area, we can help you determine how much coverage you need and help you find the best plan for both your needs and your teenager’s needs. Contact us today to get started. 

Factors affecting vehicle sales, insurance and repairs

By Patricia L. Harman

March 7, 2018

PropertyCasualty360

Artificial intelligence, emerging technologies and changing consumer expectations are just some of the issues impacting auto sales, insurance and repairs according to the 2018 Crash Course study from CCC Information Services, Inc.

With 17.25 million vehicles sold in 2017, slightly down from 2016, the 2% increase in average vehicle prices to $36,113 meant it was still a strong year for manufacturers. Higher vehicle costs also means increased insurance premiums, leading insureds to opt for higher deductibles should they be involved in an accident. According to the CCC report, 19% of all collision claims had a deductible of $500 or more, although the average repair generally costs significantly more than the deductible.

Auto technology improves

Manufacturers are working towards greater “vehicle connectivity, vehicle autonomy and vehicle electrification, powered by advancements in computer power, machine learning and artificial intelligence,” said Susanna Gotsch, Crash Course author and lead analyst for CCC. “Our industry has never moved faster or been so exciting. Advances in digitization, artificial intelligence, the internet of things, and sensor and camera technology are driving dramatic changes and improvements in automotive technology.”

Connected vehicles are enabling vast amounts of information about a vehicle’s health, driving data (the vehicle and driver’s), performance, as well as vehicle-to-vehicle data to be collected by manufacturers, insurers and other parties. Some of the information can help insurers with more accurate policy underwriting.

SMA research anticipates that 70% of all auto insurers will be using telematics by 2020. The benefits include a shorter delay in filing the first notice of loss with an insurer, since crash data could conceivably be sent to the insurer, first responders (in the event of bodily injuries) and to the repairer.

Technology usage in other areas has affected policyholders’ expectations for the insurance industry. Like online retailers who provide constant updates when packages have been dispatched, are en-route and will be delivered, insurers and repairers are expected to provide similar information to policyholders about their claims. Recognizing the importance regular communication has on customer satisfaction ratings, multiple insurers are utilizing programs to provide policyholders with regular updates on their claims status.

The ups and downs of ride-sharing

As the use of ride-sharing increases, so does the number of vehicles on the road and miles driven. The Institute of Transportation Studies at UC Davis studied ride-hailing in seven U.S. cities and found a 6% drop in the use of public bus transportation and a 3% drop in light rail use.

In New York City, increased ride-sharing usage accounted for declines in the use of taxi and private car services. For business travelers, ride-sharing now accounts for 65% of the ground transportation costs according to the Center for Automotive Research, while taxis only account for 7% and car rentals for 28%. Even airports are reporting a major drop in fees from parking, car rental companies and taxis.

Auto repair costs climb while collision severity drops

The increased use of advanced driver assistance systems (ADAS) such as front crash prevention, blind spot detection, lane departure warnings, park assist, obstacle detection and back-over prevention is having a positive impact. While these technologies are not mandated by the National Highway Traffic Safety Administration (NHTSA), the Insurance Institute for Highway Safety (IIHS) and NHTSA announced in 2016 that 20 major auto manufacturers had voluntarily committed to making front crash prevention systems standard on most models (approximately 99%) by 2020.

Studies by the Highway Loss Data Institute (HLDI) and IIHS have found that vehicles equipped with forward collision warning systems have reduced rear-end collisions by 23%, and accidents involving vehicles with automatic emergency braking dropped by 40%. The CCC report finds that in addition to fewer accidents, these systems may also help reduce the number of incidents involving cyclists and pedestrians.

While these technologies have shown promise in reducing the number and severity of accidents, the cost to repair vehicles continues to rise. CCC said the average cost for a repair increased 2% in 2017 to $2927. Repair costs for non-comprehensive losses ran 2.3% higher in 2017 than the previous year, with costs for current model vehicles running slightly higher at 3.7%. Costs to repair vehicles that were one to three years old increased 3%.

However, there is a significant difference in repair costs depending on the age of a vehicle. Average repair costs for new vehicles compared to older ones increased from 47% to 69% over the last five years. “Dollars for replaced parts as a share of total repair costs and the average number of replaced parts per claim have increased — particularly for newer vehicles,” said Gotsch in her report.

The increased use of driver assistance technologies can help mitigate or even prevent accidents, but like cell phones and other technology, they will also change driver behaviors. For insurers, this could also mean changes in liability and the types of insurance coverage required for a vehicle. The actual repair costs, while higher, could be offset by fewer overall accidents, which would have a long-term impact on parts suppliers and repair shops as well. The changes for all are probably coming more quickly than anyone expects.

Are Your Friends Covered Under Your Auto Insurance?

Contrary to popular belief, auto insurance doesn’t follow the driver of a vehicle, it follows the vehicle.  This means that whoever drives your car with your permission is covered under your auto insurance. By obtaining comprehensive auto insurance from Schaller & Thomas Family Insurance, your vehicle will be fully protected against accidents, whether you or a friend are driving.

Repercussions of Loaning Out Your Vehicle

If you loan your car to a friend and he causes an accident, your insurance would cover the claim as per the coverage in your policy. The claim, however, would go on your record as the owner of the vehicle. Claims from other drivers could eventually cause your insurance rates to rise. Loaning your vehicle to multiple drivers increases the risk of accidents which could result in higher insurance costs.

Permissive Use

Drivers who have your permission to operate your vehicle are covered under your policy. Those who live with you in Peoria, AZ should be put on your insurance policy to benefit from full insurance coverage. Family or friends who visit from time to time and occasionally borrow your vehicle don’t need to be listed on your policy to receive insurance coverage. As long as they have permission to drive your car, they will be automatically covered under your policy.

Non-permissive Use

On the flip side, if someone drives your car without permission and has an accident, you can’t be held liable for injuries or property damage to others as a result of the accident. The insurance company of the individual who took your car would be responsible for damages. If the individual has no insurance, your insurer may have to cover the damages.

For personalized auto insurance coverage that suits your specific needs, contact Schaller & Thomas Family Insurance, Peoria, AZ.

Why It’s Still Important to Insure an Old Car

A common scenario in Peoria AZ really became apparent a few years ago during the 2009 Recession and afterwards. Folks were holding onto older cars longer, keeping them going instead of trading them in and buying new ones. That raised a new question many hadn’t asked before: is it worth insuring an old car that isn’t a collectible when the cost of doing so might actually be worth more than the car itself? According to many insurance experts like those at Schaller & Thomas Family Insurance, the answer is a definitive yes. The part that many forget when they focus on comparing just immediate expenses is that auto insurance is far more than just a requirement to drive. It provides the critical financial safety net when an accident occurs that it doesn’t turn into a wage garnishment or bankruptcy due to damages. Further, not having auto insurance in many states can turn into criminal charges as well for a driver caught in violation. That too can turn into its own disaster, ruining a career and even one’s life with litigation costs and sentencing ramifications.

All of the above, fortunately, can be avoided very easily in Peoria, AZ by simply having a basic auto coverage plan in place. It doesn’t need to be the higher priced comprehensive type. A minimum required coverage policy can easily meet any necessary driving requirements and avoid serious headaches if an accident occurs. However, the same experts at Schaller & Thomas Family Insurance would still advise considering the coverage that protects a driver fully, not just what is needed to drive legally. Accidents can happen in a moment, with huge ramifications for a person’s health and livelihood as well. To find out more how to choose the right plan call them today for more information.

Things to Know About Peoria AZ Auto Insurance

If you are a Peoria, AZ resident in need of auto insurance, then search no further than Schaller & Thomas Family Insurance. We have a team of experienced agents who strive each day to offer you an insurance plan you need at an affordable price.

Schaller & Thomas Family Insurance provides a comprehensive car insurance plan and also offers liability policy and other auto insurance coverage. We keep our rates such that our coverage matches the value of your funds providing the protection you need to protect both you and the car in the event of an accident.

Before purchasing an auto insurance coverage in Peoria, AZ, there are things you should know which include;

What is auto insurance?

This is the insurance planned to provide you with a financial protection in an incidence of an accident. It is a requirement of the state, and you are not allowed to drive without auto insurance.

Car insurance premiums

This is the amount you have to pay to get an insurance policy. You need to pay premiums to the insurance company, and in return, they will pay for your losses when damage occurs.

Auto insurance coverage

These are written policies by the insurance company which states your coverage

What are auto insurance deductibles?

Car insurance coverage has deductibles which are also referred to as excess payments. This happens when you claim your auto insurance policy. You are required to pay the excess fees to get compensation for the damages. The more the deductibles, the lesser your premiums will be, and this means that you will have to pay a lot more if an accident or damages occur and pay little on your premium.

How are premiums determined

Premiums are determined by many factors which include your driving record, age, gender, type of the vehicle being insured and the credit ratings.

Get an auto insurance quote in Peoria, AZ today by contacting us or getting it through our online rating tools and get started.

How Quickly Should You Drop a Car From Your Auto Insurance After Selling It?

Auto insurance is required when you own a car. However, if you have sold the car, you may wonder how long you need to insure the car before you drop it from your auto insurance policy. This is a questions that we are often asked at Schaller & Thomas Family Insurance, serving the greater Peoria, AZ area. Here is what you need to know if you are selling a car and wonder about insurance.

Technically, once you have sold a car, you can drop it from your auto insurance policy. And it is strongly recommended that you do so immediately when you sell it to a dealership. However, if you have sold the car to a private party, it is recommended that you continue to carry coverage on the car until you file paperwork with the department of motor vehicles in the state of Arizona. You are required to file a release of liability with this entity within five days of selling the car. Until this is filed and approved by the department of motor vehicles, you can be held liable if the car is in an accident and the new buyer does not have auto insurance. This is the reason why it is recommended that you continue carrying insurance when sold to a private party. Once the paperwork is approved by the DMV, you can drop auto insurance immediately, as you are no longer liable for the automobile.

If you have questions about your current auto insurance policy, or are looking to purchase a new one, Schaller & Thomas Family Insurance, serving the greater Peoria, AZ area, would love to help you. Call us today for a free price quote or to schedule an appointment to talk about your insurance needs.

When Should I Review or Update My Auto Insurance Policy?

When you own a car for many years, it’s normal to stop thinking about auto insurance. Your insurance just becomes a bill you know have to pay every month. But a policy is not a static agreement. It’s based on the type of car you own, what you do with that car, and how you drive it. Here are a few tips from Schaller & Thomas Family Insurance if you haven’t reviewed your policy lately. 

Upgrading Your Car

The drivers of Peoria, AZ don’t always just accept the original build of their vehicle. That’s why businesses that sell custom rims, fancy gadgets, and incredible stereo systems can exist. If you’ve made any major investments to your car, then now is the time to ensure that your auto insurance policy reflects these new upgrades. 

Major Life Changes 

If you’ve gotten a new job or moved to a new place, these can change your risk factors. If you want to add your teenage son or your new spouse to your policy, then you’ll definitely have to update your coverage.

After Your Research 

Many drivers don’t realize just how little their policies actually cover, so doing research about yours can lead to the right updates. For example, if your current policy doesn’t cover an uninsured driver hitting you in Peoria, AZ, you may want to give that precaution a little more priority in your life. 

Schaller & Thomas Family Insurance knows the importance of not being caught unawares, which is why we do everything possible to give you the right information before you have to file a claim. Call us to tell us more about your car and lifestyle, and we can help you decide on whether or not to update your coverage. 

Considerations Before Letting Someone Borrow Your Car

At some point in your life, there will be someone who asks to borrow your car. They may be a friend or family member but before you hand over your keys, you need to make sure you have all of your bases covered. Use these tips from Schaller & Thomas Family Insurance, serving Peoria, AZ, to make sure it is the best idea. 

  • Make sure they have a license. You do not want to give your keys to someone who is not legally registered to drive. Check this before going any further but looking at their driver’s license to make sure it is valid. 
  • Ask about their driving history. You want to know if someone who is about to drive your car has had any accidents. If they are someone who has had quite a few or has gotten a few speeding tickets, you make not want to let them borrow your car. 
  • Find out why they want to use it. If they will be using it for commercial purposes, you will want to make sure your policy covers that. If it is for personal uses, it is likely still covered. 
  • Determine how long they need it. If someone just needs it for the day then you don’t need to add them to your policy but if they will be using it a lot for the next few months, you may want to add them.

You also always want to make sure your insurance is up to date and will protect you in case you are not the one driving when something happens. To take a look at your policy to ensure there are not gaps or to get a quote for a new policy, be sure to contact Schaller & Thomas Family Insurance, serving Peoria, AZ.