What effects my auto insurance rates? 
Age, sex, marital status and location all affect your insurance cost. Living in Coldwater, Celina, St. Henry, Fort Recovery, Maria Stein or anywhere in Mercer and Auglaize County, definitely lowers your auto insurance rates.  How far you drive to work also can make a big difference. But the two most  important factors are your driving record and your "financial responsibility score". If you have no traffic violations or accidents you will pay much less for your insurance.  

Most companies now order a credit report (in addition to the driving record) for the applicant as part of the underwriting process.  Studies indicate that a consumer's financial responsibility score is a good predictor of future loss experience;  the higher the credit score the better the risk, thereby allowing the consumer to qualify for better rates. The insurance company (or the agent) does not receive the actual credit report and does not receive any specifics about credit information.  The agent or company receives only the score and primary credit indicators.

Does the type of car I drive affect my car insurance cost? 
Yes.  Certain cars are more expensive to repair. As a result, these cars are more expensive to insure. Four door cars are usually less expensive than two door models. Sports cars and some specialty cars can also be much more expensive. If you are shopping for a sports car or high value car, you might want to check the insurance cost before you buy.

Why shouldn't I lower my liability coverage to decrease my auto insurance premiums?
Large lawsuits are not uncommon, even in Mercer and Auglaize county. If you cause an accident that seriously injures or kills someone, and you have low liability limits, you could be in serious trouble. You are personally responsible for any bills or judgments a claimant receives that exceed your liability limit.  It may cost you a few dollars to increase your liability limit, but it could save you hundreds of thousands of dollars if you have a claim.

Why do I need Uninsured Motorist coverage, doesn't everyone have to have car insurance?
Yes it is illegal to drive a vehicle without insurance in Ohio.  But just like the law doesn't stop people from shoplifting, it doesn't stop people from driving without insurance.  Approximately 15% of all vehicles on the road in Ohio do not have insurance.  I think this is true, even in Coldwater, Celina, St. Henry, Maria Stein, and Fort Recovery.  It is a shame, because when these people have an accident they injure people and damage vehicles, but rarely can pay any of the bills.  

What coverages can I change to lower my auto insurance cost?
Insurance should be used to protect you against losses that could significantly damage you financially (like a large lawsuit). The deductible is the amount of money you have to pay out of your own pocket if there is a claim. We recommend high liability limits and high deductibles. Increasing your deductible from $250 to $500 may cost you $250 if you have a claim. Increasing you liability limit from $300,000 to $500,000 may save you $200,000 if you are sued. Consider raising your deductible and using the money you save to increase you liability limit.

What is the "liability" coverage on my auto insurance policy?
There are 2 types of automobile liability: Split Limits and Combined Single Limit.

Split Limit Liability - This type of liability has a separate limit for Bodily Injury and Property Damage. Bodily Injury protects you against damages and suits which you may be liable for if you cause an accident and someone is injured or killed. Usually there is a Per Person limit and a Per Occurrence limit. A common limit is $100,000 each person, $300,000 each occurrence. This means the most the company will pay for any one person's injuries is $100,000. The most the company will pay for any one accident, regardless of how many people are injured is $300,000. If you injured someone in a accident could their medical bills be more than $100,000?  It is our opinion that this limit is too low for most people.

Property Damage Liability - Covers you when someone else's property is damaged. The limit should be high enough to repair or replace several cars in case you cause a chain reaction accident or ruin a semi.

Combined Single Limit Liability - This type of liability has a single per accident limit to cover both injuries and damage to property. For example: a $300,000 combined single limit means the company would pay no more than $300,000 for all the injuries and property damaged in the accident. This is regardless of how many people are injured or how much property is damaged.

What is "Medical Payments" in a auto insurance policy?
Medical Payments covers medical treatment for you or guest in your car that result from an auto accident. The limit is per person. Sometimes the coverage is "excess". This means it pays only what your health insurance does not pay (deductibles, co-payments etc.).

What exactly does Uninsured Motorist do for me?
Uninsured Motorist pays legally collectible damages to you or a passenger in your car for BODILY INJURY (not damage to your car) caused by a driver who is uninsured or has less insurance than your Uninsured Motorist limit. This limit is usually the same as your Liability limit.  Considering 15% of cars in Ohio have no insurance, and many more have very low liability limits, this is a very important coverage.

What is "Comprehensive" or "Other Than Collision" coverage?
Comprehensive pays for damage to your car caused by things that are considered "beyond your control". This would include animal damage (hitting a deer), theft, vandalism and glass breakage. It does not pay for collision, hit and run, upset, and regular wear and tear.

What is Collision coverage?
Collision covers damage to your car caused by collision or upset.

What does Rental Reimbursement cover in an auto insurance policy?
This coverage pays for the cost of renting a car because your regular car is not drivable due to a covered loss. There is usually a maximum limit per day ($15 - $20) and a per occurrence limit ($450 - $600).

What is "Towing and Labor"? 
This coverage pays the cost of getting your car towed if it breaks down. It will also pay for any repairs done at the "scene" of the breakdown. There is a per incident limit, usually between $25 and $75.

What should I do if I have an accident?
Obviously the first thing you need to do is tend to people's injuries and get your vehicles safely out of the other vehicles.  After you have made the scene as safe as possible, you should call the police.  By calling the police everyone will have a record of what happened.  This can eliminate a lot of controversy later.  Next, be sure before you leave the scene you have the name, address and phone number for everyone involved in the accident in any way as well as all witnesses.  This information is on police reports, but depending on that report can delay your claim by several days.  Finally, call your agent as soon as possible or report the claim using on our auto claim form.

What auto insurance discounts are available to me?

Multi Policy Discount: Most of our companies allow a 10% credit when they write both the homeowners and automobile insurance.

Multi Car Discount: If you insure more than one car, your rates are significantly reduced on each vehicle insured with the same company.

Passive Restraint Discounts: If your car is equipped with either air bags or automatic seat belts, you are allowed a discount.  Some companies also allow a discount for antilock brakes.  Neither of these discount are large, but every penny counts.

Anti Theft Discount: You are allowed a reduction in your comprehensive coverage premium if your car is equipped with certain types of alarm systems or disabling devices.  This also is a small discount.

Good Student Discount: Students under the age of 25 with at least a "B" average can receive a significant premium discount on their automobile premium.

Higher Deductible Discounts: You have the option of a higher deductible amount for both comprehensive and collision coverage.  A higher deductible could save you money.

Where are most of Preferred Insurance Center's clients located?
Most of our clients are located in Coldwater, Celina, St. Henry, Maria Stein, and Fort Recovery. We cover all of Mercer County and Auglaize County.  Of course, we can insure your personal auto anywhere in Ohio or Indiana.