Registering a vehicle in Utah

I have had a lot of people coming in and asking for insurance cards so that they can register their cars lately. I wanted to take a moment and review the process that you will need to go through to register your car in Utah. I recently registered a new car for my family and it wasn't as painful as I was expecting. I went early in the morning and I only had to wait for about 5 minutes. I took a copy of the title, bill of sale, my insurance card, drivers license and of course my checkbook. The person at the counter was very friendly and helpful. I handed her all of my papers and she took care of the rest. I found some information on the state's DMV site, you can check them out here: http://tax.utah.gov/forms/pubs/pub-09.pdf

If you have any other questions about this please give me a call at 801-796-6161 or visit my website at www.raygroupinsurance.com

Life Insurance

I recently began listening to the Dave Ramsey show and I love most of his advice. For those of you that don't know who he is I would suggest checking out his site at www.daveramsey.com He tells people how to get out of debt and start saving for their dreams. As I was listening to his show today he was speaking with some of his listeners about life insurance and he kept bashing the idea of whole or permanent insurance. I want to take a minute to explain the difference between term and permanent life insurance.

The way I like to describe the two types of life insurance is by comparing them to renting vs. buying a home. There are pros and cons to each situation and there are circumstances where one may be a better option than the other. Term life insurance may be purchased for a certain amount of time, a term. Usually they are sold for 10, 20 or 30 years. Your premium will remain the same for that term and then when the term is up you will need to buy a new policy. The biggest positive to this type of life insurance is the lower price. It is comparable to renting, you pay less than if you bought the house.

Permanent life, sometimes called whole life or universal life, is more like buying a home. These policies will remain in effect until you stop paying your premium or until you die. Just as buying a home has certain fee's that renters don't have (property taxes, realtor fees, utilities, etc..) permanent life insurance has some fee's that term life does not. On the other hand permanent life insurance has some of the benefits of home ownership that term or renters don't. Some permanent life insurance policies will build a cash value which is similar to equity in your home. These cash value accounts are usually invested and can earn or lose money just like your home equity. The biggest positive to this type of insurance is that the policy will be good for the rest of your life and your monthly payments usually remain the same the rest of your life. So if you became uninsurable due to an illness like cancer you wouldn't be able to buy insurance but your permanent life policy would still cover you.

Why do people like Dave Ramsey hate permanent life insurance? I have been asking myself this question lately because I sell both types of insurance and I think that there are circumstances where permanent is better and there are circumstances where term is better. I mentioned that I like Dave's advice but I don't like the fact that he makes broad generalizations about something as important as life insurance. If you listen to him or others they will sometimes tell people that renting is better. We all think that buying a home is better because you start building equity, why give away your money to make someone else rich, right? But, sometimes people have a lot of debt, or don't make enough money to buy a home, even if they can afford the monthly payment. If you don't believe me check out the Mortgage lender implode-o-meter at implode-o-meter.com. Buying a home isn't always the best way. Buying life insurance should be looked at the same way, yes it's cheaper to get term but cheaper isn't always better.

Many term life insurance policies will give you the option to convert them to permanent life insurance when the term is up. This means if you are 30 years old and buy a 30 year term policy it will expire when you are 60. At that time you will have the option to convert that policy to a permanent life policy, the downside is that now you will be rated as a 60 year old instead of a 30 year old. There is a big difference in those two prices. Many people believe in the "buy term and invest the rest" strategy. If you are disciplined enough to stick with that plan than that might not be a bad idea for you, the problem is that most of us will take that extra money we saved my buying term life and spend it on a new car, plasma t.v., cruise, (plug in your weakness), and we end up with nothing. The other myth about this strategy is that if you buy a 30 year term life policy you will have your home paid off and no debt by the time that policy expires and you won't need the insurance. Again, this sounds great but go ask your parents or your grandparents if they have their home paid off. 90% of them will tell you no and chances are if you are normal you won't either.

If you listen to the Suze Orman's and Dave Ramsey's of the world they will tell you that all insurance agents are bottom feeding scum that just want to sell you a permanent life insurance policy because they make more money. Are there some agents who do this? Probably. Are there some car dealers selling lemons? Probably. Are most insurance agents out there trying to rip you off. No. I would lose my license if I engaged in these practices, also I would probably lose all of your business if you found out I was cheating you. I don't make any money by selling someone one policy and then watching them take their business somewhere else three months later. What I'm trying to say is that everyone's situation is unique. Maybe term life is the best option for you, maybe not. My job as an agent is to understand your situation, explain to you your options and answer your questions. You should be making the decision and you shouldn't let any insurance agent, radio or t.v. personality or relative make that choice for you.

If you have a policy now from any company and would like us to review it for you we would be more than happy to do that. If you do not currently have life insurance and you are interested in a free quote give us a call at 801-796-6161 and we will take care of you. Please know that we will not try to sell you something just to make some money. We want to help you find the right policy for your situation.

New Agency Website Update

I just wanted to leave a quick note on my new agency website. It is currently under construction and should be ready in the next 3-4 weeks. I am really excited for it as it will provide more info on auto insurance, home insurance, life insurance and many other types like renters, condo, townhome, motorcycle, boats, and commercial.

We are working on developing a newsletter to send out to all of my clients with current insurance info as well as deals from local companies that my agency has partnered with. You will also be able to get online quotes for all of your insurance needs right from the website which means more convenience for you. I will be sure to let everyone know as soon as the site is finished. Once it is up and running we will be moving this blog over to the site. I am not sure if you will still be able to access the blog through blogspot.com or not but I will give you the new link when it is ready.

Utah Home Insurance Quotes

I often have friends and family ask me to give them quotes for their homeowners insurance. They want to get a cheap quote and save some money. I would love to help out anyone out there that is interested in getting a home insurance quote, give me a call at 801-796-6161. But if you would feel more comfortable you can go online and fill out a form. My site is currently under construction but the address will be www.raygroupinsurance.com.

There are many sites on the Internet that will give you home insurance quotes. Some of the big ones are www.netquote.com, www.insureme.com and www.insweb.com. The way these companies work is they collect your information and then sell it to anywhere from 4 to 8 different insurance agents. That means that you will be getting calls, emails and letters from 4-8 different insurance agents for the next couple of weeks. Some people don't mind this, others hate it. If you are in the second group than visit my site for a quick free quote. You will only be contacted by my office and you won't get those annoying calls for the next 2 months. We are a local Utah insurance agency that has been around since 1998. We have clients in Provo, Salt Lake City, St. George and everywhere in between. We not only sell home insurance, we also offer auto insurance, life insurance health insurance and many other lines. Give us a chance to impress you and let me be your new agent.

Save Money On Your Utah Auto Insurance (part 2 available discounts)

Last time we discussed a way to lower your auto insurance premium by raising your deductibles. Today is part two on how to lower your Utah auto insurance bills. Each insurance company offers it's own unique discounts, I will go over some of the more common one's that are offered at most insurance companies and then I will go over some that are less common.

First a list of the more common discounts that you can find at most insurance companies:

1. Good Student Discount
2. Military Discount
3. Retired Discount
4. Multiple Policy Discount
5. Multiple Vehicle Discount

The good student discount is a discount given for full time students carrying a 3.0 GPA. Different companies do it differently but some require a 3.0 in your last semester, while others require either a cumulative 3.0 or a 3.0 in the last semester. So if your grades are struggling this semester but you still have a cumulative GPA that is 3.0 or better than you may still be eligible for the discount. Most companies will discontinue this discount when you reach the age of 25 or get married.

The military discount usually only applies to active military personnel. If you are in the military you may be able to save an additional 5-10% on your insurance.

The retired discount is a discount given to people that have reached the age of 55 and are retired. If you're retired make sure that you are getting this discount.

Most insurance companies will give you a discount for having multiple policies with them. You get this discount by insuring your home and vehicles with the the same insurer. The best part about this discount is that you may be able to receive 10% or more on both your home and auto insurance. If you have your cars insured with one company and your home insured with another you should consider combining them at the same place.

The final discount that I will write about today is the multiple vehicle discount. Most Utah auto insurance companies give you a discount for insuring more than one vehicle with them. This discount will not save you as much as the multiple policy discount but hey, saving money is saving money. If you are recently married and still have separate auto insurance policies than you should consider combining them onto one policy to get this discount.

Now a few discounts that you won't find everywhere. Some insurers in Utah will give you a discount if you work at certain places. Check with your insurance agent to see if you qualify. Other discounts apply to certain professions such as nurses, firefighters, teachers, your local Utah insurance agent can tell you if your policy is eligible. One last discount depends on how you pay your premiums. Some companies give discounts for paying everything upfront, others give discounts for having your payments automatically drafted from your checking or savings account.

The best way to determine which discounts you are eligible for is to schedule an appointment with your agent. If you take 10-15 minutes of your time to sit down with your local insurance agent he or she can help you find all of the discounts that you are eligible for. Your agent should be meeting with you at least once a year anyways and that is a good time to review the policies. If your insurance agent isn't meeting with you and helping you get the best rates then give me a call and I will help you out. 801-796-6161 or 866-796-6161

Save Money on your Utah Auto Insurance (part 1 - deductibles)

I decided today to write about something that is important to all of us, saving money! With gas prices at all time highs (almost $4 in Provo and Salt Lake) and the cost of oil still rising almost everyday it can be very expensive to drive your car. I have noticed a lot of vehicles with that natural gas sticker on them lately, I think this is becoming more popular. I have also seen many more people on scooters, motorcycles and even bicycles, my wife and I considered a scooter for me to drive to work but the helmet would mess up my hair so I'm still in the car. With prices rising people are looking for ways to save money. Some industry analyst's project that people may stop carrying insurance, some people see it as unnecessary. Hopefully if you are following my blog you are not one of those people but the truth of the matter is that there are people out there that will cancel their insurance. I am going to use my next 2 or 3 entries to go over some ways that you can save money on your auto insurance without going uninsured.

One of the fastest ways to lower your auto insurance premiums is to increase your comprehensive and collision deductibles. Let me first say that I personally do not like to see people raise their deductibles, but it is definitely better than cancelling your policy. I explained in an earlier post what your comprehensive and collision deductibles are so I won't go over that again but I will explain how they work. If you are involved in an accident and it is your fault than you are responsible to pay your deductible before your insurance company repairs your vehicle. Most people in Utah have $500 deductibles but that can range from $0 to $1,000. If you don't want to be responsible for paying anything in the event of an accident than you can lower your deductibles to $0. Just keep in mind that since you are putting your insurance company on the hook for more money they will charge you more each month. So, if you went the opposite way and decided you would be able to pay $1,000 in the event of an accident than your insurance company is liable for less so they are going to be nice and charge you less.

A few things to consider when deciding how much you want your deductible to be are the value of the car and your ability to come up with the deductible money after an accident. I mention the value of the car because if you are driving a 1988 Acura like my old car and it's only worth $300 on a good day than you don't want a $1,000 deductible. If you are in an accident the insurance company will most likely consider the vehicle totalled which means it would cost more to repair it than the car is worth. If they declare your vehicle a total loss and it's worth $300 but you have a deductible that is higher than that then you don't get anything. In situations where the vehicle is worth less than $1,000 you may want to consider liability only. This would give you the least expensive monthly premium but would also mean that if your wreck your car it is gone. Their would be not collision coverage. Talk to your agent to see if it makes sense for you financially, some people can save a couple hundred dollars a year by switching to liability only. If you put that money in the bank than you can use it to buy a new car.

The other factor was your ability to pay the deductible. You don't want a $750 deductible if you have never had $750 in your bank account. If you can't pay the deductible than your car doesn't get repaired. As I mentioned earlier I really don't like to see people increasing their deductibles because inevitably they always seem to have an accident after increasing them and I don't like getting that phone call. If you can afford the lower deductibles than stick with them, you will appreciate it if you have an accident. If you are considering cancelling your insurance policy because you can't afford it than maybe this is a good alternative for you. Speak with your local agent before making any decisions and if you don't have a local agent give me a call. My contact info can be found under the "Local Utah Insurance Agency" link in the right column. As always, drive safely and come back often.

No Insurance = Lose Your Car

I just read an article on KSL.com (read it here) that talks about a new state law regarding auto insurance. If you are caught driving your car without insurance the police may impound your car. I don't know all of the logistics as to how they will determine if you have insurance or not and that will probably be a challenge for them, but I really like the idea.

I like the idea for a few reasons. First, I was involved in an accident 2 years ago with a person that had no insurance. At the time I was driving a 1988 Acura that wasn't worth much more than $300, it was a piece of junk but I loved it. I was on 5600 West in Salt Lake City turning into the Wal-Mart when someone ran a light and hit me. It didn't make sense to file a claim since my car was worth less than my deductible would have been. Luckily the person that hit me agreed to pay for the damages out of his own pocket but if he wasn't feeling so generous I would have been stuck paying the bill. I am not the only person to have had this problem. The last numbers I saw show that 14% of the drivers on the road do not have auto insurance. That means 1 out of every 7 people on the road, and you are one of those 7, have no auto insurance. So look at the 3 cars in front of you and the 3 cars behind you, one of them has no car insurance.

Hopefully this law will encourage them to go and buy insurance. Another reason that I like this law is because in time it should lower the cost of insurance for all of us. As you may or may not be aware you pay for uninsured motorist coverage on your insurance policy. In the state of Utah that is an optional coverage, but I don't think any insurance agent would recommend going without it. This coverage protects you in the event that you are hit by someone with no insurance. If the amount of uninsured drivers drops than the risk of being in an accident with one would also drop, that should mean that the rates for this coverage will also drop. You don't pay much for uninsured motorist coverage, but every little bit counts. I will write about ways to lower your insurance premium next week, maybe that will help some of that 14% find a policy they can afford. Have a great weekend, and drive safely.

More Rental Car FAQ's

I am back in Utah and happy to be home. It is kind of neat to fly over the valley just as the sun is setting. The lights are all on dotting the streets, yet there is still just enough sunlight to see the roads, buildings and parks so that you can recognize where you're at. I like to try and find the Y on the hill in Provo, and Thanksgiving Point in Lehi and the gym we used to work out at in Salt Lake. My daughter slept for the whole flight home which was a blessing because she was running all over the plane on the way there. We all loved Sea World and the Zoo, and we all got a little sun burned from being out all day. I will post pictures tomorrow, I left the camera at my house. I wanted to add just one more thing about renting cars and getting insurance for them.

One point that I didn't mention in my last post was that if you cause any damage to a rental car they are going to charge you up front for the repairs. Basically if you cause $5,000 of damage then they are going to charge your credit card $5,000 (remember you gave them your card before they gave you the keys.) It will then be your responsibility to call your insurance company, file a claim and go through that process with them. They will work out all of the details with the rental company and send you a check for the amount that they would have given to the rental company (which may be less than you were charged.) This is just one more thing to consider when renting a car. As always please check with your insurance agent before making any decisions about insurance. Check back later this week for new posts and Drive Safely!

Memorial Day Weekend

I just found out that my wife planned a trip to San Diego so we're taking our kids to Sea World and the Zoo. I wanted to post one more blog before leaving for the weekend and cover a few questions you may have this weekend. I also want to take a moment to express my gratitude for the men and women serving our country, and all those who served in the past. Thank you, we appreciate your service and sacrifice.

It looks like I am not the only one jumping on an airplane and heading out of town this weekend. I have already recieved a number of calls from my insurance clients asking me if they need to buy insurance from the car rental company when using a rental. I can't speak for all insurance companies or policies, but in general most will be very similar. You should always check with your agent, but if you carry comprehensive and collision coverages on your policy (sometimes referred to as "full coverage") than you probably don't need to get the insurance from the car rental company.

The one reason you might want to buy coverage from the rental company is because most insuracne policies will pay for the value of the car only. This means if you total the car or it is stolen, your insurance company will pay what the car is worth, not necessarily what the rental company thinks it is worth. Here's an example: You rent a 2007 Dodge Charger and someone steals it from the parking lot of your hotel. Your insurance company will see what that car is worth in that particular market, let's say $14,750, and write you a check for that amount (They use many sources to get that value such as the blue book, local classifieds and car lots.) So now that you have your check you just give that to the rental company and your done right? No, I'm afraid it's never that easy. Most rental companies have a clause that stipulates they get a new car or the value of a new car if you total theirs. That means you owe them $17,751(according to edmunds.com) but you only have a check for $14,750, that's a difference of $3,001 that you owe.

As I said before you want to speak with your agent before making any decisions, but hopefully this will help you understand the process and the reasoning behind the advice your agent gives you. Lastly, I want to remind everyone to please drive safely as there will be 2 to 3 times more traffic on the roads this weekend than normal. Everyone from Provo to Salt Lake City will be heading out.

Everyone on the road is going to be in a hurry to get to their holiday destination. Drivers will be stressed out, impatient, and to top it all off gas prices just rose an average of 4 cents a gallon across the nation this morning, so people may not be too happy. Just remember that you will get to your destination even if you need to go a little slower. Also remember that the highway patrol will be out looking for speeders and road rage more than normal because of the increase in traffic. Keep your family safe and your insurance premium low. Drive Carefully!

Making a Home Inventory List

Start Your Inventory

Many people suffer losses and then get stuck trying to remember everything they owned. Could you remember all of your possessions if they were destroyed by a flood or fire? Keeping a current home inventory will help you get reimbursed from the insurance company much faster. When you can prove what you have lost it makes it much easier for the insurance company to settle your claim.Start by making a list of your belongings, keeping track of serial numbers, makes and models. If you have original receipts or appraisals you will want to save those with your list. I have found that it is easiest to classify things by categories, shoes, jackets, electronics, etc… Call your insurance agent for more info, visit the link in the sidebar on the right, they are a local Utah insurance agency that is very helpful.

Here are few tips to get you started:

- Don't get overwhelmed

If you are a new homeowner, starting an inventory list should be pretty easy. If you’ve been living in the same house for a while though this might be a little more work. Think of it this way though; it is better to have a small list than nothing at all. Get your list started with your most recent purchases. Then, maybe the following weekend go through your house and get all of your most expensive belongings on the list. The following week you can add all of your favorite things. If you take an approach like this it is much easier.

- A Picture’s worth a thousand words

In addition to your list, you should take pictures of rooms and important (sentimental and expensive) items. On the back of the pictures, describe what is in the picture and try to include the brand and price.

- Videotape it

Walk through your home and videotape your belongings. As you do, tell the camera about the stuff. If you don’t have a camera try to borrow one from a friend or relative.

- Use a computer

Use your computer to manage your list. You can buy personal finance software packages that have a homeowners room-by-room inventory program. Or, to save money you can create a spreadsheet on excel. It doesn’t matter how nice the list looks as long as it has the important info your insurance company will need.

- What to do with the list

Once you have your list you will want to make sure it is kept in a safe place. The shoebox in the top of your closet is not a safe place. Remember if your home is flooded or burns to the ground that shoebox is going with it. The best thing to do is give a copy of your list to a friend or relative that lives far away from your house. So if you live in Salt Lake, send it to someone in Provo. Imagine if a natural disaster like Katrina happened and your list was stored at your neighbor’s house. It’s probably going to be destroyed.

Utah Homeowners Insurance Basics

Home Insurance 101

Homeowners insurance provides financial protection against disasters. A normal policy will insure your home as well as your personal belongings. Some Utah home insurance policies will even cover your belongings anywhere in the world. So if you are on vacation in Paris, and your camera is stolen you can call your insurance agent back home in Provo, Utah or Salt Lake City and file a claim. Check with your local agent because many times your belongings do not have the same coverage limits when traveling.

Homeowners insurance covers both damage to your property and your liability (legal responsibility) for any injuries and property damage you or members of your family cause to other people. What this means is if your kids hit a baseball through the neighbors window your insurance may cover the replacement cost.

Damage caused by most disasters is covered although there are a few exceptions. The biggest ones you need to worry about are damage caused by floods and earthquakes. The federal government backs all flood policies and you must buy one separately. See the link for the local insurance agency in the bar to the right they offer these policies. Many people have called their insurance company when their air conditioner stops working, or when their furnace breaks. Your insurance policy will not cover maintenance issues like these.

Utah Auto Insurance

Car Insurance 101

This will give you a basic idea about your auto insurance policy and what the different words mean. Most auto insurance policies will have the same coverages so whether you live in Provo, Salt Lake, or St. George this should help you out.

1. Bodily Injury

This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued. Definitely consider buying more than the state minimum to protect assets such as your home and savings.

2. Personal Injury Protection (PIP)

This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.

3. Property Damage

This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.

4. Collision

This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $100 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you'll also be reimbursed for the deductible.

5. Comprehensive

This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.Comprehensive insurance is usually sold with a $100 to $1,000 deductible.Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.

6. Uninsured and Underinsured Motorist Coverage

This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.For more info call your local agent, or visit the site in our links section, they are a great agency.