Auto🚘

• As an independent agent in NJ we bring options to our consumers but the market is hardening even with our carriers. Carriers across the board have tightened their guidelines, expect to see more declines and prebind documentation needed. 

• Right now there is a lot of activity in the marketplace as carriers are unprofitable. At the moment GEICO and Allstate just request rate increases up to 29%. 

• Progressive will put up binding restrictions if the insured your shopping has bad credit, bad payment history or bad abstract. 

• Reason why rates are increasing

  • Rates were not changed during COVID- Carriers were not able to change their rates as the Department of Banking and Insurance did not allow them to do so. Therefore they couldn't increase rates fast enough to stay on top of claims. 

  • Reinsurance contracts increase- Insurance companies have bigger insurance companies that insure them (they have to buy insurance for claims). Those rates have gone up. 

  • Vehicle Shortage - The whole country is facing a vehicle shortage due to the transportation crisis, - A lot of the makers are dealing with a chip/part shortage.

  • Demand for used cars is high. 13% decline in new auto sales

  • 50% price jump for used cars

  • Cost to repair vehicles is up. 6% rise in average cost per part.³

  • The number of skilled auto technicians is decreasing. It’s more difficult and costly to recruit, train and retain talent.

  • Bodily injury claim costs are on the rise. Approximately 7% increase in treatment costs in ’21 on top of a 6% rise in ’20.⁴

Limits/Coverages

• Liability (including UM/UIM): $100/$300/$100 (min)

  • $250/$500/$100 preferred for homeowners

• PIP (Personal Injury Protection): $50,000 (min)

• Medical Payments: $10,000

• Rental Vehicle: $50/$1,500

• Roadside Assistance

  • Towing & Labor if roadside is not available

• New Car Replacement (optional)

• OEM Coverage (optional)

  • Vehicles must be 3 model years or newer

• Comprehensive & Collision: Optional but all vehicles should have matching deductibles

Exclusions/Coverages to avoid

• Excluded Drivers

Minimum Underwriting Guidelines

• We must quote 2 lines of business

• Progressive

• Travelers

• Plymouth Rock

• Safeco

• National General

  • Premier

  • PPA Value (non-standard)

• Selective

• GEICO (Only in select states)

  • Enter client's ZIP code on their site to check for availability

• Bristol West (non-standard)

Below is the information we need to start working on the quotes for your auto insurance:

• Names of all household residents, DOB, and DL # for anyone who has a license

• Any children? If so, do they qualify for GSD or Away at School?

• How many years have you been licensed?

• How long have you resided at your current address?

• College degrees?

• Health insurance?

• What is your occupation?

  • Check for possible business use (ex: landscaper, construction worker, painter, etc)

  • Work from home?

• VIN/Year/Make/Model for all vehicles

  • Garaging/parking address

  • What are the vehicles used for? (Pleasure, Commute, Business)

  • Is there any signage? (company logos, ads, etc)

  • Annual mileage or how many miles one way?

  • How long have you had the vehicle(s)?

  • Is the vehicle owned, leased, or financed?

  • Names on registrations for each vehicles

  • Any salvage titles? 

  • Any existing damage to the vehicles?

  • Electric cars only - Where do you charge your car?

• Most recent declarations page

  • Let insureds know this is to ensure the most accurate quotes, proof of prior, and check for potential discounts

• Would you also be interested in us providing a Renters or Home Insurance package quote?

• Vehicle to driver ratio not equal

  • Ex: 2 vehicles, 1 driver 

• Other policies in affect (duplicate policies with different carriers)

• Look at prior carrier (does it match the coverage we have?)

• Pleasure use - we need to confirm why the client has this 

• Business use- do they own a construction business or deliver for Uber? ask about who is driving any employees  any permanently attached equipment 

• Real estate agents 

Policy/Application Entry

🖥️Personal Auto Policy/Application entry

Helpful Links

🚙Rental Car Coverage

🚗Loss Damage Waiver (LDW) with Rental Cars

🚙Auto Hazard: Mileage Verification 

🚘Auto Anti-theft explained 

🚘Ohio Auto Insurance

🤕Personal Injury Protection (PIP) Explainer

‼️Other Helpful Links - Personal Auto (Rental vehicle coverage, canceling on 1 vehicle, CSF, etc.)