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Michigan Tornado - Shield Insurance Agency Blog

Michigan Tornado: Be Prepared

Posted on by Shield Insurance Agency

Michigan Tornado

On average Michigan has 15 tornadoes per year. Tornadoes are known to develop rapidly, with little advanced warning. The average lead time for a Michigan tornado warning is 10 to 15 minutes and winds can reach over 200 mph, which is why Michigan residents are encouraged to prepare and make a plan before a tornado strikes.

Each year during Severe Weather Awareness Week, a statewide tornado drill is held so you can practice your plan.

BE PREPARED:

Terms:

Michigan Tornado Watch: Tornadoes are possible. When there is a Watch, move near enough to a shelter or sturdy building to be able to get inside quickly if there is a Warning or if you see signs of a tornado approaching. Remain alert for approaching storms. Watch the sky and stay tuned to NOAA Weather Radio, commercial radio, or television for information.

Michigan Tornado Warning: A tornado has been sighted or indicated by weather radar. Take shelter immediately.

Supercell: A system producing severe thunderstorms, featuring rotating winds sustained by a prolonged updraft that may result in hail or tornadoes.

Enhanced Fujita (EF) Scale: Rates the strength of tornadoes in the United States and Canada. There are six categories for the EF scale and are in order of increasing intensity. *It is based on wind estimates of a 3-second gust.*

  • EF0: Tornadoes with an estimated wind speed of 65-85 mph and leads to light damage.
  • EF1: Estimated wind speed of 86-110 mph with the potential of moderate damage.
  • EF2: Estimated wind speeds of 111-135 mph with significant damage potential.
  • EF3: Estimated wind speeds of 136-165 mph with severe damage potential.
  • EF4: Estimated wind speeds of 166-200 mph with devastating damage potential.
  • EF5: Estimated wind speeds of over 200 mph with incredible damage potential.

Before a Michigan Tornado:

  • Identify safe rooms built to FEMA criteria or ICC500 storm shelters or other potential protective locations in sturdy buildings near your home, work, and other locations you frequent so you have a plan for where you will go quickly for safety when there is a Warning or an approaching tornado.
  • For schools, malls, and other buildings with long-span roofs or open space plans, or many occupants, ask the building manager to identify the best available refuge. 
  • Build an emergency kit and make a family communications plan.
  • Sign up for your community’s warning system.  The Emergency Alert System (EAS) and National Oceanic and Atmospheric Administration (NOAA) Weather Radio also provide emergency alerts.  If your community has sirens, become familiar with the warning tone.
  • Listen to NOAA Weather Radio or to commercial radio or television newscasts for the latest information. Meteorologists can predict when conditions might be right for a tornado.  In an emergency, always listen to the instructions given by local emergency management officials.
  • Be alert to changing weather conditions.  Look for approaching storms.
  • Look for the following danger signs:
    • Dark, often greenish sky
    • Large hail
    • A large, dark, low-lying cloud (particularly if rotating)
    • Loud roar, similar to a freight train.
    • If you see approaching storms or any of the danger signs, be prepared to take shelter immediately.

During a Tornado:

  • If you are under a tornado warning, seek shelter immediately!  Most injuries associated with high winds are from flying debris, so remember to protect your head.
  • If you are in school, nursing home, hospital, factory, shopping center, high-rise building then:       
    • Go to a pre-designated area such as a safe room built to FEMA criteria, basement, storm shelter, or the lowest building level. If there is no basement, go to the center of a smaller interior room, such as a closet or hallway, that is away from corners, windows, doors, and outside walls. Put as many walls as possible between you and the outside. Get under a sturdy table and cover your head and neck with your arms and cover your body as best you can e.g., with a heavy coat or blankets, pillows.
    • In a high-rise building, go to a small interior room or hallway on the lowest floor possible.
    • Do not open windows.

After The Tornado

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Tips To Cut Car Insurance Costs - Shield Insurance Agency Blog

Tips to cut Car Insurance Costs

Posted on by Shield Insurance Agency

15 Tips and Ideas for Cutting Car Insurance Costs

By GLENN CURTIS  Updated Apr 16, 2021

Car insurance is necessary to protect you financially when behind the wheel. Whether you just have basic liability insurance or you have full auto coverage, it’s important to ensure that you’re getting the best deal possible. Wondering how to lower car insurance?

Here are 15 strategies for saving on car insurance costs.

KEY TAKEAWAYS

One of the ways to lower car insurance is through a discount bulk rate for insuring several vehicles and drivers at once.

Lower car insurance rates may also be available if you have other insurance policies with the same company.

Maintaining a safe driving record is key to getting lower car insurance rates.

How Much Does Car Insurance Cost?

Car insurance costs are different for every driver, depending on the state they live in, their choice of insurance company, and the type of coverage they have. But when trying to save money on car insurance, it helps to know what the typical driver pays.

On average, the typical person spent $1,190 on car insurance in 2018, based on the latest figures available from the National Association of Insurance Commissioners (NAIC)1. According to the NAIC data, car insurance premiums rose 30% between 2014 and 2018, despite the number of insured vehicles only rising by 7%1.

Data from AAA put the average cost of car insurance for new vehicles in 2020 slightly higher, at $1,202 annually2. The numbers are fairly close together, suggesting that as you budget for a new car purchase you may need to include $100 or so per month for auto insurance.

NOTE

While some things that affect car insurance rates–such as your driving history–are within your control others, costs may also be affected by things like state regulations and state accident rates

.

How to Save on Car Insurance Costs

There are a number of strategies you may use to save on car insurance. Once you know how much is car insurance for you, you can put some or all of these tactics to work.

1. Take Advantage of Multi-Car Discounts

If you obtain a quote from an auto insurance company to insure a single vehicle, you might end up with a higher quote per vehicle than if you inquired about insuring several drivers or vehicles with that company. Insurance companies will offer what amounts to a bulk rate because they want your business. Under some circumstances, they are willing to give you a deal if it means you’ll bring in more of it.

Ask your insurance agent to see if you qualify. Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage. Two unrelated people may also be able to obtain a discount; however, they usually must jointly own the vehicle.

If one of your drivers is a teen, you can expect to pay more to insure them. However, if your child’s grades are a B average or above or if they rank in the top 20% of the class, you may be able to get a good student discount on the coverage, which generally lasts until your child turns 25. These discounts can range from as little as 1% to as much as 39%, so be sure to show proof to your insurance agent that your teen is a good student.

Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm, such as homeowners insurance. Allstate, for example, offers a 10% car insurance discount and a 25% homeowners insurance discount when you bundle them together, so check to see if such discounts are available and applicable.3

2. Pay Attention on the Road

In other words, be a safe driver. This should go without saying, but in today’s age of increasing in-car distractions, this bears mentioning as much as possible. The more mindful you are, the more accidents or moving violations you’ll be able to avoid—events that raise your insurance rates. Travelers offers safe driver discounts of between 10% and 23%, depending on your driving record.4

For those unaware, points are typically assessed to a driver for moving violations, and more points can lead to higher insurance premiums (all else being equal).

3. Take a Defensive Driving Course

Sometimes insurance companies will provide a discount for those who complete an approved defensive driving course. Drivers may also be able to reduce the number of points they have on their licenses by taking a defensive driving, accident prevention, or other course.

Make sure to ask your agent/insurance company about this discount before you sign up for a class. After all, it’s important that the effort being expended and the cost of the course translates into a big enough insurance savings. It’s also important that the driver sign up for an accredited course. Every state has its own rules about accredited defensive driving courses.

4. Shop Around for Better Car Insurance Rates

If your policy is about to renew and the annual premium has gone up markedly, consider shopping around and obtaining quotes from competing companies. Also, every year or two it probably makes sense to obtain quotes from other companies, just in case there is a lower rate out there.

Remember, cheap doesn’t always mean good, and going with the lower-priced company isn’t always the wisest decision. That’s because the insurer’s creditworthiness should also be considered. After all, what good is a policy if the company doesn’t have the wherewithal to pay an insurance claim?

To run a check on a particular insurer, consider checking out a site that rates the financial strength of insurance companies. The financial strength of your insurance company is important, but what your contract covers is also important, so make sure you understand it. Insure.com’s site bases its insurance company ratings on data assembled by Standard and Poor’s.6

In general, the fewer miles you drive your car per year, the lower your insurance rate is likely to be, so always ask about a company’s mileage thresholds.

5. Use Mass Transit

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How to Get the Best Fuel Economy - Shield Insurance Agency Blog

How to Get the Best Fuel Economy

Posted on by Shield Insurance Agency

Try our test-based tips to save at the pump, and see which myths we bust

How you drive can significantly affect your fuel economy. That’s the key finding of CR’s fuel-economy tests. Even when fuel prices are very low, you can still save serious money by making small changes to your driving style and habits.

CR has gathered its best test-based tips and techniques for getting the most gas mileage from your car to help ease the pain at the pump.

The FAQ below addresses common questions we receive and dispels some fuel-economy myths.  

What’s the Best Way to Cut Fuel Costs?

Slow down. In our tests, we’ve found that driving faster on the highway can really take a bite out of a car’s fuel efficiency.

We measured gas mileage while driving at a steady 55, 65, and 75 mph in a Nissan Altima and Toyota RAV4. Reducing speed from 65 mph to 55 mph improved fuel economy by 6 mpg in the Altima and 8 mpg in the RAV4. 

The penalty of cruising at 75 mph, rather than 65 mph, was almost 7 mpg in the Altima and 6 mpg in the RAV4. 

These findings are similar to what we have recorded in the past, once again proving that higher speeds exact a toll on fuel consumption. 

Another way to look at it: Speeding up from 55 to 75 mph is like moving from a compact car to a large SUV. Beyond fuel concerns, speeding is, of course, a safety risk as well.

Avoid hard acceleration and braking whenever possible. In our tests, frequent bursts of acceleration and braking reduced an older Toyota Camry’s mileage by 2 to 3 mpg. Once up to speed on the highway, maintain a steady pace.

The harder you accelerate, the more fuel you use. Unnecessary braking wastes the fuel you used to get up to speed. Drive smoothly and anticipate the movement of traffic. Once up to speed, maintain a steady pace. Smooth acceleration, cornering, and braking also extend the life of the engine, transmission, brakes, and tires.

What’s the Impact of Carrying Stuff on the Roof?

At highway speeds, more than 50 percent of engine power goes to overcoming aerodynamic drag. Don’t add to that by carrying unneeded things on the roof. We did fuel economy tests at highway speed on a Nissan Altima and Toyota RAV4 with a roof rack, tail-hitch rack, and a roof-top box.

Carrying two mountain bikes on the roof had the biggest impact. The Altima lost 13 mpg, going from 46 mpg down to 33. The RAV4 lost 7 mpg, dropping to 32 mpg from 39 mpg.

There’s even a loss when driving with the empty roof rack installed: The Altima dropped 5 mpg and the Toyota lost 2 mpg.

The Nissan lost 12 mpg with the bikes on the hitch-mounted rack, while the RAV4 was down only 5 mpg. The bikes stuck out to the sides of the sedan, which created extra drag. They were mostly hidden behind the wider, boxier RAV4’s bodywork.

The roof-top box resulted in a 9 mpg decrease for the Altima, and a 5 mpg drop for the RAV4.

Overall, the aerodynamic drag doesn’t hurt the more boxy RAV4 as much as the sleeker Altima. 

Going across town, this may not be a concern. But on a multistate family road trip, a carrier or rack on the roof would have a real impact on fuel costs. And it could create some annoying wind noise. 

Use AC or Open Windows?

The harder the AC system has to work, the worse the impact on fuel economy. When we measured the fuel-economy difference in a  2008 Ford Focus, Honda  Accord, and Subaru Forester, we found that fuel use with the  AC running went up with higher outside temperatures.  

At 55° F, there were negligible differences. But when we measured again on days when the temperature was in the low 70s and high 80s, we got fewer miles per gallon with the AC on.

In general, expect a drop from 1 to 4 mpg with the air conditioning running. The effect of opening the windows at 65 mph was not measurable. In any case, the AC helps dehumidify the cabin, which can contribute to keeping the driver alert and safe. We think that’s a worthwhile trade-off.

How Far Can You Go When the Low-Fuel Warning Light Comes On?

There is no set rule, but most cars have a reserve of between 1 and 2 gallons of gas when the light goes on, or enough to travel about 40 to 50 miles or so at a moderate speed.

To maximize those last couple of gallons, we suggest slowing down and maintaining a steady pace. Because you never know what challenges life will serve up, including traffic, don’t rely on the light as your cue to fill up. 

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Careful when choosing your deductible - Shield Insurance Agency Blog

Careful when choosing your deductible

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Choosing Your Deductible | Shield Insurance Agency Blog | Start A Quote Today!

Careful when choosing your deductible

A high deductible is often a great way to keep your insurance premiums down.  However, you shouldn’t set a deductible that is so high that you cannot afford to pay the deductible when you have a claim.  I’ve seen people change their collision deductible from a $500 deductible to a $1,000 deductible because money was tight and this allowed them to save about $10 per month on the premium.

Wouldn’t you know it, but not even 2 months later they ended up in an At-Fault accident.  Money was tight so they didn’t have that $1,000 to get the vehicle repaired. It took forever to save up that $1,000 so they were down to one vehicle which made it tough getting back and forth to work.

Please make sure you have something in savings for an emergency.  Whether it’s a car accident or your furnace breaks down. Emergencies will happen, but if you’re prepared, you can transform that emergency into an inconvenience.

submitted by Joe

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Insurance Terms Important to Know - Shield Insurance Agency Blog

Insurance Terms Important to Know

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Shield Insurance Agency & Foremost Insurance Company present Insurance Terms

Every industry has its own unique language – and insurance is no exception. Here are some key insurance definitions and terms you might come across as you consider insuring yourself or your stuff.

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Insurance Rates and Your Credit Score - Shield Insurance Agency Blog

Insurance Rates and your Credit Score

Posted on by Shield Insurance Agency

How credit affects auto insurance: Rates could increase up to 72%

Kacie Goff /October 15, 2020

Article Highlights

Before offering you a policy, insurance providers analyze your risk profile by looking at things like your driving history, as well as personal details, such as age or marital status. This evaluation is used in determining your premium. 

But there’s another somewhat surprising factor that affects your premiums in all but three states: your credit score. Unless you live in California, Massachusetts, or Hawaii, expect your credit score to affect how much you pay to insure your car, at least to some degree. 

You may already be familiar with your credit score as determined by the three major credit bureaus, TransUnion, Experian, and Equifax, it’s important to know that insurers assign you an insurance credit score that varies from your traditional credit score. While your credit score plays a role in that insurance score, additional factors are also involved.

It’s important to understand why credit affects car insurance. Carriers’ proprietary credit-based insurance score provides a way to check two things: your likelihood of making insurance payments on time and your likelihood of filing a claim.  

While insurance carriers use a more complex algorithm to calculate premiums based on your insurance credit score, for the sake of this study, Coverage simplified the ratings by classifying insurance scores into three general categories: “good,” “average” and “poor” credit. This is to give you a general idea of the premium impact by credit tier. 

Can credit scores be evaluated for auto insurance rates?

Short answer: yes, in most states. California, Massachusetts, and Hawaii are the exceptions here.

Michigan is a bit of a gray area, too. In Michigan, you might be mostly off the hook. Insurers can’t use your credit score, but they can look at your credit information. That means a low score won’t necessarily increase your rates, but a history of missed payments might make an insurance provider wary, and could ultimately affect your rates. 

Let’s look closer at why credit affects car insurance rates. Studies, including a Congress report by the Federal Trade Commission, have shown that a lower score means you’re a higher risk for your insurer. A poor score directly correlates to an increased risk of filing a claim. 

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Happy New Year From Shield Insurance Agency Hudsonville Michigan

2021 Happy New Year!

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Happy New Year from Shield Insurance Agency
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2020 Christmas Greeting From Shield Insurance Agency Hudsonville Michigan

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How to Build A Fleet Safety Program - Shield Insurance Agency Blog

How to build a fleet safety program

Posted on by Shield Insurance Agency

How many vehicles in your fleet?

When you have employees driving on behalf of your business — whether or not they use a company vehicle — it’s time to take a closer look at your risk exposure and establish a fleet safety program to help protect the wellbeing of your company and your employees.

Here are five best practices for creating a risk management program for fleet vehicles:

1. Start at the top and write it down.

The best way to ensure your fleet safety program is successful is by having leadership commit to supporting it as a critical part of your company’s risk management and fleet management programs. Then, after setting expectations among your leadership, write down a formal plan with clear policies and procedures for fleet safety.

2. Identify and screen your drivers.

Safe drivers are an essential part of a fleet safety program — and you may have more drivers than you realize. Your fleet program can include company-owned, private, or rented vehicles. While businesses are generally aware of their risk exposure with company-owned vehicles, many don’t know the full extent of their risk exposure from non-owned vehicles. Keep a record of everyone who currently is or will be driving on behalf of your business, whether they use a company-owned, personal, or rented vehicle.

For those employees using their own personal vehicles for business purposes, it’s important to hold them to the same fleet screening standards as those employees operating company-owned vehicles. You also may need to add coverage to your commercial auto insurance, which could help your business recover in case an accident results in a business liability event for your company, which could impact both your finances and your reputation.

When hiring, carefully screen your drivers. Check the job applicant’s Motor Vehicle Record (MVR) to view past driving trends, which can help provide insight into future driving behaviors. An MVR typically shows a person’s driving history from the past three years, including driver’s license information, point history, violations, convictions, and license status.

For many companies, a driver is considered unacceptable when the MVR shows:

  • More than three moving violations, accidents or both
  • Driving while intoxicated or under the influence of narcotics
  • License suspension and any serious violation such as reckless driving, endangering the lives of others, and racing

By pre-screening drivers as part of your standard hiring practices, you’ll empower your fleet safety program, making it more reliable, effective, and safer.

3. Train and manage your drivers.

Require all of your fleet drivers to learn and commit to the company’s fleet safety policies and procedures. Additionally, provide training and resources on defensive driving and other safe driving techniques. For example, there are many forms of distracted driving including talking on the phone, texting, eating, daydreaming, and other things that take the driver’s attention away from driving.

It is also essential to continue to manage your drivers to help ensure they are following your fleet safety rules and driving safely. Schedule time to check the MVR of your drivers and have a plan in place for handling drivers with marginal or poor driving records.

You may also want to consider using fleet telematics to further strengthen your overall fleet safety program. Telematics is a technology that can track and monitor a variety of driver and vehicle parameters. Some examples include a vehicle’s speed, fuel consumption, harsh braking, and other driving behaviors.

4. Have a formal preventive maintenance program and secure your vehicles.

Make sure all vehicles are safe to drive by having each of them on a formal preventive maintenance program. This includes routine oil changes, vehicle inspections, making repairs, and keeping vehicle records. It’s also important to ensure that all vehicles are being secured to minimize any losses related to theft or vandalism while the vehicle isn’t being used.

5. Review accidents and consult your Risk Control specialist.

Take time to review accidents involving your company’s fleet vehicles to help you pinpoint your risk exposures, identify trends, manage accident costs, and take action to avoid future accidents.

Additionally, ask your independent insurance agent about loss and risk control services that may be available to you through your commercial insurance provider. Some insurance companies, including Grange Insurance, offer Risk Control Services to their commercial insurance customers, providing expert risk management services including formalized safety programs, training and help identifying, analyzing and addressing business’s unique risks.

This article is for informational and suggestion purposes only. If the policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies.

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Oct 20 is National Teen Drivers Safety Week - Shield Insurance Agency Blog

Oct. 20 National Teen Drivers Safety Week

Posted on by Shield Insurance Agency

Parents encouraged to talk to teen drivers about the importance of driving safely

How Parents Can Help Teen Drivers

Motor vehicle crashes are the leading cause of death for teens 15-18 years of age in the United States, ahead of all other types of injury, disease, and violence. Inexperience and risk-taking behavior are factors that increase the crash risk for teens.

            “Parents can help protect their teens by talking with them about how to avoid risky driving behaviors,” said Michael L. Prince, OHSP director. “Because of their lack of experience, teen drivers are at a greater risk of being killed or injured in a crash. That is why it is so important to start a conversation with teens and encourage safe driving practices.”

            In Michigan, teens and young adults age 15-20 years old, accounted for 7.6 percent of all traffic deaths in 2018, with 55.4 percent of those deaths being the driver. In addition, 9,637 teenagers and young adults were injured in motor vehicle crashes in 2018, representing 12.7 percent of all people injured in a crash.

            Michigan, and other states, have adopted Graduated Driver Licensing (GDL) laws for teen drivers as a way to promote safety behind the wheel and reduce serious injury and death in a crash. Teens face the greatest risk of a crash during their first year of driving. GDL programs limit high-risk driving among teens and can reduce teen crash risk by as much as 50 percent. For more information on the GDL program in Michigan, visit: www.michigan.gov/teendriver.

Opportunity

            A unique opportunity for teens to teach other teens about safe driving, is the Strive for a Safer Drive (S4SD) program. Students at every Michigan high school can participate in S4SD, with cash prizes awarded to the top five winning entries. Parents and teachers are urged to discuss the opportunity with teens and encourage participation in the program. Applications are due Nov. 14. Application information, including examples of winning campaigns, can be found at: https://www.michigan.gov

            The National Highway Traffic Safety Administration also provides information parents can use to help keep teens safe including tips on seat belt safety, distracted driving, impaired driving, and speeding. For more details on Teen Driver Safety Week, including safe driving tips for parents and teens, visit: www.nhtsa.gov/road-safety/teen-driving.

Be sure to visit our informative insurance Blog for more great articles!

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