Auto Insurance

The Ultimate Guide to Comp and Collision Coverage: What You Need to Know

The Ultimate Guide to Comp and Collision Coverage: What You Need to Know

Posted on by Shield Insurance Agency

Shield Insurance Blog | Comp and Collision Coverage | Start an Auto Quote Today!

When it comes to protecting your vehicle, having the right insurance coverage is crucial. Two common types of coverage that often confuse car owners are comprehensive and collision insurance. While both provide financial protection in the event of damage or loss, they differ in terms of the incidents they cover. In this blog post, we will delve into the details of comprehensive and collision insurance, highlighting their differences, benefits, and scenarios where each type is applicable.

1. Comprehensive Insurance Coverage:

Comprehensive insurance, often referred to as “comp” insurance, is designed to cover damages to your vehicle that are not caused by a collision with another vehicle. It provides protection against a wide range of incidents, including theft, vandalism, fire, natural disasters, falling objects, and animal collisions. Essentially, comprehensive coverage safeguards your vehicle from non-collision-related risks.

2. Collision Coverage:

Collision insurance, as the name suggests, covers damages resulting from a collision with another vehicle or object. This type of coverage is specifically designed to protect your vehicle in scenarios where you are at fault or involved in a single-vehicle accident, such as hitting a tree, fence, or wall. Collision coverage ensures that your vehicle is repaired or replaced, regardless of who is responsible for the accident.

Differences between Comprehensive and Collision Insurance Coverage:

While both comprehensive and collision insurance provide protection for your vehicle, they differ in terms of the incidents they cover and the circumstances under which they apply. Here are the key differences:

a. Covered Incidents:

Comprehensive insurance covers a wide range of incidents, including theft, vandalism, fire, natural disasters, falling objects, and animal collisions. On the other hand, collision insurance specifically covers damages resulting from collisions with other vehicles or objects.

b. Fault Consideration:

Comprehensive insurance is not dependent on fault. It covers damages regardless of who is responsible for the incident. In contrast, collision insurance only applies when you are at fault or involved in a single-vehicle accident.

c. Deductibles:

Both comprehensive and collision insurance policies typically have deductibles. A deductible is the amount you must pay out of pocket before your insurance coverage kicks in. Deductibles for comprehensive coverage are generally lower than those for collision coverage.

d. Premiums:

Premiums for comprehensive and collision insurance can vary based on several factors, including the value of your vehicle, your driving history, and your location. Collision insurance tends to have higher premiums compared to comprehensive insurance due to the higher likelihood of accidents involving collisions.

e. Vehicle Age and Value:

The age and value of your vehicle can also influence the need for comprehensive and collision coverage. Comprehensive insurance is often recommended for newer vehicles or those with higher values, as it provides broader protection against various risks. Collision insurance is more commonly recommended for vehicles with a higher risk of collision-related incidents.

Scenarios Where Each Comp and Collision Coverage is Applicable:

Understanding the scenarios where comprehensive and collision coverage are applicable can help you make an informed decision when choosing the right insurance for your vehicle. Here are some examples:

a. Comprehensive Coverage:

  • – Your vehicle is stolen or vandalized.
  • – Your car is damaged by a natural disaster, such as a hurricane or hailstorm.
  • – A tree falls on your vehicle during a storm.
  • – Your car is damaged by fire or explosions.
  • – You collide with an animal on the road.

b. Collision Coverage:

  • – You collide with another vehicle, regardless of who is at fault.
  • – You hit a stationary object, such as a wall, fence, or pole.
  • – Your vehicle rolls over due to a single-vehicle accident.
  • – You collide with a tree or other objects on the road.

Comprehensive and collision insurance coverage is essential for protecting your vehicle from various risks. While comprehensive coverage safeguards against non-collision-related incidents, collision coverage specifically addresses damages resulting from collisions with other vehicles or objects. Understanding the differences between these two types of coverage, along with the scenarios where they are applicable, can help you make an informed decision when selecting the right insurance for your vehicle. Remember, it’s crucial to consult with an insurance professional to determine the best coverage options based on your specific needs and circumstances.

Shield Insurance Agency represents over 40 insurance companies. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.

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Uninsured Motorist Coverage The Ultimate Guide to Peace of Mind on the Road.

Uninsured Motorist Coverage: The Ultimate Guide to Peace of Mind on the Road

Posted on by Shield Insurance Agency

Shield Insurance Blog | Uninsured Motorist Coverage | Start A Quote Today!

Driving on the road can be a thrilling experience, but it also comes with its fair share of risks. One of the biggest concerns for any driver is the possibility of getting into an accident with an uninsured motorist. In such situations, having uninsured motorist coverage can provide you with the peace of mind you need. In this ultimate guide, we will explore what uninsured motorist coverage is, why it is important, and how it can protect you in case of an accident.

What is Uninsured Motorist Coverage?

Uninsured motorist coverage is an insurance policy that protects you if you are involved in an accident with a driver who does not have insurance or has insufficient coverage. It is an optional coverage that you can add to your existing auto insurance policy. In the event of an accident, uninsured motorist coverage will help cover your medical expenses, lost wages, and other damages caused by the uninsured driver.

Why is it Important?

1. Protection against Uninsured Drivers: According to the Insurance Research Council, approximately one in eight drivers in the United States is uninsured. If you are involved in an accident with an uninsured driver, you may be left to cover the expenses out of your own pocket. Uninsured motorist coverage ensures that you are protected in such situations.

2. Medical Expenses Coverage: In the unfortunate event of an accident, medical expenses can quickly add up. Uninsured motorist coverage can help cover the cost of medical treatment, including hospital bills, surgeries, and rehabilitation. This coverage can be a lifesaver, especially if you do not have health insurance or have high deductibles.

3. Lost Wages Coverage: If you are injured in an accident and unable to work, uninsured motorist coverage can provide compensation for your lost wages. This can help alleviate the financial burden caused by the accident and allow you to focus on your recovery without worrying about your income.

4. Property Damage Coverage: Uninsured motorist coverage not only protects you against bodily injuries but also covers damages to your vehicle. If the uninsured driver is at fault for the accident, this coverage can help pay for the repairs or replacement of your vehicle.

How Does Uninsured Motorist Coverage Work?

Uninsured motorist coverage can vary depending on your insurance provider and the state you live in. However, there are a few key components that are common across most policies:

1. Bodily Injury Coverage: This component of uninsured motorist coverage helps cover medical expenses, lost wages, and pain and suffering caused by the accident. It typically has a per-person and per-accident limit, which determines the maximum amount the insurance company will pay.

2. Property Damage Coverage: This component covers the cost of repairing or replacing your vehicle if it is damaged in an accident with an uninsured driver. Like bodily injury coverage, it also has a limit that determines the maximum amount the insurance company will pay.

3. Hit-and-Run Coverage: Some uninsured motorist policies also include coverage for hit-and-run accidents. If you are involved in a hit-and-run and the responsible driver cannot be identified, this coverage can help cover your medical expenses and property damage.

4. Underinsured Motorist Coverage: In addition to uninsured motorist coverage, some policies also include underinsured motorist coverage. This coverage comes into play when the at-fault driver has insurance, but their coverage is insufficient to fully compensate you for your damages. Underinsured motorist coverage helps bridge the gap between the at-fault driver’s coverage and your actual damages.

How to Obtain this Coverage

To obtain uninsured motorist coverage, you need to contact your insurance provider and add it to your existing auto insurance policy. The cost of uninsured motorist coverage can vary depending on factors such as your driving record, the state you live in, and the coverage limits you choose. It is important to review your policy and understand the coverage limits and exclusions before making a decision.

Uninsured motorist coverage is a crucial component of any auto insurance policy. It provides you with the peace of mind you need on the road, knowing that you are protected in case of an accident with an uninsured driver. From covering medical expenses to compensating for lost wages and property damage, uninsured motorist coverage offers comprehensive protection. Don’t wait until it’s too late – add uninsured motorist coverage to your policy today and drive with confidence knowing that you are prepared for any situation that may arise on the road.

Shield Insurance Agency represents over 40 insurance companies. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.

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One of the most common questions people have is why it takes longer to get a business insurance quote than an auto insurance quote.

Cracking the Code: Why Auto Insurance Quotes Beat Business Insurance Quotes in Speed

Posted on by Shield Insurance Agency

Shield Insurance Blog | Business Insurance | Insurance Quotes | Start A Quote Today!

Business Insurance Quotes vs Auto Insurance Quotes

When it comes to insurance, there are many factors that can affect the time it takes to get a quote. One of the most common questions people have is why it takes longer to get a business insurance quote than an auto insurance quote. In this blog post, we will explore the reasons behind this and provide some insights into the process.

Firstly, it is important to understand that business insurance is a much more complex and specialized type of coverage compared to auto insurance. Business insurance covers a wide range of risks and liabilities that are unique to each individual business. This means that the insurance company needs to gather more information and assess a greater number of factors in order to provide an accurate quote.

One of the main reasons why it takes longer to get a business insurance quote is the level of customization required. Unlike auto insurance, which has standardized coverage options, business insurance needs to be tailored to the specific needs of each business. This means that the insurance company needs to gather detailed information about the business, such as its size, industry, location, and the specific risks it faces. This information is used to determine the appropriate coverage and limits for the business, which can take time to assess.

Insurance Quotes

Another factor that can contribute to the longer quote process for business insurance is the number of insurance companies involved. Unlike auto insurance, where there are a limited number of providers, business insurance has a much larger market. This means that there are more insurance companies to choose from, each with its own underwriting guidelines and pricing models. In order to provide the best quote for a business, the insurance company needs to shop around and compare quotes from multiple providers. This can take time, especially if the business has unique or specialized needs.

Additionally, business insurance often requires more documentation and verification compared to auto insurance. This is because businesses typically have more assets and liabilities that need to be assessed. For example, a business may need to provide financial statements, inventory lists, or proof of compliance with certain regulations. This additional paperwork can add to the time it takes to get a quote, as the insurance company needs to review and verify the information provided.

Furthermore, the complexity of business insurance policies can also contribute to the longer quote process. Business insurance policies often have more coverage options and endorsements compared to auto insurance. This means that the insurance company needs to carefully review and assess each option to ensure that the policy meets the specific needs of the business. This level of detail and customization can take time to evaluate and determine the appropriate coverage and pricing.

In conclusion, there are several reasons why it takes longer to get a business insurance quote compared to an auto insurance quote. The level of customization required, the number of insurance companies involved, the additional documentation and verification, and the complexity of the policies all contribute to the longer quote process. However, it is important to remember that the extra time and effort put into obtaining a business insurance quote is necessary to ensure that the business is adequately protected. So, if you are in need of business insurance, be patient and provide the necessary information to get the best coverage for your unique needs.

If you are looking for the best RV insurance quote, camper van insurance, or the best insurance for Motorhome Insurance near you, Shield Insurance Agency can help. With over 40 insurance companies represented, they have the expertise and resources to find the right coverage at an affordable price. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon. Protect your family and your business with the right insurance coverage from Shield Insurance Agency.

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Experience the Ultimate Retro Vibes with the Lámpago Electric Trike!

Experience the Ultimate Retro Vibes with the Lámpago Electric Trike!

Posted on by Shield Insurance Agency

Shield Insurance Blog | Only Good News Daily | Electric Trike | Auto Insurance | Start a Quote Today!

The fun-looking short-haul ride merges urban e-trike vibes with a vintage micro-car design, offers luxury seating for two, a bunch of branded accessories, and even includes a spare tire mounted to the back.

It’s Lámpago first electric vehicle and looks perfect for an emissions-free drive to the beach or grocery store. The vehicle lacks pedals but rides as a moped in Europe – which may require an appropriate permit – throttling up to 25 km/h (15.5 mph). So, not a speedy mode of transport but, if the sun’s out, and you haven’t got far to go, who cares?

Electric Trike

It has a relatively small battery that’s good for between 30 and 50 km (19 – 31 miles) every three hours on a charge, and anyone who wants one can choose from a range of body and fabric colors.

Elsewhere, there’s a digital dash at the center of the motorcycle-style handlebar, with an analog timepiece underneath, a funky LED headlight rising out of the hood, and a bunch of accessories such as a branded umbrella, thermos flask, and key holder.

Lámpago, based in Turkey, says export pricing starts at US$10,860. The video below offers brief a look around.

Click here to see the Electric Trike story

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Insurance 101 for Beginners

Insurance 101 for Beginners

Posted on by Shield Insurance Agency

Shield Insurance Blog | Insurance | Start a Quote Today!

What do I need to Know About Insurance?

Insurance is a crucial aspect of our lives that provides financial protection and peace of mind. Whether it’s car insurance, homeowners insurance, or any other type of insurance, understanding the basics is essential. In this blog post, we will explore the fundamental concepts of insurance, different types of insurance, and why it is important to have the right coverage.

Insurance is a contract between an individual or business and an insurance company. The individual or business pays a premium, and in return, the insurance company agrees to provide financial protection in the event of a covered loss. The purpose of insurance is to transfer the risk of potential financial loss from the insured to the insurance company.

Basic Terms and Definitions

To understand insurance better, it is essential to familiarize yourself with some basic terms and definitions. Here are a few key terms:

  • Premium: The amount of money paid to the insurance company for coverage.
  • Deductible: The amount the insured must pay out of pocket before the insurance company starts covering the loss.
  • Policy: The contract that outlines the terms and conditions of the insurance coverage.
  • Coverage: The specific protection provided by the insurance policy.
  • Claim: A request made by the insured to the insurance company for compensation for a covered loss.

Car Insurance for Beginners

Car insurance is one of the most common types of insurance that people need. It provides financial protection in case of accidents, theft, or damage to your vehicle. Here are a few things to consider when getting car insurance:

  • Liability Coverage: This coverage pays for damages and injuries you cause to others in an accident.
  • Collision Coverage: This coverage pays for damages to your vehicle in case of a collision.
  • Comprehensive Coverage: This coverage pays for damages to your vehicle caused by events other than collisions, such as theft or natural disasters.

Renters and Homeowners Coverage for Beginners

If you rent or own a home, it is crucial to have renters or homeowners insurance to protect your belongings and property. Here are a few key points to consider:

  • Renters Insurance: This type of insurance provides coverage for your personal belongings in case of theft, fire, or other covered events. It also provides liability coverage in case someone gets injured in your rented property.
  • Homeowners Insurance: This insurance covers your home and belongings against damage or loss caused by covered events. It also provides liability coverage and additional living expenses if your home becomes uninhabitable.

What other types of Insurance are there?

Apart from car insurance and homeowners/renters insurance, there are several other types of insurance that you may need depending on your circumstances. Some common types include:

  • Health Insurance: This insurance provides coverage for medical expenses and can help protect you from high healthcare costs.
  • Life Insurance: Life insurance provides financial protection to your loved ones in case of your death. It can help cover funeral expenses, pay off debts, and provide income replacement.
  • Disability Insurance: This insurance provides income replacement if you become disabled and are unable to work.
  • Umbrella Insurance: Umbrella insurance provides additional liability coverage beyond the limits of your other insurance policies. It can protect you from large lawsuits and claims.

Protection, Family, and Shield Agency

Insurance is all about protection, especially when it comes to your family and assets. Shield Insurance Agency understands the importance of having the right coverage and represents over 40 insurance companies to provide you with the best options. Whether you need car insurance, homeowners insurance, or any other type of insurance, Shield Insurance Agency can help.

Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK, and an agent will be in touch soon. Don’t wait until it’s too late – protect yourself and your loved ones with the right insurance coverage.

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Personal Auto Insurance & Shield Agency

Secure a hassle-free Auto Insurance Quote From Shield Agency

Posted on by Shield Insurance Agency

Shield Insurance Blog | Auto Insurance | Start A Quote Today

Personal Auto Insurance

Car insurance is a type of insurance that provides financial protection in the event of an accident or damage to your vehicle. It is a legal requirement in most states to have car insurance if you own a vehicle. Automobile insurance policies vary depending on the coverage you choose and the insurance company you select. In this blog post, we will explore the basics of personal auto insurance and answer some common questions.

Click here to choose your own auto policy with your specific carrier, and we will contact you with the details.
Click here to choose your own policy with your specific carrier, and we will contact you with the details.

What is car insurance?

Auto insurance is a contract between you and an insurance company that protects you financially in the event of an accident or damage to your vehicle. It provides coverage for liability, which means it pays for the damages you cause to others. It also provides coverage for your own vehicle, depending on the type of coverage you choose.

Do I need car insurance?

Yes, car insurance is mandatory in most states. It is required by law to have at least liability coverage, which pays for the damages you cause to others. Driving without car insurance can result in fines, license suspension, and even legal consequences. It is important to have car insurance to protect yourself and others on the road.

What does auto insurance cover?

Auto insurance covers a range of situations and damages. The main types of coverage include:

  • Liability: This coverage pays for the damages you cause to others in an accident. It includes bodily injury liability, which covers medical expenses and lost wages, and property damage liability, which covers the cost of repairing or replacing someone else’s property.
  • Comprehensive: This coverage pays for damages to your vehicle that are not caused by a collision. It includes theft, vandalism, fire, and natural disasters.
  • Collision: This coverage pays for damages to your vehicle caused by a collision with another vehicle or object.
  • Medical Payments/Personal Injury Protection (PIP): This coverage pays for medical expenses and lost wages for you and your passengers in the event of an accident, regardless of who is at fault.
  • Other optional coverages: There are additional coverages you can add to your policy, such as uninsured/underinsured motorist coverage, which protects you if you are involved in an accident with someone who does not have insurance or has insufficient coverage.

What does car insurance not cover?

Auto insurance does not cover regular maintenance and wear and tear on your vehicle. It also does not cover intentional damage or illegal activities. It is important to read your policy carefully to understand what is covered and what is not.

How is auto insurance priced?

Car insurance premiums are determined by several factors, including:

  • Your driving record: If you have a history of accidents or traffic violations, you may pay higher premiums.
  • Your age and gender: Younger drivers and male drivers tend to have higher premiums.
  • Your location: Insurance rates can vary depending on where you live. Areas with higher crime rates or higher accident rates may have higher premiums.
  • Your vehicle: The make, model, and age of your vehicle can affect your insurance rates. Newer and more expensive vehicles may have higher premiums.
  • Your coverage limits: The amount of coverage you choose will affect your premiums. Higher coverage limits will result in higher premiums.

What is a car insurance premium?

A car insurance premium is the amount you pay for your insurance coverage. It is typically paid on a monthly or annual basis. The premium is based on the risk factors associated with insuring you and your vehicle. Insurance companies use complex algorithms and statistical data to calculate premiums.

Does auto insurance cover maintenance?

No, car insurance does not cover regular maintenance and wear and tear on your vehicle. It is your responsibility to maintain your vehicle and keep it in good working condition. Car insurance is designed to protect you financially in the event of an accident or damage to your vehicle, not for routine maintenance.

How to get car insurance

It is important to shop around and compare quotes from different insurance companies to find the best coverage and rates for your needs. Shield Insurance Agency represents over 40 insurance companies and can provide you with a free quote. You can contact them at (616) 896-4600 or start the quoting process by visiting their website.

In conclusion, personal auto insurance is a necessary protection for you and your family. It provides coverage for liability, damages to your vehicle, and medical expenses. It is important to understand the different types of coverage and choose the right policy for your needs. Remember to shop around and compare quotes to find the best coverage and rates. Contact Shield Insurance Agency for a free quote today and ensure the protection of your family on the road.

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The Most Fuel-Efficient Cars: How to Find the Right One

The Most Fuel-Efficient Cars: How to Find the Right One

Posted on by Shield Insurance Agency

Nationwide Blog | December 12, 2022 | Fuel-Efficient Cars| Auto Insurance | Start A Quote Today!

As automotive technology continues to evolve, consumers have a variety of fuel-efficient cars to choose from when it’s time to start shopping.

Today, many larger vehicles are included among the lists of cars that get improved mileage from Fuel-Efficient Cars. [1] As innovations continue, you no longer have to choose between the car that gets the best mileage and the one that can carry your family comfortably on vacation.

The effect of hybrid innovation on the automotive landscape is something to note, as evidenced by the cars that rank high in mileage. Hybrid options provide great fuel efficiency, and there’s a wide selection of models.

Factoring the costs of fuel, along with maintenance and repair, can give you a better idea of the actual long-term expense of owning the car instead of basing your decision only on the sticker price. [2]

Benefits of fuel-efficient cars

Fuel-efficient vehicles save on fuel costs and time spent filling up. Advanced technologies such as plug-in hybrids and pure electrics have pushed efficiency even further. Fuel-efficient cars can save you money, no matter what size you are looking for, and they’re a smart hedge against the inevitable rise in fuel prices.

Are fuel-efficient cars better for the environment?

Less fuel consumption of a car means fewer toxic emissions from the exhaust, so we have cleaner air to breathe. Fuel-efficient cars help in reducing pollution and smog by at least 50%. By switching to a hybrid car or one that doesn’t require much fuel, we are also reducing our dependency on fossil fuels. [3]

Cars with the Best Gas Mileage

Fuel economy is a key factor in operating costs for vehicles. A small difference in the overall miles-per-gallon rating can add up to big savings over years of ownership. In order to properly decide which car is best based on gas mileage, you should review several lists from reputable sources before making any decisions.

Here are a few helpful links to streamline your search for fuel-efficient cars:

Choosing the right vehicle can be difficult. But protecting your car and home is easy with Nationwide. Get a free auto insurance quote online or contact an independent agent today to see how you can save by bundling your insurance.

Sources:

[1]  “13 Most Fuel-Efficient SUVs in 2022,” cars.usnews.com/cars-trucks/advice/suvs-best-gas-mileage (accessed Nov. 17, 2022).

[2] “ What Is the Total Cost of Owning a Car?,” nerdwallet.com/article/loans/auto-loans/total-cost-owning-car (accessed Nov. 17, 2022).

[3] “Environmental Benefits of Fuel-Efficient Cars That All Should Know,” matteroftrust.org/environmental-benefits-of-fuel-efficient-cars-that-all-should-know (accessed Sept. 1, 2022).

Disclaimer:

The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2022 Nationwide and Shield Insurance Agency

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Hybrid or Electric? Pros and Cons of Alternative Fuel Vehicles

Hybrid or Electric? Pros and Cons of Alternative Fuel Vehicles

Posted on by Shield Insurance Agency

Nationwide | December 12, 2022 | Hybrid | Auto Insurance | Start A Quote Today

More hybrid and electric vehicles are taking to the roads. Can you tell the difference between them? Each has advantages and disadvantages based on the purchase price, cost of ownership, maintenance, and power. If you’re considering an alternative to the internal combustion engine, the info below may help you understand the pros and cons of hybrid and electric vehicles (EVs).

What is a hybrid car?

A hybrid car is a vehicle that uses two or more distinct power sources to move, such as gasoline engines and electric motors.

Pros and Cons of Hybrid Cars

Pros of Hybrid CarsCons of Hybrid Cars
Fuel-efficiency 
According to the U.S. Department of Energy, a plug-in hybrid electric vehicle typically uses 30 to 60% less fuel than traditional automobiles. [1] Fewer trips to the pump can save you a significant amount of money over time, especially if you have a long commute.
Less greenhouse emissions from the vehicle 
Hybrids that plugin generally produce less greenhouse emissions than gas-only vehicles. However, the type of power plant in your area is also a part of the larger greenhouse gas emissions equation. Recharging a vehicle requires electricity, and the source and cleanliness of that electricity may differ greatly. [1]
Tax breaks 
Various income tax credit programs motivate drivers to buy hybrid cars. [1a] Other incentives may include vehicle registration savings, discounts on excise taxes, and extra income tax rebates.


Higher purchase cost 
While you may save on gas, the initial cost of a hybrid is generally higher than a traditional gas-only vehicle. [2]
Expensive maintenance 
Hybrids are generally more costly to repair because of complex dual combustion systems. Not all repair shops have the proper equipment; services may have to be performed by the manufacturer. [2]
Less power 
Hybrids’ smaller internal combustion engines and lighter weight help maximize efficiency but can reduce acceleration. [2]
Gasoline is required 
Depending on the type of hybrid you purchase, only some can travel long distances without refueling. [3] Some may perceive this as a disadvantage vs the alternative full-electric vehicles.

What is an electric car?

An electric vehicle has a battery as its power source, as opposed to a gas tank. And the battery powers an electric motor, not an internal combustion engine, as in a traditional vehicle.

Pros and Cons of Electric Cars

Pros of Electric CarsCons of Electric Cars
Energy efficient 
According to the U.S. Department of Energy, electric vehicles typically convert 77% of the electrical energy from the grid to power the wheels, compared to conventional gas vehicles, which typically convert 12% to 30% of the energy stored in gasoline to power at the wheels. [4]
Less maintenance 
Electric motors have fewer moving parts than internal combustion engines, so they’re often easier to maintain. They also don’t require oil, so no more oil changes. And brakes wear much slower thanks to regenerative braking systems. [5]
Direct Emissions 
With no exhaust system, electric cars typically have zero emissions. Their rechargeable batteries are also almost 100% recyclable. However, recharging a plug-in electric vehicle requires electricity, and the source and cleanliness of that electricity may differ greatly. [1]

Shorter driving distance and fewer charging locations
The range of EVs has improved greatly, but it’s still generally lower than gas-powered vehicles with larger tanks. And with fewer charging locations, it can be more difficult to plan a longer trip.
Long recharge time
Recharge time and how much of a charge a vehicle needs depends on a number of variables. But several hours can be needed to fully recharge an EV compared to filling up at the gas pump in a few minutes.
Anxiety 
Due to the limited range and shortage of recharging stations, you may be constantly concerned about running out of power.
Expensive battery
The cost of a typical battery replacement could reach $10,000 or more, which is on par with a gas engine in traditional cars. [6]

In choosing the right vehicle, consider budget, passenger load, and geographic location. Whatever type of car you choose, ensure you have the right car insurance to help protect yourself and your car. Have peace of mind while you’re on the road and get a free car insurance quote today.

Sources:

[1] “Plug-in Hybrids,” fueleconomy.gov/feg/phevtech.shtml (accessed Sept. 19, 2022).

[1a] “Federal Tax Credits for New All-Electric and Plug-in Hybrid Vehicles,“ fueleconomy.gov/feg/taxevb.shtml (accessed Nov. 23, 2022).

[2] “What Are The Disadvantages Of A Hybrid Car?,” jdpower.com/cars/shopping-guides/what-are-the-disadvantages-of-a-hybrid-car (accessed Nov. 23, 2022).

[3] “Hybrid vs. Electric Cars: Advantages and Disadvantages,” evcharging.enelx.com/resources/blog/741-hybrid-vs-electric-cars-advantages-and-disadvantages (April 20, 2021).

[4] “All-Electric Vehicles,” fueleconomy.gov/feg/evtech.shtml (accessed on Sept. 9, 2022).

[5] “Maintenance and Safety of Electric Vehicles,” afdc.energy.gov/vehicles/electric_maintenance.html (accessed Nov. 23, 2022).

[6] “How Much Do EV Batteries Cost?” autoweek.com/news/a38658350/how-much-do-ev-batteries-cost (July 1, 2022).

Disclaimer:
The information included here is designed for informational purposes only. It is not legal, tax, financial, or any other advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Nationwide Mutual Insurance Company, its affiliates, and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2022 Nationwide and Shield Insurance Agency.

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Should You Lease or Buy a Car?

Should You Lease or Buy a Car?

Posted on by Shield Insurance Agency

Foremost Insurance Blog | February 22, 2023 | Lease | Auto Insurance | Start A Quote Today!

You may be debating whether to lease or buy if you’re in the market for a new car. It’s considered one of the most significant decisions most people will ever make, so it is essential to take your time and consider both choices from all angles. To help you with this milestone, we will explore the pros and cons of leasing vs. buying a car.

What is a car lease?

Leasing a car is like renting a car for a long-term contractual period. You are locked into the deal for a certain number of months and a monthly payment. Instead of paying a loan and building equity like you would if you purchased a car, you are paying for the car’s estimated depreciation during your lease. [1]

Is there a difference between financing and obtaining a car lease?

The main difference between financing and leasing a car is the end result. When financing a car, you are borrowing money from a bank, finance company, or credit union to slowly purchase your car over a certain period of time. When leasing a car, you are paying for the right to use the vehicle for a defined amount of time and miles. The monthly payments on a lease are usually lower than the monthly payments if you bought the same car. When the lease ends, you must return the car unless the lease agreement lets you buy it. [2]

What happens after a car lease ends?

When your vehicle lease ends, you have three options. First, you can trade it in and replace your old lease with a new lease for a different car. If you don’t want to lease another vehicle or would rather buy your next vehicle, you can simply walk away. Finally, if you like the car you’ve been leasing, you can purchase it. The purchase price for the car will be listed in your lease agreement, so you can shop around and compare prices. As you near the end of your lease, you may start hearing from the dealership to find out how you want to proceed. Be sure to take your time to consider each option to find the right fit for you. [3]

Pros of a car lease

Lower monthly payments

A lease can ease the financial burden of monthly costs due to the smaller down payment compared with buying. This could mean opting for a more luxurious car than you could otherwise afford.

Worry-free maintenance

Many cars come with a warranty that lasts at least three years, so many of the repairs may be covered in a 3-year lease.

No resale concerns

Because you’re only leasing, simply return the car at the end of the lease. Keep in mind you may have end-of-lease fees, including those for abnormal wear and tear or additional mileage on the car.

Freedom to drive a new car every few years

When your lease is up, you can return your car and get another new one. By leasing, you get the latest advances in car technology every few years. [4]

Cons of a car lease

Mileage requirements

Most leases permit a certain amount of mileage on the car (typically 10,000 to 15,000 miles per year), and exceeding this mileage can result in fees.

Fees and other costs

While the monthly cost you pay for leasing a car is much lower, there are other fees that come with leasing a car. This includes fees for modifications to the car, excess wear and tear, an early termination fee if you terminate the lease early, an acquisition fee, and more.

Constant monthly payments

When your lease ends, you’ll need to start a new one, meaning you’ll always have a car payment. [4]

If you like always driving the latest models or don’t have the credit or money to buy a new car, leasing may be a smart option.

Pros of buying a car

Ownership

Whenever you have paid off your loan, the car is yours outright. You have the option to continue driving the car until it wears out, sell it to someone, or trade it into a car dealership for credit on another purchase.

Freedom to customize

You have complete control over how you improve or modify your car.

No restrictions

Unlike leasing a car, you’re not on the hook for excessive mileage or abnormal wear and tear fees. Because you own it, you pay for services and repairs on your timeline. [4]

Cons of buying a car vs a lease

Higher monthly payments

If you lease your car, the monthly payments will typically be lower than new car payments for the same vehicle.

Rapid depreciation

New cars can lose 15% to 25% of their value in the first five years of ownership. [4]

Large down payment

If you want better odds of getting approved for a loan, you might want to offer a larger down payment. For example, a 20% down payment for a $25,000 car would be about $5,000. Leasing your vehicle would allow you to keep at least some of that upfront cash.

If you plan to keep your car for a long time, modify it or drive a lot of miles, it makes more sense to buy.

Things to consider when car shopping

Before deciding whether to buy or lease a new or used car, make sure to do your research, especially if it’s your first time buying a car. Some things to consider are your budget, each car’s safety features, maintenance costs, and more.

What documents do I need to lease or buy a car?

When you go to the dealership to buy or lease a vehicle, here are the suggested documents to bring:

1. Valid driver’s license

2. Proof of residency (utility bill, bank statement, etc.)

3. Proof of income (pay stub) [5]

After considering all the pros and cons of buying or leasing a car and coming to your decision, don’t forget about insuring your vehicle with Shield Insurance.

Sources:

[1] “Car Leasing Guide: How to Lease a Vehicle,” Kelley Blue Book, kbb.com/car-advice/car-leasing-guide (July 8, 2022).

[2] “Financing or Leasing a Car,” consumer.ftc.gov/articles/financing-or-leasing-car (July, 2022).

[3] “The basics of a car lease agreement,” bankrate.com/loans/auto-loans/what-are-the-basic-elements-of-a-car-lease-agreement (Oct. 13, 2022).

[4] “Pros and Cons of Leasing or Buying a Car,” investopedia.com/articles/personal-finance/012715/when-leasing-car-better-buying.asp (Aug. 9, 2022).

[5] “What Documents Should I Have on Hand When Leasing a Car?” myautolux.com/blog/what-documents-should-i-have-on-hand-when-leasing-a-car (accessed Dec. 15, 2022).

Disclaimer:

The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Nationwide Mutual Insurance Company, its affiliates, and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2022 Nationwide and Shield Insurance Agency.

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How to Prevent Car Theft

How to Prevent Car Theft

Posted on by Shield Insurance Agency

Nationwide | April 20, 2023 | Car Theft | Auto Insurance | Start A Quote Today!

How common is car theft? According to estimates from the National Insurance Crime Bureau, there were more than 745,000 motor vehicle thefts in the first nine months of 2022 in the U.S. [1] [2] And when citizens are targeted in the most potentially dangerous of these crimes – carjacking – the attacker succeeds in roughly half of all attempts, according to the U.S. Department of Justice.

To find out how to prevent carjacking and car theft, read on.

1. Don’t leave valuables in your car

You don’t display your cash, financial statements, and jewelry in your home’s windows, do you? So why would you do the same in your car? Instead, hide any valuables, including purses, computer bags, and the ignition key. You’d be surprised how often people don’t.

According to the National Insurance Crime Bureau, between 2019 and 2022, more than 100,000 reported vehicle thefts were facilitated by keys, including situations where keys were left inside the vehicle. [3] One-fourth left a purse or wallet inside, and one-third have left bank statements. In addition, one-third say they’ve kept their vehicle running while unoccupied.

2. Park in a well-lit area to prevent car theft

Not everyone has a garage. But many have the option of parking on a well-lit street – another deterrent for crooks. Also, etch the vehicle identification number on windows to discourage thieves from stealing the vehicle and selling it to a chop shop.

3. Lock your vehicle doors to prevent car theft

The minute you step into an automobile, you’re vulnerable. So lock up right away, before starting the ignition or setting up your music, GPS, etc. (Buckling up is the second “to do.”)

4. Don’t leave your keys in the car to prevent car theft

“It’ll just be for a second, I’m only running into the store for a couple of things.”

Unfortunately, “a second” is all a thief will need if you leave the keys in the car for them. So always take your keys with you no matter where or how briefly you’ll be out of your vehicle. It sounds obvious, but this is one of the most important ways to prevent car theft.

5. Stay alert

Staying alert is the best example of how to prevent carjacking. When stopped or slowed down, you increase the opportunity for a carjacker. So at traffic lights, exercise caution. “When stopped in traffic, leave enough space to move forward,” says Brent O’Bryan, vice president of learning and development for AlliedBarton Security Services, a physical security firm. [4]

6. Know where you’re going

Just as you want to stay in well-lit areas while parking, you don’t want to “hide” in the darkness while driving. “Don’t head into remote or unfamiliar areas,” O’Bryan says. “If you feel like you’re being followed, don’t drive home. Don’t park next to a vehicle such as a van which could be hiding a suspect.” [4]

7. Install an anti-theft system

If someone tries to break into your car, you’ll want to make it apparent to anyone in earshot that this has occurred. Anti-theft systems emit loud alarms when they detect forced entry into your vehicle, alerting anyone nearby and potentially scaring the would-be thief from sticking around. You can also install a GPS tracking system that will show the location of your vehicle if the thief successfully makes off with it.

Having an anti-theft device in your vehicle may earn you a discount on your car insurance.

8. Stay cool during a crisis

Even if you take every precaution, you could still get involved in carjacking. If so, your and your passengers’ safety remains the top priority. Stay calm – if you panic, it’s more likely a criminal will too. “Never argue; give up your car,” O’Bryan says. “Get away from the area as quickly as possible. Note the suspect’s appearance, and immediately report it to the police.” [4]

Most commonly stolen cars

You might expect thieves to go for the glitziest, most expensive-looking cars they can find, but the trouble with those vehicles is that they stand out in a crowd. No car thief wants to be seen after they make their getaway, so the most commonly stolen cars are some of the most widely owned models. Ford F-series pickup trucks and Honda Civics have been US frequently targeted for this precise reason. In 2021, cars like Civics were also popular because they share parts with other Hondas, making them valuable for stripping and selling. [5]

More recently, in a 2022 HLDI study, 2019-2021 models of Dodge Chargers topped the charts for most stolen vehicles. [6]

What cars are targeted for catalytic converter theft?

Certain vehicles are also being singled out to steal their catalytic converters. Hybrid cars like the Toyota Prius use expensive metals to construct their catalytic converters, making them prime targets. [7] Thieves will steal the catalytic converter and sell it for the value of its metal.

Does insurance cover car theft?

So, you took all the precautions, but someone managed to make off with your car anyway. Are you covered? It depends on your policy. Comprehensive policies will typically cover theft. However, policies like liability insurance do not.

Learn more about what your car insurance will cover in the event of car theft.

Sources:

[1] https://www.nicb.org/news/news-releases/over-745000-stolen-vehicles-reported-so-far-2022, Accessed April 2023.

[2] https://www.cbsnews.com/news/auto-thefts-carjackings-major-u-s-cities-spike-new-report/, Accessed April 2023.

[3] https://www.prnewswire.com/news-releases/vehicles-stolen-with-keys-left-inside-on-the-rise-301731304.html, Accessed April 2023.

[4] Nationwide Interview with Brent O’Bryan, 2016.

[5] https://www.cars.com/articles/these-vehicles-are-most-vulnerable-to-theft-says-iihs-457296/, Accessed April 2023..

[6] https://www.moneygeek.com/insurance/auto/most-stolen-cars-in-america/, Accessed April 2023.

[7] khou.com/article/news/how-to-prevent-yourself-from-becoming-the-latest-victim-of-catalytic-converter-thefts/285-d978572e-c12a-4142-b331-c782201b082b, Accessed August 2021.

Disclaimer:
The information included is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide, Nationwide is on your side, and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2021 Nationwide and Shield Insurance Agency.

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