How to Get an Auto Insurance Policy: 7 Easy Steps (And Why a Local Broker Might Be Your Secret Weapon)

Name: Vargas & Vargas Insurance
Address: 1133 Washington St, Dorchester, MA, 02124
Telephone: 617-298-0655

Posted on April 17, 2025April 2, 2025 by cvargas

❓Feeling a little lost trying to figure out how to get car insurance?

❓Do terms like liability, deductibles, and premiums make your head spin?

✅ In this article, I’ll walk you through exactly what you need to do—step by step—to get the right auto policy, stress-free.

👀 You’ll learn what information you need, how to compare options, and why working with a local insurance broker might be the smartest move you make.

🛑 Step 1: Know What You Need Before You Shop

Before anything else, figure out what kind of coverage makes sense for your car.
New car? Financed? You’ll likely need full coverage. Older paid-off car? You may only need liability. Knowing your situation helps you avoid overpaying or being underinsured.

📄 Step 2: Gather the Right Info

Here’s what every insurer will ask you for:

🚗 Your vehicle’s VIN and mileage
🧍 Driver’s license numbers for everyone on the policy
📍 Your address (where the car is kept)
📝 Your driving history

Having these ready means faster and more accurate quotes.

💵 Step 3: Set a Budget

What can you realistically afford each month (or year)?
Auto policies can be paid monthly, semi-annually, or annually. Some providers offer discounts for paying in full—just don’t stretch your budget too thin.

🔍 Step 4: Compare Multiple Quotes

Never settle for the first quote you get.
Get quotes from at least 3 companies. Look at more than just price: review what each policy covers, what the deductibles are, and what extras (like roadside assistance) might be included.

💸 Step 5: Ask About Discounts

Don’t leave money on the table!
Ask about:

🚙 Multi-policy (home + auto)
🧑‍🎓 Good student
🧓 Senior or military
🛣️ Low-mileage driver
🧼 Safe driving record

These add up fast—and you might qualify for more than you think.

✅ Step 6: Choose the Right Policy

Pick the policy that balances price with the coverage you need.
Review all terms. Make sure you’re clear on what’s covered, what your deductible is, and what’s excluded. Ask questions. This is your financial protection—we want no surprises later!

🖨️ Step 7: Finalize & Get Proof of Insurance

Once you’re happy, lock it in.
Pay your first premium and get your proof of insurance. Most companies offer a digital card instantly, but keep a paper copy in your glove box too. If your car is financed, send a copy to your lender.

🤝 Bonus Tip: Work with a Local Insurance Broker

Want help at no extra cost? Talk to a broker.
Local insurance brokers work with multiple carriers to find the best deal for you. We know the industry, We understand local requirements, and can guide you through every step—without charging you a dime.

That’s right: using a broker costs you nothing.
They’re paid by the insurance companies, not by you. You get personalized help and competitive rates. If you’re not sure where to begin or you’re short on time, this is your shortcut to peace of mind.

🚦 What Happens After You Buy?

Your coverage starts on the date you chose. You’ll get all your policy documents, including a declarations page (your policy summary). Make sure it matches what you agreed to.

If anything’s unclear—reach out right away.

🏁 Conclusion: You’re Now Ready to Drive Confidently

After reading this, you’ve gone from unsure to informed. You now know how to gather your documents, compare policies, and make the smartest choice for your needs. 🙌

You also know that a local broker can be a huge asset—saving you time and money without costing you a thing.

Your next step?
👉 Check out our blog: [“What Type of Auto Insurance Do I Actually Need?”] to make sure you’re not overpaying for coverage you don’t need.
Or, if you’re ready to take action now, reach out to the team at Vargas & Vargas Insurance by calling 617-298-0655 and get expert advice tailored to your situation.

What Is Accident Forgiveness—and Should You Have It on Your Auto Policy?

Posted on March 28, 2025April 2, 2025 by agentinsure

❓What happens to your car insurance rate if you’re involved in an accident—even if it’s your first?

❓And what if you could prevent that accident from raising your premium?

✅In this article, we’ll break down exactly what Accident Forgiveness means, how it works, who qualifies, and whether it’s worth adding to your policy.

👀By the end, you’ll understand how this benefit can protect your premium—and why Vargas & Vargas Insurance is the team to call at 617-298-0655 when you want the right coverage, with no surprises.

🚗 So, What Is Accident Forgiveness?

Accident Forgiveness is a feature some auto insurance providers offer that allows one at-fault accident to be “forgiven”—meaning it won’t cause your rates to increase.

It’s important to know:

It typically applies to your first accident only.
It doesn’t erase the accident—it just keeps it from impacting your premium.
It’s not automatic. You must qualify or purchase it as part of your policy.

📋 Who Qualifies for Accident Forgiveness?

Eligibility depends on your insurance provider, but most companies offer it to:

Drivers with a clean record for a set number of years
Loyal customers with long-term policies
New policyholders as a sign-up incentive

But here’s the catch:
If you switch to a new insurance company, your forgiven accident may no longer be forgiven. It could be counted again when your new provider calculates your rate.

💡 Is It Worth Having?

It depends on your driving history and comfort level with risk.

You may want to consider it if:

You’ve never had an accident, but you’re worried about “what ifs”
You drive frequently or in high-traffic areas
You want to avoid unexpected premium increases

It’s usually a low-cost addition to your policy—and the financial protection can be significant after a single incident.

👥 Why Talk to Vargas & Vargas Insurance?

Insurance policies aren’t one-size-fits-all—and the fine print around accident forgiveness is a great example.

At Vargas & Vargas Insurance, we take the time to: ✅ Explain your coverage options clearly
✅ Match you with carriers who offer features like Accident Forgiveness
✅ Help you decide if it’s right for your situation
✅ Review your policy annually so you’re never caught off guard

We’ve been serving Massachusetts families since 1980, and when it comes to protecting you from the unexpected, we’ve got your back.

📞 Ready to Review or Add Accident Forgiveness?

Don’t wait until you’re in an accident to wonder whether you’re protected.

Call Vargas & Vargas Insurance today at 617-298-0655 to set up a quick policy review or quote. We’ll help you understand exactly what’s included—and what your options are to keep your rates low, even if life throws a curveball.

🏁 Conclusion: Peace of Mind Is One Conversation Away

Accidents happen—even to the best drivers. And while you can’t always prevent them, you can protect yourself from the financial fallout.

With Accident Forgiveness, one honest mistake doesn’t have to follow you for years.

Not sure if you already have it? Want to know what it would cost to add? Call 617-298-0655 or connect with the Vargas & Vargas Insurance team today—we’ll help you make the smart move now, so you don’t pay more later. Do you think

Does Auto Insurance Cover Rental Cars? What You Need to Know

Posted on March 23, 2025April 2, 2025 by cvargas

Does Your Auto Insurance Extend to Rental Cars? 🤔

Renting a car for a vacation or business trip seems simple enough. But before you decline the rental company’s insurance, it’s crucial to understand if your personal auto policy provides the coverage you need.

The short answer? Yes, but with some limitations. If you have collision and comprehensive coverage on your personal auto policy, that coverage generally extends to rental vehicles. However, there’s a catch—your policy will not cover loss of use fees that the rental company may charge if the car is damaged in an accident.

What’s the “Loss of Use” Fee? 💰

When you return a rental car damaged, the rental company loses money while the car is being repaired. To make up for this, they may charge you a “loss of use” fee. Unfortunately, most personal auto insurance policies do not cover this fee, which could leave you with a hefty bill.

Example: Let’s say you rent a car, and someone rear-ends you. Your auto insurance covers the repairs, but the rental company charges you an extra $40 per day for every day the car is in the shop. That cost?Coming straight out of your pocket.

This is why many insurance agents recommend purchasing the rental company’s coverage. It may add extra cost upfront, but it protects you from hidden expenses later.

💳 Do Credit Cards Cover Rental Car Damage?

Some credit cards offer rental car insurance as a perk—meaning, if you use that card to pay for the rental, it may cover damages. However, not all cards provide the same level of protection.

✔ American Express (AMEX) offers rental car coverage when you pay with their card. Some cards even allow you to purchase Premium Rental Car Protection for a small fee, which covers loss of use and damage. (🔗 Read more here)

✔ Visa and Mastercard may also provide coverage, but the limits and exclusions vary. (🔗 Check Visa’s rental coverage here)

✔ Chase Sapphire Preferred offers primary rental car insurance, which means it covers the damage before your personal auto insurance kicks in. (🔗 Chase benefits)

🚘 Should You Buy the Rental Company’s Insurance?

While your personal auto policy may cover a rental car, you need to ask yourself:

✅ Do I have collision and comprehensive coverage? If not, you have zero protection for rental car damage.
💰 Am I comfortable paying out-of-pocket for loss of use fees? If not, rental car coverage is a good idea.
💳 Does my credit card offer rental coverage? Check the details before assuming you’re covered.

Final Thoughts: Play It Safe ⚠️

The best way to avoid unexpected costs is to review your personal auto policy and credit card benefits before renting a car. If there’s any doubt, purchasing the rental company’s coverage could be a smart move.

Want to double-check your coverage? 📞 Reach out to your insurance provider to confirm the details of your policy.

By staying informed, you can rent with confidence—knowing you’re protected from unexpected expenses and surprise fees. 🚗💨

Why Was My Auto Insurance Denied? Understanding the Reasons and Solutions

Posted on February 16, 2025April 15, 2025 by cvargas

Being denied auto insurance can be frustrating and confusing. At Vargas & Vargas Insurance, we believe in empowering our clients with knowledge to navigate such situations. Let’s explore common reasons for auto insurance denials and how you can address them.

Common Reasons for Auto Insurance Denial

1. Driving Record Issues

A history of traffic violations, accidents, or DUI convictions can label you as a high-risk driver, leading insurers to deny coverage.

2. Lapsed Insurance Coverage

If you’ve had periods without insurance, insurers may view you as a risk, making it harder to obtain new coverage.

3. Poor Credit History

Many insurers use credit scores to assess risk. A low credit score can result in higher premiums or denial of coverage.

4. Vehicle Usage

Using your vehicle for business purposes without proper coverage can lead to denial. Ensure your policy matches your vehicle’s use.

5. Vehicle Type

High-performance or luxury vehicles may be more expensive to insure, and some insurers may decline coverage due to the increased risk.

6. Age and Inexperience

Young or new drivers often face higher premiums or denial due to lack of driving experience.

7. Location

Living in areas with high crime rates or accident statistics can impact your insurability.

Steps to Take If Denied Auto Insurance

Review the Denial Reason Understand why you were denied to address the specific issue.
Improve Your Risk Profile Take steps like attending defensive driving courses or maintaining continuous coverage to become more insurable.
Consult with an Independent Agent At Vargas & Vargas Insurance, we work with multiple carriers to find coverage options that suit your needs.
Consider High-Risk Insurance If standard insurers deny coverage, high-risk insurance plans are available to provide the necessary protection.

The Truth About Big Insurance Companies vs Local Insurance Companies: What Massachusetts Homeowners Need to Know

Posted on February 9, 2025February 21, 2025 by cvargas

When it comes to protecting your Massachusetts home, one of the biggest decisions you’ll face is choosing between national insurance giants like State Farm and Allstate or working with a local insurance broker. Let’s break down what really matters for homeowners in the Bay State.

Understanding Your Options

Think of national insurance companies as the big-box stores of the insurance world. They’re everywhere, and yes, they have some nice perks. These companies offer:

24/7 claims service for those middle-of-the-night emergencies
User-friendly mobile apps that make filing claims easier
Bundle discounts when you combine home and auto insurance (usually 15-25% savings)

But here’s something many people don’t know: local insurance brokers often provide these same services, plus a whole lot more.

The Hidden Costs of National Insurance Companies

Here’s where things get interesting. Those attractive rates you see advertised by big insurance companies? They’re often “teaser rates” – special introductory prices that can increase significantly at renewal time. It’s like getting a great cable TV deal that doubles in price after the first year.

According to the National Association of Insurance Commissioners (NAIC), the average homeowner’s insurance premium in Massachusetts is significantly affected by local factors that national companies might not fully consider. Learn more about average insurance costs in Massachusetts here.

The Wind Deductible Wake-Up Call

Let’s talk about a real situation that many Massachusetts homeowners don’t discover until it’s too late. Many national insurance companies have something called a “wind deductible.” Here’s what that means:

If your home is insured for $500,000
And your policy has a 2% wind deductible
You’ll need to pay $10,000 out of pocket before insurance kicks in for wind damage

Local Advantage: The Massachusetts Edge

Local insurance brokers bring some powerful advantages to the table:

Deep knowledge of Massachusetts building codes
Understanding of specific risks in different neighborhoods
Experience with what claims typically get approved or denied
Ability to find policies without high wind deductibles
Personal relationships with their clients

The Insurance Information Institute reports that working with an independent agent can often result in better coverage options tailored to local conditions. Check out their research here.

Making the Smart Choice

When choosing between national and local insurance providers, ask yourself:

Do you prefer talking to a different person every time you call about your policy?
Would you rather have a personal relationship with someone who knows your property?
How important is having local expertise about Massachusetts-specific issues?

Essential Questions to Ask Any Insurance Provider

Whether you go national or local, always ask these key questions:

What is your wind and hail deductible?
What’s your average response time for claims in our area?
How do you handle policy non-renewals?

The Price Factor

While national companies might seem cheaper at first glance, local brokers often find ways to save you money through:

Special discounts for updated wiring in older homes
Credits for proximity to fire stations
Discounts for homes near water sources
Competitive bundle rates for auto and home insurance

The Bottom Line

The right choice isn’t about big versus small – it’s about finding the best protection for your specific situation. While national companies offer convenience and well-known brands, local brokers provide personalized service and deep understanding of Massachusetts insurance needs.

For many homeowners, the value of having a local expert who knows the unique challenges of insuring Massachusetts homes – from triple-deckers in Dorchester to colonials in Wellesley – can outweigh the perceived benefits of going with a national carrier.

Remember: insurance isn’t one-size-fits-all, especially in a state with as much variety in housing and weather conditions as Massachusetts. Your best bet is to research both options and choose the one that provides the right mix of coverage, price, and service for your specific needs.

If you’re ready to find the right insurance coverage for your Massachusetts home, there’s an easy way to get started. Vargas & Vargas Insurance has been serving local homeowners for over four decades with personalized service and deep understanding of Massachusetts insurance needs.

Take the first step toward better coverage today – call Vargas & Vargas Insurance at 617-298-0655 to speak with a local insurance expert who understands your unique needs. Don’t wait until after a claim to discover gaps in your coverage. Reach out now and get the peace of mind you deserve with coverage that truly protects your home and family.

The Complete Home and Auto Bundle Guide: Maximizing Your Insurance Coverage in Massachusetts

Posted on January 26, 2025February 6, 2025 by cvargas

If you’re a homeowner in Massachusetts, you know how expensive insurance can be—especially with our unpredictable weather and historic home considerations. Bundling your home and auto insurance sounds great, but is it really the best financial move?

Insurance bundles can offer significant savings for Massachusetts homeowners. According to the Insurance Information Institute, bundling home and auto insurance typically saves consumers between 5-25% depending on their carrier. Let’s explore how to maximize these savings while ensuring proper coverage in Massachusetts.

Understanding Bundle Basics in Massachusetts

The Massachusetts Division of Insurance regulates insurance providers and mandates specific coverage requirements for both auto and home insurance. Their consumer guide indicates that while bundling policies can provide savings, consumers should carefully review coverage options rather than focusing solely on price.

Massachusetts-Specific Challenges

How Massachusetts Weather Affects Your Home Insurance Rates

According to the National Weather Service Boston Office, Massachusetts faces unique weather challenges that affect insurance claims. FEMA’s Massachusetts disaster statistics show that winter storms and nor’easters are among the most common causes of property damage in our state, making comprehensive coverage crucial.

Historic Homes and Infrastructure

The Massachusetts Historical Commission notes that our state has one of the highest concentrations of historic homes in America. The Massachusetts Building Codes require specific maintenance and safety standards for these properties, which can affect insurance coverage and costs.

Maximizing Your Bundle Savings

Smart Home Technology

The Massachusetts Office of Consumer Affairs and Business Regulation provides guidelines on home safety features that can qualify for insurance discounts. Smart home devices that meet these standards often qualify for additional savings.

Telematics Programs

The Massachusetts Consumer Insurance Guide explains how usage-based insurance programs work and what data they collect. These programs must comply with state privacy laws while offering potential savings for safe drivers.

Massachusetts Defensive Driving Courses

The Massachusetts Registry of Motor Vehicles maintains a list of approved defensive driving courses. Completing these courses can lead to insurance discounts and, according to RMV data, helps reduce accident rates among participants.

Additional Coverage Considerations

Accident Forgiveness

The Massachusetts Consumer Insurance Guide outlines how accident forgiveness programs work under state regulations. These programs must comply with specific state guidelines regarding eligibility and implementation.

Home Protection Programs

The Office of Public Safety and Inspections provides guidelines for home maintenance and safety. Following these guidelines can help prevent claims and qualify homeowners for additional discounts.

Tips for Maintaining Optimal Coverage

Regular Reviews

The Division of Insurance Consumer Service Unit recommends reviewing your insurance coverage annually. They provide a checklist of questions to ask during these reviews.

Documentation and Certification

Keep records of all safety certifications and improvements. The Massachusetts Department of Fire Services provides guidelines for home safety features that can qualify for insurance discounts.

Understanding Your Rights

The Massachusetts Consumer Bill of Rights for Insurance outlines your rights regarding policy changes, claims, and appeals. Familiarize yourself with these rights to ensure you’re getting fair treatment from your insurance provider.

Future-Proofing Your Bundle

Stay informed about insurance regulations and changes through the Massachusetts Division of Insurance Bulletin Board, which provides updates on insurance regulations and consumer protections.

Important Note: Coverage options, discounts, and programs vary by insurance provider. Actual savings depend on individual circumstances and chosen insurance provider. Consult with a licensed insurance professional to understand specific options available to you.

Additional Resources

Massachusetts Insurance Federation – Industry updates and consumer information
Massachusetts Consumer Affairs Insurance Resources – State consumer protection information
FEMA Flood Map Service Center – Flood risk assessment tools for Massachusetts properties
National Insurance Crime Bureau – Information on preventing insurance fraud

Conclusion

Bundling home and auto insurance in Massachusetts offers major savings, but only if you choose the right coverage for your needs

With unpredictable weather and unique property challenges, selecting the right insurer is just as important as getting a discount.

Your next move? Compare Massachusetts’ top bundle discounts using our free comparison tool below.

Ready to Save on Your Insurance?

At Vargas & Vargas Insurance, we specialize in helping Massachusetts homeowners find the best coverage at the lowest rates. Contact us today for a personalized quote

Remember to consult with licensed insurance professionals registered with the Massachusetts Division of Insurance for personalized advice tailored to your specific situation.

Understanding Massachusetts Home Insurance Companies options: A Simple Guide

Posted on January 19, 2025February 21, 2025 by cvargas

Did you know that protecting your home in Massachusetts is different from other states? Our unique weather and historic homes mean we need special insurance coverage. Let’s break down your choices in simple terms. Whether you live in a modern house in Worcester or a historic Victorian in Dorchester, understanding your options is super important.

THE BIG NATIONAL COMPANIES
MAPFRE Insurance leads the pack as our state’s largest home insurance provider. They’re like the local expert who knows all about New England homes. They’re especially good at handling those annoying ice dam problems that plague our roofs in winter.

State Farm comes in second place. Think of them as the tech-savvy option. Their mobile app makes everything easy, and you can save up to 25% when you bundle your home and car insurance together.

Liberty Mutual, born right here in Boston, offers great coverage options too. Their online tools are some of the best around, and they really know Massachusetts weather.

Progressive might be famous for their car insurance, but they’re also solid when it comes to home insurance. They make it super easy to get a quote online, and they offer nice discounts when you bundle with auto insurance.

OUR LOCAL HEROES
Vermont Mutual has been protecting New England homes for over 150 years! They work through local agents who really understand our area. Their deep knowledge of regional risks makes them particularly good at handling claims related to our tough New England weather.

Arbella Insurance shines when it comes to historic homes in Massachusetts. Their local agents really understand what it takes to protect older properties. Plus, they often offer great deals when you combine your car and home insurance.

Safety Insurance has been here for over 100 years! They know our building codes like the back of their hand, and they’re excellent with older homes.

Plymouth Rock offers something special too – they won’t raise your rates after your first accident. They’re also really good with coastal properties, which is super important if you live near the ocean.

MORE GREAT CHOICES
Hanover Insurance, based right here in Worcester, MA, brings over 160 years of experience to the table. They offer some really nice perks like identity theft protection and equipment breakdown coverage in their home policies.

Safeco Insurance, part of the Liberty Mutual family, offers some of the most flexible coverage options around. They’re great if you want to customize your policy, and their RightTrack program can help you save money.

Travelers Insurance stands out with their really strong coverage for high-value homes. They offer great options like extra coverage for green homes and identity theft protection.

Norfolk & Dedham Group, another local Massachusetts company, really gets our unique insurance needs. They’ve been protecting Massachusetts homes since 1825!

The Massachusetts Property Insurance Underwriting Association (MPIUA), better known as the FAIR Plan, is super important to know about. This is Massachusetts’s insurance safety net – they provide coverage when you can’t get it from regular insurance companies.

TAKE ACTION NOW
Don’t wait until there’s a problem to think about insurance. Our team at Vargas & Vargas Insurance understands Massachusetts homes inside and out. We’ve been helping homeowners like you find the right coverage for years.

Want to make sure your home is properly protected? Call us today at 617-298-0655. Our friendly experts will help you understand your options and find the best coverage for your specific situation. We’re here to work for you, not the insurance companies!

Cancel Your License Plates the Right Way (Avoid Fines & Insurance Issues!)

Posted on December 22, 2024February 6, 2025 by cvargas

Did you know failing to cancel your license plates properly could result in unexpected fines or even continued insurance charges, according to the Department of Motor Vehicles?

Are you selling your car, moving to a new state, or retiring a vehicle? If so, do you know the exact steps to avoid penalties?

This guide will walk you through exactly how to cancel your plates the right way, avoid costly mistakes, and protect yourself from future liability.

We’ll cover when and why you should cancel, step-by-step instructions, common pitfalls, and special situations—so you can navigate this process with confidence.

5 Situations When You MUST Cancel Your License Plates

Selling or Trading In Your Vehicle – The buyer may use your old plates, leaving you legally responsible.
Moving to Another State – Some states fine you for keeping old plates active.
Taking a Vehicle Off the Road – Avoid insurance confusion and potential fraud.
After a Total Loss Accident – Ensure your insurance company fully processes your claim.
Switching to Antique or Custom Plates – Prevent duplicate registrations and extra fees.

Step-by-Step: How to Cancel Your License Plates

The National Highway Traffic Safety Administration reports that plate cancellation procedures vary by state, but generally require:

Return your plates to the DMV. Bring them in person or mail them (check your state’s DMV website for mailing options)
Complete a plate cancellation form. Some states require this—get the right form online before heading to the DMV.
Provide proof of insurance cancellation. Your insurer may require documentation before canceling your policy.
Pay any outstanding fees. Ensure there are no unpaid tickets or fines tied to your plates.

Important Considerations
Insurance: Contact Vargas & Vargas Insurance before canceling plates. Canceling insurance before plates can result in registration suspension and fines.

Documentation: Keep copies of all cancellation paperwork. Take photos of plates and get receipts when surrendering them.

Timing: Coordinate plate cancellation with vehicle sale or registration in a new state to avoid gaps in coverage.

The 4 Biggest Mistakes People Make When Canceling Plates (Avoid These!)

🚫 Mistake 1: Throwing Away Plates Instead of Returning Them
👉 Solution: Always return plates to your insurance broker to avoid legal liability.
🚫 Mistake 2: Canceling Insurance Before Plates
👉 Solution: Canceling insurance first can lead to registration suspension and hefty fines. Always cancel plates before insurance.
🚫 Mistake 3: Forgetting to Notify the DMV of Address Changes
👉 Solution: If the DMV has an outdated address, you might miss important notices about fees or violations.
🚫 Mistake 4: Assuming the Dealership Handles Plate Cancellation
👉 Solution: Always confirm with your DMV! Some dealerships take care of it, but many don’t—leaving you responsible for fines.

Special Situations
Total Loss: After an accident, wait for insurance settlement before canceling plates.

Moving: Each state has different requirements. Research new state’s rules before canceling old plates.

Storage: If temporarily storing a vehicle, consider a storage insurance policy instead of canceling plates.

Electronic Tolls: Remove plate from any automatic toll payment systems.

Steps to Success

Contact your insurance agent
Gather required documents
Visit DMV or mail plates
Keep all receipts
Confirm cancellation status

Final Tips

Never give plates to a private buyer. Always return them to the DMV yourself. Consider getting a cancellation receipt notarized for extra protection.

Canceling your license plates the right way ensures you avoid unnecessary fees, legal trouble, and insurance complications.

Many people assume canceling plates is a simple process, only to find themselves hit with fines or unexpected insurance charges later.

Your next step? Before canceling, talk to your insurance provider to ensure you’re making the transition correctly.

At Vargas & Vargas Insurance, we specialize in helping clients navigate DMV and insurance processes smoothly. Call us at [phone number] for expert guidance.

Remember: Proper plate cancellation protects you from future liability and unnecessary expenses.

Are These Auto Insurance Myths True?

Posted on September 1, 2024August 26, 2024 by cvargas

When it comes to automobile insurance, there are plenty of myths that float around that can be misleading. From the color of your car affecting your rates to the belief that getting a ticket will always hike up your costs, let’s set the record straight on some common misconceptions.

Myth 1: Your credit does not impact your insurance rate

Contrary to what some might believe, your credit history can indeed impact your car insurance rates. Insurers often use a credit-based insurance score to get a sense of how you manage your finances, which can indicate your likelihood of filing a claim. Generally, higher credit scores correlate with lower car insurance rates because those with better credit tend to have fewer accidents.

Myth 2: Your insurance will cover damage from trees, weather, vandalism, and theft

Basic auto insurance policies usually don’t cover damages to your vehicle from falling trees, weather conditions, fires, vandalism, or theft. To protect yourself from these types of costs, you would need to purchase a comprehensive policy.

Myth 3: Getting a ticket will automatically increase your insurance costs

Getting a speeding ticket doesn’t necessarily mean your insurance rates will go up, particularly if you have an otherwise clean driving record. In many states, you can take safe driving courses that might help improve your record and lower your rates.

Myth 4: You don’t need more car insurance than what is required by law

While it’s true that most states require a minimum level of auto insurance, this basic coverage often isn’t enough to fully protect you in the event of an accident. Experts typically recommend getting a policy with at least $100,000 of bodily injury protection per person to ensure you’re not left paying hefty out-of-pocket costs.

Myth 5: Personal insurance covers business use of your vehicle

If you use your car for business purposes, don’t assume your personal auto insurance will cover you—because in most cases, it won’t. It’s crucial to check with your insurer and potentially purchase business vehicle insurance if needed.

Myth 6: The color of your car affects your insurance costs

Many people think that flashy car colors, like red, might increase insurance costs. However, the color of your car does not affect your insurance rates. Insurers look at factors such as make, model, price, age of your car, and your driving record, but not the color.

Myth 7: More expensive cars always cost more to insure

While it might seem logical that more expensive cars would be costlier to insure, this isn’t always the case. Insurance companies often focus more on how much it costs to repair a car rather than its purchase price. Surprisingly, some mid-priced cars can be more expensive to insure due to higher repair costs.

Myth 8: Car insurance prices increase as you get older

Actually, older drivers can often benefit from lower insurance rates. Many insurance companies offer discounts to mature drivers, especially those over 55 who take accident prevention courses. Also, retirees who drive less frequently might qualify for additional discounts.

Myth 9: If another person crashes your car, their insurance will cover the damages

Generally, your auto insurance is the one that covers damages to your car, no matter who is driving. Make sure to understand your specific state laws and insurance policy details because these can vary.

Myth 10: Soldiers pay more for car insurance than civilians

If you’re in the military, you’re actually eligible for discounts on car insurance. By providing proper documentation, you can ensure you’re not paying more than necessary. Many insurers also offer discounts for veterans and military family members.

Understanding the facts about your auto insurance can save you money and prevent stress. If you have any questions or need further clarification, the team at Vargas & Vargas Insurance is always ready and willing to help. You can reach us at 617-298-0655. We’re here to ensure you have the right coverage for your needs and to help debunk any other myths you might encounter!

Help! My Insurance Was Canceled!

Posted on August 26, 2024August 30, 2024 by cvargas

(Click here to what the video)

Having insurance is like having a safety net; it gives you peace of mind, knowing you’re protected during unexpected events. But did you know your insurance company can cancel your policy for certain reasons? It’s crucial to know these reasons to make sure your coverage stays intact when you need it most. Let’s dive into the main reasons your insurance policy might be canceled and what steps you can take to prevent this from happening.

Non-Payment of Premiums

One of the most common reasons for an insurance policy being canceled is not paying the premiums on time. Insurance companies need these payments to provide coverage. If you miss payments, your coverage could be stopped.

To avoid this, always pay your premiums on time. Setting up automatic payments can be a big help. Also, talk to your insurance broker about payment plans and grace periods if you’re having trouble.

Material Misrepresentation

When you apply for insurance, giving accurate and honest information is very important. If you provide false information—like not telling the truth about your driving record or the condition of your home—your policy could be canceled.

Always be truthful on your insurance applications. If you realize you’ve made a mistake, contact your insurance company right away to fix it.

High-Risk Activities

If you start doing something risky that your insurance company doesn’t know about, like using your personal car to drive for a rideshare company, they might cancel your policy.

Before you start any new activities, talk to your insurance broker to make sure your current policy covers them. This helps avoid any surprises about coverage.

Fraudulent Claims

Making a fraudulent insurance claim is illegal and a serious offense. This includes exaggerating a claim, staging accidents, or lying during a claim. Insurance companies are very good at finding fraud, and doing this can get your policy canceled.

When making a claim, always be honest about what happened. It’s the best way to make sure your claim is processed smoothly and keeps your policy in good standing. For more information on the impact of fraudulent claims, visit: www.fbi.gov/stats-services/publications/insurance-fraud.

Significant Changes in Risk

Insurance companies set your policy based on the risk you pose. If something big changes—like you renovate your home or modify your car without telling your insurer—they might cancel your policy because the risk has changed.

Always let your insurance company know about big changes that might affect your risk. Your broker can help you figure out if you need a different policy or additional coverage.

Failure to Maintain Eligibility Criteria

Some insurance policies have specific criteria you need to meet. For example, if you get a special rate because you’re in great health but then your health changes significantly, your insurance company might reassess your situation.

Try to maintain the criteria needed for your policy. If that becomes difficult, talk to your broker about what options you have, like changing your coverage.

Frequent Claims or High-Risk Behavior

Filing many claims or constantly engaging in risky behavior can lead your insurance company to cancel your policy. They see this as a sign that you might keep causing more losses, which costs them money.

Try to only use insurance for big, unexpected problems. For small issues, it might be better to handle them without making a claim. Also, try to avoid risky behaviors that could lead to more accidents or claims.

Your Credit Score and Insurance Rates

Your credit score can significantly affect your insurance premiums. Insurers use credit information to predict the risk of insuring someone. A higher credit score can lead to lower premiums, while a lower score might increase your rates. For a detailed explanation of how your credit score affects your insurance, check out www.forbes.com/advisor/car-insurance/rate-increase-poor-credit/

Conclusion

Knowing why an insurance company might cancel your policy helps you take steps to keep your coverage active. Pay your premiums on time, be honest on your applications, tell your insurer about any big changes, and avoid making unnecessary claims.

If you ever have questions about your insurance policy or need advice, remember that your insurance broker is there to help you navigate these issues. For personalized service and expert advice, reach out to Vargas & Vargas Insurance, your trusted local independent insurance broker, at 617-298-0655. We’ve been helping people like you for over 40 years, ensuring you have the peace of mind you deserve.

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