Closing the Gap – Gap Insurance in Seattle, WA

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Congratulations, you just bought a new (or new to you) car! You were able to afford a down payment and now you are the proud owner of a new car and a monthly car payment. But, what happens if your car becomes involved in an accident and you owe more than your car is worth?

Imagine this scenario: While out enjoying your new car, you hydroplane and hit a guardrail damaging your new vehicle beyond repair. The insurance company is telling you that your new car is a total loss. While you may not be able to drive the vehicle, you are still responsible for the loan associated with vehicle. If you have gap insurance in Seattle, WA, you may be only responsible for your deductible.

How gap insurance in Washington works:

What is depreciation:  Vehicles, especially new vehicles, begin to depreciate as soon as you drive them off the dealer lot. Depreciation can be quite surprising and is not necessarily tied to the base cost of the vehicle. Due to wear-and-tear, fluctuating market conditions and a number of other factors, depreciation in the first year is the steepest. Even with proper care and maintenance and no accidents, a vehicle will continue to depreciate. Even though the value of the vehicle will go down each year, the amount you owe on the vehicle will not. Depreciation will vary between make and model but here is a baseline comparison:

Year Vehicle Style Base price Depreciation year one
2013 Subaru Legacy 2.5i sedan $21,295 $3,069
2013 Honda Civic Base sedan $22,715 $4,406
2013 BMW 328i sedan $34,900 $5,198
2013 Ford F-150 $28,595 $5,915
2013 Toyota 4Runner $37,155 $6,380

 *Figures courtesy of automobilemag.com

Why gap insurance: In the unfortunate event that your vehicle is totaled, and it is an event covered under your current auto insurance policy, your insurer may pay the actual cash value of the vehicle, which may be significantly less than the outstanding vehicle loan. In that case, you would still be responsible for the remaining balance between the loan and the insurance payout, which could be thousands of dollars. If you choose to purchase gap insurance in Seattle, Washington, your insurance company would cover the remaining balance between the actual cash value of the vehicle and the remaining loan balance, typically up to 25 percent, potentially saving you thousands of dollars.

Options for gap insurance: There are two options for purchasing gap insurance in Seattle, WA. It can be purchased from the dealership or through an insurance agent. If you choose to purchase gap insurance through the dealership you purchase your vehicle from, the gap insurance will be built into your loan. The average price for gap insurance from a dealership is around $1,000, but add interest and taxes and it can add up to much more. If you choose to purchase gap insurance from an insurance agent, on average it would add less than $10 per month to a policy! There may be certain stipulations associated with a gap insurance policy:

  • The loan may need to be through a financial institution rather than an individual
  • Your current auto insurance policy may need to include Collision and Comprehensive coverage
  • Your claim may need to be a covered Collision and Comprehensive coverage event
  • Your vehicle may need to be determined as a total loss

Before you purchase a new vehicle, make sure to check with your licensed insurance agent in Seattle, Washington to see how you can add gap insurance to your new vehicle policy. The local, independent agents at Secord Insurance Agency can assist you with adding or amending an existing policy or setting you up with a new policy. Their years of insurance experience can save you a bundle. You can also visit their insurance website 24/7 to learn more about auto insurance or the other insurance products they offer like classic car or home insurance.

Winterize your Seattle Home now to Avoid Insurance Claims

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The weather is starting to change and we are entering those warm days of fall where the mornings are brisk and the afternoons are warm. The leaves are starting to turn orange and yellow here in Seattle, Washington, the kids are back in school and it will soon be time to start making plans for the holidays as winter is on its way. Before winter arrives, there is plenty of time to prep your home, both inside and out, for the coming cold months. Some simple winterization prep can save you from a costly homeowner’s insurance claim from frozen pipes or huge heating bills from drafty spots in your home.

Four areas to focus your winterization in Washington:

  • Water, water everywhere: Gutters can get jammed up with leaves, branches and other debris. Once the leaves have fallen from the trees, grab a ladder and gently remove the debris from the gutters. Then, rinse the bottoms of the gutter to ensure good flow of water for those winter showers. If your gutters become clogged, rainwater can accumulate around the foundation of your home and possibly seep into the foundation or basement, in which case, you should check for cracks in your foundation and fill them, pronto. A flooded basement can result in a costly homeowner’s insurance claim. Also, anytime you are using a ladder or plan to be on your roof, please let someone know or have someone working with you. An extra pair of hands and eyes can help prevent painful accidents.
  • Where is that draft coming from: The cold winter draft that is leaking in around your doors, windows and from your attic. Take a candle or piece of incense around your home on a windy day and go near doors, windows and attic to look for wind making its way into your home. If your attic has less than 12” of insulation, regardless of where in the country, you should consider adding more. It is an easy do-it-yourself project; any home improvement store should have the tools to help you complete that. It you have single-pane windows you can purchase an inexpensive window insulation kit to add another “pane” to the glass. This keeps the cold air trapped between another layer instead of entering your home. Other areas drafts can creep in are: recessed lighting, door frames and electrical outlets. A variety of caulks, gaskets and weather-stripping is available at any local hardware store.
  • Keep warm:  Do your heating bills spike up during the winter? Aside from performing the aforementioned “draft tests” checking that heating equipment is in good repair may help keep that heating bill down. The furnace can run much more efficiently if it has a clean filter in it. Consider changing your filter once a month. They are inexpensive and pay for themselves in efficiency gains. Also think about checking out your duct insulation. Ducting in homes can become exposed from being bumped in the attic or crawlspace over time and there are huge efficiency losses from this. Ensure your ducts are covered with insulation and not exposed. Also, check for any leaks in connections while the system is running. Speaking of exposure, pipes that are exposed during the cold winter may freeze and explode if not properly insulated. Protect any exposed water pipes with insulation, if a pipe bursts in winter it can cause thousands of dollars in damages. It takes just a few minute to insulate your pipes, a step that can save a headache down the road.
  • Do you smell smoke: Turning on the fireplace is a winter tradition, whether it is a gas or natural wood fireplace. It can also be a hazard if your chimney is dirty. A cleaned chimney will remove creosote, a flammable byproduct of burning wood. Keep your home safe from chimney fires by hiring a professional chimney sweep to remove any build-up. Make sure you are prepared if a fire does break out with a fire extinguisher (it may qualify you for a discount on your homeowner’s insurance in Seattle, WA) and make sure you have fresh batteries in your smoke detectors. It is always a good idea to check your batteries in the smoke detectors a couple times per year. Count this as one.

While you are taking the time to prep your home for the upcoming winter, talk to your licensed insurance agent to ensure the homeowner’s insurance covers events like floods or fires that may occur during the winter months. Secord Insurance Agency in Seattle, Washington can guide you through your homeowner’s insurance policy and add additional coverages like flood insurance and earthquake insurance. Their years of insurance experience can save you a bundle, and they live right in your area, so know first-hand what your insurance needs might be.  You can also visit their insurance website 24/7 to learn more about the other insurance products they offer.

Seattle Auto Insurance Myths | Secord Insurance Agency in Seattle, Washington

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Let’s face it; auto insurance can be confusing, especially when it comes to insuring new vehicles. When trying to look up information surrounding auto insurance in Seattle, WA, the internet can be full of myths and misinformation. If you are trying to disseminate fact from fiction the experts at Secord Insurance Agency can help. We have compiled some common insurance myths and facts; we like to think of it as our own insurance version of Mythbusters.

Five auto insurance myths:

    • Color:
      Have you always wanted a red car, but never did because you thought it might drive up your auto insurance premium in Seattle, WA? Not true. Insurance premiums factor in the make/model, age and power of the vehicle. Premiums are also based on the person being insured.The cost of the vehicle can also influence the
      price of the premium, as more expensive the car usually the more expensive it is to repair if it is damaged in an accident.
    • Mature Drivers:
      Heard that once you enter your ‘golden years’ your auto insurance premiums will increase? Not necessarily. Your local, independent insurance agent can
      assist you with senior discounts or get you resources for defensive driving courses which can also lead to a discount.
    • Optional Coverages:
      Basic auto insurance will cover theft or weather-related damage. Claims such as these are only covered under comprehensive coverage. Most car loans
      require that you carry both comprehensive and collision as these protect the vehicle fully. If your car is getting older and worth less than $1000, you
      may want to opt-out of these coverages, but you will want to talk this over with your agent before dropping these coverages completely.
    • Loaning your vehicle:
      Does your best friend need to borrow your car for the day or leaving your mom the car to pick up the kids from school? If they get in an accident,
      their insurance will cover it, right? Wrong. Typically insurance follows the vehicle, not the driver. However, that is not always the case. Rules and
      regulations for this specific instance vary by state, so you will need to clarify with your insurance agent before you loan out your vehicle.
      Additionally someone who has regular access to your vehicle, like a roommate or spouse, should be added to your auto insurance policy to prevent a
      messy claims process should they be involved in an accident while driving your vehicle.
    • Personal v. Business: 
      Your vehicle is covered under your personal auto insurance policy in Seattle, WA whether you are using it for pleasure or business. Not entirely
      accurate. If you are using your vehicle often for business, purposes, a business auto policy may help protect your vehicle more thoroughly. If you are
      not self-employed but use your personal vehicle for work, make sure you covered by your employer’s commercial auto policy.

While these are the most common myths associated with auto insurance, others are out there. Your licensed insurance agent in Seattle, Washington can assist
you with any questions or concerns you may have about your auto insurance policy. The local, independent agents at Secord Insurance Agency can assist you
with adding or amending an existing policy or setting you up with a new policy. Their years of insurance experience can save you a bundle. You can also
visit their insurance website 24/7 to learn more about auto insurance or the other insurance products they offer like classic car or home insurance.