In this issue:
» Getting The Most From Your Auto Insurance
» The Freedom Plan - Auto Insurance Designed For Today's Market
» You Can Save Money On Your Auto Insurance
» Keeping Costs Down For Insuring Young Drivers
» It Pays To Drive Safely. Getting the Most From the Massachusetts Safe Driver Program.
» The Companies We Keep: Travelers
» Insurance Defined: Life Insurance

Getting the Most From Your Auto Insurance
Thanks to the introduction of a competitive market for auto insurance, Massachusetts consumers now have the freedom to choose the auto insurance that best suits their needs.
Until recently, Massachusetts was the only state in the country where the insurance commissioner set rates. As a result, it hardly mattered where you bought your auto insurance.
Now insurance companies can compete for your business by offering a variety of auto insurance policies at competitive prices. You can benefit from:

• Discounts for placing all of your insurance with one carrier
• Loyalty discounts
• Full replacement coverage for new cars that are stolen or totaled

Know What You're Buying
Competition should mean lower rates for most drivers, but it's also important to know what you're buying.

Not all insurance is the same. To keep prices low, some carriers will provide bare-bones coverage that does not meet your needs. Cheap insurance is only cheap until you file a claim - and find that you don't have adequate coverage.

So what can you do to get the best protection at the best price?

• Contact McGrath Insurance. As an independent agency, we work with many insurance carriers. They can identify carriers that best meet your needs and obtain competitive price quotes based on those needs.
• Take your time. Don't think you can get the coverage you need by spending 15 minutes comparing prices. Know what's covered - and what should be covered - to provide you with the protection you need. Your McGrath account representative can help.
• Improve your rating. Many factors affect your insurance premiums, including your driving record, where you live, the type of car you drive and more. Your McGrath account representative can recommend changes that will help you control your premiums long-term.

Auto insurance reform will create a competitive market in Massachusetts, which means insurance carriers will be competing for your business for the first time in more than 30 years. To win your business, they will be offering new benefits, lower rates and better service.

The "Freedom Plan" - Auto Insurance For Today's Market

The Freedom Plan was created to help our customers take best advantage of auto insurance reform by combining the best coverage for the best price, based on your individual needs.

You can shop for the best insurance to suit your needs at the most reasonable price - or you can let us do the shopping for you.

A majority of agencies in Massachusetts work with just one carrier. Even independent agencies that work with more than one carrier typically work with no more than three carriers. McGrath Insurance Group offers auto insurance from six carriers.

The carriers we work with, based on our experience, offer the best coverage, the best service and the best prices. They pay claims in a timely manner and care about their customers - just like we do at McGrath Insurance Group.

To find out more about The Freedom Plan, and any special benefits you may qualify for, contact McGrath Insurance Group today.

It Pays To Drive Safely. Getting the Most From the Massachusetts Safe Driver Program.

The fine for your latest traffic ticket is just part of the cost. A traffic violation can result in higher insurance premiums for the next six years.

Many people know that their insurance will cost less if they drive safely, but few people understand how the Massachusetts surcharge program works. There are really two programs at work - one that rewards safe driving and one that penalizes unsafe driving.The Safe Driver Insurance Plan. To be eligible, a driver must meet the criteria below:

• Excellent Driver Discount Plus. Lowers your premiums by 17% on three of the four compulsory coverage areas, plus collision (bodily injury to others, personal injury protection, damage to someone else's property). To be eligible, you can have no violations in the past six years that would result in a surcharge (see chart).

• Excellent Driver Discount. Lowers your premiums by 7% in the same areas as the Plus discount. To be eligible, you must have at least five years of driving experience and no more than one minor traffic violation during the past five years; the violation must be at least three years older than the date the policy begins.

Surcharges. Conversely, unsafe driving is penalized based on a surcharge plan. Points are added based on accidents and traffic violations as outlined below:

• Major traffic violation (i.e., driving under the influence) 5 points
• Major at-fault accident (claim over $2,000) 4 points
• Minor at-fault accident (claim of $500 to $2,000) 3 points
• Minor traffic violation (i.e., speeding) 2 points

Points increase premiums in the same areas that are discounted for safe drivers (bodily injury to others, personal injury protection, damage to someone else's property, collision) as follows:

• For drivers with less than six years of experience, 7.5% per point
• For drivers with six years of experience or more, 15% per point

It pays to have a safe driving record for at least five years. If you've driven safely for five years and have an incident in the sixth year that would normally result in points, no points will be charged. Likewise, no points are charged for the first non-criminal minor traffic violation in the five years preceding the effective date of your policy.

Three years of safe driving can also help. If you have no more than three incidents resulting in surcharges over the past five years, the point value of each will drop by one when you have three years of incident-free driving.

Keeping Costs Down For Insuring Young Drivers

When it comes to auto insurance, age has its advantages. It costs much more to insure new drivers than it does to insure experienced adults.

What can you do to help keep premiums in line for your children?

• Buy safe cars. What your children drive will affect the premiums they pay.

• Buy cars with little value. It will cost less to repair the car, so premiums will be lower. Depending on the value of the car, your children may even decide to go without collision coverage.

• Choose high deductibles. If your children have collision with a high deductible, their insurance will cost less. However, they will pay more if they have an accident.

• Take advantage of discounts. Young operators can lower premiums if they have an anti-theft device installed, regularly use public transportation, or have air bags or automatic seat belts. Your family can also reduce premiums by having two or more vehicles insured by the same company.

• Teach them to drive safely. The most important way to control premiums is to teach your children the importance of driving safely. A single accident or traffic violation adds points to their policy that can quickly increase the cost of their insurance.

For example, if your child becomes intoxicated and drives through a stop sign and hits another vehicle, 10 points would be added to his or her insurance. Each point adds 7.5% to the cost of premiums in four major areas, so overall insurance costs could possibly increase by nearly 75%. The points would begin to be taken off after three years of safe driving, but would continue to affect premiums for six years.

You Can Save Money On Your Auto Insurance

What can you do to save money on your auto insurance? Plenty.

Many factors are included in calculating your premiums. Changing any one of them can mean the difference of hundreds of dollars on the cost of your auto insurance. Factors that affect the price you pay include:Your driving record. Major accidents where you're at fault and traffic violations can increase your premiums for six years.What you drive. It costs more to insure cars that are expensive to repair or that are more likely to be in accidents. If you drive a luxury car or a sports car, you will pay more than if you drive a family car.Where you keep your car. If your car is kept in a city or other location with a high incidence of accidents, your premiums will be higher.Discounts. You can reduce your premiums if you have an anti-theft device installed, regularly use public transportation, have air bags or automatic seat belts, are 65 or older, or have two or more vehicles insured by the same company.Deductibles. A high deductible can reduce your collision coverage costs.Analyze Your Needs

The first and most important step toward saving money is to have McGrath Insurance thoroughly analyze your insurance needs. We will design the best quality coverage at the best price to fit those needs. A thorough analysis will ensure that you have the coverage you need - and that you're not paying for coverage you don't need.

The Companies We Keep: Travelers

As an independent agency, McGrath Insurance Group has established relationships with many of the largest and most successful insurance carriers in the country.

Travelers, which issued the first auto policy in 1897, is among the most popular carriers that McGrath Insurance Group works with.

The country's second-largest writer of commercial U.S. property casualty insurance, Travelers ranks 93rd on the list of Fortune 500 companies and has total assets of about $115 billion.

Because of its considerable financial strength, Travelers consistently receives the highest ratings available from insurance rating firms. It offers a broad range of products, rapid claims handling and innovative risk controls, making Travelers an ideal match for many of our clients' needs.

For more information, go to http://www.travelers.com/.

Insurance Defined: Life Insurance
Most people know that life insurance can protect their family in case of an untimely death. But life insurance serves many other purposes as well.
When a policy holder dies, the beneficiary will receive the proceeds from the policy, which can replace the deceased's income.
Some life insurance policies provide "cash value," which can be used as a systematic way to save money, to lower premiums, to supplement retirement income or for short-term borrowing. Other uses for life insurance may include:

• Estate planning. Life insurance is often used to transfer wealth from one generation to another, sheltering your estate from taxes. The "death benefit" from life insurance is exempt from federal income taxes. Estate taxes can also be avoided if the policy is owned by a trust. The trust can provide ongoing income to heirs.
• Succession planning. Life insurance can be used to convert business assets to income after the death or retirement of an owner. When a business has multiple owners, a buy-sell agreement is often used to provide funds so that when an owner dies, the surviving owners can buy out the ownership interest of the deceased owner. The agreement is frequently funded with life insurance.
• Retirement planning. Cash-value life insurance can provide a source of financing or retirement income. Executives often receive split-dollar plans, which use life insurance to generate income during retirement.

These articles were written for informational purposes only and should not be construed as providing legal advice.

McGrath Insurance Group at 508-347-6850 or
sfoucher@mcgrathinsurance.com.

258 Main St., PO Box 1220 | Sturbridge, MA 01566 | Tel: 508.347.6850 Fax: 508.347.6858 | sfoucher@mcgrathinsurance.com