Category: Auto Insurance

Should I cancel my auto insurance if I no longer have a vehicle?

Posted on by admin

Various circumstances could leave you without a vehicle.  Your car may have been totaled, and you don’t have the funds to purchase another immediately.  Maybe your vehicle has broken down or been repossessed, or you sold it.  No matter the circumstances behind your not having a car, you don’t have to cancel your auto insurance altogether.

When we think of an auto policy, we think of a car that we want to cover and protect.  However, in Kansas, you can purchase a non-owner insurance policy to protect you financially if you’re involved in an auto accident. 

How a non-owner policy works

A non-owner policy covers you when driving a borrowed or rented vehicle.  Suppose you are liable for causing an accident.  In that case, a non-owner policy covers your legal liability for auto accident-related property damage and injuries to the other parties involved.  A non-owner insurance policy is typically cheaper than most regular auto insurance policies.  If you don’t own a vehicle but want to protect yourself financially, you can work closely with our agents at AHI Group in Olathe, KS to discuss the appropriate non-owner insurance coverage that meets your needs. 

Coverages for non-owner insurance policies

Non-owner insurance policies in Kansas must cover the state’s minimum coverage that applies to a traditional car insurance policy.  Those coverages include up to $25,000 for bodily injury per person and $50,000 per accident.  They also cover up to $25,000 per accident for property damage. 

How to get a non-owner auto insurance policy

If you have found yourself without a vehicle and have to borrow a friend’s car, drive a rental, or operate a vehicle as part of a ride-sharing program, contact our agents at AHI Group in Olathe, KS to discuss a non-owner policy.  We can get you covered and protected financially with a personalized insurance policy. 

Do EVs Cost More to Insure Than Regular Cars?

Posted on by AHI Group

A shock in high fuel costs seems to have caused the surge in electric vehicle purchases, with roughly 77% of respondents in a survey by AAA stating an EV would be their next car purchase due to a desire to save on fuel costs. However, gas prices are only a small fraction of the picture. Insurance, maintenance, upfront price, and electricity costs should all be considered when considering purchasing an EV – especially if you’re on a tight budget.

In this blog post, we talk electric car insurance prices. For the most part, electric car insurance tends to run more expensive than insurance for gas-powered vehicles. Here’s why.

Insurance Companies and Electric Cars

Some drivers are still hesitant to flip to electric cars due to concerns over the upfront cost and insurance costs. Yes, electric cars can be more expensive to insure than gas-powered vehicles of similar values. This is due to a combination of factors.

Here are some of the factors why insurers charge more for electric car insurance than regular car insurance:

Rising Cost of Parts

Primarily, electric car insurance is higher than regular car insurance due to the expensive cost to repair or replace damaged parts. Of all the parts that an electric vehicle is made up of, the costliest of all is the battery the vehicle runs off. Batteries for electric vehicles can run anywhere between $5,000 to as high as $50,000, in some cases.

Need for Skilled Repairmen

Electric cars require a skilled workforce to carry out the repairs they need when damaged. As there are fewer electric cars on the roads, there are consequently fewer mechanics trained in repairing electric vehicles. This added “skill” also means that mechanics trained in repairing electric vehicles can charge more for their services, adding to the overall costs.

Availability of Parts

Another factor (which technically ties into the rising cost of parts) is the availability of EV car parts. During the pandemic, drivers, mechanics, and insurers alike faced the issue of a lack of access to new and used cars, meaning there were also fewer car parts around for repairs. This, in turn, can hike the cost of insurance for electric vehicles as the demand for parts is high.

How Much Does Electric Car Insurance Cost?

Electric car insurance, just like regular car insurance, is based on factors such as the driver’s age, experience, and driving history, gender, postal code (or state), the claims history of the driver, the level of coverage they purchase, their deductible, and so on. Not much difference there. Electric car insurance is typically more expensive, as we’ve mentioned, due to the high cost of repair and replacement, but just how much more expensive?

In some instances, there’s very little difference. Forbes Advisor estimated the national average premium for electric vehicles was around $2,280/year based on the 41 top-selling electric car models. In the same analysis, the least expensive EV to insure was the Toyota RAV4 hybrid (averaging out to around $1,776$) and the most expensive EV to insure was the Porsche Taycan ($4,683).

According to the Forbes Advisor analysis of car insurance rates for top-selling vehicles, it was estimated that car insurance for EVs costs $100 more per year when compared to similar-value gas-powered models. Again, rates vary a lot depending on the individual car and driver. It’s also important to note that some insurers offer alternative fuel discounts (discounts for driving EVs) which, depending on the company, can range anywhere from 5% to as much as 15%.

Saving on Electric Car Insurance with AHI Group

As we’ve learned, electric car insurance does tend to cost more than insurance for regular, gas-powered vehicles. There are several practices that you, as an EV owner, can take to reduce your premiums. AHI Group is happy to go over any of these tips or discuss with you one-on-one to find strategies more befitting of your individual needs!

Here are some quick tips:

  • Keep a clean driving record. We can’t stress this enough, whether you’re an EV driver or the driver of a gas-powered vehicle. Avoid risky driving behaviours, avoid distractions, and follow the rules of the road.
  • Maintain a good credit score. Not all states allow credit scores to influence insurance ratings, but some will offer an opt-in model. If your score is good, opt in for better savings!
  • Work with an agency to compare rates. No driver’s circumstances or profile is the same, so working with an agency like AHI Group can help you shop between multiple insurers to find the best choice for your needs.
  • Opt for an annual payment. If finances allow, paying for your electric vehicle insurance all as one lump sum can result in a savings discount plus you avoid being charged interest/finance arrangement fees in the meantime.

As always, feel free to give us a call if you have any questions!

What is a Continuous Insurance Discount?

Posted on by AHI Group

Nowadays, it seems like everything’s costing us more. Gas, rent, electricity, groceries – and auto insurance. To combat the rise in insurance rates, a lot of drivers are looking for alternative ways to save. Discounts are the easiest and most reliable means of saving on auto insurance, and virtually all drivers qualify for at least one.

Let’s look at one of the more common auto insurance discounts: a continuous insurance discount. This auto insurance discount rewards drivers for maintaining their insurance over a certain period of time. Most insurers offer this discount, although how much of a discount they offer and for what period of time the driver qualifies for the discount will vary.

What Does “Continuous Insurance” Mean?

Continuous insurance is as the name implies: time spent being continuously insured. Some insurers offer this discount on a graded scale, so drivers who have had 5 years of continuous insurance may be discounted 5%, where drivers with 10+ years of continuous insurance history might have a discount of 10%+ or more. This includes time spent with your current insurer, and oftentimes the time you spent with your previous insurer as well – assuming there’s no lapse in coverage between policies.

Why Do Insurers Reward Continuous Insurance?

Experience is key. The more experienced you are, the likelier you are to practice good driving behaviours and possibly even handle small damages yourself without filing a claim. If you’re newly insured, there’s a higher chance you’re a younger, less experienced driver who is likelier to file a claim versus dealing with the damages yourself. Having a strong, uninterrupted insurance history usually serves as a signal to potential insurance providers that you are a responsible driver who is low-risk and understands how important it is to have insurance.

Having a continuous insurance history goes beyond qualifying you for a discount. A good insurance history can mean more options for coverage from a broader range of insurers. It can also mean better rates, since a cancellation or even a lapse in coverage can hike your rates.

If you need to change insurers at any point in your policy period, whether because that insurer stops serving your area, because you’ve become uninsurable, etc., we advise finding a new policy ASAP to avoid a lapse in coverage. Contact an AHI agent to help you. The last thing you’ll need is to find yourself in a situation where you’re without insurance. Not only is it illegal to drive without auto insurance in many states, but it’s just not a good idea for your wallet or for your peace of mind.

Other Loyalty-Based Auto Insurance Discounts

A continuous insurance auto discount is just one of many auto discounts that exist – and just one of the several loyalty-based discounts that are out there. Here are several other types of loyalty-based discounts for auto insurance that you could be eligible for:

Multi-Policy

Also known as a bundle discount, a multi-policy discount is an opportunity to save when you have two or more policies through the same insurer. For example, if you have a home policy through one insurer, you might consider buying your auto insurance through the same insurer to enjoy a discount. Discounts can be anywhere from 5%-10%. Some insurers also offer discount opportunities for other insurance products, like RV insurance, motorcycle insurance, etc.

Multi-Car

Similar to above, you can save when you have more than one automobile on your policy. You don’t necessarily need to be the registered owner of both vehicles, either. You can add any vehicle to your policy that belongs to someone living with you, usually a spouse, roommate, or family member. The second vehicle must be kept primarily at the same address as the first vehicle.

Why Shouldn’t I Cancel My Auto Insurance?

Cancelling your auto insurance and having a lapse in your auto insurance history will void your continuous insurance discount. Most insurers recommend against cancelling your auto insurance, but in some glaringly obvious cases there isn’t much other choice.

There are many reasons why someone would cancel their auto insurance. Here are some of the most common:

  • Dissatisfaction with price: You may choose to cancel your auto insurance due to dissatisfaction with your price and the urge to shop elsewhere for a more cost-effective option.
  • Sold your vehicle: If you’ve sold your car, you’ll no longer need insurance.
  • Bundling policies: You may have discovered a bundle policy opportunity with another provider that will end up saving you more money. Ask an AHI agent about bundle discounts.

However, if you’re entering into a temporary situation where you may not have access to your car, whether due to an extended trip, a work-from-home arrangement, or because you’re putting away your car over the winter, hold off on cancelling. We advise you keep your insurance going to avoid any cancellation penalties, avoid a lapse in coverage on your record, and to maintain your continuous insurance history discount. You can reduce coverage temporarily, which will cost you less than if you maintained your full policy.

If you’re entering a period where you won’t have access to your vehicle or won’t be driving, ask an agent for their advice on your next steps. Everyone’s situation is different.

Which States Use ZIP Codes as an Insurance Rating Factor?

Posted on by AHI Group

A ZIP Code is essentially a system of “zone” codes, traditionally used by the USPS (or United States Postal Service). The system was used to designate delivery points in the U.S. but has also been used in the insurance industry to help in pricing auto insurance premiums.

However, there is much debate over whether using ZIP codes is fair to drivers, especially those with otherwise clean driving records, and few to no claims, but who live in areas where their ZIP code has been associated with a higher risk of claims. Those drivers, who may never have been in an accident, could face higher rates simply due to where they live. In this blog post, we’ll examine how ZIP code influence car insurance rates and which states use ZIP codes to price auto insurance policies.

Why Do Insurers Use ZIP Codes as a Rating Factor?

When determining rates for drivers, car insurance underwriters will evaluate many factors. In most states, one of those factors—and perhaps one of the most influential ones—is ZIP code. ZIP codes have been implemented in the U.S. ever since their launching in 1963, and insurers have used these codes to gauge risks related to proximity, including population density, crime rates, and accident likelihood.

If you live in an area with a designated postal code that is associated with a high accident rate, you could end up facing higher rates because of the statistical probability of loss, even if you’re a great driver. Not every state uses ZIP codes as an insurance rating factor, however.

How ZIP Codes Affect Car Insurance Rates

ZIP codes can shed light on specific high-risk factors, which include:

  • Vandalism
  • Crime rates
  • Population density
  • Natural weather events
  • Accident rates
  • Auto theft
  • Road conditions

As these factors can vary from ZIP code to ZIP code, it makes sense why auto insurers would look at ZIP code to assess risk level in a certain area. ZIP codes are only one factor for how insurance rates are determined; they’re included amongst a much larger list, like driver age, driving record, number of miles driven, credit score (not all states), and so on.

Which States Don’t Use ZIP Code?

Currently, the only two states that have banned the usage of ZIP codes for auto insurance ratings are California and Michigan. In all other states, it’s legal for insurers to use ZIP codes as a rating factor for auto insurance to assess risk.

In states where it is legal to use ZIP code, some policyholders may be tempted to lie about their location to receive lower insurance rates. Doing so will constitute as an act of insurance fraud, which is illegal and can result in severe penalties, including but not limited to the cancellation of your policy. The bottom line? It’s better to be upfront and honest with your insurer.

Which ZIP Codes Have the Cheapest Auto Insurance Rates?

Currently (as of data from 2023) the ZIP code which has the cheapest car insurance rates is located in Charlotte, North Carolina, featuring an average quote (for liability only) of less than $50/month. Other states with affordable ZIP codes include Vermont, Arizona, Ohio, and North Carolina. The postal codes in these states are located in regions with lower population density, and therefore the drivers living in those areas are less likely to be involved in collisions.

Why Isn’t Using ZIP Codes as an Auto Insurance Rating Factor a Good Thing?

Well, it depends. If you’re a driver living in an area with rates that are lower due to a minimal accident rate, low crime, and low incidence of natural disasters, your ZIP code rating may be beneficial. However, if you live in an area with a ZIP code that is associated with high accident rates, high theft, and more, your rates may be higher – even if you were a good driver, and you could end up penalized despite being a responsible driver solely based on your geographical location.

ZIP codes are a convenient way for insurers to assess location-based risks, but they can end up oversimplifying the otherwise complex dynamics that exist in a neighborhood. Using a ZIP code approach may result in a disparity in premiums, overlooking individual circumstances in favour of looking at underwriting from a more “statistic” based approach.

While ZIP codes have only been banned in two states so far, there’s are talks about the banning of ZIP codes as an insurance rating factor altogether. The argument for this is that ZIP codes (and credit scores – although that’s a conversation for another day) tend to disproportionately target lower income communities and, incidentally, a higher rate of minorities living in a specific ZIP code. However, this varies all over the country. The consensus is ultimately that, as ZIP code can overlook responsible driving behaviour in favour of a statistic-based, “catch-all” approach, it can unfairly assign higher rates to what insurance companies would otherwise view as “good drivers.”

Why Do Teens Pay More for Auto Insurance?

Posted on by AHI Group

Auto insurance is a necessity for all drivers, but for teenagers, it often comes with a hefty price tag. If you’re a parent of a teen driver or a young driver yourself, you may have noticed that insurance premiums for teenage drivers are substantially higher than those for more experienced motorists. But why is this the case?

Knowledge is power, and with AHI Group, we’ll delve into the factors contributing to the higher auto insurance rates faced by teen drivers. Understanding these factors is not only essential for parents and young drivers but for anyone interested in the dynamics of insurance pricing. Discover ways to mitigate the steeper pricing for teen’s auto insurance by reading on.

Auto Insurance Basics

Auto insurance is a financial safeguard that protects drivers from the potentially exorbitant costs associated with accidents, vehicle damage, and medical expenses. In the states auto insurance rates are influenced by several factors, including the driver’s age, driving history, the type of vehicle insured, and the chosen coverage options.

Teen drivers, however, often find themselves on the wrong side of the affordability scale due to their limited experience and the higher perceived risk associated with this age group. To understand why teens face higher insurance rates, it’s crucial to dive deeper into the factors that drive these premiums. Which factors are used and to what amount varies by insurer, but generally you can expect insurance rates to vary based on age, gender, driving record, postal code, and more.

Teen Driving Statistics

The statistics behind the driving behavior and accident rates of teens paints a telling picture. While teens make up a relatively small percentage of all licensed drivers, they are disproportionately involved in accidents. This higher accident rate, combined with the associated insurance claims, contributes to the elevated insurance rates for young drivers in the state. Even if you, as a teen driver, are an otherwise good driver who has never been involved in an accident, simply being a younger driver can inflate your rates.

Factors Contributing to Higher Rates for Teen Drivers:

Several factors play a role in the elevated insurance rates for teen drivers:

  • Lack of driving experience. Drivers with more experience behind the wheel will generally be considered less prone to accidents and therefore be charged less.
  • Risk-taking behavior, which is said to be common among young drivers. Even if you personally don’t take many risks, you can still face high rates simply by being young.
  • Choice of vehicle and coverage options. Comprehensive coverage and high-performance vehicles are a costly combination.
  • Past accidents. Having accidents while being young can skyrocket your rates.
  • How often you drive. Young drivers who drive frequently (more than 6,000mi/year) may face higher rates than those who drive 3,000mi/year or less.

Understanding these elements is essential for both teens and their parents when shopping for auto insurance.

Ways for Teen Drivers to Lower Insurance Costs

There are strategies that teen drivers can employ to reduce their insurance expenses. Enrolling in defensive driving courses can help young drivers acquire essential skills and demonstrate their commitment to safe driving, potentially earning them discounts from insurance providers. Good student discounts are also prevalent among insurers, rewarding teenagers who maintain strong academic records. Finally, comparison shopping for insurance quotes is a valuable tactic for finding the most competitive rates. By exploring multiple options, teen drivers and their parents can identify affordable coverage that still meets their needs.

Graduated Driver Licensing (GDL) Programs

Kansas, like many states, has implemented Graduated Driver Licensing (GDL) programs aimed at gradually introducing teens to the responsibilities of driving. GDL programs typically include learner’s permits, intermediate licenses, and full, unrestricted licenses. These programs have a significant impact on insurance rates. Teen drivers with learner’s permits are generally less expensive to insure compared to those with full licenses, as they are under strict supervision. As drivers progress through the GDL phases, their insurance rates may change to reflect their increased driving experience. Understanding how GDL programs interact with insurance pricing is crucial for teen drivers and their parents when planning for the cost of coverage.

For similar programs in other states, discuss with an AHI agent. Each state has their own defensive driving programs and eligibility opportunities to lower rates through education.

Parental Involvement

Parents play a crucial role in helping teen drivers navigate the complex world of auto insurance. By setting a good example through their own responsible driving habits, parents can impart essential lessons to their teenagers. Moreover, parents can guide their teens in choosing appropriate vehicles and coverage levels, ensuring that they strike a balance between affordability and protection. Parental involvement extends to reinforcing safe driving behaviors and emphasizing the consequences of risky actions behind the wheel. By working together, parents and teens can better manage insurance costs and promote safety on the road.

Understanding why teen drivers face higher auto insurance rates is not only about economics; it’s about empowering young drivers and their parents to make informed decisions. As we’ve explored the factors contributing to these rates, from inexperience to state regulations, it becomes clear that proactive measures can mitigate these costs. Graduated Driver Licensing programs (and similar) offer a structured path to safer driving and more affordable insurance. Ultimately, by fostering a culture of responsible driving and informed insurance choices, we can pave the way for safer roads and more affordable insurance premiums for teen drivers in Kansas. Reach out to AHI Group for more information.

Bundling Home and Auto Insurance in Kansas: Combining Protection and Savings

Posted on by AHI Group

Bundling policies to reap the benefits of great savings is an often talked-about, but seldom often acted-on means to enhance both the convenience and accessibility of your insurance documents and your savings potential. As both a responsible homeowner and a vehicle owner, you understand the importance of safeguarding your assets and loved ones. But did you know that bundling your insurance policies can offer you more than just peace of mind? In this article, we’ll delve into the advantages of combining your home and auto insurance coverage, particularly tailored to the unique needs of Kansas residents. From potential cost savings to simplified management, we’ve got you covered!

*Note: Not all insurance policies qualify for “bundle and save” discounts, and the exact discount percentage will vary from carrier to carrier. Keep that in mind when purchasing policies through the same carrier, and don’t hesitate to reach out to an agent to ask about savings opportunities!

Why Do Insurance Companies Reward “Bundling?”

What is the point of rewarding return customers, anyway? Well, there’s a good reason why insurance companies offer discounts for policyholders who choose to “double up” with them.

Enhanced Risk Assessment

By offering combined coverage for home and auto insurance, insurers create a win-win scenario for both themselves and policyholders. One of the primary drivers behind this practice is risk mitigation. When a policyholder bundles multiple insurance policies with the same company, it reduces the overall risk exposure for the insurer. This is because they have a more comprehensive view of the customer’s profile, enabling them to better assess and manage potential risks.

Increased Customer Retention

Also, bundled policies can help increase customer retention. Consolidating insurance coverage makes the process more convenient for the customer, allowing them to access, pay, and file claims easier. This streamlined experience fosters loyalty and reduces the likelihood of customers seeking coverage elsewhere. Insurance companies recognize this and, in return for customer loyalty, offer various discounts and incentives, making bundling an attractive proposition.

Reduced Administrative Costs

From a financial perspective, bundling can also lower administrative costs for insurance companies. Managing a single account requires less administrative overhead than managing multiple individual policies. This cost efficiency is reflected in the form of discounts and reduced premiums offered to policyholders who opt for bundled coverage. In essence, insurance companies reward bundling as it aligns with their operational efficiencies, risk management strategies, and customer retention goals.

The Benefits of Bundling Auto and Home Insurance as a Policyholder

In our busy day-to-day lives, with so much on the go, wouldn’t it be better to have just one aspect of your life as streamlined and as easy as possible? Bundling your home and auto makes, at the very least, that part of your home and car ownership duties so much easier.

Here are three key benefits to bundling auto and home insurance as a policyholder.

Cost Savings

One of the most appealing advantages of bundling auto and home insurance is the potential for significant cost savings. Insurance companies often provide policyholders with discounts when they choose to bundle their coverage. These discounts can translate into lower overall premiums compared to purchasing separate policies. This financial relief can be especially beneficial in states like Kansas, where homeowners and drivers alike face potential risks such as severe weather events and accidents. By bundling, policyholders can secure comprehensive coverage while enjoying valuable financial savings.

Simplified Management

Managing insurance policies can become overwhelming, especially when dealing with different providers, renewal dates, and policy details. Bundling simplifies this process by consolidating everything under one roof. Policyholders have a single point of contact for inquiries, claims, and payments, streamlining their administrative tasks. This convenience not only saves time but also reduces the likelihood of missing important updates or payments. With the demands of modern life, having one less thing to worry about can bring peace of mind to homeowners and drivers alike.

Enhanced Coverage and Flexibility

Bundling auto and home insurance doesn’t just lead to savings—it can also result in enhanced coverage options. Insurance companies often offer additional benefits and perks for bundled policies, such as increased liability limits, extended coverage for valuables, or coverage for rental cars in case of accidents. Moreover, policyholders may have more flexibility to customize their coverage to match their specific needs. This tailored approach ensures that both their homes and vehicles are well-protected against potential risks, giving them greater confidence in their insurance coverage.

Note, however, that not every insurance company will offer these benefits to return customers. It helps to check, though! Give your agent or direct provider a call to ask about bundling rewards.

How to Start Bundling Your Home and Auto Insurance

Choosing to bundle your home and auto insurance is a straightforward and rewarding process. To begin, reach out to either your agent here at AHI Group or your provider directly and request quotes for bundled coverage. They will guide you through the information they need, such as details about your home, vehicles, and any additional coverage preferences. Don’t hesitate to ask questions to ensure you fully understand the coverage you’re getting and the potential discounts available.

Once you’ve gathered quotes, take the time to compare the coverage, costs, and benefits offered by different providers. This step is crucial in making an informed decision that aligns with your protection needs and budget. Remember, bundling isn’t just about financial savings—it’s about securing comprehensive coverage that addresses your specific circumstances. AHI Group is happy to help you find the right company for both your home and auto insurance needs, and wants to help you along on your journey to enjoying the advantages of bundled home and auto insurance.

What Does Auto Insurance Cover in the State of Kansas?

Posted on by AHI Group

If you’re on this blog, you’re probably already aware that, as a driver, you must purchase auto insurance. You might be shopping for a new vehicle and therefore need insurance, or you’re looking to find a more affordable policy to protect yourself and others on the road.

In the United States, most states require bodily injury liability insurance (apart from Florida.) New Hampshire is the only state where you do not need any car insurance, but you are required to show proof of financial responsibility. In Kansas, auto insurance regulations vary somewhat: four types of coverage are mandatory, and many others are highly recommended. Let’s dive into what auto insurance covers in the state of Kansas.

Mandatory Auto Insurance Coverage in Kansas

In Kansas, when you purchase auto insurance, you are purchasing several different coverages that come together as a single package. Each type protects you against losses of a different variety. We’ll provide a brief overview of each basic (mandatory) coverage in this section, and then later we’ll get into some optional (but highly recommended) auto insurance coverage options.

Bodily Injury Liability

In the event of an accident where you, as the driver, are deemed at-fault, this coverage kicks in to pay for the other involved party’s medical expenses, funeral costs, rehabilitation costs, and other covered costs. If a lawsuit kicks up, then this coverage may also pay for the settlement of those lawsuits, plus any ensuing legal expenses that you’re faced with.

  • Per state law, liability coverage must have minimum coverage to pay for $25,000/person for bodily injury and at least $50,000/accident for bodily injury.

Property Damage Liability

Property damage liability triggers the same way bodily injury liability does: when you were at-fault in an accident and caused damage to another person’s property, whether that’s their car or even their home, this coverage kicks in to pay for the repairs, replacement, or cash value of the property lost. It can also help to pay for any ensuing legal costs.

  • In the state of Kansas, currently, law mandates that property damage liability must have coverage of at least $25,000/accident.

PIP/Personal Injury Protection

Personal injury protection, or PIP, pays out for any necessary lost wages, funeral expenses, rehabilitation costs, medical expenses, and even in-home care or assistance if you or your passengers were injured in an accident regardless of how fault was assigned. Each passenger in different vehicles would collect under their own policy rather than pursuing the other driver’s insurance company for compensation.

  • In the state of Kansas, automobile insurance law requires that policies sold must contain the minimum levels of coverage as detailed below:
    • $2,000 for funeral, cremation, or burial expenses
    • $4,500/injured person for medical expenses
    • $900/month for one year of loss of income/disability
    • $25/day for in-home care services
    • $4,500 for rehabilitation services and care

Uninsured/Underinsured Motorist Protection

Despite auto insurance being mandatory in the state of Kansas, some drivers choose to forgo coverage illegally. If an accident results where an uninsured, underinsured, or even unidentified driver (such as a hit-and-run) is at-fault then this coverage pays for medical, funeral, or rehabilitation costs, as well as the cost of lawsuits. It would also pay out if you or a family member were a pedestrian hit by an uninsured/underinsured or unidentified driver.

  • In Kansas, policies for uninsured/underinsured motorist protection must include a minimum of $25,000/person and $50,000/accident.

Optional Auto Insurance Coverage in Kansas

Not all coverage in the state of Kansas is mandatory, and some may be purchased at your own discretion to ensure fuller coverage and more comprehensive insurance.

Comprehensive Coverage

This coverage goes beyond accidents, protecting your vehicle from non-collision incidents such as theft, vandalism, natural disasters, and falling objects.

Collision Coverage

In the event of a collision with another vehicle or object, collision coverage helps pay for repairs to your own vehicle, regardless of fault.

Towing and Labour Coverage

Also called roadside emergency assistance coverage, this coverage kicks in if your car should break down. It helps to cover the cost of any necessary roadside assistance services, such as towing.

Gap Insurance

This optional coverage is only applicable to those who finance or lease their vehicle. If your car is totalled or stolen and its value is less than your outstanding loan or lease balance, gap insurance can help cover the difference.

How Rates Are Determined for Auto Insurance in Kansas

One of the biggest questions that is asked when purchasing auto insurance is, “how much does it cost?” You want to save the most on your auto insurance in Kansas, and we understand.

There are two major factors that will determine just how much you end up paying for your auto insurance in the state. Those are the rating of your vehicle and underwriting. Underwriting is essentially the process by which a company considers the various factors regarding you and your driving habits. These tend to be your driving record, where you live (within Kansas, since not all neighbourhoods or areas have the same traffic statistics) the make and model of your car, gender, prior insurance coverage, how often/far you drive, and more.

In Kansas, insurance companies take these factors into account and then place you into a rating category. The ones with the best risks, aka the safest drivers, are placed into preferred categories and are given the lowest rates. Standard is a little riskier, so these are slightly higher rates for moderate-risk drivers. And then, finally, there are non-standard or “high-risk” drivers who can be uninsurable for some insurance companies depending on their risk profile and who will see the highest rates.

As a driver living in Olathe, Kansas, or any other of our service areas in Kansas, we advise you to contact AHI Group, one of Kansas’s premier insurance companies specializing in auto insurance. We’re happy to help you get the best rates possible and insure your first, second, or sixteenth vehicle – whatever your situation might entail.

Diving into the Future: How AI is Transforming Auto Insurance Underwriting

Posted on by AHI Group

AI has made remarkable strides in its development, although it is still a long way from replicating human intelligence. In today’s world, we encounter artificial intelligence in various aspects of our lives, such as using algorithms to discern customer preferences in e-commerce shopping and managing chat boxes, among other applications. The insurance industry has also embraced AI, leveraging its capabilities to refine the underwriting process and provide customers with more precise policy pricing.

The advancement of AI has raised some interest in how it’s going to make a mark on the insurance industry, but the truth is that insurance has already transformed due to AI’s influence. AI has become commonplace in insurance as an inclusion in the underwriting process and in how risk is assessed. AI may also transform the way we drive with the emergence of autonomous vehicles, which in turn will alter how we determine fault for insurance collisions. Let’s get into it.

AI in Auto Insurance: Revolutionizing Underwriting

First, let’s look at how auto insurance is playing a significant role in transforming the process of underwriting. Underwriting, the act of assessing a prospective policyholder or business’ risk, was once a process done manually. Now, with the incorporation of AI, underwriting can be automated, expedited, and even enhanced in its accuracy.

The Traditional Underwriting Process

Auto insurance underwriting is the critical process by which insurance companies assess risks and determine policy premiums for individual drivers. Traditionally, this process relied heavily on manual assessments, historical data, and actuarial models. Human underwriters would painstakingly analyze vast amounts of information to evaluate a driver’s risk profile, resulting in a time-consuming and often less accurate process.

Advantages of AI-Powered Underwriting

Incorporating AI into underwriting processes boasts a wide array of benefits, including:

  • Improved Accuracy: AI’s ability to analyze extensive data sets ensures a more accurate assessment of a driver’s risk profile. Factors such as driving behavior, past claims history, vehicle type, and environmental conditions are considered in a comprehensive manner, leading to more precise premium calculations.
  • Faster Decision-Making: With AI, the underwriting process becomes significantly faster. Decisions that once took days or weeks can now be made in a matter of minutes, expediting policy issuance, and enhancing customer satisfaction.
  • Customization and Personalization: AI enables insurers to offer more personalized policies tailored to individual drivers’ specific needs and behaviors. Usage-based insurance (UBI) models, which rely on telematics data collected through devices or smartphone apps, allow insurers to reward safe driving habits with discounted premiums.
  • Risk Mitigation: AI-driven risk assessment can identify high-risk drivers more accurately, leading to improved risk mitigation strategies. By targeting risky behaviors and trends, insurance companies can incentivize safer driving practices and ultimately reduce the frequency and severity of accidents.
  • Enhanced Underwriter Support: Rather than simply replacing human underwriters, AI assists them in making more informed decisions. The technology augments human expertise, providing valuable insights and recommendations based on data analysis.

One of the biggest fears of AI’s adoption is that it will “replace” human workers. This isn’t true. Instead, AI aims to support human workers and handle some of the simpler tasks to instead pass off more complex matters to human employees.

AI-Powered Risk Assessment in Auto Insurance

Risk assessment is the process of assessing an entity or individual’s risk. Not unlike underwriting, risk assessment is the analysis of someone’s risk profile. In auto insurance, that risk is how likely the driver is to get into an accident/have their vehicle damaged.

Risk assessment is not only key to pricing insurance, but it’s also the pinnacle when it comes to ensuring sufficient coverage. Without accurate risk assessment, policyholders will receive cookie-cutter insurance policies that may or may not be enough to cover them if a loss occurs.

With AI, risk assessment is easier, more detailed, and based on thousands, if not millions, of existing user databases and statistics that AI can shift through in mere seconds to extract valuable information and gauge a driver’s risk based on the extricated material.

Autonomous Vehicles and the Future of AI Technology in the Insurance Industry: Concluding Thoughts

While this isn’t specifically targeted toward insurance, autonomous vehicles are also something to be considered when the topic of AI is brought up. Autonomous vehicles are essentially driverless vehicles and have been in testing for the last several decades. There aren’t many available to the public, but it’s estimated that they’ll begin hitting the streets in the next few decades. With autonomous vehicles comes the question of determining fault for insurance companies: can a single driver be considered at fault in a collision when there’s no actual “driver?” Would the litigation then fall on the manufacturer instead? Would autonomous vehicles severely reduce the number of accidents, and thereby lower total property loss costs – and consequently premiums as well?

There are a lot of questions that have yet to be answered, especially since we aren’t seeing common use of autonomous vehicles yet. It’s an interesting prospect, nonetheless.

The integration of AI into auto insurance underwriting represents a paradigm shift in the industry. For both the sellers of insurance and the buyers, AI has the potential to reduce insurance costs due to enhanced underwriting capabilities, reduce collisions with autonomous vehicles, and enhance the way risk assessment is done, for better insurance coverage.

For more questions about auto insurance and AI, or just questions about your own auto insurance policy, give us a call at AHI Group today.

Is Auto Insurance Required in Kansas?

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Our agents at the AHI Group serving the Olathe, KS area want you to know that auto insurance is required in the state of Kansas. This means that auto insurance is mandatory for all drivers and if you are caught driving without the minimum amount of auto insurance, you can be fined, lose your license, and even have to serve jail time in some cases.

The minimum amount of auto insurance in Kansas includes personal injury protection (PIP) and uninsured or underinsured motorist coverage. This type of liability insurance will only cover the other vehicle if you are at fault in the accident and help pay the medical bills of the other vehicle’s driver and passenger.

Uninsured and underinsured motorist coverage will help you out if you are involved in an accident with someone who has no insurance or who does not have very much insurance. This means that this type of insurance will help you pay for the damages to your vehicle and for any injuries that you suffer in an accident.

Other Types of Auto Insurance

Collision Insurance

collision insurance is designed to help you pay for any damages to your vehicle if you collide with another vehicle or even some sort of stationary object.

Comprehensive Insurance

Comprehensive insurance is very important to have since it will help you replace or repair your vehicle if it is damaged in a way other than an accident. This can include a natural disaster, a fire, an act of vandalism, or even if the vehicle is stolen.

Both comprehensive and collision insurance policies are normally required by lenders who offer auto loans.

Contact Us Today

To create the best auto insurance policy for you and your vehicle, contact the experienced and knowledgeable agents at the AHI Group serving the Olathe, KS area today!

Auto Insurance for Seniors in Kansas

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Older drivers are experienced drivers. They don’t take senseless risks. They know how to drive defensively, and they tend to be courteous on the road. But while rates go down for mature drivers in their 50 and 60s, they start creeping up again in their 70s and 90s. AHI Group in Olathe, KS has some suggestions for making it easier to find the coverage you need at the price you can afford.

Tips For Senior Drivers

Keep Up That Great Driving Record

Stay accident-free. Avoid moving violations. That means, taking stop signs and stoplights seriously, and staying within posted speed ;iomits. If you  do find yourself in traffic court, make sure you take advantage of any driver education programs that can remove a ticket from your record.

Ask Us About Usage-Based Auto Insurance

One of the liberating things about retirement is not having to drive to work every morning and commute back home every night. You don’t spend as many hours behind the wheel. Your agent at AHI Group can help you find a policy that takes mileage into account for rating your policy.

Don’t Drive as Much

Consolidate your daily trips. Take an Uber or Lyft when the weather is bad. Get in the habit of letting someone you trust to take care of driving for you in their car.

Drive the Newest Car You Can Afford

Most of us get attached to our cars. We have memories of good times and bad that we associate without cars. But consider getting the car of your dreams now so you won’t spend so much time and money on repairs later. Your insurance premiums may be lower with a new car too.

Reach Out To Us

At AHI Group in Olathe, KS we offer convenient online appointments. You can also call us  to discuss your insurance needs in person.

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