Pepper, Johnstone & Company Blog

All You Ever Wanted to Know About Insurance

How to avoid the most common auto and home insurance mistakes

Insurance. We all need it, but how can you make sure that you have the coverage that you need without overspending or underspending? We’re accustomed to making purchasing decisions based on price, but this can spell disaster when it comes to insurance. Pepper, Johnstone & Company can help you navigate the world of insurance and determine your needs and the right amount of insurance for your particular situation. Then they will explain coverages, endorsements and what each policy offers.

“One of the main things I see clients make mistakes on is the amount of coverage they have on their house,” commented Julie Bradford with Pepper, Johnstone & Company. “Most people are underinsured and don’t even realize it. They want a certain amount of coverage or will say, well my house appraised for this, so I only want this amount. They do not realize the importance of replacement cost, which is not the same as market value, and can be a costly mistake especially when it comes to catastrophic events. The same goes for autos. Much of the time consumers want the cheapest insurance and want lower liability limits, but if they are open to comparing the difference between the state minimum and the next level, they would be really surprised at what little difference in price it actually is.”

This is where your agent can help out by reviewing your policy with you and letting you know what’s missing. They can also help you determine the best types of homeowner insurance for your area in case of a natural disaster, such as hurricanes or tornados.

The same is true for auto insurance. The best thing you can do is prepare before you shop for auto insurance. Do your homework and adequately assess your needs, as well as how much you can afford to pay for your monthly premium.

“When purchasing auto insurance make sure you have enough liability coverage.   People do not realize that when they choose those minimum limits and then are involved in an accident what little coverage they have just because they wanted to save a little money,” said Julie.

“Cars are so expensive these days, and the minimum limits of 25/50/25 are just not enough.  $25,000 for property damage will not cover most vehicles on the road and especially in the event of a total loss, there is not enough coverage.  Also, if more than one vehicle is involved, you only have $25,000 to split between all the vehicles,” said Julie.

“One other tip would be explaining to the consumer the difference between split limits versus combined single limits, so they are aware of what they are getting and the difference between the two coverage options. Much of the time, consumers just want a good deal, but what they need to realize is that what they really need is a good agent.  They need an agent who will explain coverages, explain the product, and one that wants what is best for the consumer,” added Julie.

Pepper Johnstone & Company can help you navigate the world of home and auto insurance, put money in your pocket and help you to avoid costly mistakes.

“Of course bundling your home and auto will save you money,” explained Julie.  She noted that it is also important to explain to the consumer the value of umbrellas and personal article floaters.

“I always try to explain to the client what a personal article floater (PAF)  is and why you want a separate policy versus adding the jewelry (or other personal articles) to your homeowners. Most of the time when adding a PAF you save on your home and auto and the savings ends up paying for the PAF.  It’s all about making the clients aware of these discounts and more importantly insuring their valuables,” said Julie.

Pepper, Johnstone & Company protects your family with a choice of multiple insurance agencies to choose from, for home, auto, and business.  We've helped countless people save money on their insurance while making sure they're properly covered.  Visit us today at our website, or give us a call at 256-232-7818 to get us working on a quote for you today.  You can also request an online quote here.