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Auto Insurance Frequently Asked Questions
Almost all states have insurance laws that require drivers to carry at least the minimum liability insurance.
If your car is older and the cost of repairing your vehicle costs more than the car is worth the insurance company will usually just “total” the vehicle and issue you a check for the market value of the car less the deductible. Many people with older cars decide not to purchase any physical damage coverage at all. On the flip side, if your vehicle is newer and the note is paid off, you may want to consider carrying physical damage coverage unless you can cover a down payment on a new vehicle.
Collision Physical Damage Coverage is defined as losses that happen when your automobile collides with another car or object. For example, if you back into a car in a parking lot, the damages to your vehicle will be paid under your collision coverage.
Comprehensive Physical Damage Coverage provides coverage for most other direct physical damage losses that may occur, including theft. For example, hail damage to your car during a storm would be covered under your comprehensive coverage.
There are a variety of factors that can affect the cost of your automobile insurance rates; some are under your control, and some aren’t.
The kind of car you drive, how far you drive, your driving record, and where the car is garaged can all influence how much your auto insurance premiums will be.
Even your marital status can factor into the cost of insurance. The reasons being data tends to show that married people have fewer and less costly accidents than their single counterparts.
Your automobile policy protection is extended to anyone you permit to drive your car. You do not need to provide permission explicitly; the other person needs only to have a reasonable belief that they have your authorization while driving.
You can cancel a personal insurance policy such as home, boat, auto at any time with a request to the insurance company. Each company is different in what the request is, but most will want it in writing with an insured’s signature.
You add household members to your policy, as long as you all reside at the same address.
Home Insurance Frequently Asked Questions
Homeowners policies cover many natural disasters, such as hurricanes or tornadoes. However, others like earthquakes and floods are not.
The average homeowner’s policy is divided into two main sections: Section I covers the property of the insured, and Section II provides personal liability coverage for the insured. Virtually anyone who owns or leases property needs this type of insurance. In most scenarios, a lender will require homeowners insurance to obtain a mortgage.
Covered losses under a homeowners policy may be paid on either an actual cash value basis or a replacement cost basis. When “actual cash value” or ACV is used, the policyholder is entitled to the depreciated value of the damaged property. Under the “replacement cost” coverage or RCV, the policyholder is reimbursed an amount required to restore the article with one of the same type and quality at today’s value.
There are several things you can do to lower the cost of your premium. Some of those include bundling your home and auto insurance policies, raising your deductibles and asking about discounts you may qualify for such as a monitored home alarm.
Define the type and amount of insurance you need. Determine any additional coverages you may want such as a jewelry endorsement or an earthquake endorsement. Moreover, you will need to determine your deductibles or how much you want to spend out of pocket when a covered loss occurs.
Commercial or Business Owners Insurance Frequently Asked Questions
All businesses no matter the type need liability insurance to protect them against third party claims. Many insurance carriers provide a wide variety of business property and casualty coverages, underwritten individually and customized to your specific business.
Commercial or Business insurance refers to a wide variety of insurance coverages that can reduce or mitigate or compensate for exposure to certain hazards for the business or its employees. Certain coverages mandated by law such as unemployment insurance, workers’ compensation, social security, and (in some states) state disability also fall under business or commercial insurance.
Lawsuits are expensive even if you win; you still are required to pay your attorney fees. With business insurance, you will have coverage in place that could help keep your doors open in the event of a lawsuit or when catastrophe strikes.
Just as with other types of insurance many factors determine the price of business insurance. The most important are the type of business, the location, size of the business, and sales.
The answer is probably not. One claim is not a cause for concern on the part of most insurance companies. However, a history of claims could result in a premium increase or cancellation. Three claims in three years is viewed differently, for example, then having one only claim. Single claims that are indicative of gross negligence can also result in a significant premium increase or cancellation. An example of this might be an auto accident followed by a conviction of reckless driving or driving under the influence.
Personal Umbrella Insurance Frequently Asked Questions
A personal umbrella policy is an added layer of liability insurance that extends over your primary liability policies such as home and auto. If something terrible were to occur, like you seriously hurt or kill somebody in a car accident or someone drowns in your home pool, you want to make sure that your assets are protected. Your umbrella policy would kick in once your primary limits are exhausted on your underlying policies.
Personal umbrella policies act as the last line of liability defense in the event the limits of your underlying policies are used up.
Let’s say you are at the wrong end of a $1,000,000 lawsuit for someone getting hurt.
Your homeowner’s policy has a liability limit of $500,000. The homeowners pays the first $500,000, and you are still obligated to pay the additional $500,000.
If you do not have an umbrella to make up the missing amount, you will be paying out of pocket.
If carried a personal umbrella policy with the standard limit of $1,000,0000 the umbrella would kick in and provide coverage for the additional $500,000 that you owe.
Covered losses under a homeowners policy may be paid on either an actual cash value basis or a replacement cost basis. When “actual cash value” or ACV is used, the policyholder is entitled to the depreciated value of the damaged property. Under the “replacement cost” coverage or RCV, the policyholder is reimbursed an amount required to restore the article with one of the same type and quality at today’s value.
If you live in an area prone to flooding it is a requirement for most lenders, if you do not it is up to you to decide to carry it. It is important to note that floods are excluded from a standard homeowners policy. Moreover, if you are not in a high-risk area, flood insurance policies are pretty inexpensive.
There are four different types of flood zones as determined by the national flood insurance program, and they are A, B, C, X.
“A” rated flood zones are considered high risk and carry the most expensive premiums. Flood zones B, C, and X, however, are considered low to moderate risk, and the premiums are much lower relative to zone “A.” According to FloodSmart.gov, the average premium for $250,000 in building coverage and $100,000 in personal property in a lower risk flood zone is $405 a year.