Frequently Asked Questions

(The information contained in this online site is presented in summary form only and intended for your general knowledge. It is not a substitute for specific advice from your agent. You should refer to your policy contract or consult your agent for specific coverage information.)

 

Auto
What does my auto insurance cover?

Typical policies include liability coverage, uninsured/underinsured motorists coverage, and medical payments. Other coverage you may wish to include are comprehensive and collision coverage, towing, and rental reimbursement. Liability insurance covers damage to other people's property and their medical expenses if you are found at fault in an accident. Uninsured motorists coverage covers your medical expenses in case you are involved in an accident, the other person was at fault, and they do not carry liability insurance. Underinsured motorists coverage covers your medical expenses if the other person did have liability insurance, but it was not enough to cover your medical expenses. After their insurance is exhausted, your policy would kick in. Medical payments coverage covers you and passengers in your car for bodily injury in case of an accident, without regard to fault. Comprehensive and collision covers the physical damage to your vehicle. Collision covers when you are actually in an accident, single or multi-car, and comprehensive covers just about everything else. Common examples of comprehensive coverage are glass damage, vandalism, hail, theft, fire, and collision with animals. There is usually a deductible associated with these coverage. Towing coverage will pay if you need to have your car towed as a result of an accident, or mechanical breakdown. You should refer to your policy to see if there is a dollar limitation. Rental reimbursement will pay for a rental car if your car is damaged in an accident. There is usually a daily dollar limitation and a total dollar limitation with this coverage.

What is the difference between split limits of liability and combined single limit?

Split limits of liability have separate limits per person,per accident, and property damage. It is usually displayed in a format such as $100,000/$300,000/$50,000. This example would limit payments to $100,000 per person up to three people and limit property damage at $50,000. The combined single limit is just a dollar limitation per accident, not being separated out between number of people injured or property damage. As more companies are offering combined single limits of liability, it is becoming a popular choice because of the added flexibility.

How much liability coverage should I have?

You should carry enough liability coverage to protect your assets and future income. For example, you are found at fault in a auto accident, and the other driver was seriously injured, causing $150,000 in medical bills. If you only have $100,000 of liability coverage per person, you will be responsible for paying the extra $50,000. Liability coverage is not the expensive part of your auto premium. Doubling or tripling your liability coverage will not double or triple your premium, it is usually a very slight increase.

How can I lower my auto insurance premium?

Clean driving records are the best way to ensure a good rate. Your driving record is the greatest factor in determining you insurance premium. The companies go back from three to five years depending on the type of violation.

Increasing the deductible is an option if you carry full coverage. However, if your car is financed, you may want to check with your lender to see if they have any deductible requirements.

You may want to consider changing your billing plan to automatic withdrawal from your bank account. Service fees for the company mailing you a bill every month can range from $3.50 to $7.00 monthly. Most companies prefer to have you on automatic withdrawal, and encourage you to do so by allowing you to choose your deduction date and either greatly reducing or completely eliminating the service fee.

Make sure you have all the discounts you are entitled to. Discounts vary between companies, but the most common discounts are homeowner discount, account credit, multi-car discount. There are also good student discounts, discounts related to the safety features of your vehicle, and discounts for completing state sponsored driving classes.

If I let a friend borrow my car for the day, is there coverage in case of an accident?

Yes, this is called permissive use. As long as you give permission for your friend to use your car, and your friend has a valid driver's license, there will be coverage.

Home
What does my homeowner's insurance policy cover?

Typical policies include coverage for your dwelling, other structures, personal property, loss of use, personal liability, and medical payments. Your dwelling coverage covers your home and anything attached to your home such as an attached garage, deck, or porch. Other structures covers any structures on your property that are detached from the home. Examples include detached garage, shed, greenhouse, or fence. Personal property coverage covers all your possessions typically found in the home. Loss of use coverage will pay for other lodging accommodations for you if your home becomes uninhabitable due to a covered loss. This coverage is stated in either a dollar limitation or a time limitation. Personal liability will pay for your court costs and damages if you are found liable for another persons injuries in court. Medical payments coverage pays for other people's medical bills if they are injured on your property without regard to fault.

Does my homeowner's policy cover flood damage?

No, flood damage is always excluded from homeowner's policies. You would need to purchase a separate flood policy.

What is the difference between market value and replacement cost?

Market value is the amount your home would sell for if you had it listed for sale on the market. It is sometimes referred to as appraised value. Replacement cost is the actual cost to replace your home if it were a total loss. Replacement cost is figured on the square footage and features of your home.

How do I know what to schedule on my homeowner's policy?

All your personal property is covered on a named peril basis. However, there are underlying limits on certain types of property such as cash, jewelry, furs, and business personal property. When you schedule an item, it is no longer subject to the deductible, and picks up coverage for mysterious disappearance (if it is lost). Commonly scheduled items are jewelry, guns, computers, bikes, and cameras. There is a seperate charge when you schedule an item based on the amount of coverage you request.

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