Insurance FAQ
What determines the cost of my auto insurance?
Many factors, including:
- Your age & marital status
- Your driving record
- The kind of car you drive & how it is used (pleasure, work, commute, etc.)
- Number and cost of non-collision claims
- Your consumer credit rating
- If you have had consecutive auto insurance for the last 6 months
What do I do after an accident?
First, if able, remove yourself and other occupants of your car from further danger. Then check on the occupants of the other car(s) and/or pedestrians who have been hit. Next, call the police. Do not move any vehicles. Do not admit fault – let the police and witnesses determine fault.
Be sure to report the incident to your insurance company or agent; this will establish any claim you’ll make, and it will protect your rights under your policy.
What is Lease Loan Gap Coverage?
If you are thinking about leasing or buying a car, you might consider adding Lease Loan Gap (LLG) Coverage to your auto policy. LLG Coverage is an extension of your auto's physical damage coverage.
Ordinarily, your comprehensive and collision coverages provide you with up to the actual cash value (the vehicle's cost minus depreciation) in the event of a total loss. When you sign a lease or loan agreement, you may be obligating yourself for an amount higher than the vehicle's actual cash value.
LLG Coverage protects you from out-of-pocket expense when such a "gap" occurs. Although there are some limitations, LLG Coverage will pay up to your lease or loan amount if your car is stolen or if the cost of repairs is greater than its salvage value.
What is Umbrella Insurance?
Skyrocketing court settlements and medical costs can cause uneasy feelings about the adequacy of insurance protection. Liability insurance pays for injuries to others due to negligent acts by you or another covered person on your policy. Although the liability insurance provided under a home or auto insurance policy is adequate for most situations, in a few instances large lawsuit settlements do approach or exceed the limits of these policies.
An umbrella liability policy is designed to give you peace of mind from this concern. It adds one million dollars (or multiples of $1 million) of protection to the liability limits of your home and auto insurance policy. * Should a judgment against you exceed the limits of that policy, the umbrella picks up the unpaid portion up to the umbrella policy limit.
Persons most likely to purchase an umbrella policy are:
- "Likely "targets" for a large lawsuit--professionals, business owners, property owners, higher income individuals, etc.
- Those who want greater peace of mind knowing that their life savings will be protected from a financially devastating lawsuit.
Coverage cost varies, but it is generally $115 to $150 per year for a $1 million limit.
*The umbrella can also increase the liability limit for your boat, rental property, motor home, recreational vehicle, motorcycle, vacation home and others.
What determines the rate of my home / condo / rental insurance?
Several factors: For condo owners and renters, the number of units in your building. For all types of home insurance, the type of exterior construction; age of the building; location; type and distance of nearest water source; amounts of insurance on the building and your contents; your claims history; your consumer credit rating; and other factors.
My son/daughter is about to turn 16. How will this affect my auto insurance?
Because young drivers, especially those newly licensed cause frequent accidents, you can expect an increase in cost for your auto insurance.
How does my insurance work if someone else drives my car?
Insurance typically "follows the car". Most auto policies apply if a licensed driver uses a vehicle with the owner’s permission.
How does my insurance work if I drive someone else's car?
The same "insurance follows the car" rule applies. Typically, the other person’s auto insurance will apply. If that person has no auto insurance, your policy might be applicable.
How does my home/condo/renter policy cover special items, such as jewelry, cameras, computers, guns, video cameras, collections, etc.?
While the home/condo/renter policy covers these items, it is always best to consider special values and coverage needs of these items, and insure them by a list, or "schedule". Doing so establishes a maximum insurance value at the time of a claim. And it also picks up coverage for special loss situations, such as "mysterious disappearance", which is otherwise excluded. And, coverage is enhanced while any such items are temporarily away from home.
I own a jet ski - Is it covered by my auto or home/condo/renter insurance?
Most likely not. A special policy is usually required, to insure damage to the jet ski, and the bodily injury/property damage liability associated with its use.
I own a boat - How do I insure it?
It depends on the length of the boat and the size of the motor. Some require a separate boat insurance policy, while others might be covered by your home/condo/renter policy.
