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Frequently Asked Questions

Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.

  1. What are the best liability policy limits?
  2. What Happens if I Choose Not to Purchase Car Insurance and Still Drive My Car?
  3. Is anyone who drives my car covered?
  4. What is the difference between comprehensive and collision?
  5. How does my driving record affect my insurance premium?
  6. Why is it harder to get insurance if drivers in my household have bad driving records?
  7. What happens if my loan was more than my insurance company says my car was worth?
  8. My teenager just got his license, but I do not allow him to drive my car. Does he need to be insured?
  9. Who Needs Life Insurance?
  10. How Much Life Insurance Do I Need?
  11. How Much Homeowners Insurance do I Need?
  12. What is homeowner's insurance?
  13. Do I Have to Buy Homeowners Insurance?
  14. Why didn't the insurance company pay the appraised value of my loss?
  15. Why didn't my policy pay for damage caused by a flood?
  16. Why didn't my insurance pay to replace everything I lost?
  17. What is the difference between the replacement cost and the actual cash value of my property?
  18. Should I Insure My Personal Possessions?
What are the best liability policy limits?
It is generally accepted among insurance agents that the state minimum policy limits are not enough. Most insurance professionals would agree for the average driver the best liability limits to have are 100/300/100. This means: 
  • 100,000 per person for bodily injury 
  • 300,000 per accident for bodily injury 
  • 100,000 per accident for property damage


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    What Happens if I Choose Not to Purchase Car Insurance and Still Drive My Car?
    Most states have stringent laws about having car insurance and if you don't choose to follow these laws by not purchasing car insurance, there can be tough penalties and fines.

    You can probably for sure count on loosing your drivers license and getting your car impounded but then you will be charged with breaking the law and that will be on your police record.

    Also, if you cause an accident, on top of the above mentioned things you will still have to pay for the damage to the other vehicle and people who may have been hurt, which can easily run into thousands of dollars.


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    Is anyone who drives my car covered?
    In most cases, yes, as long as they have the permission or reasonable belief from the insured that they can use the vehicle. The insured is the person named on the insurance policy and their spouse if applicable.

    There are some exclusions, so you would need to look at your particular insurance policy to make sure. Remember, everyone in your household must be listed on your insurance policy if they have a license. For example, if a girlfriend you live with uses your car, she may not be covered if you did not list her on your insurance policy. On the other hand, if you live separately, she could use your car with your permission and be covered.



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    What is the difference between comprehensive and collision?
     Collision coverage is when you have a collision with something like another car. Comprehensive coverage is when it is anything else other than a collision such as fire or theft.

    Most people would have both coverage's when using the car on a regular basis. Sometimes when one is just storing a car they may only keep comprehensive coverage since they are not using it on the road therefore, it is unlikely to be in a collision.


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    How does my driving record affect my insurance premium?
    The premium you pay is a direct reflection of your driving record for the past three to five years depending on the insurance company. Insurance companies order driving records from the DMV of your residence state and from other states where you've been licensed. Statistics show that drivers with tickets and accidents are more likely to have accidents than drivers with clean records.

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    Why is it harder to get insurance if drivers in my household have bad driving records?
    Many companies will not insure you if you live with a relative who has a poor driving record. If your teenager has a poor driving record, you may have trouble getting a preferred rate because he or she is defined as an "insured" under your policy.

    Some companies will exclude this person by name from the insurance policy. Many companies will not insure anyone in the family unless every driver in the household meets their requirements.



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    What happens if my loan was more than my insurance company says my car was worth?
    Sometimes the value of a car is less than the balance on your car loan. There can be several reasons for this. Interest rate changes may have increased the amount of your loan. Rebates may not have been applied to the purchase price, or poor maintenance of the auto may have reduced its value. The insurance company bases its payments on the actual cash value (ACV) of the car, not the amount of your loan. In some states you may be able to purchase a special type of insurance, known as guaranteed auto protection (GAP), when you buy a car. GAP insurance covers the difference between the ACV and your loan balance.

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    My teenager just got his license, but I do not allow him to drive my car. Does he need to be insured?
    In most cases, yes. Automobile insurance policies require every licensed person in your household to be listed on your insurance policy unless they have a completely separate policy of their own. This includes a teenager who just received their licence or a college student who still uses your address as their residence and/or visits regularly on weekends, vacations, ect.

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    Who Needs Life Insurance?

    Your need for life insurance varies with your age and responsibilities. It is a very important part of financial planning. There are several reasons to purchase life insurance. You may need to replace income that would be lost with the death of a wage earner. You may want to make sure your dependents do not incur significant debt when you die. Life insurance may allow them to keep assets versus selling them to pay outstanding bills or taxes.

    Consumers should consider the following factors when purchasing life insurance:

    • Medical expenses previous to death, burial costs and estate taxes;
    • Support while remaining family members try to secure employment; and
    • Continued monthly bills and expenses, day-care costs, college tuition and retirement.


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    How Much Life Insurance Do I Need?

    Ask yourself the following questions:

    • How much of the family income do I provide?
    • If I were to die, how would my survivors, especially my children, get by?
    • Does anyone else depend on me financially, such as a parent, grandparent, brother or sister?
    • Do I have children for whom I would like to set aside money to finish their education in the event of my death?
    • How will my family pay final expenses and repay debts after my death?
    • Do I have family members or organizations to whom I would like to leave money?
    • Will there be estate taxes to pay after my death?
    • How will inflation affect future needs?

    Some insurance experts suggest that you purchase five to eight times your current income. However, it is better to go through the above questions to figure a more accurate amount.



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    How Much Homeowners Insurance do I Need?
    The higher your coverage, the less you will have to pay out of your own pocket to replace property that is destroyed or stolen. You also need enough liability coverage to protect yourself from lawsuits if someone is injured while on your property. Your insurance agent will be able to accurately predict how much coverage you need and you can always contact multiple agents to get an average of what the best amount of coverage would be for your home.

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    What is homeowner's insurance?
    Homeowners insurance is insurance that pays for damage to your home and other structures on your property. It also may pay for damage to or loss of the contents of your home, and for your liability for accidents that occur on your property or for damage to others' property.

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    Do I Have to Buy Homeowners Insurance?
    If you have a mortgage on your house, most lenders require insurance for at least the outstanding balance of the loan. If your lender requires coverage, you may choose your own insurer; you aren't required to purchase coverage from the insurer your lender recommends.

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    Why didn't the insurance company pay the appraised value of my loss?
    The appraised value of your property is the value when the appraisal was made. Your property may have lost value since your last appraisal as a result of poor maintenance or depreciation.

    If your house or belongings are damaged, your insurance company must pay your property's actual cash value at the time of the loss or its replacement value if your policy provides replacement cost coverage.



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    Why didn't my policy pay for damage caused by a flood?
    Flood damage is not covered by most homeowner policies. A separate flood policy can be purchased.

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    Why didn't my insurance pay to replace everything I lost?
    Most homeowner policies have "dollar limits" on certain types of belongings. Generally, these limits are on silverware, guns, jewelry, watches, furs, and computers. The limits usually cover losses of the average person. Talk to your agent or insurance company about increasing these limits to meet your individual needs.

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    What is the difference between the replacement cost and the actual cash value of my property?
    Replacement-cost coverage pays to replace your home and belongings with materials of "like kind and quality" at current prices. Actual cash-value policies reimburse the depreciated value. A replacement-cost policy will usually cost a little more. Some companies no longer offer replacement cost coverage.

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    Should I Insure My Personal Possessions?
    What would it cost to replace the contents of your home with new items if everything was destroyed? Start adding up the costs of everything from home electronics to furniture to tools -- you might be surprised at the total. Replacement coverage pays for the current cost of a comparable, new item. Without replacement coverage, you would only be reimbursed for the actual cash value of the used item.

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