October 23, 2017

FAQs
Frequently Asked Questions
It is very important that you consult with your agent to determine the best coverage for
you. Depending on your vehicle, age, driving record, income and many other factors,
the right coverage will vary.
Disclaimer: This information is intended to provide a brief overview of insurance coverage,
and is not a substitute for reading the details of your insurance policy and/or consulting with an agent
Q What does Liability Coverage mean?
A Liability coverage protects you from lawsuits in the event you are involved
in an accident. This coverage provides protection even if you are driving
another person's vehicle. There are three main types of Liability Coverage:

Bodily Injury

Bodily Injury Coverage is typically sold as split limits, a limit for each
passenger and an overall limit for the accident. For example, if you elect to
purchase $100,0000/$300,000 coverage, you have the following coverage maximum
payouts in the event of an accident:
  • $100,000 maximum payment to any individual involved in the accident
  • $300,000 maximum payment for all individuals involved in the accident.
The minimum limits for BI vary by state and it is suggested that you purchase
$100,000/$300,000 unless you are a non-standard driver that has very expensive
insurance rates. Always check with your insurance agent about the risks
associated with purchasing lower or minimum liability limits.

Medical or Personal Injury Protection(PIP)

This coverage provides protection for medical and/or funeral costs for you in
the event of an accident. States are either Medical states or PIP states
depending on their state law. Please check with your agent for a complete
description on Medical Coverage and its relation to other existing Health/Life
Coverage you may have.

Property Damage

As the name implies, property damage protects you from any damage resulting to a
person's car or other property in the event of an accident. For example, if you
purchase $100,000 of Property Damage, the maximum amount paid for damage to
other individual's property would be $100,000 for the accident.

Uninsured/Underinsured Motorist

Uninsured Motorist provides coverage for you in the event the other driver does
not have insurance at all. Underinsured Motorist provides Liability Coverage for
you in the event the other driver does not have enough insurance coverage.
Q What does Collision and Comprehensive Coverage mean?
A These two coverage options provide compensation for damage inflicted to your vehicle
in the event of an accident. Collision provides coverage in the event of an accident.
Comprehensive provides coverage in the event of car damage from other perils such
as storms, theft, and some other non-accident damage inflicted to your car.

Comprehensive and Collision are sold with deductibles. A deductible is the amount you
pay first. After the deductible has been reached, the insurance coverage provides
payment for the additional amount of repairs/replacement needed. A typical deductible
for Comprehensive and Collision is:
  • $100 Comprehensive
  • $250 Collision
It is very important that you consult with your agent to determine the best coverage for you.
Depending on your vehicle, age, driving record, income and many other factors, the right
coverage will vary.

Disclaimer: This information is intended to provide a brief overview of insurance coverage
and is not a substitute for reading the details of your insurance policy and/or consulting
with an agent.
Q My car insurance seems expensive. How can I reduce the cost?
A Vehicle Choice

Premiums vary by vehicle - some are theft targets or expensive to repair. Check
the insurance rates before you make a purchase.

Deductibles

Choosing higher Comprehensive and Collision deductibles can reduce premiums.

Collision Coverage

As your vehicle ages and the value declines, it might be a good idea to drop
Collision Coverage to save money.

Account Credit

Many companies provide discounts if your Home and Auto are insured together.

Ride Share

If you commute, look into ride share vans or alternatives to driving to work
every day. Decreased usage may translate into a lower rate class.
Q When comparing Homeowners policies, what should I look at other than the limit on my house?
A There are many features within a Homeowners Policy that will make it
different than another. In addition to the limits shown on the front of your
policy (dwelling, contents, liability, etc.), you need to dig into the policy
language to see how your policy addresses things like:

Backup of Sewer or Drains

The basic Homeowners Policy does not cover this, but many offer it as an option
or enhancement.

Wind Damage to Trees

If you have a tree blown down on your home, most policies will pay for the cost
to remove it. However, if the tree is just downed in the yard, some policies
will cover the removal - others will not.

Cost to Replace Your Home

Virtually all Homeowners Policies provide replacement cost coverage (not
depreciated) up to the home value shown on the policy. What if your cost to
rebuild exceeds that limit? Many companies offer endorsements to allow some
"excess coverage" to allow for situations where the cost to rebuild
exceeds the home value shown. While you should try to insure at the full cost to
rebuild, these endorsements take the burden off of you to make sure that you are
aware of every change in building costs over time.
Q If I have an office in my home, does my Homeowners Policy provide the coverage I need?
A Probably not, unless you address a few items specifically.

Be sure to address any business activity with your agent. There are many gaps in both the Property and
Liability Coverage under the Homeowners Policy, relative to the business. Your policy may exclude any
detached structures, such as a garage, that are used for business purposes, including storage of materials.
Contents Coverage for Business Personal Property is usually limited to $2500 at home or $250 away from home.
Liability Coverage for business activity is generally excluded.

Many of these items, however, can be addressed by many Homeowners Policies as in-home businesses
become more common. Coverage for contents, business computers and data and liability can often be
added to the Homeowners Policy or be provided by a Companion Policy.