Insurance FAQs
Can I get a discount for an Anti-Theft Device? - You can usually receive anti-theft device discounts if your policy includes comprehensive and collision coverage. Select "recovery device" if the system has a device that is capable of tracking and recovering the vehicle. These systems must automatically contact a response center where the process of vehicle recovery begins to be eligible. This does not include alarms that do not have contact with a center for vehicle tracking.
What is Bodily Injury Liability Coverage? - This coverage pays when an insured person is legally liable for bodily injury or death caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for legal defense if an insured person is sued. There may be exclusions.
What is Comprehensive Coverage? - This coverage pays for loss or damage to your insured vehicle caused by events other than collision. This includes damages due to events such as fire, theft, windstorm, flood, and vandalism. This coverage usually pays transportation and loss of use expenses under this coverage if your insured vehicle is stolen.
What is Collision Coverage? - This coverage pays for loss to your covered vehicle when it collides with another object. It will also pay for a collision loss to any non-owned vehicle, or to a vehicle you have rented other than a vehicle rented for use in connection with your business or employment, while that vehicle is in your custody, or while you are operating it. There may be exclusions.
What is the Declarations Page and what should be listed on it? -
This is the report that you received from your insurance company. It should generally include:
1. The types of coverage you have elected.
2. The limit for each type of coverage.
3. The cost for each type of coverage.
4. The specified vehicles covered by the policy.
5. The type(s) of coverage for each vehicle covered under the policy and other information applicable to the policy.
What is a Deductible? - The amount of each loss you agree to pay. Generally, choosing a higher deductible will lower your premium.
What is the Driver Improvement Course discount? - The driver improvement course is a voluntary refresher course available for drivers age fifty-five (55) and older to enhance their driving skills. Participants may be eligible for a discount if they can provide a certificate to your insurance company as proof of completion. Usually, the course must have been completed within three (3) years of the date the policy is to begin to be valid for discount.
What is the Garaging Location? - This is the ZIP code where your vehicle is parked when not in use which usually corresponds to your primary residence.
What is a Coverage Limit? - The most your insurance company will pay for a specific insurance coverage. You may choose a limit that meets your needs. Most states have laws that specify the minimum limits you must purchase.
What is the Policy Term? - This is the length of time that the policy is in force. In most states, insurance companies offer annual and semi-annual policies.
What is an SR-22? - A document required by the court for persons convicted of certain traffic violations that demonstrates proof of financial responsibility.
What is Uninsured Motorist Coverage? - This coverage protects you and occupants of a covered vehicle if any of these insured sustain bodily injury, including any resulting death, in an accident in which the owner or operator of a motor vehicle who is legally liable does not have insurance. Common exclusions include: No coverage for bodily injury/death sustained by any person while using or occupying (1) a covered vehicle while being used to carry persons or property for compensation or a fee; (2) a covered vehicle without the permission of you or a relative; or (3) a non-owned vehicle without the permission of the owner.
What is Underinsured Motorist Coverage? - This coverage protects you and occupants of a covered vehicle if any of these insured sustain bodily injury, including any resulting death, in an accident in which the owner or operator of a motor vehicle who is legally liable does not have enough insurance. Common exclusions include: No coverage for bodily injury/death sustained by any person while using or occupying (1) a covered vehicle while being used to carry persons or property for compensation or a fee; (2) a covered vehicle without the permission of you or a relative; or (3) a non-owned vehicle without the permission of the owner.
What is a Vehicle Identification Number (VIN)? - This is the vehicle identification number (VIN) of your vehicle. This number is usually found on the dashboard of your vehicle on the driver's side, and is usually listed on the vehicle registration and title. The VIN number is a combination of letters and numbers 17 characters in length that can be used to identify the make, model, and year of your car.
Are there some things I can do to help lower insurance premiums for my teenager?
The statistics about teenage drivers aren't good. According to the Insurance Institute for Highway Safety (IIHS), 16-year-olds get into accidents almost six times more often than drivers between the age of 30 and 59. No wonder car insurance premiums are so high for this age group.
Here are some suggestions to help lower premiums and keep your teenager's license free of violations:
* Help your teen learn the laws and follow them to the letter. By far, the best way to lower car insurance costs for teens is for them to keep their driving record clean.
* Set a good example. Do you break the speed limit and tailgate? Do you yell at other drivers when you're behind the wheel? If you do these things, how can you expect your children to act differently? Start watching your own driving long before they get their license and you'll have a much easier time convincing them to be safe drivers. Remember, actions speak louder than words.
* Put your teenager on your policy. Rather than setting up an independent policy for your teen driver, put them on your auto insurance policy as an additional driver. In this way, all the discounts applied to your policies will be passed on to them.
* Help your teenager to get good grades. Usually, having a 3.0 or higher GPA will reduce your car insurance premium by 10 percent.
* Enroll them in driver education courses. Discounts are available for teens who take recognized driving classes.
* Take traffic school to beat tickets. Once a ticket is on your teen's license, it takes months to get the violation removed. Instead, encourage them to take traffic school if the judge allows it. A day spent thinking about the consequences of unsafe driving can bring rewards for years to come.
* Ride with your teenager. Your teenager was a safe driver last year when he or she got a license. But what's happened since then? Let your son or daughter take the wheel while you sit back and relax in the passenger seat. If you see them doing something that breaks rules or seems unsafe, point this out in a diplomatic way. If they are doing a good job driving, praise them for their efforts.
Glossary of commonly used auto policy terms
Actual Cash Value -The cost to replace property minus the amount it has depreciated since the original purchase date.
Benefit -The amount an insurance company pays to you or your beneficiary when you file a claim.
Claim - The policyholder's request for the reimbursement of a loss covered by their insurance policy.
Endorsements -These are changes to the original insurance contract, such as a different deductible or an additional car or driver.
Exclusions - Situations that are not covered by a given insurance policy; specific exclusions are listed on your insurance policy.
Extraordinary Medical Coverage - Sometimes included in Personal Injury Protection, this coverage protects you if you suffer accident-related injuries that require serious and/or long-term medical care and begins once you have exhausted the limit on your standard medical benefits coverage.
Full Coverage - This indicates that you have all the minimum coverage for your state of residence; it does not necessarily mean you will always be fully covered.
Income Loss Coverage - Sometimes a part of Personal Injury Protection, income loss coverage takes care of you if you're unable to work due to accident-related injuries.
Indemnity - A predetermined sum paid for a covered loss.
Limits - The maximum amount of money your insurance company will pay out for your losses; many states have minimum required limits.
Medical Payments or Personal Injury Protection (PIP) - Covers the treatment of injuries to the driver and passengers of the policyholder's vehicle. At its most extensive, PIP can cover medical payments and the lost wages of those injured in an accident. It may also extend to covering the policyholder if he/she is injured while in another vehicle or is hit by a car while on foot.
No-Fault Insurance - A no-fault policy usually will not require that someone be assigned the blame in order for the policyholder to receive his/her money. In no-fault states, insurance companies are required to have this type of policy.
Property Damage Liability - Pays for damage the policyholder causes to someone else's property.
Tort - A legal term that describes circumstances when someone is deemed legally responsible for injuring another person or damaging his/her property. Some states encourage you to make a tort provision, thereby reducing the cost of your premium by limiting your right to sue for non-monetary damages.