General FAQs
Auto FAQs
Homeowner FAQs
Renters FAQs
Umbrella FAQs
General FAQs
Q: What kinds of questions should I be expected to answer when I apply for an insurance policy? Why do insurers need so much information?
A: When you apply for an insurance policy, you'll be asked a number of questions. Among other things, we'll ask you your name, age, gender, and address. We'll need drivers' license numbers, dates of birth and social security numbers. You'll also be asked a number of other questions which will help us to find the right carrier, protection and price for you.
When an insurance company is deciding whether or not to offer automobile insurance to a potential customer, they want to know about the person's previous driving record, whether they have any recent accidents or tickets, and what type of car is to be insured.
Insurance companies have different programs for different customers. Adults with good driving records will generally pay less for auto insurance than a young driver with traffic tickets will. In order to determine which program you qualify for, an insurance company needs basic information about you.
Q: What are the advantages to using an agent to purchase insurance?
A: By using an agent to purchase insurance, the policy holder receives more personal service. An agent with whom there is direct contact can be vital when purchasing a product and absolutely necessary when filing a claim. A local independent agent is able to deliver quality insurance with competitive pricing and local, personalized service.
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Auto FAQs
Q: I have an older car that currently has a very low market value. Do I really need to purchase automobile insurance?
A: Most states have insurance laws that require drivers to have at least some automobile liability insurance. These laws were enacted to ensure that victims of automobile accidents receive compensation when their losses are caused by the actions of another individual who was negligent.
It is often the case that the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually just "total" the car and give you a check for the car's market value less the deductible. Many people with older cars decide not to purchase any physical damage coverage.
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Q: What's the difference between Collision Physical Damage Coverage and Comprehensive Physical Damage Coverage?
A: Collision Physical Damage Coverage is defined as losses you incur when your automobile collides with another car or object. For example, if you hit a car in a parking lot, the damages to your car will be paid under your collision coverage.
Comprehensive Physical Damage Coverage provides coverage for most other direct physical damage losses you could incur, including theft. For example, damage to your car from a hailstorm will be covered under your comprehensive coverage.
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Q: What factors can affect the cost of my car insurance?
A: A number of factors can affect the cost of your car insurance, some of which you can control and some that you can't.
The type of car you drive, the annual miles you drive, your driving record, and where the car is garaged can all affect how much your car insurance will cost.
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Homeowner FAQs
Q: What are some practical things I can do to lower the cost of my homeowners insurance?
A: There are a number of things you can do to lower the cost of your homeowners insurance.
Many insurers will offer a discount when you place both your car and homeowners insurance with them. Other times, insurers offer discounts if your home has a security system. Some carriers even offer discounts when you pay your insurance up front or within the first few months.
Another easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium and often the savings will pay for itself over several years if you ever have to file a claim.
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Q: What is the difference between "actual cash value" and "replacement cost"?
A: Covered losses under a homeowners policy can be paid on either an actual cash value basis or on a replacement cost basis. When "actual cash value" is used, the policy owner is entitled to the depreciated value of the damaged property. Under the "replacement cost" coverage, the policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.
Also, many insurers can offer Guaranteed Replacement Cost which essentially is a promise by the insurance company that they will pay whatever it costs to rebuild your house, even if that cost exceeds the dwelling limit on the policy.
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Q: Do I need earthquake coverage, and how can I get it?
A: The standard insurance policy does not pay for direct damages caused by earth movement. "Earth movement" is a much broader term than "earthquake". It includes earthquakes, volcanic activity, and other earth movement. This coverage may be available by endorsement for an additional charge. If you live in an area that is more likely to have an earthquake, you'll pay more than if you live in an area that is unlikely to have one. We can help you weigh the costs and benefits of this coverage before you decide to purchase.
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Renters FAQs
Q: Why would I want to buy renters insurance?
A: If you live in an apartment or a rented house, renters insurance provides important coverage for both you and your possessions. A standard renter's policy protects your personal property in many cases of theft or damage and may pay for temporary living expenses if your rental is damaged. A renters policy also provides personal liability coverage and protects your assets when you are negligent and injure others or damage other's property. Anyone who rents a house or apartment should consider this type of coverage.
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Q: What if I share my apartment with a roommate? Do we both need to have renters insurance?
A: Standard renter's policies cover only you and relatives that live with you. If your roommate is not a relative, each of you will need your own renter's policy to cover your own property and to provide each of you liability coverage for your own actions.
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Umbrella FAQs
Q: What is a personal umbrella liability policy?
A: A personal umbrella liability policy is designed to increase your liability protection. This single policy can serve as an "umbrella" over all of your other personal liability policies (home, auto, boat, RV, etc.) so that you have a higher personal liability limit than what would otherwise be available.
Some, but not all carriers in NY State, also offer Supplementary Uninsured/Underinsured Motorist Coverage (SUM). Sum provides additional coverage limits over and above your auto Uninsured/underinsured motorist coverage limit. SUM is designed to protect you when the other, at-fault driver injures you and your family in a car accident and the other driver either has no insurance coverage, is a hit and run driver or does not have enough liability coverage.
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Q: How do I know if I need a personal umbrella liability policy?
A: It used to be that the only people who needed personal umbrella liability policies were wealthy individuals who had sizable amounts of personal assets that would be at risk in a lawsuit. However, in our very litigious society, even individuals with modest incomes and assets are often subjects of large lawsuits. Since they are even less able than a wealthy individual to pay large damage awards, they recognize the need to have coverage limits greater than what can be obtained from their homeowner or auto policies.
And regardless of your own financial situation, an Umbrella that includes SUM (discussed in prior answer) should be seriously considered by everybody.
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