Most Common Insurance Questions, We Answered For You

Everyone Has Insurance Questions…

1) Should I buy the cheapest or highest car insurance? You may be surprised by what’s NOT covered by the cheapest or highest insurance policies. Besides price, you should consider the level of professional and personal service a Company & Agency provides along with the quality of assistance from their Agents you receive in the event of a Claim, Service Request or Quotes for all your requests.

You should also think about an insurance company’s financial stability. Financial strength is a good indication that the company will be there for you when you need it most. It’s always a good idea to review your coverage’s and options available with your Agent often.

2) Why do young men pay more than young women for car insurance? Statistics show that young men have more accidents and claims. However, in recent years claims for young women are on the rise, so you may notice less difference in rates in the near future.

3) Can I drop my Collision Coverage? Before you drop your Collision Coverage, it’s wise to discuss with your financial representative (and or loan officer) the value of your vehicle in the event of a claim.

You may also consider checking the value of your vehicle in the NADA ( ) and Kelly Blue Book ( ).

Consider how much risk you can afford to take, and how long you could go without a vehicle before making any decision. If you have a loan on your vehicle, you need to check with your lending institution to see if you can drop your collision coverage.

4) Whether my car is three years old or brand new, does my insurance buy me a new car if it is wrecked beyond repair? Normally, NO. If the car is damaged beyond repair, most insurance companies will only pay you the “market” value or a company determined value by using a formula.

However, you can add Repair/Replacement cost coverage to protect your newer vehicle by doing an endorsement to your policy. Some restrictions may apply. Contact your Agent and discuss this endorsement option.

5) Why do I need Medical Payments Coverage on my car policy when I have good health insurance? Along with coverage for your medical expenses, “medical payments” provides coverage for people riding in your vehicle who are injured in an accident and may not have adequate medical insurance.

Your health coverage does not pay for your passengers. (Misconception: It doesn’t pay for bodily injuries in the “other” vehicle)

6) Why do I need Uninsured Motorist or Underinsured Motorist Coverage when there’s a mandatory insurance law, and what does it over? Sadly, not everyone complies with mandatory insurance laws.

This coverage generally pays for medical bills, other liabilities (e.g., loss of wages), and injuries for you and your passengers when the other driver is at fault and without adequate insurance.

(Most common misconception about Uninsured or Underinsured Motorist Coverage: It DOESN’T pay for your vehicle, it’s a “bodily injury” coverage.)

7) The value of my vehicle goes down each year, so why does my insurance premium continue to increase? Unless you diminish the coverage you carry on your vehicle, your cost may increase. Unfortunately, costs continue to rise for legal fees, medical expenses, and repairing damage to vehicles regardless of the value of your vehicle. All consumers share in these costs.

You should contact your Agent for “Policy Reviews” to see how you can cut cost and receive all available discounts.

8) Are other drivers covered while driving my vehicle? Yes. Generally, other licensed drivers are covered while driving your vehicle with permission.

Rule of thumb: If you give a licensed driver permission to “borrow” your vehicle, your also giving them permission to “borrow” your auto insurance policy.

9) If I purchase a new vehicle this weekend, am I covered? Yes, most companies automatically cover your “newly acquired” or “additional vehicle” if your current carrier insures all of your vehicles and your policy is in active status.

You must notify your Agency within 30 days after you acquire your new vehicle (or before the next bill is due). It’s advisable to insure a newly acquired or additional vehicle immediately due to possible premium increases.

Be sure to contact your Agent, some companies ONLY extend the coverage you currently have on your existing policies. (example: if you ONLY carry Liability on your vehicle(s), then your may not have Comprehensive or Collision coverage extension for your newly acquired or additional vehicle).

10) What is Comprehensive Coverage?  It’s Fire, Theft, Glassbreakage and Animal Collision. Most people carry a deductible.

11) When I rent a car, should I buy the Rental Agency’s insurance? Generally, coverage from your own auto policy applies to the rental vehicle when driving within the continental United States.

One area to examine closely is “loss of use”. “Loss of use” means if you wreck a rental car, you may be charged for the revenue lost while the car is being fixed for the damage you caused. “Loss of use” is not generally covered on your personal auto policy. It may be advisable to purchase the “loss of use” protection from the rental agency separately, if possible.

Read the contract carefully and ask the rental agent to explain it if you are unsure. If you don’t purchase the insurance coverage offered by the rental company, an accident could result in an increase of your premiums and or no coverage extension.

12) I got a ticket recently, how will that affect my insurance premium? In most cases, a single ticket will not affect your rates. However, if you receive a ticket as a result of an accident in which you were at fault, it could raise your rates.

One or more tickets could also affect your rates when you change coverage, change vehicles, buy a new vehicle or add a driver. Most Insurance companies look at all drivers in the household for accidents and violations when determining premiums.

13) If I am in an accident, how will my rates be affected? Generally, if you were considered at fault for this accident, your insurance company will most likely raise your rates.

Some accidents are subject to surcharges on policies. Surcharges are determined by each company for the amount paid out for claims from your policy, the surcharge could apply if your at fault or not.

14) What should I do if I have a claim? Write down the Names, Addresses, Day & Night Phone Numbers, DOB, Driver License Numbers, Insurance Company and their Policy Numbers of all other parties involved.(if available use your cell to take photos of accident) Call the police! (unless on personal property, Incident Reports are done on personal property). Additionally, do not admit or discuss fault. Then contact your Company direct or Agent.

15) What options do I have to keep my premiums low? Several factors can help keep your premiums low. For example, you can adjust your deductibles based on your willingness to assume some risk. You may also consider which optional coverage’s you really need.

Contact your Agent to make sure your receiving all discounts available on your policy.

16) What deductible should I carry on my home? The higher the deductible you can afford to pay in the event of a loss, the lower your premiums will be.

Note: If you remodel, replace wiring, plumbing, or roof be sure to contact your agent. Some companies give discounts for remodeling.

17) What coverage should I consider that might not be included on a standard homeowners policy? Items such as jewelry, furs, guns, coins, collectibles, guns and fine china are subject to specific limits of coverage on most standard homeowners policies.

If you have any of these items that may have an appraised value higher than the specific limits on your policy, you can purchase the additional coverage by endorsing your policy for a few dollars more. Rates may vary. You’ll need to work directly with your Agent insurer to get the endorsement or new policy written.

You may need special documentation, which could include an appraisal or bill of sale.

18) A storm knocked down my tree. Will insurance pay for the removal of the tree? Normally, a home policy will cover the costs of removing the tree from a covered building; some policies will also cover the cost to remove fallen trees in other situations.

However, most policies DOESN’T cover to have the tree removed or cleaned off premises, it mainly covers to have it cut/removed off of the damaged property.

19) How do I insure against flood? Flood insurance is available to any property owner located in a community participating in the National Flood Insurance Program.

20) My son is going away to college. Do I have coverage for his personal items? Generally, yes. Most home policies provide an extension of limited coverage for these items.

However, apartments, condos and other landlords may required an additional policy with higher limits of liability and them listed as loss payee. You can purchase a “Renters” policy for little cost.

21) If a visitor to my home is injured, how do I make sure my insurance pays for the medical bills? Normally, it’s automatically covered under your homeowners policy, medical payments coverage regardless of who is at fault.

Note: You should always maintain your premises by keeping it safe for anyone who visits or is invited to your home.

22) How much liability coverage should I have on my home and auto policies? This is impossible to generalize: your personal and financial situation as well as your preferences are unique. You can determine an amount by working with a your Agent and or financial representative who can help tailor solutions to your needs.

23) If my hot water heater, ice maker, toilet, sink, shower, or washer leaks am I covered? Most policies ONLY cover sudden and immediate water leaks. It DOESN’T pay for long term leakage. That would be considered a maintenance issue.

It’s VERY IMPORTANT to check these items in your home OFTEN.

24) How do I choose the right Agency and Agent? The best answer starts with the answer from question #1. Besides price, you should consider the level of professional and personal service a Company & Agency provides along with the quality of assistance from their Agents you receive in the event of a Claim, Service Request or Quotes for ALL your requests. You should also think about an insurance company’s financial stability. Financial strength is a good indication that the company will be there for you when you need it most. It’s always a good idea to review your coverage’s and options available with your Agent often.

Answer continued: Every Agency will NOT offer you “Insurance At It’s Best.” You should Enjoy communicating & talking with your Agent, they should “know you.

A good Agent gives ALL “discounts” available! Make sure you get honest straightforward answers to your questions! Choose the Agent who “knows Insurance” and what fits your best needs.

A good Agent “represents” their Companies BUT “works” for YOU!

A “peace of mind” shouldn’t be an understatemented! With the right guidance, YOU & YOUR Family can have a “peace of mind” for the right price and coverage!!

Lastly, We’re Simply Bragging ! We Know Insurance ! We Want To Know YOU !

Karri Willis, Lakeyda Nichols Geter, Kayla Mauldin and Jackie Ridgeway are very Professional Insurance Agents offering Great Attitudes, Great Service & Great Rates,  making us…. A Choice Above!

Serving the Entire State of Alabama with 2 locations for your convenience.  insurance

Arab, Alabama (256) 586-2442

Cullman, Alabama (256) 747-5432

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