1. Why did my renewal premiums increase?
Traffic violations, accidents or claims are the most common reason for insurance rates to increase. Another common reason is a general rate increase from the insurance company. This typically happens when the company paid out a lot of claims over the entire volume of insurers. This is something that is entirely out of your control. Since we are an independent agency, we can monitor that on your behalf and shift your policies to another company if need be.Back to Top2. How does my driving record affect my insurance premiums? The premium you pay is a direct reflection of your driving record for the past three to five years depending on the insurance companies underwriting rules. Insurance companies order driving records from the DMV of your resident state and from other states where you have been licensedBack to Top3. What can I do to lower my insurance premium? Strongly consider a higher deductible. You are best served by absorbing small claims. In the current insurance market, many insurers now refuse to renew policies or accept new customers with a history of several small claims. View your homeowners insurance as a catastrophic coverage and set aside your premium savings to cover minor repairs. Ask your agent about any discounts you may be eligible for such as defensive driving, multi policy, pay in full, good student credits etc. Back to Top4. What is a good student discount? Most insurance companies offer discounts for youthful operators if they carry a B average or better at school. All you have to do is supply their report card to get the discount. Back to Top5. My teenager just got his license, but I do not allow him to drive my car. Does he need to be insured? New York State requires all licensed operators in your household to be listed on your insurance policy unless they have their own vehicle and are insured under a separate policy. This includes a teenager who just received their license or a student away at college that still uses your address as their residence and or visits regularly on weekend, vacations, etc.Back to Top6. Am I covered if I rent a vehicle? If you have a New York auto policy insuring your own car for physical damage (comprehensive and collision) there is no need to purchase insurance from the rental agency. By law, your policy must cover you for all obligations assumed by you for damage to the rental vehicleBack to Top7. What does “full coverage” mean? It is physical damage coverage, otherwise known as comprehensive (other than collision) and collision coverage. Collision coverage is activated when your vehicle is damaged while in motion, such as hitting a post in a parking lot or colliding with another vehicle. Comprehensive coverage is activated when the vehicle catches fire, is stolen, or collides with an animal such as a deer. Glass coverage is also covered under comprehensive.Back to Top8. If I let someone drive my car and they have an accident, who is responsible? The insurance follows the vehicle; the accident follows the driver. Therefore, the owner’s insurance will respond and the accident will be attributed to the driver and will appear on their driving record. Back to Top9. What will happen to my premium if I file a claim? Filing a claim doesn’t always translate to paying more for insurance. There are several factors that determine whether a claim increases your insurance rates, the severity of the incident, your current driving history, who’s fault it is and your policy details. If you are unsure what to do in a claims situation, call our office and speak with our dedicated claims specialist to help guide you through the process. Back to Top10. What is no fault coverage? No Fault insurance, sometimes referred to as personal injury protection insurance (PIP) can help cover you and your passengers’ medical expenses and loss of income in the event of a covered accident, REGARDLESS of who is found at fault. Back to Top11. My children are going away to school. What insurance coverage will they need? Your homeowner’s policy includes off premises coverage up to 10% of your personal property limit. If you student will be living in a dorm, this coverage limit may be sufficient to cover all of their clothing and personal belongings. Laptops and other expensive electronics can be insured under a personal articles floater. If the student is living off campus, you should consider a tenant’s policy, which will cover personal property and liability. If a visitor is injured while visiting your student, you may be subject to a lawsuit. Tenant’s liability covers defense and settlement costs. Talk to one of our personal lines team members who can assist with thisBack to Top12. Why does the insurance company require me to carry more coverage than my home is worth? Property coverage limits are based on the cost to replace or repair damaged structures. Replacement cost policies give you a “new” in exchange for the damaged “old”. The insurance values are based on construction costs in your region. There is no correlation between an insurance valuation appraisal and a market appraisal done for real estate sales or financing.Back to Top13. What is Replacement cost versus actual cash value?
1. Replacement cost is the amount necessary to replace or rebuild your home or repair damages with materials of similar kind and quality without deducting for depreciation. You receive new materials that replace old, damaged items or property. Actual cash value is the cost at the time of the loss to repair or replace the property destroyed, less depreciation. Most standard home insurance policies cover the contents of your home (i.e., personal belongings) on an actual cash value basis, but it is possible to buy replacement cost coverage.Back to Top14. Does my homeowners’ insurance policy cover flooding? Unfortunately, many homeowners do not find out until it is too late that their homeowners’ policy does not cover flooding. It can be purchased separately. See one of our personal lines team members to get a quote.Back to Top15. Does a homeowners’ insurance policy provide coverage if water backs up into my basement through my sewers and drains?
No, however, an endorsement can be added to your policy that would provide the coverage. Back to Top16. What does a personal umbrella policy cover? An umbrella insurance policy is extra liability insurance coverage that goes beyond the limits of your owned homes, autos, motorcycles or watercrafts insurance limits. It provides an additional layer of security to those who are at risk for being sued for damages to other people’s property or injuries caused to others in an accident. Since the whole point of umbrella insurance is to protect your assets from a lawsuit, it only makes sense to buy it if you have assets to protect. You can speak with one of our personal lines team members to get a quote. Back to Top