Frequently Asked Questions
Insurance Frequently Asked Questions
- Age and/or driving experience.
- Driving history.
- What your vehicle is used for.
- History of claims.
- Make and model of your vehicle.
- Credit history.
- Geographic location (zip code).
- Your location.
- Type of construction.
- Age of the structure.
- Your credit history.
Most insurance companies use a credit-based insurance score to predict insurance losses. Considering credit creates a more accurate insurance rate. By predicting potential losses better, insurers can provide a more accurate rate for each customer.
Insurers often have an Extraordinary Life Circumstance process. If your credit information has been affected by one of the following circumstances you may qualify for reconsideration of your premium.
- Dissolution of marriage or divorce.
- Identity theft.
- Death of a child, parent or spouse.
- An event declared “catastrophic” by the state or federal government..
- Serious illness or injury to you or a family member.
- Temporary loss of a job for a period of 3 months or more, if such loss is due to involuntary unemployment.
- Overseas military deployment.
Your need for life insurance is based on age and responsibilities. It is a crucial part of financial planning. You may be the primary wage-earner for your family so your income would need to be replace upon your death. Life insurance may allow them to keep assets as opposed to selling them to pay outstanding bills or taxes. Consider the following factors when acquiring life insurance:
- Medical expenses previous to death, burial costs and estate taxes.
- Money for family members looking for employment.
- Continued payment of monthly bills and expenses.
Most insurers suggest 5 to 8 times your annual salary. To be more accurate be prepared to answer the following questions when talking to your agent.
- What portion of the family income do you provide?
- Will there be estate taxes to pay after your death?
- Do you have children for whom you would like to set aside money for their college education?
- If I were to die, how would your family pay its bills and expenses?
- Does anyone other than your immediate family depend on you, such as a brother, sister or parent?
- Do you have organizations or family members you would like to leave money to?
- Decide how much you need, what you can afford to pay and for how long.
- Do not buy life insurance unless you intend to keep it for a long time. It could be costly if you quit during the early years of the policy.
- Select a reputable insurance agent and company.
- Shop a variety of policies that will provide what you need and pick the one that is best for you and your family.
- Do not sign an application until you review it carefully to be sure the answers are complete and accurate.
- When you select a policy, the check should be to the company and not the agent.
This law says you have to prove that you are financially able to pay for anything you may be responsible for while driving a car. This is done by having car insurance and that is what the majority of people do to comply with this law. Some states have other ways that one can show financial responsibility such as giving a large cash deposit for the DMV.
The penalties vary from state to state. Most states have stringent laws requiring car insurance and if you don't choose to follow these laws by not purchasing car insurance there can be tough fines and penalties. Likely, you will lose your driver’s license and get your car impounded. Technically, you will be breaking the law and it will go on your police record. If you cause an accident you will have to pay for the damage to the other vehicle and people who may have been hurt making you responsible for medical bills.
The premium you pay is a direct result of your driving history for the past 3 to 5 years depending on the insurance company. Insurers order driving records from the DMV of the state you live in and from other states where you've been licensed. Drivers with tickets and accidents are more likely to have accidents than drivers with clean records.
Generally, yes. Automobile insurance policies require every licensed person in your household to be listed on your insurance policy except if they have their own policy. This includes a teenager who just received their license or a college student who still uses your address as their residence and/or visits regularly on weekends, vacations, etc.
Proof of financial responsibility or automobile liability insurance is required in all 50 states. Each state sets their own minimum limits on how much insurance is needed and in most cases additional coverage is required if you don't want to have to pay additional out of pocket expenses. If you have a loan or lease on your vehicle you are usually required by the lender to have comprehensive and collision coverage in addition to the state required liability coverage.
- Mortgage or rent
- Home repairs
- Home water, gas, phone, electric, cable and other utilities
- Home, life, care, health and other insurance payments
- Credit card payments
- Child care
- Miscellaneous spending money