Coverages FAQs

Insurance in general, and auto insurance in particular, is a complex topic.  We hope the questions below provide a solid background for your most basic questions.  If you have questions about car insurance that are not covered in this section, please feel free to call us.  One of representatives will be glad to help you with car insurance answers. Below you’ll find a set of FAQ car insurance:

Does my driving record affect my auto insurance premiums?

Absolutely. If you can keep your driving record clear of speeding tickets and accidents, you’ll almost certainly pay significantly less in premiums than those drivers who’ve racked up a list of infractions.  DWI citations are the most harsh premium increasers of all; they can even affect your ability to obtain any auto insurance policy whatsoever.

Is the make and model of car I drive considered by an insurance company?

Of course.  It stands to reason that the more valuable your car is the more it will cost to ensure. Additionally, insurers consider factors like the likelihood that the car will be stolen, or, in the case of fast sports cars, how likely the car is to be involved in an accident compared to other autos on the road.

Is there a difference between cancellation and non-renewal of an auto insurance policy?

The less sever term is non-renewal.  This means your present company no longer wants to insure you thanks to either your driving record or the number of claims you’ve filed in roughly a 3-5 year period.  Most likely, you’ll be able to procure a policy with another insurer—albeit at a higher rate.  Cancellation, on the other hand, means you’ve failed to pay your premium, lost your driving privileges, or lied to your insurer or the police and been caught.  A cancellation can make it very difficult for a customer to obtain another auto insurance policy for a great deal of time.

Should I buy more insurance than state-mandated minimums?

The decision, of course, is up to you, but as a general rule of thumb, if your assets (home, securities, etc…) are worth than the state-mandated liability minimums, you’ll want to strongly consider buying additional insurance to protect yourself.

Why does an elevated deductible amount lower premium payments?

Upping your deductible payment basically means you’re assuming more out of pocket risk in the event of an accident.  The more risk you assume, the less the insurance company is exposed to, thus allowing them to charge you a lower premium.  Deductibles generally range from $250 to $1000—which is the amount you’ll pay out of pocket before your coverage kicks in.

Why does my age matter to an insurance company?

It’s a statistical reality: Driver under the age of 25 get into more auto accidents per capita than any other, older age demographic.  Inexperience on the road is a risk, no matter how responsible the young person is.  Insurance companies charge appropriately for the increased risk.  The safest drivers, according to statistics, are those in the 40-55 range.  As a driver ages, premiums may rise again thanks to the increased risk elderly drivers present.

If my car is stolen, what can I expect?

First of all, be prepared for a fairly long process.  Most insurance companies mandate a “waiting period” to determine if the authorities will be able to locate your missing vehicle.  Generally, these waiting periods last about three weeks, after which, you should receive a settlement fairly rapidly.  If your vehicle is found by the police, your insurer will request a damage estimate to help determine what your settlement should be.