Frequently Asked Questions
Q: Is anyone who drives my car covered under my policy?
A: In most cases, yes, as long as they have the permission or reasonable belief from the insured that they can use the vehicle. The insured is the person named on the insurance policy and their spouse if applicable. There are some exclusions, so you would need to look at your particular insurance policy to make sure. Remember, everyone in your household must be listed on your insurance policy if they have a license. For example, if a girlfriend you live with uses your car, she may not be covered if you did not list her on your insurance policy. On the other hand, if you live separately, she could use your car with your permission and be covered.
Q: What is the difference between comprehensive and collision insurance?
A: Collision coverage is when you have a collision with something like another car. Comprehensive coverage is when it is anything else other than a collision such as fire or theft. Most people would have both coverages when using the car on a regular basis. Sometimes when one is just storing a car they may only keep comprehensive coverage since they are not using it on the road: therefore, it is unlikely to be in a collision.
Q: When do you need to inform your insurance agent that you have purchased a vehicle?
A: Your insurance agent needs to be notified of the auto information immediately, including the VIN of the purchased vehicle.
Q: How does my driving record affect my insurance premium?
A: The insurance premium you pay is a direct reflection of your driving record for the past three to five years depending on the insurance company. Insurance companies order driving records from the DMV of your residence state and from other states where you've been licensed. Statistics show that drivers with tickets and accidents are more likely to have accidents than drivers with clean records.
Q: If a vehicle is titled under a son or daughter's name can it be insured under the parents' name?
A: No, it has to be insured under the title holders name.
Q: My car is parked in the garage that is attached to my house, so isn't my car insured on my homeowner's insurance policy?
A: No. A homeowner's insurance policy does NOT provide insurance for ANY motorized vehicle, so this would include cars, trucks, motorcycles and all-terrain vehicles. If you want to insure your vehicles to protect them from a loss such as fire, theft, vandalism, or tornado they need to be insured on an auto insurance policy (or motorcycle or recreational vehicle policy) and they would need to have comprehensive coverage on that vehicle.
Q: During a storm, a tree from my neighbor's yard fell and destroyed my fence. Does my homeowner's policy pay for the damage or does my neighbor's policy?
A: Generally, your own policy should cover the loss. Your insurance company may be able to recover the amount it pays you for the loss and your deductible from the homeowner's insurance that your neighbor may have, in the event that the loss occurred as a result of your neighbor's negligence.
Q: Recent rainstorms have flooded and damaged my basement. Is there any coverage under my homeowner's policy?
A: Flood coverage is generally excluded on the basic homeowner's policy. However, some homeowner's policies provide coverage for backup of sewers and drains that cause flooding in your basement. This coverage can be purchased for a nominal premium. You should check with your agent to see if this coverage is provided and how much it costs. If; however, you live in a flood-prone area, you should consider and may be required by your lending institution, to purchase a flood insurance policy. Your agent should be able to inform you about the Federal Flood Insurance Plan and the exclusions and limitations of coverage in this policy.
Q: What is the difference between actual cash value, replacement cost and modified or functional replacement cost?
A: Replacement Cost is the amount to repair or replace the damaged property using materials of like kind and quality, without deduction for depreciation. Depreciation is the loss of value that develops as an item ages or wears. Actual Cash Value is the replacement cost of an item, less the amount for depreciation. A new option available to consumers is modified or functional replacement cost. At the time of a loss, modified replacement cost will restore the home to a functional condition. This may mean that unique features in your home prior to a loss will be replaced with items that serve the same function, but are not aesthetically the same.
A: In most cases, yes, as long as they have the permission or reasonable belief from the insured that they can use the vehicle. The insured is the person named on the insurance policy and their spouse if applicable. There are some exclusions, so you would need to look at your particular insurance policy to make sure. Remember, everyone in your household must be listed on your insurance policy if they have a license. For example, if a girlfriend you live with uses your car, she may not be covered if you did not list her on your insurance policy. On the other hand, if you live separately, she could use your car with your permission and be covered.
Q: What is the difference between comprehensive and collision insurance?
A: Collision coverage is when you have a collision with something like another car. Comprehensive coverage is when it is anything else other than a collision such as fire or theft. Most people would have both coverages when using the car on a regular basis. Sometimes when one is just storing a car they may only keep comprehensive coverage since they are not using it on the road: therefore, it is unlikely to be in a collision.
Q: When do you need to inform your insurance agent that you have purchased a vehicle?
A: Your insurance agent needs to be notified of the auto information immediately, including the VIN of the purchased vehicle.
Q: How does my driving record affect my insurance premium?
A: The insurance premium you pay is a direct reflection of your driving record for the past three to five years depending on the insurance company. Insurance companies order driving records from the DMV of your residence state and from other states where you've been licensed. Statistics show that drivers with tickets and accidents are more likely to have accidents than drivers with clean records.
Q: If a vehicle is titled under a son or daughter's name can it be insured under the parents' name?
A: No, it has to be insured under the title holders name.
Q: My car is parked in the garage that is attached to my house, so isn't my car insured on my homeowner's insurance policy?
A: No. A homeowner's insurance policy does NOT provide insurance for ANY motorized vehicle, so this would include cars, trucks, motorcycles and all-terrain vehicles. If you want to insure your vehicles to protect them from a loss such as fire, theft, vandalism, or tornado they need to be insured on an auto insurance policy (or motorcycle or recreational vehicle policy) and they would need to have comprehensive coverage on that vehicle.
Q: During a storm, a tree from my neighbor's yard fell and destroyed my fence. Does my homeowner's policy pay for the damage or does my neighbor's policy?
A: Generally, your own policy should cover the loss. Your insurance company may be able to recover the amount it pays you for the loss and your deductible from the homeowner's insurance that your neighbor may have, in the event that the loss occurred as a result of your neighbor's negligence.
Q: Recent rainstorms have flooded and damaged my basement. Is there any coverage under my homeowner's policy?
A: Flood coverage is generally excluded on the basic homeowner's policy. However, some homeowner's policies provide coverage for backup of sewers and drains that cause flooding in your basement. This coverage can be purchased for a nominal premium. You should check with your agent to see if this coverage is provided and how much it costs. If; however, you live in a flood-prone area, you should consider and may be required by your lending institution, to purchase a flood insurance policy. Your agent should be able to inform you about the Federal Flood Insurance Plan and the exclusions and limitations of coverage in this policy.
Q: What is the difference between actual cash value, replacement cost and modified or functional replacement cost?
A: Replacement Cost is the amount to repair or replace the damaged property using materials of like kind and quality, without deduction for depreciation. Depreciation is the loss of value that develops as an item ages or wears. Actual Cash Value is the replacement cost of an item, less the amount for depreciation. A new option available to consumers is modified or functional replacement cost. At the time of a loss, modified replacement cost will restore the home to a functional condition. This may mean that unique features in your home prior to a loss will be replaced with items that serve the same function, but are not aesthetically the same.
