Automobile insurance policies are not a “one size fits all” situation. If you aren’t sure how much, or what type, of coverage you need, give your agent some information about yourself and your family to get their opinion. Our expert agents are here to make sure you have the right type and amount of coverage to protect you, your loved ones, and your assets. Below is a list of five great questions to get you started.
1. How much auto coverage do I need?
Each state has a set of requirements for all vehicles to carry a minimum amount of liability insurance for bodily injury to one person, bodily injury to two or more person, damage to property of others, Personal Injury, or No-fault, Protection, to cover you in case of an accident. Depending on your personal circumstances, it’s important that you consider increasing certain amounts of your coverages in order to protect your assets.
2. What additional optional coverage should I purchase?
Comprehensive and Collision coverages protect against theft or damage to your vehicle. Additional Personal Injury Protection and Supplementary Uninsured/Underinsured Motorists (SUM) can further protect you and your family. Your agent can provide more suggestions according to your personal circumstances.
3. Does my policy cover liability against a lawsuit from an injured spouse?
A basic policy does not provide coverage against liability due to injuries of death of a spouse. You may, however, purchase Supplemental Spousal Liability, which does provide this type of coverage.
4. Does my credit affect my insurance premium?
Many insurance companies consider their clients’ credit history as part of the underwriting process. If they do, credit information may have an effect on the premium. Insurers are not allowed, however, to reject an application for insurance on the basis of credit history alone. Furthermore, they cannot use credit information to terminate a policy or increase the premium on a renewal policy. They are strictly required to disclose to policyholders the use of credit information.
5. Would my policy be non-renewed if I’m have an accident or receive a moving violation?
Typically, an insurer is permitted to non-renew up to about 2% of policies per year based on this criteria. They are required to provide consumers with a notice stating the reason for non-renewal. Your premium will likely increase for a period of three years if you’re convicted of certain traffic violations. These include, but are not
limited to: speeding 15 MPH or more over the legal limit, fleeing the scene of an accident, or driving while intoxicated.
These five questions are a great starting point for you and your agent. However, the answers provided here are general. Please call or visit our office to speak to a qualified agent about circumstances specific to you and your family, to ensure you make the best possible decision about your auto insurance policy.