What is auto
insurance?
Auto insurance
protects you against
financial loss if you
have an accident. It is
a contract between you
and the insurance
company. You agree to
pay the premium and the
insurance company agrees
to pay your losses as
defined in your policy.
Auto insurance provides
property, liability and
medical coverage:
-
Property coverage
pays for damage to
or theft of your
car.
-
Liability coverage
pays for your legal
responsibility to
others for bodily
injury or property
damage.
-
Medical coverage
pays for the cost of
treating injuries,
rehabilitation and
sometimes lost wages
and funeral
expenses.
An auto insurance policy
is comprised of six
different kinds of
coverage. Most states
require you to buy some,
but not all, of these
coverages. If you're
financing a car, your
lender may also have
requirements.
Most auto policies are
for six months or a
year. Your insurance
company should notify
you by mail when it's
time to renew the policy
and to pay your premium.
Why do you need auto
insurance?
It's really all about
protecting yourself
financially.
-
If you're in an
accident or your car
is stolen, it costs
money, often a lot
of money, to fix or
replace it.
-
If you or any
passengers are
injured in an
accident, medical
costs can be
extremely expensive.
-
If you or your car
is responsible for
damage or injury to
others, you may be
sued for much more
than you're worth.
-
Not only is having
insurance a prudent
financial decision,
many states require
you to have at least
some coverage.
Questions to ask your
agent
Your Independent Agent
is an advocate for
finding auto insurance
that meets your specific
needs. Here are a few
things to consider as
you prepare for the
discussion:
-
How much can you
afford to pay if you
get in an accident?
(To keep premiums
low you may want to
have a higher
deductible and be
willing to pay more
for repairs.)
-
What is the
insurance company's
level of service and
ability to pay
claims?
-
What discounts are
available? (Ask
about good driver,
multiple policy and
student discounts.)
-
What's the procedure
for filing and
settling a claim?
(Ask who to call and
what happens after
you file a claim.)
Because
everyone's
needs
are
not
the
same,
it
is
best
to
consult your
agent to
help
assess
your
needs
and
find
the
insurance
policy
that
is
right
for
you.
What
is
Homeowners
insurance?
Homeowners
insurance
provides
financial
protection
against
disasters.
A
standard
policy
insures
the
home
itself
and
the
things
you
keep
in
it.
Homeowners
insurance
is a
package
policy.
This
means
that
it
covers
both
damage
to
your
property
and
your
liability
or
legal
responsibility
for
any
injuries
and
property
damage
you
or
members
of
your
family
cause
to
other
people.
This
includes
damage
caused
by
household
pets.
Damage
caused
by
most
disasters
is
covered
but
there
are
exceptions.
The
most
significant
are
damage
caused
by
floods,
earthquakes
and
poor
maintenance.
You
must
buy
two
separate
policies
for
flood
and
earthquake
coverage.
Maintenance-related
problems
are
the
homeowners'
responsibility.
Why
do
you
need
homeowners
insurance?
It
is
really
all
about
protecting
yourself
financially
if
something
unexpected
happens
to
your
home
or
possessions.
That's
important
because
chances
are
your
home
is
likely
one
of
your
largest
investments.
- If your home was destroyed by fire or damaged by a natural disaster, you'd need money to repair or replace it.
- If a guest in your home is injured, liability protection and medical coverage help pay expenses.
- If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
- If you are still paying for your home, your lender will require insurance.
Things
to
consider
and
questions
to
ask
your
agent
Here
are
few
things
to
discuss
with
your
agent
that
will
influence
your
decisions.
- How much will it cost to rebuild my house and replace my belongings if they are damaged or destroyed? (Ask your agent to talk you through your home's features and the things you own so you can make an informed decision about coverage.)
- Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
- What discounts are available? (Ask about multiple policy, security system and fire resistance discounts.)
- What's the process for filing and settling a claim? (Ask who to call and what happens after you file a claim.)
