FAQ

Yes, automobile liability insurance, or proof of financial responsibility is required in all 50 states. Although each state sets their own limits on how much insurance is needed, these are only minimum limits and in most cases additional coverage is needed if you don't want to have to pay additional expenses out of pocket. If you have a lease or loan on your car you are usually required by the lender to have comprehensive and collision coverage in addition to the state required liability coverage.

The Department of Motor Vehicles in most states utilizes a point system to track an individual’s driving record. Points accrue based on the number of car accidents and moving violations a driver accumulates in a given amount of time. Insurance companies often use these points to determine auto insurance rates. Thus, a great number of accidents and moving violations are likely to raise your premium.

When you purchase auto insurance, your policy follows the vehicle regardless of who is driving. However, certain restrictions do apply. Anyone borrowing your car must, first of all, be a licensed driver and, second, must be driving your car with your consent. Other conditions may exist depending on your insurance provider. Check with your agent for more information.

Comprehensive coverage pays for the cost to repair your car in the case your car is damaged for any reason besides a collision. This may include natural disaster, animal contact, or vandalism. If your car was stolen or it cannot be repaired, collision coverage will pay for the cost to replace it. As with collision coverage, the driver is responsible for meeting a certain deductible before the insurance provider begins to pay.

Collision coverage pays for the cost to repair your car in the case that your car overturns or collides with another car or other object. If your car cannot be repaid, collision coverage pays for the cost to replace your car. Before your insurance provider begins to make any payments, however, the policy holder is responsible for meeting the deductible first.

Choosing between a low deductible and a low premium is a difficult decision. A high deductible can save you money on your premium, but in the case of an accident, you will be responsible for meeting the high deductible. On the other hand, you may be paying a high premium in order to keep your deductible low and never have an accident. The best method for choosing a deductible would be to compare the options that are available then picking the plan that suits your auto insurance needs best.

Most insurance companies consider drivers under the age of 25 as high risk so insurance premiums typically cost more for individuals in this age group. However, there are a few things you can do to minimize your expenses. For example, most providers have a discount for student drivers with good academic records. The type of car you drive can also have a great affect on the price you pay for insurance. Consider insuring an older or less expensive vehicle under your teen’s name to reduce costs. Check with your provider for specific details.

In most cases, yes. Automobile insurance policies require every licensed person in your household to be listed on your insurance policy unless they have a completely separate policy of their own. This includes a teenager who recently received their license or a college student who still uses your address as their residence and/or visits regularly on weekends, vacations, etc.

There are no set rules about when you should or should not purchase life insurance. Your decision depends on your individual circumstances. However, premiums generally increase with age. If you are at risk of developing a health condition, it’s best to purchase your policy early. Also, you may want to consider purchasing a policy if you are married, have children, or are a provider in your household.

Too many consumers believe their auto insurance policy provides proper coverage for their recreational vehicle (RV). This may or may not be the case. To insure adequate coverage, an RV owner should consider purchasing a separate RV insurance policy. If the RV owner’s insurance carrier does not offer this type of RV insurance coverage, you may want to look into other carriers that specialize in RV insurance coverage.

Yes, smoking is considered a health behavior which is hazardous to one’s health. Thus, smokers are likely to pay higher premiums than nonsmokers. Before you purchase your policy, you insurance company will ask you a series of questions about your lifestyle and family history. It’s important to answer these questions accurately and honestly. Insurance companies reserve the right to void your policy if the information you provide is found to be misleading.

Insurance companies base your premium on a variety of factors including your age, current health status, lifestyle, and family history. Although we can’t do anything about changing our age or our genes, there are several ways in which to show insurance companies that you’re living a healthy lifestyle. By exercising and avoiding harmful substances like tobacco, you can decrease your payments drastically. When purchasing a policy, be aware that a lower premium does not equal a better deal. In order to ensure that you’re getting the right amount of coverage for the best price, compare policies from several companies and speak to a representative to make sure your plan is right for you.

Yes, changing the beneficiary on your policy is rather straightforward. Typically, your insurance provider will send you a formal request which is to be filled out in writing. If you previously designated an irrevocable beneficiary, you will need his or her consent before appointing a new one. In cases of divorce, your change of beneficiary request must comply with the terms of your divorce. Also, please note that all beneficiary changes must be processed by your life insurance provider. Designating a new beneficiary in your will does not override the terms of your life insurance policy.

A group life insurance policy is one in which a group of people is covered under a single contract. Group life insurance is most commonly provided as part of an employee benefits package among employers and labor unions. Because group rates are typically much lower than individual premiums, you should consider joining your employer’s group policy if one is available.

Health maintenance organizations (HMOs) and preferred provider organizations (PPOs) are two of the most common types of managed health-care systems. Before you choose between the two, it’s important to understand what makes them different. HMO subscribers must choose, from the HMO network of physician, a primary care physician who will oversee all medical inquiries and refer their patients to specialists as needed. PPO subscribers, on the other hand, are free to see either a general practitioner or a medical specialist without any referrals. Thus, PPO members have access to a greater selection of physicians in their area. Differences in payment exist between the two options as well. Unlike PPO members who must meet a certain deductible, HMO members typically provide a co-payment per visit. The better option largely depends on the specific needs of you and your family.

Yes, most health insurance policies include prescription drug coverage. Still, there may be exceptions to the rule, and you should check with your insurance company whether or not you require additional coverage. If your prescriptions are not fully covered under your current policy, you may want to ask about acquiring a supplemental prescription insurance plan.

Every now and then, people find themselves temporarily without any health coverage. Whether you’re in between jobs or waiting to join a coverage group, a short-term medical insurance plan provides temporary coverage for those awaiting to take the next big step in their lives. These short-term plans are not at comprehensive as permanent plans are, but they do cover most general health expenses and may last up to one year.

There are several reasons why someone should purchase a Long Term Care insurance policy. If you fall into any of the four categories below, you should consider purchasing a LTC policy: 1. You have a large amount of income or assets and feel you probably would not qualify for Medicaid. 2. You don't want to rely on assistance from the state or other sources such as relatives. 3. You can afford to pay the premiums. (Depending on your tax situation there may be tax benefits.) 4. You currently have health problems or have a family history of a long term illness. (Once you have a long term illness or long term disability you probably would not qualify to purchase a policy.)

Depending on your policy, you may find that a small amount of medical payments coverage from your auto insurance company is a beneficial supplement to your existing health insurance. This option provides extra coverage for medical related expenses caused by a car accident whether or not you were at fault.

If a family has more than one health insurance policy, insurance companies will need to determine which policy will provide coverage for medical expenses first. This usually affects children who are covered under both parents’ health insurance plans. According to the “birthday rule,” the parent whose birth date is earlier in the year is considered the primary policy holder. Whatever expenses are not covered by the primary policy, will be covered by the secondary policy. Exceptions to the rule exist and should be confirmed with your insurance providers.

Depending on your length of stay, you may need to acquire extra coverage before you leave the country. Generally, health insurance plans are not intended for lengthy periods of stay abroad. Although emergency treatments may be covered, coverage for most other types of care is more limited. If you plan to leave the country for an extended period of time, it’s best so ask your insurance company about your options. You may need to acquire travel insurance. Your provider will help you pick the right option based on your travel destination and length of stay.

All pet insurance companies will differ in their coverage and premium options. Some allow you to purchase a policy on your dog or cat from eight weeks to eight years; others have no maximum age limit. Annual and lifetime benefit limits vary, as well, with some companies capping coverage (one insurer has a lifetime limit of about $100,000). Deductible options run from a zero deductible to around $75 per incident. Some policies cover cancer and pre-existing conditions; others do not. Monthly premiums are usually in the $30 range, depending on the insurer.

There are a variety of methods you can employ to demonstrate to your insurance provider you’re your property is safe. Most companies will lower your premium for one or more of the following security measures: installation of a security system, dead-bolt locks, burglar alarm, monitoring services, smoke detectors, and sprinkler systems. Your premium can go down drastically depending on the technology and sophistication of the security measures you choose to install.

The answer to this question may vary depending on state and insurance provide, but the answer is likely to be no. Although you and your roommate might be sharing the same space, insurance policies are typically designed for single individuals or families. Roommates are advised to purchase separate coverage plans in order to avoid problematic situations from arising in the future.

Today, lawsuits are very commonplace. Juries are awarding huge settlements as a result of lawsuits. Homeowners, auto, and watercraft policies have a limit on liability insurance coverage. If an unfortunate accident should happen that is your fault, you may not have enough liability insurance to pay a large settlement or jury award. Therefore, everyone with assets to protect should consider an umbrella insurance policy. Umbrella insurance is designed to provide additional liability protection above and beyond the limits on homeowners, auto, and watercraft personal insurance policies. With an umbrella policy, depending on the insurance company, one can add an additional $1-$5 million in liability protection. This protection is designed to kick-in when the liability on other current policies has been exhausted.

Each company’s policy on living expenses varies. Although some policies do cover living expenses, you should check with your carrier for details. Those companies which do extended their coverage to living expenses will often cover the cost of food, lodging, moving, and storage while your house is restored. Most of these policies, however, limit both the amount of coverage and the length of coverage that is provided. In the case that you do seek reimbursement for living expenses, be sure to keep records of all your expenses to ensure that your money is returned to you promptly.

Replacement-cost coverage pays to replace your home and belongings with materials of "like kind and quality" at current prices. Actual cash-value policies reimburse the depreciated value. A replacement-cost policy will usually cost a little more. Some companies no longer offer replacement cost coverage.

Usually, homeowners who rent their property require coverage on the structure of their home rather than the content of the home. Rental property owners must also concern themselves with liability coverage and protection from loss of rental income. In such cases, special policies for rental property are available through most insurance companies who offer commercial insurance products. You can contact your insurance provider for more details.

Flood damage is not covered by most homeowners policies. A separate policy can be purchased through the National Flood Insurance Program.