Auto Insurance Questions
What
effects my insurance rates?
What discounts are available to me?
Does the type of car I drive
affect my insurance cost?
Why shouldn't I lower my liability
coverage to decrease my premiums?
Why do I need Uninsured Motorist, doesn't
everyone have to have insurance?
What coverages can I change to lower
my insurance cost?
What is the "liability"
coverage on my policy?
What exactly does Uninsured Motorist do for me?
What is "Comprehensive" or "Other Than
Collision" coverage?
What is "Collision" coverage?
What does Rental Reimbursement cover?
What is "Towing and Labor"?
What should I do if I have an accident?
What effects my insurance rates?
Age, sex, marital status and location all affect your insurance cost. How
far you drive to work also can make a big difference. But the two most
important factors are your driving record and your "financial
responsibility score". If you have no traffic violations or accidents
you will pay much less for your insurance.
Most companies now order a credit report (in addition to the driving record) for the applicant as part of the underwriting process. Studies indicate that a consumer's financial responsibility score is a good predictor of future loss experience; the higher the credit score the better the risk, thereby allowing the consumer to qualify for better rates. The insurance company (or the agent) does not receive the actual credit report and does not receive any specifics about credit information. The agent or company receives only the score and primary credit indicators.
Does
the type of car I drive affect my insurance cost?
Yes. Certain cars are more expensive to repair. As a result, these
cars are more expensive to insure. Four door cars are usually less expensive
than two door models. Sports cars and some specialty cars can also be much
more expensive. If you are shopping for a sports car or high value car, you
might want to check the insurance cost before you buy.
Why
shouldn't I lower my liability coverage to decrease my premiums?
Large lawsuits are not uncommon. If you cause an accident that
seriously injures or kills someone, and you have low liability limits, you
could be in serious trouble. You are personally responsible for any bills or
judgements a claimant receives that exceed your liability limit. It
may cost you a few dollars to increase your liability limit, but it could
save you hundreds of thousands of dollars if you have a claim.
Why
do I need Uninsured Motorist coverage, doesn't everyone have to have
insurance?
Yes it is illegal to drive a vehicle without insurance in
Ohio. But just like the law doesn't stop people from shoplifting, it
doesn't stop people from driving without insurance. Approximately 15%
of all vehicles on the road in Ohio do not have insurance. It is a
shame, because when these people have an accident they injure people and
damage vehicles, but rarely can pay any of the bills.
What
coverages can I change to lower my insurance cost?
Insurance should be used to protect you against losses that could
significantly damage you financially (like a large lawsuit). The deductible
is the amount of money you have to pay out of your own pocket if there is a
claim. We recommend high liability limits and high deductibles. Increasing
your deductible from $250 to $500 may cost you $250 if you have a claim.
Increasing you liability limit from $300,000 to $500,000 may save you
$200,000 if you are sued. Consider raising your deductible and using the
money you save to increase you liability limit.
What
is the "liability" coverage on my policy?
There are 2 types of automobile liability: Split Limits and Combined
Single Limit.
Split Limit Liability - This type of liability has a separate limit for Bodily Injury and Property Damage. Bodily Injury protects you against damages and suits which you may be liable for if you cause an accident and someone is injured or killed. Usually there is a Per Person limit and a Per Occurrence limit. A common limit is $100,000 each person, $300,000 each occurrence. This means the most the company will pay for any one person's injuries is $100,000. The most the company will pay for any one accident, regardless of how many people are injured is $300,000. If you injured someone in a accident could their medical bills be more than $100,000? It is our opinion that this limit is too low for most people.
Property Damage Liability - Covers you when someone else's property is damaged. The limit should be high enough to repair or replace several cars in case you cause a chain reaction accident or ruin a semi.
Combined Single Limit Liability - This type of liability has a single per accident limit to cover both injuries and damage to property. For example: a $300,000 combined single limit means the company would pay no more than $300,000 for all the injuries and property damaged in the accident. This is regardless of how many people are injured or how much property is damaged.
What
is "Medical Payments"?
Medical Payments covers medical treatment for you or guest in
your car that result from an auto accident. The limit is per person.
Sometimes the coverage is "excess". This means it pays only
what your health insurance does not pay (deductibles, co-payments etc.).
What
exactly does Uninsured Motorist do for me?
Uninsured Motorist pays legally collectible damages to you or a
passenger in your car for BODILY INJURY (not damage to your car) caused by a
driver who is uninsured or has less insurance than your Uninsured Motorist
limit. This limit is usually the same as your Liability limit.
Considering 15% of cars in Ohio have no insurance, and many more have very
low liability limits, this is a very important coverage.
What
is "Comprehensive" or "Other Than Collision" coverage?
Comprehensive pays for damage to your car caused by things that are
considered "beyond your control". This would include animal damage
(hitting a deer), theft, vandalism and glass breakage. It does not pay for
collision, hit and run, upset, and regular wear and tear.
What
is Collision coverage?
Collision covers damage to your car caused by collision or
upset.
What
does Rental Reimbursement cover?
This coverage pays for the cost of renting a car because your
regular car is not driveable due to a covered loss. There is
usually a maximum limit per day ($15 - $20) and a per occurrence limit ($450
- $600).
What
is "Towing and Labor"?
This coverage pays the cost of getting your car towed if it breaks
down. It will also pay for any repairs done at the "scene" of the
breakdown. There is a per incident limit, usually between $25 and $75.
What
should I do if I have an accident?
Obviously the first thing you need to do is tend to people's
injuries and get your vehicles safely out of the other vehicles. After
you have made the scene as safe as possible, you should call the
police. By calling the police everyone will have a record of what
happened. This can eliminate a lot of controversy later. Next,
be sure before you leave the scene you have the name, address and phone
number for everyone involved in the accident in any way as well as all
witnesses. This information is on police reports, but depending on
that report can delay your claim by several days. Finally, call your
agent as soon as possible or report the claim using on our auto claim form.
What discounts are available to me?
Multi Policy Discount: Most of our companies allow a 10% credit when they write both the homeowners and automobile insurance.
Multi Car Discount: If you insure more than one car, your rates are significantly reduced on each vehicle insured with the same company.
Passive Restraint Discounts: If your car is equipped with either air bags or automatic seat belts, you are allowed a discount. Some companies also allow a discount for antilock brakes. Neither of these discount are large, but every penny counts.
Anti Theft Discount: You are allowed a reduction in your comprehensive coverage premium if your car is equipped with certain types of alarm systems or disabling devices. This also is a small discount.
Good Student Discount: Students under the age of 25 with at least a "B" average can receive a significant premium discount on their automobile premium.
Higher Deductible Discounts: You have the option of a higher deductible amount for both comprehensive and collision coverage. A higher deductible could save you money.