FAQs_Personal


Warning: Illegal string offset 'autoHeight' in /home/greennet/public_html/site/wp-content/plugins/accordion-shortcode/accordion-shortcode.php on line 51

Personal

What kinds of questions should I be expected to answer when I am applying for an insurance policy? Why do insurers need so much information?

When you apply for an insurance policy, you will be asked a number of questions. For example, the agent might ask you your name, age, gender, address, etc. In addition, you will be asked a number of other questions which will be used to determine how likely you are to make a claim. When an insurance company is deciding whether or not to offer automobile insurance to a potential customer, it will want to know about the person’s previous driving record, whether they have any recent accidents or tickets, and what type of car is to be insured. Insurance companies have different programs for different customers. Adults with good driving records will generally pay less for auto insurance than will a young driver with traffic tickets. In order to determine which program you qualify for, an insurance company needs basic information about you. In addition to your age, gender and driving experience, information about the vehicle you drive, and how you drive it, is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a sub-compact; and, someone who commutes 30 miles each way is more likely to be in an accident than someone who rides the bus to work and drives only on weekends.

What is liability insurance?

If you are at fault in a car accident, liability insurance pays for the damages that you cause to someone else. It does not pay for your own damages. There are two kinds of liability insurance: bodily injury and property damage. Bodily injury expenses include medical bills, rehabilitation expenses, and lost wages. Property damage expenses include the repair or replacement of any items belonging to another person that you damage or destroy. The state of Texas require minimum liability coverage of $20,000 Bodily Injury per person, $40,000 Bodily Injury per accident and $15,000 Property Damage.

Who is usually covered by automobile liability insurance?

Liability insurance usually covers the following people:

Named insured. This is the person or people named in the policy, no matter what car they are driving.

Spouse. Even if the spouse of the named insured is not named on a policy, liability insurance almost always covers him or her, unless the spouse is specifically excluded.

Other relative. This refers to anyone living in the household with the named insured who is related to the insured by blood, marriage or adoption, usually including a legal ward or foster child.

Anyone driving the insured vehicle with permission. Someone who steals the car is not covered.

Which vehicles are usually covered by liability insurance?

Liability insurance usually covers the following vehicles:

Named vehicles. An accident in a non-named vehicle is covered only if a named insured (see above) was driving.

Added vehicles. This includes any vehicle with which the named insured replaces the original named vehicle, and any additional vehicle the named insured owns during the policy period (you may be required to notify the company of the new or different vehicle within 30 days after you acquire it).

Temporary vehicles. A temporary vehicle is any vehicle, including a rental vehicle, that substitutes for an insured vehicle that is out of use because it needs repair or service, or has been destroyed.

What is uninsured or underinsured motorist coverage?

Uninsured or underinsured motorist coverage (UM coverage) pays for your injuries if you are struck by a hit-and-run driver or by someone who does not have adequate insurance — either because they have no coverage or because they do not have enough coverage — to pay for your injuries. Normally, this type of coverage is limited to bodily injury, and it will not pay for damage to your vehicle or for other types of property damage. To get that kind of coverage, you will have to add collision coverage to your policy.

Who is usually included in my uninsured/underinsured motorist coverage?

Most UM coverage will pay up to your policy’s UM limits for injuries caused to:

you or a relative who lives with you, while a driver or passenger in the vehicle named in your UM insurance policy or any other vehicle, or while a pedestrian

anyone else driving your insured vehicle with your permission, and

anyone else riding in the vehicle named in your insurance policy, or in any other vehicle you are driving but which you do not own.

What is collision coverage?

Collision coverage will pay for the repairs to your own vehicle if you are the one who is at fault in the accident. (Ideally, if the other party is at fault in the accident, their property damage liability insurance will pay for the repairs to your car.) Collision coverage is usually the most expensive type of auto insurance. Before choosing this kind of coverage, assess the value of your car to make sure it is worth the amount you will be paying in premiums. The insurance company will usually give you only the actual cash value of your car and not the amount that you will have to spend to replace your car. If you have an older car that does not have a very high actual value, it will probably not be worth it for you to carry this kind of coverage.

What is comprehensive coverage?

Comprehensive coverage pays for damage to your car that was caused by events other than a car accident. Covered events can include theft, fire, vandalism, natural disasters — even hitting a deer. Comprehensive coverage, like collision coverage, usually insures only the actual value of your car and not the replacement value. Before choosing this kind of coverage, check the value of your car. If your car has an extremely low value, paying the high premiums of comprehensive coverage may not be the most fiscally responsible thing to do.

How do I determine the actual value of my car?

The actual value of your car is the amount that your car was worth at the time that it was damaged or destroyed. Unless your car is brand new or a collector’s item, this value is usually less than the replacement value — that is, what it would cost to repair damages to your vehicle with materials of similar kind and quality. You can find the actual value of your car by going to a library or bookstore and referring to a Kelley Blue Book. You can also find the value online at the Kelley website at www.kbb.com.