09/23/2017

How does a Deductible work on an Auto Insurance policy? A deductible is your out of pocket expense when you file a claim for damage done to your vehicle. Examples: 1. You cause a minor accident which is your fault, and you have a $500 deductible for collision coverage on your policy. Thankfully, there were no injuries. But you caused $2000 damage to your vehicle and $2000 damage to the vehicle you hit…. Your policy’s liability coverage will pay the other driver the full $2000 to repair

09/22/2017

Should I add GAP or Total Loss Coverage to my Auto Insurance policy? For vehicles that are new or almost new, your auto insurance policy should either offer you GAP coverage or Total Loss coverage. GAP coverage and Total Loss coverage are slightly different from one another, but they are pretty much the same thing. Most auto insurance companies will usually offer one or the other…. But the bottom line is…. If your vehicle is new enough to qualify for GAP or Total Loss coverage, absolutely by

09/21/2017

How do I add a Lienholder to my auto insurance policy? Adding a lienholder to your auto insurance policy is very easy to do. All it takes is a quick phone call to your agent or auto insurance company. For those of you who are not familiar with the term lienholder, a lienholder is simply the bank or finance company that you have your car loan through. Until you pay your car off in full, they are the owners of your vehicle, and as such, they want to make sure that your vehicle is properly

09/20/2017

Is there a Grace period for paying late on an Auto Insurance policy? For those of you who are familiar with other types of insurance, and for those of you who have had the misfortune of paying late on previous due bills, this answer will probably surprise you. But the  answer to the question of " Is there a grace period on an auto insurance policy?".....  The answer is NO! Before I explain this answer, it would be easier to separate you into two categories: those of you who pay for your

09/19/2017

How does Uninsured and Under-Insured Motorist Coverage work on an Auto Insurance Policy? To best illustrate how Uninsured Motorist (UM) and Under-insured Motorist (UIM) coverage works, let me give you a couple illustrations: Let's suppose you are driving and someone runs a red light and hits you……  Normally, their liability coverage will cover you for your injuries and/or property damage. The problem is that about one in every five drivers are driving around illegally without liability

09/18/2017

What are the major factors used in calculating my auto insurance rate?       You’ve probably wondered what factors auto insurance companies use to calculate your insurance rate.  There are basically nine major factors that auto insurance companies use.  I will list each one of them and give an explanation as to how they affect your rate.        The thing you need to keep in mind, is that no two auto insurance companies prioritize or weigh these factors exactly the same.  Every company does

09/17/2017

What does Stacked vs. Unstacked on an auto insurance policy mean? The stacked vs. unstacked option refers to the Uninsured Motorist Bodily Injury (UMBI) part of an auto insurance policy. Only a few states offer the stacked option. And unfortunately, in the six state territory that I sell insurance in, only residents of Pennsylvania have this option. Ohio, Indiana, Michigan, Virginia and West Virginia don’t have it (at least not yet). The stacked option also doesn’t apply to those who only

09/16/2017

Is state minimum liability auto insurance coverage adequate? A lot of drivers save money on their auto insurance by settling for state minimum coverage on the liability part of their auto insurance. But is state minimum liability coverage enough? Answer: HELL NO! State minimum liability coverage is only adequate for minor accidents. If you cause a major accident that involves serious injuries or a lot of property damage, state minimum coverage is not going to be nearly enough. You could be

09/15/2017

Whose auto insurance pays if I borrow my neighbor’s car and wreck it? You have auto insurance and so does your neighbor… Whose auto insurance would pay if you were to borrow your neighbor’s car and cause an accident? Answer: Auto insurance always follows the vehicle, not the driver… Therefore, your neighbor’s auto insurance would pay. You would be covered under your neighbor’s policy for what is termed “permissive use”. Your neighbor’s policy would pay the other guy (the vehicle you hit) for

09/14/2017

Does shopping around for auto insurance hurt my credit score? Answer: No, it does NOT. There are some things in which shopping around for them will indeed hurt your credit score. This includes things such as loans or credit card applications.... But shopping around with multiple auto insurance companies will not affect your credit score. 92% of all auto insurance companies use credit as a rating factor to some degree, so it's a valid question... But no worries as far as shopping around for

09/14/2017

Where can I buy an out-of-state SR22 auto insurance filing?      Buying an auto insurance policy with an SR22 filing attached can sometimes be a real pain in itself!  But if you live in one state and need an SR22 auto insurance filing in another state, it becomes even more difficult.  While you can find plenty of information out there about in-state SR22 filings, there’s not much information available about out-of-state SR 22 filings.  The most frustrating part is that only a small percentage

09/13/2017

Which Auto Insurance payment plan saves me the most money? Most drivers make manual payments each month. Some visit their agent and pay cash each month. Some mail checks in each month for their payment. Others make their payment either by phone or going online and paying with a check or credit card. How you choose to make your payments doesn’t matter. It doesn’t make a difference in price of how much you pay. But what does make a difference is HOW YOU HAVE PAYMENT SET UP. Making manual monthly

09/12/2017

If given the choice, should I choose a six or twelve month auto insurance policy?      Some (not all) auto insurance companies offer you the choice between selecting a 6 month policy or a 12 month auto insurance policy. A lot of people ask me if there’s a difference, or if one is any better than the other….     The answer depends on what is on your driving record…. If you’re driving record is clean, it really doesn’t matter…. But if you have accidents, tickets or any other violations that are

09/11/2017

Which drivers should be listed on an auto insurance policy? The following drivers should be listed on an auto insurance policy: The owner of the vehicle(s). Anyone living in your household that is of driving age. Anyone not living with you that has regular access * to your vehicle. Notice that I only said drivers need to be “listed”, and not necessarily “insured to drive”…… Many companies will allow for driver exclusions for people living in your household that never drives. * Each auto

09/10/2017

What are the basic parts of an auto insurance policy? There are 5 basic parts to every auto insurance policy: 1. Liability Coverage – This is what covers you if you are at fault in an accident. Liability coverage pays the other guy if you cause injuries or property damage. 2. Uninsured/Underinsured Motorist Coverage (UM/UIM) – This is what covers you if someone hits you (and they are at fault), but they either don’t have liability insurance to cover your injuries and/or property damage, or