Insurance Learning Center: September 2008

Monday, September 29, 2008

Auto Insurance - FAQs

Frequently Asked Questions - Auto Insurance

Question: Why do rates differ so much from company to company?

Answer: Insurance companies spend millions of dollars to research their clients, each geographic area, vehicle safety ratings and accident statistics among many other factors to determine their prices and target market. Some companies feel that they want grow specific areas of their books such as the 16-21 year old market. Others may focus more on older drivers or specific areas. Companies change discounts and rates based on what they feel their company needs in order to grow in clients and in profits. This is why companies change rates and discounts so frequently.

Question: How can I lower my insurance premium?

Answer: In many cases by adding your auto and home insurance with the same company can account for large savings.There are many different ways to lower your insurance premium. I would recommend first setting an appointment with your agent to review your policy. This should be done at least once a year. In some cases, just by evaluating your policy with you agent you may find new discounts the company offers that they did not when you started your policy. Auto insurance is very competitive from company to company and discounts change frequently.

Question: Does "Medical Coverage" on auto insurance pay if an accident is not my fault?

Answer: Yes, Medical insurance coverage on your auto insurance policy covers any of your medical expenses incurred in the event of a covered auto accident. Medical coverage will pay out according to the limit chosen at the time of policy issuance. Obviously each claim is different so it is important to consult with your claim adjuster at during the claim process.

Question: What does a claims adjuster do?

Answer: A claims adjuster's primary role is to investigate your insurance claim and evaluate your insurance policy to determine if the insurance company is liable for payment. A good way to look at your claims adjuster is as your insurance agent for your claim. A claim adjuster understands every endorsement and exclusion within your insurance policy and is a great resource for questions regarding your claim. In most cases your agent cannot directly answer legal questions regarding your claim and will forward you to your claims adjuster.

Question: What is "Uninsured Motorists Coverage"?

Answer: Uninsured Motorists Coverage is medical coverage (and property coverage in some states) for you and occupants of your vehicle if the third person involved in the accident is "At Fault" and does not have insurance coverage. Your policy, within the limits of the uninsured motorists coverage pay for medical damages to you and the occupants in your vehicle. Coverage is usually stated as 100/300. This means that the maximum that the insurance company will pay is $100,000 for any one person and $300,000 maximum for any number of occupants in your vehicle.

It is important to not that uninsured motorists coverage only pays when the accident is not your fault and the accident is the "other person's" fault.

Get a free auto insurance quote today.

Question: How will my car be assessed for value if it is a "total loss". Will I get blue book value?

Answer: Insurance companies usually do not use blue book value per say. They usually use a more comprehensive calculation method in determining the value of your vehicle should it be declared a total loss. Companies handle this differently so the payment you receive for the value of your vehicle may be more or less than what you find in the blue book.

Question: What does my "Comprehensive Deductible" cover?

Answer: First, your comprehensive deductible is the amount you are responsible to pay before the insurance company will pay for the repair or value of your vehicle damaged by a peril defined in your policy as a "comprehensive loss".

Such damage would include vandalism, hit-and-run, acts of good (a tree struck by lightning falls on your car, hail damage, etc. Your claims adjuster will determine whether a claim is filed as a comprehensive or collision claim. Their is only two ways that your claim will be classified, either comprehensive or collision.

Question: Will a comprehensive claim cause my policy premium to increase?

Answer: Maybe, this answer will vary from company to company. In most cases your policy premium will not increase due to the fact that in the case of most comprehensive claims you are not in control of the vehicle.

You may lose a discount that you were eligible for before having a comprehensive claim and this may cause your premium to increase. This is usually a small increase in most cases.

Question: Will I have to pay upfront for towing coverage services?

Answer: Maybe, assuming that you have added towing coverage to your policy; you may or may not have to pay upfront in the event of a towing claim. Some companies do not have their policy holder pay upfront. All paperwork is handled behind the scenes. Other companies will have their policy holders pay upfront, submit a receipt to their agent and issue reimbursement in the form of a check. This reimbursement check is usually mailed and takes about 15 days at the most. Please consult with your agent to determine how your insurance company will pay if you are in need of towing services.

Another way is to change specific policy attributes. Increasing your deductible will decrease your insurance premium. It is important to understand how this will affect you in the event of a claim. Simply put, if your willing to assume for of the upfront costs of an accident; the company lower your premium. Before hanging coverage on your policy it is always recommended that you consult with your insurance agent.

Question: How do I cover my after-market stereo and equipment?

Answer: In order to cover after-market products within your policy you will need to add an endorsement to your policy. Contact your agent, provide a receipt of all items and request that your agent retain a copy in your file. Adding coverage for additional equipment may increase your premium. Consult with your agent on how your policy will payout should such equipment be stolen or damaged in an accident.

Question: How does "New Car Replacement Coverage" work?

Answer: This coverage is usually only available on new cars or cars that are within 2 years old. By adding this coverage you may see an increase in coverage. This coverage would guarantee that if your car was declared a "total loss", the insurance company would pay all necessary costs to replace your car with a new one of "same kind". This may be different from company to company so it is recommended that you discuss this with your agent.

Question: How does "Accident Forgiveness" work?

Answer: Accident forgiveness is an added endorsement to your policy that allows you to have an accident, usually within 3 years of adding the endorsement, without incurring an increase in premium on your policy. Again, most companies now offer the coverage on their policies. Consult with your agent to see how they define this coverage and exactly how it works on their policy. Adding this to your policy will in most cases increase your premium.

Question: What is deductible buyback?

Answer: This again is an endorsement to your policy that lowers your deductible for every year you are accident-free. Most companies now offer this coverage on their policies. Consult with your agent to see how they define this coverage and exactly how it works on their policy. Adding this to your policy will in most cases increase your premium.

Get a free car insurance quote today.

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DISCLOSURE: All entries by QuoteFishing.com are for informational purposes only and it is always recommended that you consult with your local insurance agent as coverage, definitions and claims procedures may differ from state to state.

Workers' Compensation Insurance 101

Understanding Workers’ Compensation
By QuoteFishing.com

TOPIC OVERVIEW

Who is Eligible?
a) W2 Employee
- 1. Covered
b) 1099 Employee
- 1. Not Covered
- 2. Covered only if…
How is the cost of a policy calculated?
a) SIC Codes
b) Classification Codes
c) Price per hundred
How is an Employer covered vs. an Employee?
a) Employer Coverage
- 1. Levels of Coverage
b) Employee Coverage
- 1. Medical
- 2. Wage Compensation

1. WHO IS ELIGIBLE?

W2 Employees
This type of employee is required by law to be included in a company’s workers’ compensation policy
1099 Employees
This type of employee is not eligible for a company’s workers’ compensation policy as he/she is declared as an independent contractor. He/She may elect to purchase a separate policy as an independent business owner.
Owner, Directors, or Officers
This type of employee can be included or excluded from the policy at his/her discretion the policy inception or subsequent renewals

Important Definitions:

SIC Code
This is a unique 4-digit code given to each industry of work. No other industry will have the same code. (i.e. Insurance, Lending, Real Estate, etc) You will not need to know this as your agent will be able to look up your SIC Code in his/her system. It is important to have it just so if your are ever asked you will seem more savvy then most business owners.

You can find your SIC Code on the US Department of Labor's Website.
Classification Code (Employee class code)
This is a unique 4-digit code given to each type of duty performed by each employee. (Clerical employees will have a 8810 class code, sales will have a 9741). These codes will have a price per hundred value determined by insurance companies. The price per hundred will differ from company to company and will be a major factor in the difference in price that you receive when quoting your business with different insurance companies.

When looking at different quotes, look at the amount you are being charged per hundered line by line for each job classification.
Price per Hundred
Premuim for workers compensation policies are calculated by taking each job classification's total annual payroll and mutiplying it by the price per hundred amount calculated by the insurance company. Add all totals for each job classification, this will give you an estimated annual premium. Divide by twelve to calculate what your monthly premium would be. This is only an estimate as this equation does not include applicable insurance fees and state fees such as taxes.

2. HOW IS MY PREMIUM CALCULATED?

Figuring out your payroll by job classification

2 Clerical Employees = $80,000 in annual payroll
5 Outside Sales Employees = $300,000 in annual payroll
-Total annual payroll = $580,000 in payroll

Figuring out the job classification price per hundred

Clerical - class code 8810 = $0.50 per hundred
Sales - class code 9741 = $1.00 per hundred

Calculating the Premium - Full Example

2 Clerical Employees = $80,000 in payroll
5 Outside Sales Employees = $300,000 in payroll
->Total payroll = $580,000 in payroll

Clerical employees = $400.00 (80K multiplied by $0.50)
Sales employees = $3,000.00 (300K multiplied by $1.00)
--------------------------------------------------------------
-> Total Annual Premium = $3,400.00
->Monthly Premium = $283.00

3. COVERAGE: EMPLOYER vs EMPLOYEE

Employer
The employer portion of the policy is designed to protect the employer from lawsuits arising from its employees due to negligence on the part of the employer.

3 –Levels of Coverage
- $100,000/$100,000/$100,000

a) Definition of each Coverage Level:
- $100,000 in coverage for injury by accident – each accident max
- $100,000 in coverage for injury by disease – each employee
- $100,000 in coverage for injury by disease – policy limit

NOTE: It is important to note that you can increase these limits to different combination amounts. The maximum limits are usually $1 Million/$1 Million/$1 million. These limits may vary from state to state.

Employee
The employee portion of the policy is designed to protect the employee when injured and compensate such employee for any lost wages when he/she cannot perform the duties that he/she was hired to perform. Compensation is calculated differently for each state so we recommend that you either call your state's workers' compensation division or your agent to discuss the exact amount of compensation your state has designated for loss of wage compensation.

a) Medical Coverage
- 1. Medical benefits are unlimited
- 2. Chiropractic services must be pre-approved

b) Wage Compensation
- 1. Usually around 50% of current pay
- 2. Maximum is usually around $ 3,240 per month but varies from State to State

Experience Modification Rating

It is important to first state that your company's experience modification rate only applies to your workers' compensation policy. In simple terms, your "Experience Mod" compares your workers’ compensation claims experience to other employers of similar size operating in the same type of business. If you have less claims than other companies of the same size and industry you will receive a higher Experience Mod ratio. This ratio is used against your annual premium and results as a discount. Experienced companies that monitor their workers' compensation premium understand and utilize their Experience Mod annually.

Understanding your experience modification rating and monitoring it regularly is key in reducing your Workers’ Compensation costs. It is also an excellent measure of how your loss prevention and control practices stack up to others in your industry. Companies who effectively manage their Safety Programs not only understand how this works but also have assigned someone to monitor this on a regular basis. It has a direct correlation to how much you pay in Workers’ Compensation Premiums. For information click here to see our Experience Modification post.

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Sunday, September 28, 2008

QuoteFishing.com

What is QuoteFishing.com?

Quotefishing.com is an insurance quoting tool that allows consumers to complete one insurance quote request form and receive quotes from different top rated insurance companies which compete for your business. It serves as a time and money saving tool which replaces the reduncy of having to call mulitple agents from multiple companies and give out your information over and over to receive the best quote that best serves your insurance needs.

QuoteFishing.com offers various educational and industry specific tools in order to educate consumers on policy definitions and coverage options. Thus allowing our visitors to make a more educated decision when purchasing insurance products.

As products and coverage on existing insurance policies change to keep up with the ever-changing insurance markets, QuoteFishing.com strives to keep visitors up to date on all of the new and existing insurance products, coverage definitions and optional policy coverage.

For a free insurance quote, please visit QuoteFishing.com

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Glass Coverage - Optional Auto Insurance Coverage

What is Optional Glass Coverage?

Glass coverage is an auto insurance policy option that you may add at the time of policy issuance or at anytime during your policy period. This policy attribute must be added prior to submitting a glass claim on your policy.

Insurance companies recognized that claims for glass only damage usually fall below your deductible. By adding glass coverage your policy deductible is reduced to a lower amount (usually $100) or waived completely when you submit a glass only claim. Such glass claims would include a chip in your windshield, broken glass due to vandalism, and other scenarios where the only damage to your vehicle is glass only.

NOTE: In most cases, by adding glass coverage to your policy, your deductible is waived when a claim is submitted for glass only damage to your vehicle.

It is important to note that by adding this additional coverage to your policy may result in a small increase to your policy premium. This increase usually will result from $5-$15 per month per policy.

It is important to consult with your auto insurance agent to determine the coverage offered and the amount it would cost to add this coverage to your auto insurance policy.

Get a free auto insurance quote today.

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Friday, September 26, 2008

Landlord Policy

What is a Landlord Policy?

A Landlord policy (also known as a non-owner investment property policy) is a homeowner policy with unique coverage to protect properties in which the owner does not occupy the dwelling. A landlord policy is specifically designed for specified risks and perils that affect a landlord differently from a traditional owner-occupied homeowner.

NOTE: It is important to understand that by default your landlord policy will not extend coverage for damage caused by natural flood damage. This would mean that if there is a severe rain storm which causes your property to flood, no coverage would be allotted unless added as an endorsement or separate flood policy. Some states may have an exception to this rule.

If however, as severe storm caused a tree to fall on your roof and the hole in the roof caused your property to flood, this most likely would be covered under your policy. Each policy and company is different on how they define flood and pay coverage.

Landlord policies have lower coverage limits in some areas such as personal property, as the only items that need coverage would be such items as a refrigerator, washer, dryer, stove, etc. This is an apparent difference between landlord and traditional homeowners insurance. A large coverage limit on personal property is not necessary, as the owner will not be storing his/her clothing, furniture and other items in a home that they will most likely rent to others.

These policies are crucial in the event that either the owner or tenant is liable for any negligence causing bodily injury or property damage to others. A very important difference between homeowners and landlord policies is that a landlord policy provides protection against lawsuits arising from both the tenant against the policyowner and other third parties that may submit a claim against the policyowner.

Example: The tenant makes the property owner aware of risks within the property premise that may cause harm or damage to occupants or visitors to the property. The property owner does not take necessary measures to remedy or assess the risk brought to his/her attention. Following making the owner aware, a person is hurt directly from the risk that was brought to the owner’s attention. The incident subsequently results in a lawsuit against the owner of the property.

Another key policy attribute of a Landlord Policy is its "loss of rents" coverage. Similar to “Loss of Use” coverage on a homeowners policy; the loss of rents coverage would reimburse a landlord (or policyowner) with loss of rental income incurred due to a covered loss where the tenant must move out of the property while it is repaired or rebuilt. The traditional Loss of Rents coverage would be a stated dollar amount maximum and 12 months time span. This has now been replaced with “Actual Loss Sustained” or 100% of all loss of rents during the repair or rebuild period.

I have detailed coverage below to illustrate the most common type of coverage a landlord policy would include.

I will start by defining actual cash value, replacement cost and extended replacement costs as these are very important landlord insurance policy attributes. You will have to determine which of these your policy falls into. It is important to understand that you can usually change between the three by calling your agent and updating your policy. All changes must be completed prior to a claim on your policy as this change will affect the payout of your claim significantly. The most common coverage type is extended replacement Cost.

Actual Cash Value – Is the value of your home minus a deduction for age, wear and tear and other factors

Replacement Cost – This coverage type pays for loss to your home on a replacement cost basis up to the coverage limit you choose. This would mean, if you have $250,000 dwelling coverage, this is the max that the insurance company will pay. No depreciated value. Coverage is given up to the policy limit on your policy’s declaration page.

Extended Replacement Cost – This coverage type pays for loss to your home on an extended replacement cost basis up to the coverage limit you choose plus 25% to 200% additional coverage for increases in construction costs or other factors. This would mean, if you have $250,000 dwelling coverage, The insurance company would allow an additional 25% to 200% in coverage to repair or replace your home.

I have detailed the common homeowners insurance policy coverage below:

Dwelling Coverage – This is the limit that the insurance company would pay to replace your home in the event of a covered loss. It is usually calculated based your home’s information such as sq. footage, roof type, flooring type, and other factors to generate the value needed to replace your home should it be damaged due to a covered peril.

Separate Structures – This is the limit the insurance company would pay to repair or replace any separate structures in the event of a covered loss. Separate structures include a shed, separated garage, gazebo, etc.

Personal Property – This limit is the maximum the company would pay to replace any of your personal items such as a refrigerator, washer or dryer in the event of a covered loss.

NOTE: It is important to know whether your personal items are covered under actual cash value or replacement costs. Actual Cash Value will pay at the depreciated value and replacement cost will pay the amount necessary to replace the item with an exact or like kind.

Loss of Rents - This is the limit the insurance company would reimburse a landlord (or policyowner) for loss of rent income incurred due to a covered loss where the tenant must move out of the property while it is repaired or rebuilt. The traditional Loss of Rents coverage would be a stated dollar amount maximum and 12 months time span. This has now been replaced with “Actual Loss Sustained” or 100% of all loss of rents during the repair or rebuild period.

Personal Liability - This is the limit the insurance company when you are legally obligated to pay for damages to property or others resulting from negligence on your part. Your personal liability coverage also includes coverage for expenses such as attorney fees, court costs, investigator fees and witness charges when defending you in court. In most cases they will pay you for your time off of work when you are asked to appear in court. All policies handle this differently so it is important to consult with your agent to have a clear definition of how your policy covers personal liability.

NOTE: All policies handle this differently so it is important to consult with your agent to have a clear definition of how your policy covers personal liability.

Medical Coverage – This is the limit the insurance company would pay for any monies incurred by any non-household member for bodily injury on your premises. This is basically a medical aid to others should they have a bodily injury at your residence such as a slip and fall, etc.

Building Ordinance - This is the limit the insurance company would pay for the extra expense of rebuilding to comply with ordinances or laws, often building codes, that did not exist when the building was originally built.

Deducible - Your deductible amount is the amount of money you are responsible for as the insured before the insurance company begins payment.

What additional coverage can I add?

These are just a few additional options that may or may not be available with your policy. It is always important to consult with your agent to find out all of your options so that you may make the most educated decision on which fit your needs best.

Increase Extended Replacement Coverage on dwelling amount
Add Replacement Cost on Personal Property Coverage
Add Identity Theft Coverage
Add Flood Coverage
Add a Personal Umbrella

Discounts:

These are a few discounts that your policy may offer. It is always recommended that you consult with your agents to see which of these may apply to your policy.

New Home Discounts – For New homes built within the last 5 yrs
Gate Community Discount
Security System Discount
Good Credit Discount

Payment Options:

Your Homeowners Insurance Policy has a few different payment options.

Annual
Semi-Annual
Monthly

Recommendations:

These are a few recommendations we have regarding your homeowners insurance.

Review your policy annually with your insurance agent.
Discuss the need for a Personal Umbrella Policy with your agent.

Get a free Homeowners Insurance quote today.

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Thursday, September 25, 2008

Identity Theft Coverage

What is Identity Theft Coverage?

Due to the increase of internet transactions, lack of document shredding and trustworthiness of individuals, Identity theft is the fastest growing crime in the U.S. The Federal Trade Commission estimates that as many as 9 million Americans have their identities stolen each year.

What is Identity Theft? Identity theft occurs when someone uses your personally identifying information, like your name, social security number, or credit card number, without your permission, to commit fraud or other crimes.

Insurance companies have now recognized the importance of this growing crime and have added coverage to protect their clients under the normal homeowners insurance policy. This coverage is not added by default and which means you must call your agent to have it added on. I have found that adding this coverage to your homeowners insurance policy is sometimes less expensive than using a third party company. Prices range from $25 - $75 when adding identity theft coverage to your homeowners insurance policy and between $96 to $179 when using third party companies. The identity theft coverage added to a homeowners insurance policy is usually broader in form. This coverage varies from company to company so it is important to evaluate each company and the coverage each offers in order to make the most educated decision. We recommend consulting with your agent to determine all of your options regarding identity theft coverage.

Such coverage may include:

Expense Reimbursement
Paid Loss Reimbursement
Thrid-Party Claims Management
Credit Monitoring
Credit Alerts & Freezes
Public Records Monitoring
Travel Document Replacement
Disaster Document Replacement

It is important to contact your agent to see which if not all coverage types are covered should you add coverage to your policy. You should also ask your insurance agent how many individuals are covered under the added coverage as this varies from company to company. This may range from only one person to your entire family living in your household.

A good resource for extensive information on identity theft is the FTC website which lists extensive information regarding identity theft and all of the actions that should be taken if you are a victim of identity theft. I have listed a few links below:

FTC Website
About Identity Theft
What to do if your identity is stolen?
Tools for Victims

Get a free homeowners insurance quote today.

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Monday, September 15, 2008

Auto Insurance 101

What is auto insurance?

Auto insurance provides property damage coverage in the event that your vehicle is damaged, stolen, vandalized, as well as many other scenarios. Your liability coverage is extremely important in protecting others on the road and as well as all of the assets you have worked so very hard to earn. Bodily Injury, which is part of your liability coverage will cover medical expenses for the other driver in the event that an accident is your fault up to your policy limits. The core elements of an auto insurance policy remain the same regardless of company or policy. Many companies provide additional coverage and discounts that may differ from each other in order to stay competitive in this ever-changing market. Understanding how your policy protects you, your vehicle, and your assets is critical in the event of a claim.

How am I covered?
I have detailed and explained the core auto insurance coverage that is the same in every policy.

Liability Coverage – Provides coverage for the other driver in the event of an accident that our are deemed at fault.
Bodily Injury – Medical damage payable to others when an accident is your fault. It is usually stated in two parts.

Ie. 50/100 – This means that your policy in the event of a claim would reimburse the other party at $50K per person & 100K per accident regardless of the number of people in the other vehicle for their medical expenses due to the accident.

Property Damage – This would cover any damages you have caused to another person’s vehicle or property.
Uninsured/Underinsured Motorist – Uninsured Motorists would cover your medical expenses in the event the other driver at fault is not insured. Underinsured Motorist would add medical coverage to your existing medical amount in the event the other driver at fault does not have sufficient liability coverage to cover your medical expenses up to the limits of your policy. It is usually stated in two parts.

Medical – This is the maximum amount of medical coverage your policy would pay out in the event of an accident whether or not you are at fault.

NOTE: It is important to understand that medical expense coverage on your auto insurance is not designed to replace a health insurance policy. It is designed to assist you with any out-of-pocket costs you may incur from your health insurance policy. Such as your out-of-pocket maximum deductible in your health insurance policy. This coverage usually comes in increments of $1K, $2K, 5K, 10K, etc.

Comprehensive – Provides coverage for damage to your vehicle when it is not being driven. Such as theft, vandalism, acts of god, etc. Your deductible would apply to damages from a comprehensive when there is no other person or policy to claim against. Such as a hit and run.
Collision – Provides coverage for damage to your vehicle in the event that you collide with another vehicle, property, etc. Your deductible would apply to damages from a collision accident if you are at Fault.
Towing – Provides towing service for your vehicle. In most cases you will need to pay up front and submit the receipt to your agent for reimbursement. May differ from company to company. Speak to your agent for details.
Rental Car Coverage – Provides you with a rental car while your vehicle is in the shop for any covered loss. Companies usually have different levels of coverage from which you may choose. May differ from company to company. Speak to your agent for details.

What additional coverage can I add?
These are just a few additional options that may or may not be available with your policy. It is always important to consult with your agent to find out all of your options so that you may make the most educated decision on which fit your needs best.

Glass Coverage
In the event that you have a glass claim, your policy deductible would be reduced to a lower limit. Consult your agent for details.
Deductible Buyback
For additional premium, in the event that you have an accident, your policy deductible would be reduced or waived. Consult your agent for details.
Accident Forgiveness
In the event that you have accident, your policy premium would not be increased. Consult your agent for details.
Additional Equipment
Additional coverage for rims, tires, stereo equipment, etc.
New Car Replacement
In the event that your car is involved in an accident and is deemed a total loss, the insurance company would pay the necessary cost to replace your car with a new vehicle. Consult your agent for details.
Residual Debt Coverage
Also known as “gap coverage” would pay the amount you owe on your vehicle to your bank, above what the insurance company determines the value of your vehicle.

Discounts:
These are a few discounts that your policy may offer. It is always recommended that you consult with your agents to see which of these may apply to your policy.

Multi-Policy Discount
When insuring your autos and your home with the same insurance company. Adding more than one policy with the same insurance company
Multi-Car Discount
When insuring more than one vehicle with the same company.
Good Credit Discount
Apply to applicants with an above normal credit rating.

Payment Options:
Your Auto Insurance Policy has a few different payment options.

Annual
Semi-Annual
Monthly

Recommendations:
These are a few recommendations we have regarding your auto insurance.

Review your policy annually with your insurance agent.
Discuss the need for a Personal Umbrella Policy with your agent.

Get a free auto insurance quote today.

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Sunday, September 7, 2008

Auto Insurance Policy - Glossary

Auto Insurance Policy - Glossary

We have listed the most common auto insurance policy terms and coverage definitions below. We hope that this serves as useful for your educational needs.

Accident Forgiveness - In the event that you have accident, your policy premium would not be increased. Consult your agent for details.

Additional Equipment - Additional coverage for rims, tires, stereo equipment, etc.

Bodily Injury – Medical damage payable to others when an accident is your fault. It is usually stated in two parts.

Collision – Provides coverage for damage to your vehicle in the event that you collide with another vehicle, property, etc. Your deductible would apply to damages from a collision accident if you are at Fault.

Comprehensive – Provides coverage for damage to your vehicle when it is not being driven. Such as theft, vandalism, acts of god, etc. Your deductible would apply to damages from a comprehensive when there is no other person or policy to claim against. Such as a hit and run.

Deducible - Your deductible amount is the amount of money you are responsible for as the insured before the insurance company begins payment.

Deductible Buyback – For additional premium, in the event that you have an accident, your policy deductible would be reduced or waived. Consult your agent for details.

Glass Coverage – In the event that you have a glass claim, your policy deductible would be reduced to a lower limit. Consult your agent for details.

Good Credit Discount – Discount given to insured’s with an above average credit rating.

Medical – This is the maximum amount of medical coverage your policy would pay out in the event of an accident whether or not you are at fault.

Multi-Car Discount – When insuring more than one vehicle with the same company.

Multi-Policy Discount – When insuring your autos and your home with the same company.

New Car Replacement – In the event that your car is involved in an accident and is deemed a total loss, the insurance company would pay the necessary cost to replace your car with a new vehicle. Consult your agent for details.

Property Damage – This would cover any damages you have caused to another person’s vehicle or property.

Rental Car Coverage – Provides you with a rental car while your vehicle is in the shop for any covered loss. Companies usually have different levels of coverage from which you may choose. May differ from company to company. Speak to your agent for details.

Residual Debt Coverage – Also known as “gap coverage” would pay the amount you owe on your vehicle to your bank, above what the insurance company determines the value of your vehicle.

Towing – Provides towing service for your vehicle. In most cases you will need to pay up front and submit the receipt to your agent for reimbursement. May differ from company to company. Speak to your agent for details.

Uninsured/Underinsured Motorist – Uninsured Motorists would cover your medical expenses in the event the other driver at fault is not insured. Underinsured Motorist would add medical coverage to your existing medical amount in the event the other driver at fault does not have sufficient liability coverage to cover your medical expenses up to the limits of your policy. It is usually stated in two parts.