If I have items stolen from inside my vehicle- should I file an auto insurance claim?

Answer:  In almost all cases, the items inside your vehicle are considered your “property”, and if they are stolen, will actually have to be filed as a claim on your “property” insurance (which is generally your homeowners, condo, or renters insurance).  If you do not own the place where you live and do not consider yourself a “renter”, consider renters insurance anyways.  

If your actual vehicle is stolen, then that is obviously, an auto insurance claim.

Does my auto insurance policy automatically include getting a rental car while my car is being fixed?

Answer: No.

If you want to have access to a vehicle (rental car) to drive while your car is being fixed because of a claim, you will need to pay extra for this on your policy. 

There are also different “levels” of rental car coverage.  There is the least expensive (which will get you a small, compact car) or you can upgrade your coverage to give you an allowance of more money per day, if you need to have access to, lets say, a mini-van or SUV, while your wheels are in the shop.

There is usually a limit of how many days you will be able to use this service, depending on whether your vehicle is being replaced or repaired.

If my friend is driving my car and they get into an accident- what happens with my insurance?

Answer: When you lend someone your vehicle, you are also lending them your insurance policy.  Therefore, if your friend gets into an accident while driving your car, that accident will be covered by your policy (that’s the good news, as long as we have set you up with good coverages!).  If the driver was liable for damages that were above and beyond the coverages provided, a judge would likely find the driver to be financially responsible; not the vehicle owner.

Most people would then wonder how it would affect their rates.   The bad news is that if you do not have claim rate guards in place, your rate is likely to be impacted for the next 3 or 5 years (depending on the severity/type of the claim) until the claim falls off your “insurance history”.

The only ‘ding’ to the friend who drove the car would be if he/she got a motor vehicle ticket- which would stay in his/her driving history for 3-5 years (depending on the ticket).  That would increase their insurance price on their policy for a while.

The lesson here: be careful who you lend your vehicles too- although accidents can happen to anyone, which is why we have insurance in the first place.

Can my child still get the good student discount now that he is in college?

Answer: Absolutely! 

Most insurance companies will allow you to continue submitting those stellar transcripts (B- or equivalent for all subjects combined) up until they graduate, get married, or turn 25. 

There are also some other ways to get the “good student” or “Smart student” discounts- that are not only based on GPA, such as making the Deans List or being ranked among the upper 20% of his/her class.

Is using an independent agent better than using an agent that only sells one company?

Answer: No. They both have their advantages, and I would be leery of an agency that won’t point that out.  Independent agents can sell multiple insurance companies to you.  This can be an advantage if the agent actually submits quotes to all of them an legitimately offers you the best prices for the best coverage. 

When a company sells only one insurance company, they are specialists in that company and how ratings work, how to process, and expedite claims, and how to assist with customer service with that one company.

Therefore, both can have advantages. The most important thing is that you are working with someone you know, like, and trust.

Do credit scores affect insurance prices?

Answer: Yes, they do.  According to regulatory associations, there are many statistics that show a direct correlation between credit scores and individuals getting into accidents and cancellations due to non-payment.  Therefore, the lower your credit score, the higher your price for all of your insurance policies.

If my garage burns down and my car is in the garage- is my car covered under my homeowners insurance?

Answer: No.  Your homeowners insurance does not cover the loss of your vehicle- even though it was “in your house”.  You would need to have comprehensive coverage on your vehicle policy in order to cover this loss.

I just paid off my car loan. Will the cost of my auto insurance go down?

Answer:  Not necessarily.

Having a loan for your vehicle really doesn’t have anything to do with the cost of your auto insurance.

What having a loan does mean is that you are required to have insurance that will fix or replace your actual vehicle in addition to having liability insurance for if you damage someone else’s property or hurt someone else (their physical body) in an accident.  A finance company (bank / credit union) obviously cares whether or not there is coverage available to fix or replace your vehicle because they own part of it. 

Other than the fact that you are required to have these two coverages (which you pay for) when you have a loan- the mere fact that you have a loan won’t change anything with your prices.  The only thing it does is give you the option to remove collision and comprehensive coverages- which depending on your vehicle and situation, may or may not be a wise decision.

We just bought a car.  Will our insurance be updated automatically?

Answer: No.

There is no centralized database that talks between a dealership – a finance company – and the insurance company to add or remove vehicles from your policy. 

You will need to contact your insurance company yourself any time you want to add, remove, or swap out vehicles so that you can also confirm the different coverages that you want to have on each individual vehicle.

It is always going to be your responsibility to make sure that the correct vehicles are being insured on your policy.

We just refinanced our mortgage and/or sold our house.  Will our insurance be updated automatically?

Answer: No.

Just like there is no centralized database for auto insurance companies to talk to dealerships and auto finance companies;  there is not a centralized database for home insurance companies to talk to mortgage lenders and real estate title companies.

While there may be times that your previous mortgage company may send in a notice to the insurance company telling them that they will not be paying the insurance any longer; it is far more common that nothing will happen whatsoever – unless you (the policy holder) calls to let someone know that something has happened.

If your homeowners insurance is paid out of your mortgage escrow it is even MORE important that we know right away who your new lender is so that your bills can be sent to the correct place.  If you do not notify the insurance company that the person who pays your bills has changed and the bill gets sent to the old mortgage company it will simply not get paid.  This is a good way to find yourself without any insurance!

If you have sold your house- it is your responsibility to cancel your homeowners insurance policy within 60 days.  No one else is going to call the insurance company and cancel your homeowners insurance policy for you, so please don’t call your insurance agent and get upset with him or her if you have been paying home insurance for a home you moved out of 6 months ago if you forgot to tell them that you sold it.

What factors can affect the costs of my automobile insurance?

Answer: A number of factors can affect the cost of your auto insurance- some that you control and some that you cannot.

The type of car that you drive, whether or not you are driving it for work purposes, whether it is your daily driver, or just being taken on “Sunday drives”, your driving record, and your zip code can all affect the price of your insurance.  Your demographics will also play a part – things like whether or not you are married, how old you are, how long you have had your license, and your ability to pay your bills.