Surprising Questions Asked by Auto Insurance Companies

Surprising Questions Asked by Auto Insurance Companies

There’s a lot to take into consideration when it comes to providing accurate auto insurance quotes, and some of the questions that companies ask tend to catch people off-guard. Some of the questions may seem like they have nothing to do with auto insurance, but that’s not entirely correct. Below are some surprising, yet important, questions auto insurance companies like to ask to provide you with the most accurate quote. Question #1: Are you married? Determining insurance premiums is all about risk, and data indicates that married drivers tend to file fewer claims than unmarried ones do. Question #2: What is your zip code? This is usually one of the first questions asked by auto insurers, and it’s used as the primary basis for determining what your auto insurance premium is going to be. The reason for this is because the area in which you live has a significant impact on whether or not you’re likely to file a claim, and auto insurance companies are aware of that. Those who live in larger cities tend to file more claims, and pay higher premiums as a result, than those who live in the suburbs or in rural areas. Question #3: What do you do for a living? What a person does for a living can say a lot about them, and some occupations are correlated with filing fewer insurance claims than others. As a result, if you happen to be working in one of the fields associated with fewer claims, your insurance premium is likely to be lower. When answering questions designed to generate a quote, it’s always best to...
Renters Insurance for College Students – An Extra Layer of Protection

Renters Insurance for College Students – An Extra Layer of Protection

When heading off to college for the first time, there’s a lot to keep track of. A new area, new people, and much more responsibility. Most young people look forward to the freedom that college life brings, but their lack of real-world experience leaves them less cautious than they could be. Decades ago, a suitcase or trunk full of clothes was all one needed to take to be ready for school. Now, though, it’s common for students to bring televisions, smartphones, computers, tablets and other expensive gadgets that could (and often do) get stolen or damaged. That’s why renters insurance for college students isn’t something that should ever be overlooked. On-Campus Housing Not every college student will need renters insurance. For example, those who live in dorms or some other form of on-campus housing may be covered under their parents’ homeowners or renters insurance policy. Before a child leaves for college, speak to your insurance agent and find out if your child is covered under your existing policy. If your policy does cover children who are away at college, find out if there are any changes in coverage regarding personal belongings that are away from the policy holder’s home. Some policies reduce the amount of personal property coverage for property that’s out of the home. you’ll also want to check your policy’s limits regarding specific items. Some items, such as laptops and personal computers, have coverage limits. Off-Campus Housing For students living in off-campus housing, their parents’ insurance policy likely won’t cover any personal property they bring along. That being the case, getting their own renters insurance policy would...
How Homeowners Insurance Companies Calculate Premiums

How Homeowners Insurance Companies Calculate Premiums

When it comes to buying homeowners insurance, your premium will be based on the level of risk the company feels they are assuming when providing you with insurance. That means that for any given consumer, the same policy from the same insurer may cost more or less money depending on several things. To get the best price on your premium, it helps to start by understanding how homeowners insurance companies calculate them. The Cost of Rebuilding Your Home First, insurance companies will require information about your home to determine what it would cost to rebuild it completely. Note that the rebuilding cost and the purchasing price are not the same – they both depend on some different factors. The cost of buying the home depends on the market for similar homes in the area, as well as what a buyer is willing to pay. The cost to rebuild a home includes factors like construction costs (which can rise and fall at different periods), debris removal and rebuilding materials. Materials What your home is made of can have a significant impact on your insurance premium. Homes made from wood are softer more flammable than those made of brick, non-synthetic stucco, and stone. When your home is made of sturdy, non-flammable material, you’re less of a risk. Age of the Home The older a home, the higher the odds are that it will have inferior or degrading parts (plumbing, floor boards, insulation, etc.). That being the case, older homes are seen as more of a risk to homeowners insurance companies because of the likelihood of these inferior and/or degrading parts failing...
Three Common Myths Regarding Renters Insurance

Three Common Myths Regarding Renters Insurance

It’s pretty safe to say that insurance is all but required when someone buys a home. While it isn’t technically required by the state, most (if not all) lenders will require that a person buy insurance as a requisite for obtaining the loan. Renters insurance, though, isn’t often required by anyone, and is thus overlooked by people who rent as opposed to buy. (However, more and more landlords are requiring renters insurance for liability purposes.)  Renters insurance is a lot more useful that it may seem. Here are a few common myths involving renters insurance and the reality behind them. The Landlord is Responsible for Property Damage For the vast majority of properties, the insurance policies held by landlords cover the building itself. Once someone rents an apartment, the landlord will change their insurance policy to cover only the structure, while the tenant’s belongings are not insured. If the landlord owns appliances like dishwashers or laundry machines, and they malfunction and damage the tenant’s belongings, the landlord’s insurance will not cover those damages. Only renters insurance will reimburse you in situations like this. Renters Insurance Only Covers My Stuff If you have an accident in your apartment, such as forgetting to turn the kitchen faucet off, and water seeps into the apartment below you and damages some of their property, your renters insurance can protect you in these situations. This is known as liability coverage, and it can also cover medical or legal expenses associated with your home. If someone were to be injured in your apartment and chose to sue, your renters insurance will protect you and provide...
Does My Auto Insurance Policy Cover Car Rentals?

Does My Auto Insurance Policy Cover Car Rentals?

If you’ve ever rented a car before, you probably recall being handed a document with a bunch of car insurance options on it and thought ” wait a minute,doesn’t my auto insurance policy cover car rentals?” Suddenly, you’d wished that you spent less time fantasizing about sandy beaches and margaritas and more time reviewing your auto insurance policy. Generally, most auto insurance policies will extend all your coverage to a rental car, subject to your own deductibles.  If you elect to decline the rental dealer insurance, your comprehensive and collision insurance will cover the rental car, but if you do have an accident or other mishap that leaves the rental car inoperable, the the rental car company can require you to pay for all the damages – and loss of use of the rental car – on the spot.  This means you could be out-of-pocket for some serious bucks until your own insurance carrier settles the claim. Also, it’s a good idea to rent a car similar in value to your own.  As an example,  if you drive a recent model Toyota and rent a similar car on your vacation, your auto insurance should be adequate to cover damages. However, if you decide to rent something a little snazzier, you might want to purchase one of the rental company’s insurance options to supplement what you already have. The best-case scenario in any situation is to know before you go. Knowing if, and for how much, the auto insurance policy you own will cover a vehicle you rent can help you avoid having to buy auto insurance from the rental...
Tips to Avoid Mistakes with Workers Compensation Insurance

Tips to Avoid Mistakes with Workers Compensation Insurance

In the State of California, workers compensation insurance is mandatory for any business that has 1 or more employees (excluding sole-proprietors). So, if you’ve been running your business yourself but need to hire someone to work for you, you’re going to need to get a workers compensation policy first. Below are a few tips intended to help first-timers avoid some common mistakes when it comes to workers comp. Include the physical requirements of the job in the job description. Whether you choose to include these in an advertisement for the position or at the interview, make sure the prospective employee is informed of, and signs off on, all of the physical requirements of the job. Always address any disciplinary issues with the employee immediately (particularly if the issue has to do with how correctly the employee is executing tasks). If you fail to do so, and the employee gets hurt, it can make your workers compensation claim a lot more difficult to deal with. Report all claims immediately. Always make copies of any paperwork that an injured employee brings in, such as doctor’s notes, and forward them to your claim representative. If one or more of your employees is injured in an automobile accident that is work-related, send the claim to your workers compensation and auto insurance. When it’s work-related, workers comp. provides primary coverage and your auto insurance company will pursue recovery from the party at fault. When a previously injured employee returns, work with them to discover ways they can perform their duties while observing their medical restrictions (if any). If you’re not sure what to do,...