Frequently Asked Questions (FAQ's)
What does liability
coverage mean?
What
does collision and comprehensive coverage mean?
My
car insurance seems expensive. How can I reduce the cost?
When
comparing homeowners policies, what should I look at other than the
limit on my house?
If
I have an office in my home, does my homeowners policy provide the
coverage I need?
What
does liability coverage mean?
What
does liability coverage mean?
Liability coverage protects you from lawsuits in the event you are
involved in an accident. This coverage provides protection even if
you are driving another person's vehicle. There are three main types
of Liability coverage:
Bodily Injury
Bodily Injury coverage is typically sold as split limits, a limit
for each passenger and an overall limit for the accident. For
example, if you elect to purchase $100,0000/$300,000 coverage, you
have the following coverage maximum payouts in the event of an
accident:
$100,000 maximum payment to any individual involved in the accident
$300,000 maximum payment for all individuals involved in the
accident.
The minimum limits for BI vary by state and it is suggested that you
purchase $100,000/$300,000 unless you are a non-standard driver that
has very expensive insurance rates. Always check with your insurance
agent about the risks associated with purchasing lower or minimum
liability limits.
Medical or Personal Injury Protection (PIP)
This coverage provides protection for medical and/or funeral costs
for you in the event of an accident. States are either Medical
states or PIP states depending on their state law. Please check with
your agent for a complete description on medical coverage and its
relation to other existing health/life coverage you may have.
Property Damage
As the name implies, property damage protects you from any damage
resulting to a person's car, or other property in the event of an
accident. For example, if you purchase $100,000 of Property Damage,
the maximum amount paid for damage to other individual's property
would be $100,000 for the accident.
Uninsured/Underinsured Motorist
Uninsured Motorist provides coverage for you in the event the other
driver does not have insurance at all. Underinsured Motorist
provides liability coverage for you in the event the other driver
does not have enough insurance coverage.
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What
does collision and comprehensive coverage mean?
What
does collision and comprehensive coverage mean?
These two coverage options provide compensation for damage inflicted
to your vehicle in the event of an accident. Collision provides
coverage in the event of an accident. Comprehensive provides
coverage in the event of car damage from other perils such as
storms, theft, and some other non-accident damage inflicted to your
car.
Comprehensive and Collision are sold with deductibles. A deductible
is the amount you pay first. After the deductible has been reached,
the insurance coverage provides payment for the additional amount of
repairs/replacement needed. A typical deductible for Comprehensive
and Collision is:
$100 Comprehensive
$250 Collision
It is very important that you consult with your agent to determine
the best coverage for you. Depending on your vehicle, age, driving
record, income and many other factors, the right coverage will vary.
Disclaimer: This information is intended to provide a brief overview
of insurance coverage, and is not a substitute for reading the
details of your insurance policy and/or consulting with an agent.
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My
car insurance seems expensive. How can I reduce the cost?
My
car insurance seems expensive. How can I reduce the cost?
Auto insurance rates in Wisconsin are actually some of the lowest in
the nation. Only 9 states have lower rates than we do. However,
there are still tools you can use to reduce your costs. A few things
to consider include:
Vehicle Choice - Premiums vary by vehicle - some
are theft targets or expensive to repair. Check the insurance rates
before you make a purchase.
Deductibles - Choosing higher comprehensive and
collision deductibles can reduce premiums.
Collision Coverage - As your vehicle ages and
the value declines, it might be a good idea to drop collision
coverage to save money.
Account Credit - Many companies provide
discounts if your home and auto are insured together.
Ride Share - If you commute, look into ride
share vans or alternatives to driving to work every day. Decreased
usage may translate into a lower rate class.
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When
comparing homeowners policies, what should I look at other than the
limit on my house?
When
comparing homeowners policies, what should I look at other than the
limit on my house?
There are many features within a homeowners policy that will make
it different than another. In addition to the limits shown on the
front of your policy (dwelling, contents, liability, etc.), you
need to dig into the policy language to see how your policy
addresses things like:
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If
I have an office in my home, does my homeowners policy provide the
coverage I need?
If
I have an office in my home, does my homeowners policy provide the
coverage I need?
Probably not, unless you address a few items specifically.
Be sure to address any business activity with your agent. There are
many gaps in both the property and liability coverage under the
homeowners policy, relative to the business. Your policy may exclude
any detached structures, such as a garage, that are used for
business purposes, including storage of materials. Contents coverage
for business personal property is usually limited to $2500 at home
or $250 away from home. Liability coverage for business activity is
generally excluded.
Many of these items, however, can be addressed by many homeowners
policies as in-home businesses become more common. Coverage for
contents, business computers and data and liability can often be
added to the homeowners policy or be provided by a companion policy.
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