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What are the advantages to using an agent to purchase insurance?
By using an agent to purchase insurance, the policyholder receives more personal service. An agent with whom there is direct contact can be vital when purchasing a product and absolutely necessary when filing a claim. A local, independent agent is able to deliver quality insurance with competitive pricing and local personalized service.
What is the difference between collision physical damage coverage and comprehensive physical damage coverage?
Collision is defined as losses that occur when your automobile collides with another car or object. If you hit a car in a parking lot or while driving, the damages will be paid under your collision coverage. A comprehensive insurance policy, on the other hand, provides coverage for most other direct physical damage losses that might occur, including damage from hailstorms, theft, or vandalism.
What factors can affect the cost of my automobile insurance?
Many factors affect your auto insurance policies. Some of these factors are beyond your control, others can be influenced to lower your policy costs. The type of car, where you live, and what the car will be used for all affect the cost of your insurance. A key factor that can significantly affect your insurance costs is your driving record. Each accident, ticket, or other automobile violation will affect the cost of your insurance as the carrier will view you as a riskier driver to insure. Increasingly, an individual’s credit status will be reviewed by insurance carriers before quoting rates. Even your marital status can affect your cost of insurance. Statistics show that married people and people with strong credit ratings tend to have fewer and less costly accidents than do single people or those with poor credit histories.
What are some practical things I can do to lower my automobile insurance rates?
There are a number of things you can do to lower the cost of your automobile insurance. The easiest thing to do is ask your agent to secure several quotes for you. It is very common to find that automobile insurance can vary, by hundreds of dollars, for the same coverage on the same car. Given this, it is important that you research the options offered by several carriers and to also be sure that each offer is presenting the same coverage to you.
Another way to lower the cost of your automobile insurance is to look for any discounts for which you may qualify. For example, many insurers will offer you a discount if you insure multiple cars under the same policy, or if you have had a driver education class in the last five years. When you are purchasing a new policy, always be sure to ask the carrier’s available discount plans.
Increasing your deductible is another simple method to lower the cost of your automobile coverage. By simply raising your deductible from $250 to $500 can lower your premium a great deal. Over the long term, it is important that you keep your driving record as clean as possible so you are able to secure the best deals on insurance coverage.
What does homeowners insurance cover?
The typical homeowners policy has two main sections: Section I covers the property of the insured and Section II provides personal liability coverage for the insured. Almost anyone who owns or leases property has a need for this type of insurance. Usually, homeowners insurance is required by the lender to obtain a mortgage.
What is the difference between "actual cash value" and "replacement cost"?
Covered losses under a homeowner’s policy can be paid on either an actual cash value basis or on a replacement cost basis. When "actual cash value" is used, the policy will reimburse the homeowner to the depreciated value of the damaged property. Under the "replacement cost" coverage, the homeowner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices. It is important that you understand up front which type of replacement coverage your policy offers. If you purchase an actual cast value policy, you may not receive nearly enough reimbursement to replace your belongings.
What are some practical things I can do to lower the cost of my homeowners insurance?
There are a number of things you can do to lower the cost of your homeowners insurance. The easiest thing to do is get a comprehensive review of your policy and needs from your local agent. Like automobile coverage, it is not unusual to find quotes on homeowners insurance that vary by hundreds of dollars for the same coverage on the same home. When you shop, be careful to make sure each insurer is offering the same coverage. Another way to lower the cost of your homeowners insurance is to look for any discounts that you may qualify for. For example, many insurers will offer a discount when you place both your automobile and homeowners insurance with them. Other times, insurers offer discounts if there are deadbolt exterior locks on all your doors, or if your home has a security system. Be sure to ask us about any discounts for which you may qualify. Another easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium, sometimes by as much as five or ten percent.
How much life insurance should a person own?
The correct amount of life insurance to buy varies from person to person. The safest step is to contact your SIA agent to help determine the right amount of coverage. "Rule of thumb" suggests an amount of life insurance equal to 6 to 8 times annual earnings. However, many factors should be taken into account when determining the right amount of life insurance for you and your family. Important factors include: (1) any income sources (and amounts) other than salary/earnings, (2) whether or not you are married and, if so, what is your spouse's earning capacity, (3) the number of individuals who are financially dependent upon you, (4) the amount of death benefits payable from Social Security or from an employer-sponsored life insurance plan, (5) whether any special life insurance needs exist (e.g., mortgage repayment, education fund, estate planning need, etc.)
What about purchasing life insurance on a spouse and on children?
In certain circumstances, it may be advisable to purchase life insurance on children; generally, however, such purchases should not be made in lieu of purchasing appropriate amounts of life insurance on the family breadwinner(s). It is of utmost importance that the income-earning capacity of the primary breadwinner be fully protected, if possible, through the purchase of the required amount of life insurance. This should be done before contemplating the purchase of life insurance on children or on a non-wage-earning spouse. Life insurance on a non-wage-earning spouse is often recommended for the purpose of paying for household services lost due to this individual's death. In a dual-earning household, it is important to protect the income earning capacity of both spouses.
What are the basic steps involved in the claims process?
Each claim is unique, and therefore the claims handling process varies from claim to claim. However, there are several core steps that are involved after you report your claim to the agent. If you are involved in a situation where a claim must be filed, be aware that the insurance carrier will likely proceed through these steps before settling the claim. The length of time involved in each step can dramatically vary the length of time from reporting to settlement.
Step 1—Investigate the Claim
The claims processor will begin by collecting all needed information and gathering the facts from everyone involved in the incident. They will also review your policy to determine if coverage applies and at what limits.
Step 2—Determine Liability
After all facts have been gathered, there will be an evaluation of everything reported. If there are discrepancies between any reported information, the discrepancy will be investigated and resolved.
Step 3—Perform Inspection and Estimate Damages
This stage of the process will involve inspecting the covered vehicle or property and identifying any injuries. Estimates are prepared and a determinate is made as to whether there will be repair or replacement. In some situations, like an automobile accident, the replacement value of the vehicle is examined. If the repair cost exceeds the value of the automobile, the vehicle may be declared a total loss.
Step 4—Complete Claim Process
Once the estimates are complete and a determination of liability is made, the claims processor will finalize the paperwork and pay for, or reimburse, for the costs incurred.
What is risk management?
Risk management process of helping a business to evaluate risk, assess its potential impact, and plan the appropriate action to take in order to avoid or control risk. While it is never possible to eliminate all risks, the objective of risk management is to implement cost effective processes that reduce risks to an acceptable level, reject unacceptable risks, and transfer other risks through insurance and other means. Risk management is for businesses because preventing losses is preferable to the inconvenience and disruption caused by even a minor incident. As part of SIA’s risk management services, we help our customers identify the factors that drive insurance costs, as well as the hidden cost of reduced productivity. SIA also offers loss data analysis to highlight unforeseen loss trends and provides recommendations that can promote loss control and risk management programs.
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