Here are some common automobile and homeowners insurance frequently asked questions.
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; in fact, it is very important that you consult with your agent to determine the best coverage for you.
As with homeowners insurance, for example, depending upon the age, size and property type, the cost of insurance coverage will vary. Or as with an auto insurance, the age and type of vehicle, your age, driving record, and income, along with many other factors help to determine the right coverage for you and again, the cost of coverage will vary based on these many factors.
Insurance Company Ratings
What does it mean to be a top-rated U.S. Auto Insurance Carrier?
Who are some highly rated insurers in Wisconsin? . . . In the US?
An automobile insurance company may be considered highly rated by taking into consideration factors such as:
•Financial stability
•Competetiveness
•Admitted in Wisconsin or admitted in the United States
Richards Insurance Agency allows consumers to comparison shop highly rated companies throughout the state of Wisconsin and throughout the nation. By answering a set of questions and submitting an online or over-the-phone application, your information is electronically entered into various highly rated insurance company's rating systems which returns real-time quotes from multiple top online auto insurance companies such as Progressive, IMT Group/Wadena, Erie, Sheboygan Falls, All-Star Mutual and more.
One of the important benefits of being an independent insurance agent and our economy of scale is the availability of choices. There are multiple choices for anything imaginable from types of products to different brands. What this creates is a broad selection for each item which gives consumers a whole picture of availability and provides the luxury of finding not only the right product, but the best product at the best price.
Like shopping for and purchasing a car or any other tangible asset, a consumer may wonder what makes one choice better than another? Most consumers look at descriptions and product details such as features and benefits to find which product is better and this same concept can be applied to shopping for insurance.
Where insurers often have many different specifications and requirements, how can a consumer go about finding which carrier is the right choice for them? A good way to start is by looking at a company’s rating. Carriers are rated by third party organizations based on financial strengths and the ability to sustain stability during times of need to their policyholders.
Insurance company ratings are straightforward and fairly simple, with companies having an “A” or better rating, generally being more stable and the better insurance companies.
Tickets in another State
All States as of 2005 are Required through New Federal Regulation to comply with and make available to all other states reciprocal driver records. It Is not a matter of a ticket needing to be reported to your state anymore. The computer reports you. If the infraction occurred then the information is entered into the newly integrated drivers record databases.
The old days of leaving tickets behind in another state are gone. Information travels at the speed of light.
The reciprocal requirement extends to all states being able to automatically suspend or deny a drivers license in any other state without need of request until such time as the originating jurisdictions suspension or violation requirements have been satisfied.
If the ticket isn't too high you're best bet is to just pay it quickly so you don't wind up taking a trip and hiring an attorney trying to get a Suspended License reinstated. If the ticket defaults, your drivers license can now be suspended regardless of which state your licensed in. An unsatisfied traffic judgement in one state can prompt an automatic suspension in another.
What is the benefit of going through an Independent Insurance Agent or Independent Insurance Agency?
Although PROGRESSIVE™ Insurance is a very well known and well-respected insurance company and one of Richards Independent Insurance Agency's many reputable insurers, PROGRESSIVE™ Insurance is not always a perfect match for every customer. For example, if you apply for insurance through the PROGRESSIVE™ link on the left, Richards Insurance Agency will also take the time, effort, uncertainty and stress out of checking the insurance rates and benefits that are available through several other insurance carriers for you.
Why not give Richards Insurance Agency a try and request a FREE insurance rate quote? Simply enter your zip code into the PROGRESSIVE™ Insurance box at your left to begin your FREE multiple insurer rate quote now.
Richards Insurance Agency, LLC represents many reputable Insurance Companies. In addition, Richards Insurance Agency aligns itself with some of the top-rated insurance carriers in the industry.
What is liability coverage?
Why do I have to have it and what does it mean?
Liability coverage simply 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 in the State of Wisconsin is $25,000/$50,000.
Always consult with your insurance agent about the risks associated with purchasing minimum limits.
Medical Payments
This coverage provides protection for medical and/or funeral costs for you in the event of an accident. 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.
What is Collision and Comprehensive Coverage?
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 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.
My Care Insurance Is Too Expensive. How Can I Reduce My Costs?
Auto insurance rates in Wisconsin are actually some of the lowest in the nation. Only 9 states have lower rates than Wisconsin does. However, there are still things you can do to reduce your insurance costs.
A few things to consider include are:
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.
When Comparing Homeowners Insurance Policies, What Should I Look At Other Than The Limit On My Realestate Property?
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 or contact a qualified Richards Insurance Agent to see how your policy addresses things like:
Backup of Sewer or Drains - the basic homeowners policy does not cover this, but many offer it as an option or enhancement.
Wind damage to trees - if you have a tree blown down on your home, most policies will pay for the cost to remove it. However, if the tree is just downed in the yard, some policies will cover the removal - others will not.
Cost to Replace your Home - Virtually all homeowners policies provide replacement cost coverage (not depreciated) up to the home value shown on the policy. What if your cost to rebuild exceeds that limit? Many companies offer endorsements to allow some "excess coverage" to allow for situations where the cost to rebuild exceeds the home value shown. While you should try to insure at the full cost to rebuild, these endorsements take the burden off of you to make sure that you are aware of every change in building costs over time.
If I Have A Business Office In My Home, Does My Homeowners Insurance 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.
FAQ's related to Implementation of Act 28 Auto Insurance changes.
Auto Insurance is Required in Wisconsin
Auto insurance law changes are complex and have deadlines
Requirements for Wisconsin automobile insurance change Nov. 1, and by June 2010 every Wisconsin driver will be required to have liability insurance.
The new mandates were approved by the Legislature and signed into law in June by Gov. Jim Doyle as part of the state budget.
Andrew J. Franken, president of the Wisconsin Insurance Alliance, answered questions about the changes:
Q: What changes take effect Nov. 1?
A: Several things.
-- Underinsured motorist coverage becomes mandatory. Motorists must carry coverage of $100,000 per person and $300,000 per accident. This covers you if you are hurt by another motorist who doesn't have enough insurance.
-- Minimum uninsured motorist coverage increases to $100,000 per person and $300,000 per accident. The minimums now are $25,000 and $50,000.
-- Minimum medical coverage increases to $10,000 from $1,000. Consumers must provide a written rejection for this higher level of coverage if they don't want it or cannot afford it.
-- For umbrella liability policies, insurers will be required to provide written offers of uninsured and underinsured coverage. Previously, no written offer was required.
An umbrella policy provides broad coverage for liability above and beyond the liability limits covered by an underlying auto insurance policy.
For umbrella policies already in effect that do not include uninsured or underinsured motorist coverage, insurers must provide the written offer at the time of first renewal.
Q: How do people know if these changes affect them?
A: I encourage people to contact an insurance agent to review their own needs and be prepared before the new laws take effect.
Q: What other auto insurance consumer changes are taking place and when?
A: Beginning Jan. 1, 2010, the liability insurance minimum increases to $50,000 for bodily injury or death of one person, $100,000 for bodily injury or death of two or more people and $15,000 for property damage. The minimum now is $25,000/$50,000.
Beginning June 1, 2010, minimum liability coverage will be mandatory and drivers will need to have proof of this insurance with them when driving.
Q: What will be the impact of these new regulations?
A: Higher auto insurance costs for everyone. The increases will vary from person to person. Some people who already have the coverage they need to comply with the new laws may be affected less. Those who are not insured or who have the minimum limits of insurance today will see a more significant impact on the cost for their auto insurance.
Why Do I Need A Personal Umbrella Policy?
It makes sense that the more you own, the more risk you have, and the more you stand to lose in the case of a lawsuit. In today’s legal world, you stand even greater risk than ever before of being named in a large lawsuit, and your auto or personal liability limits may not be enough coverage for what a jury may award someone who sues you. In the event that you do not have enough coverage, a legal judgment may take away not only your savings or your property, but even your future earnings.
Automobile Insurance
Q: Do I need to purchase insurance when I rent a car?
A: Your auto policy responds to all your insurance needs with the car rental because it is viewed as a “replacement” vehicle under your auto policy. That also includes the deductible you have with collision, and, other than collision. The rental insurance waves the deductible so you have no out of pocket expense. It’s important to weigh this value against what the rental company will charge you for this benefit. Keep in mind that if you DO NOT carry Physical Damage Coverage (Collision and Comprehensive), your policy will not cover the physical loss to the rental car.
Q: What happens if I have an accident?
A: If you have a accident, it’s important to obtain information on the other party involved from their insurance card (ID card). This includes insurance company name, phone number and policy number. If the police respond, ask when the police report will be available for pickup.
Q: What is Gap insurance, and do I need it?
A: This applies to leased vehicles and represents the difference in amount of the lease value and the vehicle value when a claim is submitted. There are factors involved, including down payments, interest rates, length of lease, etc. The Gap insurance pays the difference to you and/or the leasing company.
Homeowners Insurance
Q: Why do I need Renters insurance?
A: Renter’s insurance protects all personal property you own while a tenant, and will reimburse you for loss due to fire, robbery, burglary. Plus, policies also cover:
•Additional living expenses for motel during repairs
•Medical payments to others if injured while in your apartment
•Personal liability due to a lawsuit not related to your work or profession
Q: Should I have “Replacement Cost” coverage on my home?
A: Yes, because there is much better coverage under your homeowners policy with this endorsement. The company must cover the full value of the property in case of a loss. Otherwise, the company would pay only the face amount of the policy and that amount may be lower than the cost to rebuild your home due to inflation costs.
Financial Services
Q: Does it pay to obtain mortgage Life insurance?
A: Yes. The cost is very modest compared to the benefit received. It gives you peace of mind in knowing that if you are not around, due to natural or accidental death, your home would be paid off in full.
Q: Do I need life insurance if I created a Trust Fund?
A: It is in your best interest to have life insurance because it provides the most liquid assets you will have available to you for financial planning, and help meet the immediate needs that arise at death.
Auto Insurance Required for Learners Permit
Yes, you can. A Drivers or Learners "Permit" is permission to drive and therefore a temporary license with certain restrictions.
You can obtain your own auto insurance or you can be covered under someone else's policy such as your parents or the vehicle owners policy, but you must have coverage.
A Drivers Permit comes with all the responsibilities of anyone licensed or not who operates a motor vehicle on public roads, including our financial responsibility.
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