Autmomobile Policy FAQ

Why do auto insurance premiums vary from company to company?
Coverage, coverage, coverage, all automobile insurance policies are not equal! The premium is the price an insurance company charges for coverage, many times companies advertising 'the lowest rates' are offering minimal protection. The premiums vary because the service and products vary.

What does my auto insurance policy cover?
There are basically six different types of coverages. Some may be required by law. Others are optional:

1.	Bodily injury liability, for injuries the policyholder causes to someone else.
2.	Medical payments or Personal Injury Protection (not in Virginia) for treatment of injuries to the driver and passengers of the policyholder's car.
3.	Property damage liability, for damage the policyholder causes to someone else's property.
4.	Collision, for damage to the policyholder's car from a collision.
5.	Comprehensive, for damage to the policyholder's car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft.
6.	Uninsured motorist coverage, for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.

What factors do insurance companies look at when determining eligibility for car insurance?
The make and model of the car, applicant's driving record, years of driving and the number of miles the car is driven per year, driver's age and gender, where the car is most likely to be driven and the times of day, and credit history-related information.

My friend hit a fence while driving my car. Does my friend’s car insurance cover the damage or does my car insurance cover the damage?
Your (the owner of the vehicle) auto insurance policy should cover the damage. Insurance follows the vehicle, not the driver. Also, if you drive someone else's car and they do not have insurance, you may be held liable for damages to another vehicle under your auto insurance policy.

During a storm my neighbors' tree fell on my car. What insurance policy covers the damage, his homeowners or my auto?
If your neighbors' tree falls on your car or home YOUR auto or homeowners policies respectively should respond to the damage. However, if your neighbors' were negligent in some way, they should be responsible for the damage. For example, if your neighbors knew the tree was diseased and did not remove it within a reasonable time period, they should be found liable and their policy should cover the damage.

Should I buy the optional insurance offered on a rental car?
Yes. Although your auto policy covers a rental car* as an owned car, in the event of a loss, the rental contract will hold you liable for other expenses which are not covered by your auto policy. Other expenses include the loss of rental fee during the time the vehicle is being repaired.

* Moving trucks are not covered by your auto policy

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Homeowners Policy FAQs

What losses are NOT covered under my Homeowners Insurance Policy?
Homeowners policies do not cover damage caused by:

What property is NOT covered* under my Homeowners Policy?
Unless specifically requested, property NOT covered under homeowners policy includes:

Aircraft
Animal
Business Property
Boats and Watercraft
Coin Collections *
Furs *
Firearms *
Jewelry *
Land
Motor Vehicles
Trailers
Watches *

* Homeowners policies offer limited coverage for these items. The typical limits for these items are as follows: $2000 firearms, $1000 furs, jewelry, watches, and $200 for coins.

Why is the amount of insurance I need on my home more than the real estate/property tax assessment value?
Replacement Cost. Most insurance policies value personal property and homes based on the dollar amount needed to replace your property or rebuild your home from the ground up, without deducting for depreciation. In the event of a loss, the insured will be 'made whole again' despite property depreciation, increases in construction materials, market values etc.

However, on properties with high land values, the amount of insurance is less than the real estate/ property tax value (remember: land is not covered in insurance policies).

What does personal liability insurance cover?
Homeowners policies provide broad personal liability coverage for claims made against you by others for injury to themselves or their property.

Is there anyway I can reduce the cost of my Homeowners insurance?
Yes, some companies offer discounts and or credits if your home meets certain criteria such as smoke detectors on every floor, a central fire/alarm system, gated community etc. Many companies also offer multi policy discounts to homeowners for other personal policies, such as automobile or secondary home.

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