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Frequently Asked Questions

Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.

  1. If I rent a car, do I need to purchase the insurance coverage from the rental company?
  2. I am buying a car from a friend or family member. Does their insurance policy cover me after I have purchased it from them?
  3. I am buying a car. Do I have automatic coverage?
  4. My mortgage payment went up and my mortgage company says it is due to my home insurance going up. Is this true?
  5. Does my credit affect my insurance rates?
  6. What is the difference between full coverage and liability only?
If I rent a car, do I need to purchase the insurance coverage from the rental company?

If you have at least 1 vehicle on the policy that carries both Collision and Comprehensive Coverage, you may not need to. These are the terms you need to look for in your contract for accident situations:    

  • You will pay the daily rental fee for the time period the rental car is not drivable or being fixed.
  • If you total the rental car, you will replace the vehicle with a new vehicle.
  • You will pay for an independent appraiser to do an assessment of the damage to the vehicle.
  • You will pay a fee for the reduced resale value of the rental vehicle from an accident.

These are all costs that will not be covered by your insurance policy. You may want to purchase the rental insurance to cover these things. If you do not have both Collision and Comprehensive coverages, then you will have to purchase the insurance.  This only applies if you are in the continental United States. If you are not in the United States, most likely you are not covered by your policy at all.  One last point, if you or your spouse will not be the only drivers, please reach out to your agent to discuss.  There is most likely some potential coverage issues (or no coverage at all) when you are not the one driving the rental car.

For personal lines, we only sell policies that will extend coverage to a car you rent when you carry collision and comprehensive coverages. However, there are some policies that will not extend to rental cars and will only cover the vehicles listed on the policy.  Make sure to contact your agent to verify if your policy will extend coverage before you pick up a rental car.  

Please also keep in mind, that if you purchase the rental agency's coverage, it will ONLY cover those listed on the contract.  So if you will have someone else drive also, make sure to list them as a driver.

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I am buying a car from a friend or family member. Does their insurance policy cover me after I have purchased it from them?
No. As soon as they have signed the title over to you, they no longer own the vehicle. You can't insure something you don't own, so their insurance policy will not cover it. You need to get it insurance before driving it.

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I am buying a car. Do I have automatic coverage?
Maybe. If you currently have an active policy, coverage will extend to a newly purchased vehicle for up to 30 days. HOWEVER, it is only the same coverage you currently have. If you do not have collision or comprehensive on your current policy, you WILL NOT have this coverage for the vehicle you are buying. It is always best to let us know right away when you buy a vehicle so we can advise you on what your options are.

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My mortgage payment went up and my mortgage company says it is due to my home insurance going up. Is this true?
Your home insurance may have gone up, however usually most of the payment change is due to your taxes going up or a miscalculation in a prior year's escrow analysis. Feel free to call or email us to review your home policy to verify you are receiving all the discounts you qualify for or to have us check for a better rates, but most of the change in your payment will not be fixed by the insurance policy.

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Does my credit affect my insurance rates?
Yes, but not your credit score. Most insurance companies take bits and pieces off of your credit to come up with an insurance score. Every company can have their own model on what it looks at off of your credit report.  For business insurance, some companies use your credit as simply a model to approve you or not to approve you.  They won't discount the rate, but if your score is too low they will not accept a policy you apply for.

We are always happy to sit down with our customers and prospective customers to discuss the areas of your credit we have found most companies look at to help you improve your insurance score.  Contact us to set up an appointment.

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What is the difference between full coverage and liability only?
Full coverage basically means that you have coverage for your vehicle along with liability coverage.  Should an accident occur, the policy will provide coverage to fix your vehicle (minus your deductible) and if you're at fault it will also cover anything you damage with your vehicle and any injuries you cause to others.  There are some exclusions that apply like you can't be in the act of a felony at the time (like speeding away from a bank robbery).  But keep in mind that full coverage does not mean all inclusive coverage.  Coverages like towing, vehicle rental and $0 glass only coverage are optional coverages that have to be purchased separately!

Liability only means you have no coverage for your vehicle.  If it is stolen, vandalized, someone hits it and takes off, something (like a tree limb) falls on it, hail damage occurs, etc. you are NOT covered!  It only covers other people not living with you.  If you're backing out of the garage and hit one of your other vehicles (this includes your spouse's or kid's vehicles), you are also not covered because you can't be held liable to yourself. 

So, if your car is getting older and the value is dropping to a point where you wouldn't mind losing your vehicle and getting nothing for it, then consider liability only.  Otherwise, you're probably still looking for full coverage.  And don't forget to ask for the optional coverages!

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