F.A.Q
General
Why do we have insurance?
Insurance policies primarily do two things; protect our property in the event of a loss and protect our assets from lawsuits in the event we are held liable. Insurance helps us remain financially whole in the event of a catastrophic loss, such as our home burning down. Insurance can also be required. In terms of auto insurance, it is state law to at least have liability coverage to operate an automobile on public roads. If you finance a home, all home lenders require proof of home insurance or they force insurance on you typically at higher premiums.
What is an insurance contract?
Who is a named insured?
A named insured is the listed person, firm, or organization in the insurance policy that coverage is extended to. The named insured is allowed to make changes to the insurance policy.
What makes an insurance carrier better than another?
Is all insurance are created equal?
Auto
What does full auto coverage mean?
Saying you are fully covered does not give a full picture of your auto coverage. Fully covered only means you at least have the state minimum liability requirements, and comprehensive and collision coverage. You could be fully covered and still have deficient liability coverages to your personal situation. Consumers should consider their total assets that they are trying to protect when considering their liability coverage.
Do all drivers in a household have to be listed on an auto policy?
In short, the answer is yes. All members of a household who are of legal driving age need to be listed on the policy. Insurance is a risk-based business, and they assume everyone has equal access to all vehicles. If you fail to disclose a driver in the household it is possible the insurance carrier will not provide coverage in the event of a loss or cancel your policy. It is best practice to list all drivers or specifically exclude certain drivers on your policy.
When does your bodily injury coverage apply?
Your bodily injury coverage applies when you are at fault in an accident and cause bodily injury to someone else. The insurance company will provide coverage up to your per person and per accident limit.
What does your property damage cover?
Your property damage coverage applies when you are at fault in an accident and cause property damage to someone else’s vehicle or other type of property such as a building. The insurance company will provide coverage up to your liability limit per accident.
Should you have uninsured motorist coverage?
Although uninsured motorist coverage is not mandatory, all consumers should consider purchasing it. In California 15% of all drivers are not insured and even higher are underinsured. Uninsured/underinsured motorist coverage will pick up the additional cost to pay for your property damage and medical expenses in the event the person at fault does not have enough liability coverage.
If I rent a car does my personal auto insurance cover me?
Yes! Your liability coverages extend to other vehicles you borrow in the event you are at fault in an accident.
What does your property damage cover?
Your property damage coverage applies when you are at fault in an accident and property damage to someone else vehicle or other type of property such as a building. The insurance company will provide coverage up to your liability limit per accident.
What is the difference between comprehensive and collision deductibles?
Comprehensive coverage allows for repairs to your vehicle for things outside of a collision such as auto theft or vandalism. Collision coverage allows for repairs to your vehicle in the event you are at fault in a collision. The collision could be with another automobile or a fixed object such as a pole.
If my personal items are stolen from my car does my auto policy provide coverage?
It depends. You could have an endorsement on your auto policy that provides a limit of value for personal property stolen from your vehicle. If your auto policy does not include this endorsement for any personal property stolen, you can file a claim under your homeowners’ policy up to the applicable policy limits.
Is my car insurance enough?
Your auto coverage should be at a minimum enough to cover your assets. On average 15% of drivers are uninsured which leaves a lot of drivers at risk. Here is a quick breakdown of how insurance covers accidents today. State minimum liability usually covers 40% of the accidents, 50/100 usually covers 56% of the accidents, 100/300 usually covers 87% of the accidents, 250/500 usually covers 97% of the accidents you will ever be in.
What is the cost to you of teenage drivers?
Teenage drivers typically increase the cost of an auto insurance policy by about 35%. There are ways to reduce premium by making sure your young driver has taken a defensive driving class, has a 3.0 or higher and drives an older vehicle.
Home
Am I required to purchase home insurance?
Can my lender pay my premiums?
Does my home policy cover floods and earthquakes?
Does my home policy exclude certain dogs?
Should I schedule valuable items such as jewelry?
Does my home insurance cover mechanical breakdown of appliances?
Most home insurance policies do not cover equipment breakdown of your major appliances such as your A/C unit, water heater, etc. Most consumers purchase a separate home warranty policy that can cost $500 or more annually. S.A. Insurance Services Inc. offers this coverage as an included endorsement in the homeowner’s policy we provide through American National Insurance Company.