FAQ

A: Yes, auto insurance is mandatory in most states. Driving without insurance can result in fines, license suspension, and legal consequences.

A: Several factors influence premiums, including your driving record, age, gender, location, type of vehicle, and coverage limits.

A: It’s challenging to get auto insurance without a valid driver’s license. Most insurers require a license for coverage.

A: Yes, many insurers consider credit scores when determining rates. Maintaining good credit can help lower your premiums.

A: Comprehensive coverage protects against non-collision events, such as theft, vandalism, natural disasters, and animal collisions.

A: It depends on your policy. Some policies provide coverage for occasional use of a friend’s or family member’s vehicle, but check with your insurer for specifics.

A: To lower premiums, maintain a good driving record, bundle policies, raise your deductible, and explore available discounts.

A: Collision coverage pays for damages to your vehicle in a collision, while comprehensive coverage covers non-collision events like theft and vandalism.

A: It’s advisable to consider life insurance as early as possible, often when you have dependents or financial obligations.

A: The need for a medical exam depends on the type of policy and the insurer. Some policies may require an exam, while others offer no-exam or simplified-issue options.

A: Yes, it’s common to have multiple life insurance policies to meet different financial needs. Each policy serves a unique purpose.

A: Term life insurance provides coverage for a specific term, while whole life insurance offers lifetime coverage with a cash value component.

A: Yes, you can typically change your beneficiaries at any time by contacting your insurance company and completing the necessary forms.

A: In most cases, life insurance death benefits are not taxable. They are generally paid out tax-free to the beneficiaries.

A: With whole life insurance, you can surrender the policy and receive the cash value. Term life insurance does not have a cash value.

A: If you stop paying premiums, your life insurance policy may lapse. Some policies have a grace period or offer options like reduced paid-up insurance.

A: While it’s not a legal requirement, home insurance is highly advisable to protect your investment from unexpected events.

A: Actual cash value covers the depreciated value of items, while replacement cost covers the cost to replace them with new items.

A: It depends on the policy. Standard policies may cover certain natural disasters, but additional coverage, like flood or earthquake insurance, may be necessary.

A: It depends on the cause of the water damage. Sudden and accidental damage, such as a burst pipe, is typically covered, while gradual damage may not be.

A: Home insurance may provide limited coverage for home-based businesses. However, a separate business insurance policy is often recommended for comprehensive coverage.

A: Bundle policies, raise your deductible, install security systems, and maintain a good credit score to potentially lower your home insurance premiums.

A: Personal liability coverage protects you if someone is injured on your property and you’re found legally responsible. It also covers property damage you may cause to others.

A: No, home insurance typically does not cover damage caused by termites or other pests. Pest-related damage is considered a maintenance issue.