Frequently Asked Insurance Questions
Have you ever clicked on the FAQ links located on some insurance Websites? If so, you may have noticed that they all ask the same old basic questions with the same old basic answers. Many of those FAQs are simply cookie cutter space fillers with little effort put into practical questions and answers that address real world insurance curiosities. Listed below are answers to a few questions that you may have actually wondered about.
- Question: A relative once told me that staying with the same insurance company for a long time is the best way to get the lowest price on my insurance and receive the best treatment for a claim. Is that true?
- Answer: False. First of all, shopping is the only way to get the lowest price. That’s because no single insurance company will always have the lowest price, including the one you are with now. If you have been with the same insurance company for more than two years and your payments have stayed the same or have gone up, there’s a good chance you will find a better price elsewhere. Also, all insurance companies have to follow the same regulations when it comes to settling a claim. How slow or how quick it might take depends mainly on the circumstances surrounding the claim. Regardless of the insurance company, if the circumstances are clear and straight forward then claims are settled more quickly. But if there are questionable or suspicious circumstances, a claim could take a little longer to settle.
- Question: I just received a notice from my auto insurance company telling me that my price is going up. But I haven't had any tickets or accidents and nothing else has changed for me. Why is my price going up?
- Answer: It's most likely because other drivers with your characteristics that are insured by your insurance company haven't been as good a driver as you or have had more claims than were expected when the company established their prices. Since auto insurance companies calculate prices by certain groups, like single males age 25-29 or married females age 30 and above, those groups are evaluated as a whole and the bad drivers will affect the price for the good drivers in that same group. Getting a price increase when you haven’t had any changes in your profile may mean it’s time for you to shop for a better price.
- Question: I've have had the same insurance company for several years. My agent got me the lowest price way back when I started and now I feel we have a relationship. Why would I want to change and go with someone else?
- Answer: We believe that having a “relationship” is important. But we've found that the meaning can vary from occasional encounters to having attended the same school to talking only a couple of times a year. For some, the relationship is nothing more than you paying your insurance bill on time and the agent doing their expected duties. Whatever the level of your current relationship is, it shouldn't come at the cost of a higher price. If you find a lower price with a good company, you need to weigh the cost of saving money against the type of relationship you have now. Also, getting the lowest price a long time ago doesn't mean you're paying the lowest price today. Insurance prices constantly change and your agent should be watching out for the best price as part of that relationship. If your price has stayed the same or gone up, there's a good chance that there is a lower price out there for you.
- Question: Should I be concerned when a big name brand insurance company says, "you get what you pay for" or uses a term like "cut rate" when referring to a lower price competitor?
- Answer: Some of the big name brand insurance companies want you to think their higher prices translates into better quality. However, ALL insurance carriers who do business in the state are under the watchful eye of the Department of Insurance for that state and therefore ALL must follow the same regulations and guidelines. The quality you get from an insurance carrier is more dependent upon how their people treat you rather than the price they charge you.
- Question: Even though I'm paying a price that may be a little higher now, I like the idea that my current insurance company will pay for everything if I have a claim. Therefore why would I want to change if I like knowing that they'll pay for everything?
- Answer: Don't assume that paying for everything actually means they'll pay for every possible situation imaginable. All insurance policies have restrictions and limitations. Also, "everything" could mean you're paying more for things that could be extremely rare or unlikely to happen. There's nothing wrong with paying a higher price for more bells and whistles in your insurance policy if that gives you peace of mind. However, the best way to know what is truly covered is to read your policy and understand it. Then tailor your insurance to cover you for the crucial, important things and not the extra things that are trivial, insignificant or less likely to happen.
- Question: Does my auto insurance policy cover anybody who drives my car?
These are just a few questions that hopefully clears some of the air about insurance and the shopping process. We encourage you to give us a call at (502) 454-7283 if you have other questions or would like a free price quote on you auto, homeowners or renters insurance.
- Answer: Depending on what state you live in, different auto insurance policies can say different things. Briefly, auto insurance companies figure the price you pay based on the drivers and their circumstances who are listed or added to your policy. As a result, they need to know about other potential drivers who may have easy or regular access to your car like family members, roommates or someone who borrows your car on a regular basis. If one of these types of drivers gets into a wreck and wasn't listed on your policy or was specifically excluded, the insurance company may have a valid reason to deny paying the claim because you didn’t tell them about the driver beforehand. There are policies that are "Named Driver" where only listed drivers on the policy are covered to drive and nobody else. Knowing the restrictions, limitations and exclusions, if any, for those who drive your car is a very important subject for you to know ahead of time and will be explained in your policy.