Property Insurance

Property Insurance

1What is the impact of owning a dog?

Some of our canine friends are just a little easier to get along with than others. While all insurance companies have a list of dogs they deem problematic, what's important to note is that they all seem to share a lot of the same breeds.

The list were developed over time and are based on statistical data from actual claims. While your Staffordshire Terrier may be quite docile, there have been too many others that have caused serious injury or even death.

Service animals for Visually Impaired or Handicapped people are exempt, of course.

2What if I have a pool / trampoline / etc.?
Pools and Trampolines are called 'Atractive Nuisances' for very good reasons. Experience has shown that serious injuries can, and often do, occur at a much higher rate when these items are present. Most communities have passed ordinances stating the requirements to be met before the installation of pools and trampolines. Insurance companies will most likely have additional requirements, and proof will need to be submitted to verify that all steps have been taken to provide as safe an environment as possible.

Vehicle Insurance

Collision

1How do different deductibles affect my cost?
The 'deductible' is the protion of the claim that you agree to pay, and is imposed on you when you have accidentally damaged your own property, whether home or auto Deductibles to do not apply to Liability, Medical or Income Loss claims The higher the deductible is that you agree to pay, the lower the policy premium will be. The general theory is that your deductible should be as high as you can afford to pay- 'on the spot, at any minute'
2What if my car is totaled?
The term 'totaled' refers to the situation where the damage done to your vehicle exceeds the current retail value, usually accepted as what you would have to pay for your vehicle on a used car lot in your area. It applies if you are carrying the appropriate coverage on your vehicle at the time of the loss. The damage could be from either a Collision or Comprehensive loss. Vehicle values are usually available on many auto-related websites.
3How do I know how much my car is worth?
A lot of this type of information is available on numerouse auto-related websites, such as BlueBook, Kelly Blue Book, Edmund's or Chilton's, just to name a few. (A search under 'car values' will return more names than you will want to look at.)
4How long should I keep collision on my car?
While a vehicle is financed (or leased), you are required to insure the vehicle with Collision and Comprehensive coverages When a financed vehicle has been paid off, Collision coverage may be removed at any time. Before this is done, you should be aware of the current value of your vehicle, as some vehicles hold their value longer tahn others. This question is asked very often, and each time the answer must be based on your particular financial condition. Without Collision coverage, you are saying that if your car is 'totaled' (see the 'What if my car is totaled?' FAQ), you are in a strong enough financial position to replace your vehicle at any unknown point in time.

Comprehensive

1Can I keep comprehensive coverage if I remove my collision coverage?
Yes, you may carry Comprehensive coverage regardless of whether or not there is Collision coverage on a vehicle. Comprehensive coverage will provide benefits long after Collision coverage has been removed.

Income Loss

1I have disability coverage through work, so do I still need income loss coverage?
Income Loss coverage is optional in PA. While your Employer's Disability or Accident and Sickness policy may provide benefits, your car insurance can help by coordinating with your employer's plan to either fill in some blank areas or by extending the benefit period. We will help you figure out what's best for your current situation.
2Why/When would I need income loss coverage?
Income Loss coverage is recommended if an accident-related injury would bring unnecessary financial hardship to you or your family. Your car insurance will only replace a maximum of $25,000.00 per accident. Depending on your situation, you could go through that very quickly. If you employer does not provide any 'Accident and Sickness' benefits and you do not own any personal Income Replacement plan, then we need to discuss this further.

Liability

1What do I need to do when my child starts to drive?

As a 'Rule of Thumb', young drivers are added after they pass their PA Driver's Examination. Some companies require a driver be added as soon as a Learner's Permit is issued.

Additionally, certain discounts may apply to youg drivers, such as Driver Education which requires 30 hours of classroom and 6 hours 'behind-the-wheel' or simulator training.

Also, 'Good Student" discounts may be available. Discount grade requirements vary by company.

2What if I don't have enough liability at the time of an accident?

The eternal question has always been "How much Liability coverage do I need?". The best answer anyone can give you is this:

Do the best job you can within your budget to cover as much of your current net worth as possible. After all, you're trying to protect yourself from having someone take it all away. A single accident can result in:

  • Bodily Injury or Death to one or more people
  • Property Damage can occur to multiple vehicles, dwellings and other structures

    • If your policy is already at the maximum limits the company allows, and you feel that you need more, then you are most likely going to need an "Excess Liability" policy, or Umbrella. Umbrellas are also explained elsewhere on this site.

3How much liability do I need?
How much liability answer.

Medical Payments

1How much/little can I carry?
How much can I carry answer.
2I have Major Medical Health insurance, so why do I need medical payments coverage?
Current PA Inusrance laws require a minumum of $5,000.00 of Medical Payment coverage on your policy. This will be used first, and in it's entirety, before any payments for Automobile-related injuries are paid by your personal health insurer. Also, your Major Medical carrier will require proof from your Automobile Insurance Claim Office that it has expired your full limit of coverage before they take over paying your expenses.

Tort

1What if I change my mind?
Change my mind answer.
2Which tort option is right for me?
Please see the full breakdown on the two Tort options on the 'Vehicle Insurance' page.
3What is a tort option?
There is a full description of this on the 'Vehicle Insurance' page.

Uninsured/Underinsured Motorists

1How much/little Liability can I carry?

The current minimum required limit of Bodily Injury Liability in PA is $15,000.00 per person, $30,000.00 per accident.

The current minimum required limit of Property Damage Liability in PA is $5,000.00.

The maximum amount of Liability coverage is set by the insurance company

2But, if car insurance is required...then 'How come the other guy didn't have any?'
Could be because you were involved with someone from another State - one which does not require car insurance, or the person that just hit you sent their premium payment in late and their policy just expired.
3Am I "paying for someone else?"

The quick answer is - No.

The chance of you being involved with someone who has limited (Underinsured) coverage is considered greater than one involving a totally Uninsured driver. Remember this - Uninsured and Underinsured Motorist coverages aren't purchased for someone else; they're purchased because of someone else - we don't know how well the other driver is insured until it's too late...

4Since this is not a required coverage, why should I have this?
See the 'Am I Paying For Someone Else?' FAQ. The same basic priciples apply here also.