Car Insurance FAQ’s

What happens to my insurance when I add a young driver?

What is Full Tort?

What is Underinsured/Uninsured Motorist coverage?

Am I automatically covered when I buy a replacement vehicle?

Is my business vehicle covered under my personal auto policy?

What Liability limits should I have?

What happens to my insurance when I report a claim?

How does my credit score affect my premium?

Adding a Young Driver
Inexperienced drivers are always a concern for Insurance Companies since they tend to drive fast and have accidents. To offset this increased risk, Carriers will add the young driver as the primary driver to one of your vehicles, which will adjust the premium to the higher rate. You can reduce this rate by supplying a report card, as long as the driver has a B average or better.


Full Tort or Limited Tort?
Changing your policy from full tort to limited tort can save you up to 20% on your premiums. By selecting limited tort, you are waiving your right to sue a third party over bodily injury to you or any other occupant of the vehicle, unless the injury is extremely severe (death, dismemberment or permanent total disability.) We recommend Full Tort, since you never know what might happen as a result of a not at fault accident.


Underinsured/Uninsured motorist coverage
While it is illegal to drive without insurance, it does happen. Uninsured coverage will pay for bodily injury or property damage to you or your vehicles occupants once your coverage has been exhausted. This coverage also applies to hit and run. Underinsured motorist coverage is to protect you against those who buy insurance companies that only meet the minimum limits required by law. If the accident is severe, you can go through those limits very quickly and need a backup, which is done through Underinsured. We recommend at lease $15,000/person/$30,000 per accident for each vehicle.


Replacement Vehicles:
Replacement vehicles are covered for liability for the first 30 days. You must be careful if you are replacing an older vehicle that did not have full coverage because the new vehicle will only have the same coverage that the replaced vehicle had. So, if you want full coverage on your new vehicle, you must contact an agent immediately. Additional Vehicles If you purchase a new vehicle, it will be covered by your policy for the first 14 days. You must contact us with that time period to secure coverage for that vehicle. The new vehicle will only have the same coverage that the replaced vehicle had, so, if you want full coverage on your new vehicle, you must contact an agent immediately.


Business Vehicles on Personal Policies
While business use on personal policies is not excluded, you must fully disclose the extent at which these vehicles are used in the course of your business. Insurance Companies can deny a claim on the basis of misrepresentation. do not want the business exposure on a personal policy because those exposures are better covered under a commercial auto policy.


What Liability Limits should I have on my Policy?
Accidents do happen, and sometimes they are your fault. It is important to maintain adequate liability limits to protect your assets. We recommend a minimum of $100,000 bodily injury per person, $300,000 per accident and a $50,000 property damage limit.


Reporting a Claim
People are often torn as to whether or not to report a claim under their policy. Most carriers do not count a claim under $1000 against you, but you should contact your agent to discuss your particular claim. If the claim will be less than the deductible, or just a little above, we recommend not claiming it and paying for it out of pocket. Make sure you report all accidents or vandalism to the police, since often a police report will be required to receive payment.


Credit Score and Premium
It is important to keep a constant watch on your credit score because it directly relates to how cheap or expensive your car insurance will be. The better your credit, the cheaper your insurance.