Frequently Asked Questions

Why do I need to buy insurance?

• Protects your assets against attachment as a result of a court award.
  
• Provides for cost of defense when you are sued.
  
• Allows you to purchase such high value items as a car or a home by insuring the collateral on behalf of the financial institution that lent you the money.
  
• Provides financial security for your family in the event of your death.
  
• Provides for the health care of you and your family through systematic payments.
  
• Allows you to save for retirement while deferring interest payments to a time when your income is lower, thus reducing your tax payments.
  
• Allows you to remain financially solvent when you’re ill and can’t work.

What is Covered Under a Basic Auto Policy?

A basic auto insurance policy usually includes six coverages (or parts).

1. Bodily Injury Liability: pays for injuries that the covered drivers, cause to someone else. In Illinois the minimum limits are $20,000 per person and $40,000 total Bodily Injury per accident. In Indiana the limits are $25,000 per person and $50,000 total Bodily Injury per accident. It’s critical that you carry enough liability insurance, because if you find your self the cause of a serious accident, you could be sued for a significant amount of money. Medical bills arising from a serious accident, particularly if several people are hurt, will certainly exceed the basic mandatory limits. Please remember, you can be held responsible for damages in excess of your policy limits. Yes they can take your home or other assets. It is for this reason that people often opt to by higher limits.
2. Property Damage Liability:  pays for damage that the covered drivers, cause to someone else’s property. Examples include another car as well as damage you do a fuel pump, street light, guard rail, buildings or other structures your car hits.
3. Medical Payments or Personal Injury Protection (PIP): Medical Payments pays for the treatment of injuries to the driver.
4. Comprehensive Coverage: Portion of an auto insurance policy that covers damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft. This coverage is usually sold along with Collision coverage. State law does not require comprehensive and Collision coverages but if you have a car loan, it is likely your lender will require you carry both coverages it until your loan is paid off.
5. Collision Coverage: pays for damage to your car stemming from a collision with another car, object or as a result of your car colliding with the street. comprehensive and Collision coverages are written with a deductible. The higher your deductible, the lower your premium.
6. Uninsured and Underinsured Motorist Coverage: protects a policyholder from uninsured and hit-and-run drivers.

How do you save on motorcycle insurance?

1. Join the club

Members of motorcycle clubs sometimes get discounted rates. Clubs are also a great way to compare notes with other bikers, get insurance recommendations, and see who's paying what. Examples include Harley Owners Group, BMW Motorcycle Owners of America, and the American Motorcyclist Association.  

2. Infrequent rider discount

If you ride only on the occasional sunny weekend, ask about discounts for a part-time or occasional driver. You might also ask about lowering the coverage (and cost) if you don't ride in the winter at all. If you have a loan on the bike, however, the lender will require full coverage on it year-round.

3. Drop full coverage

You've got to have liability insurance, which covers damage you do to other people and their property. But if your bike is old and/or not worth much, you might consider dropping comprehensive and collision -- coverage that pays for theft, vandalism, or damage to your bike in the event of an accident that's your fault. 

Whether this makes sense depends on how much you're paying for full coverage and how much your bike is worth. Weigh the cost/benefit, then decide. As with the prior tip, however, if there's a lien on the bike, the lender will require full coverage.

4. Choose the right bike

Some bikes cost more to insure than others. For example, sport bikes often sport higher premiums than traditional road bikes. Never replace your bike without first calling your insurance company to see if the new bike will cost more to insure than the old one.

5. Raise your deductible

No matter what kind of insurance you're paying for -- homeowners, renters, health, car, or motorcycle -- the more of a claim you're willing to pay out-of-pocket, the lower the premium. If you're comfortable raising your deductible from $250 to $1,000, you could easily save 10% to 20%. Check what your deductible is now, then call the company and ask how much you'd save by raising it.

6. Ask about discounts

It will probably come as no surprise that your insurance company isn't going to call and inform you of potential discounts. Call and ask about discounts for anti-theft devices and keeping your bike in a locked garage. Simply say: "What discounts do you offer?" You might be pleasantly surprised to learn you already qualify.

7. Get additional coverage for extras

Regular motorcycle insurance policies don't cover any enhancements you have made to your bike, such as chrome accessories, custom paint, or a sidecar. Look into supplemental coverage for these upgrades.

How do you save on auto insurance?

1. Break down your policy
Read and understand your auto policy. Understanding exactly what you’re paying for can help you save. For example, if you have an older vehicle you own outright, it might make sense to drop comprehensive andcollision coverage. These expensive components of a car policy cover theft, vandalism, and accident damage to your car when you’re at fault.

One rule of thumb suggests that if annual comp and collision coverage exceeds 10 percent of the car’s value, it might be worth dropping. So if your car is only worth $1,000 and comp and collision costs more than $100 a year, you might consider self-insuring against at-fault wrecks, theft, and other perils. But remember: If you don’t have full coverage on your car, you won’t have it when you rent a car at a rental car location .

Another thing to remember: Don’t be penny wise and pound foolish when it comes to liability coverage. That covers other people, their property, and your butt if you cause an accident. It’s critical.

The point is that from roadside assistance to towing to comp and collision, insurance is made up of components, each with its own price tag. 

2. Raise your deductible
A deductible is simply what you’re willing to pay before your insurance kicks in. For obvious reasons, the more you’re willing to pay yourself, the lower your premium. 

3. Ask about discounts
Many companies offer discounts for having anti-theft and safety devices, multiple policies with the same company, pay-as-you-drive, low mileage, non-smoking, no accidents, out-of-state student, over 50 – the list goes on and on. Even setting up online auto-pay can help. 

4. Evaluate and compare rates
Take the time to compare rates, many people forget to do it for years. It does pay off and it only takes a few minutes. 

5. Maintain good credit
 Insurance companies use lots of different  information to set their rates, including your credit score. They’ve simply found people with bad credit are more likely to file claims. 

6. Purchase a low-profile car. It’s more expensive to insure a vehicle that’s expensive to repair, popular with thieves or known for not having the greatest safety record. For a rundown of vehicles’ risk levels, visit the Insurance Institute for Highway Safety’s Web site.  (To check on older models, go to the bottom of the page.)

7. Combine policies with one carrier. You may save money if you insure all your vehicles, including trailers and recreational vehicles, on a single policy. Your car premium also may go down if you buy homeowners’ or life insurance from the same company.

What happens when I loan my car to someone? Are they covered? Am I still covered?

Yes. Liability and coverage for Physical Damage (i.e. Comprehensive and Collision) always follow your car. Plus, if the driver of your car is insured, his/her policy will also be available to cover the cost of damages and injuries.

The same rules apply when you borrow someone else’s vehicle; your own insurance follows you no matter whose car you’re driving. But the vehicle owner’s policy is the key coverage in the event of an accident.

Why an Independent Agent?

What is exclusions and co-insurance on health insurance?

• Premium a fixed amount paid by the insured or his sponsor towards the fund.
• Deductible the minimum amount that an insured should incur as medical expenses to qualify for reimbursement.
• Co-payment a part of the medical expense incurred for outpatient consultations is paid by the insured and the rest is paid by the insurer.
• Co-insurance a percentage of hospitalization expenses incurred is paid by the insured and the rest by the insurer. This is in addition to the co-payment.
• Exclusions certain services that are not covered under the terms and conditions of the health insurance are to be borne entirely by the individual himself.
• Coverage limits refer to the upper limit that the insurer pays (sum assured) exceeding which the insured will have to bear all the expenses.

How do I take out a loan on my policy?

Whats is General Liability?

Whats Professional Liability?

Whats Commercial Umbrella / Excess Liability?