At Four Seasons Insurance Agency, we like to provide as much information as possible to our clients. Insurance can be confusing, that’s why we work hard to ensure our clients understand what they need to know about their policies and options. This blog answers some common questions we hear in our office, but as always, our experts are available to discuss any concerns.
1. Under what circumstances should I file an auto insurance claim?
You should file an auto insurance claim after a major accident, especially if there is property damage or personal injuries. It may not be necessary to file a claim in minor, one-car accidents if no one was hurt or if the damage is less than your deductible. If there are two or more cars in the accident and it was your fault, you should almost always file a claim.
2. Will my credit score influence my insurance rates?
Your credit score won’t impact your insurance premiums, however, your overall credit history will. Insurance companies don’t check your credit score when quoting a policy, but they do look at your history on your credit report (this does not affect your credit score), which provides them with a credit-based insurance score. This informs them of their risk when insuring you. Your credit history is not a major determiner in getting insurance and shouldn’t affect your rates too much, so don’t worry.
3. How do umbrella insurance policies work?
An umbrella policy is considered a kind of personal liability insurance. It’s typically used for protection of your savings or larger assets, providing extra coverage beyond your other policies. If someone sues you for more than you have a policy for, an umbrella policy will help cover those costs. For example, if you’re at fault for a significant car accident and you get sued for lost work time and other medical bills that come to hundreds of thousands of dollars over your policy coverage, an umbrella policy can come to your aid.
4. Should I bundle my auto and homeowners’ insurance?
This one is a little situational, but it’s a benefit for most people to bundle their auto insurance and homeowners’ insurance policies. On average, people save about 15%-20% when bundling the two policies. Other benefits include streamlining your bills, paying a single deductible, and reducing your chances of getting dropped.
5. When should I update my life insurance coverage?
Life insurance policies should be updated any time a major life situation changes. Milestones such as a marriage or divorce, the purchase of a large item like a home or business, becoming a parent or growing your family, or a death of a spouse or beneficiary are good reasons to notify your agent. These situations affect policy benefits and coverages. Simply contact your agent and they can help you get the appropriate changes addressed.
If you have questions about the above information, don’t hesitate to reach out to one of our agents for more details. For information on the many policies we offer, click here.