Agent Teacher

Common Questions, Honest Answers

The lowdown on your high-frequency insurance questions

I’m buying a car. Do I have coverage?

You’ll have automatic coverage for a newly acquired car if you already have a similar vehicle (in this case, a
car) on your policy, the same company insures all your other cars and the new car you buy is titled to the named insured on your existing policy. This applies whether the car you buy replaces an old car or is an additional vehicle. However, if you’re adding something different (for instance, a motorcycle when you only insure a car), that might not apply. The takeaway? Always ask your Agent about coverage before you make
a purchase.

My son lives with me and has a driver’s

license, but he never drives my car. Do I have

to add him to my auto insurance policy?

Technically, yes. Emergencies happen, and it’s hard to guarantee that he’ll never need to drive the car. To
keep you and your family protected, all licensed drivers in your household should have their own policy or be
added to yours. If you swear that Junior will never drive your car, your Agent or an underwriter may require you to specifically exclude your child from your auto policy. Always check with your Agent, as not all states
offer driver exclusion options.

My homeowners claim wasn’t covered when my roof

sprang a leak. Why?

Since policies differ too much to give a blanket answer, your Agent should always be the first person you
call about these kinds of matters. One thing that’s not covered: routine wear-and-tear. For example, if your
roof springs a leak simply because it’s old, you can’t expect your policy to kick in like it would for damage
caused by a peril like lightning. If you do file a valid claim, you’ll be glad to have Guaranteed Replacement Cost. This coverage guarantees that you’ll be able to rebuild your home after a major loss without worrying about depreciation, policy limits or construction costs. Some companies automatically include it as a part of many of its homeowners policies*—and you can purchase an affordable endorsement for the policies that don’t include it.

Does Companies offer a good student

driver discount?

The discount doesn't always go by that name, but many do offer the Youthful Driver Discount that can save eligible licensed drivers ages 20 and under up to 20 percent on their car insurance. Plus, drivers under age 21 who complete an accredited driver’s education course may also be eligible for discounts. Check with your Agent to see if your young driver qualifies. For extra savings, consider a policy that has rate locks. This policy endorsement freezes your auto premium year after year even if you file a claim. Your rate only changes when you add or remove a vehicle or a driver from your policy or change the location where your car is garaged.

Is there such a thing as a diminishing deductible?

Yes, some companies have a diminishing deductibles. As an example - for each consecutive policy year in which you don’t file a claim, your deductible will be reduced by $100, up to a maximum amount of $500. Eligibility varies by state, so check with your Agent to see if you qualify.

Can you send me a new insurance card?

We can—but it’s also good to know that most insurance companies these days give access to you so you can print out a card simply by logging onto your account on your insurance companies main website. Often times, you can see your policies limits, and pay your bill online as well.

I turned 29 shortly after my policy went into

effect. Can you give me the adult rate?

Most companies offer drivers the lower adult rate at a certain age, say 29. Unfortunately, your policy is based on your age at the time the policy was written or renewed, so we can’t prorate it during the policy period. But know you’ll get the adult rate at your next renewal!