General Insurance Questions

What type of insurance do I need for my business?
Every business is different. Work together with your Smart Choice Agent to find the policy that best fits your individual business needs.

What is an independent insurance agent and how are they different from other insurance agents?
An independent agent is an insurance agent who has the ability to write insurance for many different insurance companies. The other type of insurance agent is called a “captive” agent. Captive agents may only sell insurance for one company.

What is the advantage of buying my insurance through an independent agent?
Independent agents can find you the best price for the coverage you need by quoting the price through several or all of the companies he or she represents. In this way, you have several different options available to you when it comes time to purchase your insurance coverage.

How do I know what kind of policies I need?
Your Smart Choice agent will sit down with you to learn more about you and your family. Once they have established your insurance needs, they can better determine what kind of policy will best suit you.

Auto

What is liability coverage?
Liability coverage protects you in the event that you cause injury to someone’s person or property.

What is the difference between comprehensive and collision coverage?
Collision insurance covers the upset or impact of a covered vehicle or nonowned auto with another vehicle or object. Comprehensive insurance (also known as Other than Collision) covers losses caused by impact with animals (including deer), nature’s perils, glass breakage, theft, and falling objects.

How can I reduce the cost of my auto insurance?
Many different factors can play a role in the cost of your car insurance, including the age of the car, the age of the primary driver, the amount of usage, the deductible limits, etc. Typically the higher the deductible, the lower the cost of your insurance.

How much coverage do I need on my car?
You will be required to carry the state’s minimum limit. Minimum limits vary by state. However, the more expensive the car, the more insurance you will want to carry. You should also factor in the age of the driver, and the reliability of the car. Carrying higher liability limits is always a good idea—accidents do happen, and when they do you want to make sure you and others involved are covered for both bodily injury and property damage.

I was driving someone else’s car and had an accident. Will my insurance pay the damage?
No. Insurance goes with the car. The owner of the car’s insurance will pay.

Someone else was driving my car and had an accident. Will my insurance cover the damage?
Yes. Insurance goes with the car. A good phrase to remember is “If I give you my car, I give you my insurance.”

Home

What does my homeowner’s policy cover?
There are many different types of homeowner’s policies. Check with your insurance agent to find out the specifics of your policy.

Is all of my personal property covered under my homeowner’s insurance?
No. A homeowner’s policy typically covers up to 50 percent of your contents, with some exceptions for certain types of property such as cash, jewelry, bank notes, etc. Endorsements can be added to your policy to cover specific items. Refer to your policy or your agent for specifics.

What is actual cash value versus replacement cost value mean?
Replacement cost is the cost to replace damaged property with a similar kind and quality of materials at today’s price. Actual Cash Value is the replacement cost on the day of the loss minus depreciation—it recognizes the reduction of property value over time due to age and wear.

What is an umbrella policy?
An umbrella policy provides excess coverage over the underlying or primary liability coverage on your regular policy. Due to the escalating number of lawsuits over accidents, the umbrella policy is meant to provide comprehensive protection.

Do I need a homeowner’s policy if I live in an apartment or condominium?
Yes. There are two separate policies that can be written for these types of dwellings.

Does my homeowner’s policy cover flooding?
No. Flood insurance is purchased separately through a federal program known as the National Flood Insurance Program or NFIP.

Business

What type of policy do I need for my small business?
The most commonly used business policy is a Business Owners Policy. You and your agent should discuss what type of policy will best suit your business’ needs.

If I suffer a total loss due to a fire or other disaster, will insurance cover my lost wages and business income?
To cover operating and payroll expenses, lost materials, etc., you must have a Business Income Coverage Form. Check with your agent to see about getting this coverage.

How do I know if I have enough coverage on my current business policy?
You and your agent can sit down to review your current business policy and discuss updating or purchasing a new insurance policy to better fit your needs. Every policy should be reviewed yearly as your business grows and changes.

Other Vehicles

What kind of vehicles other than my car do I need to have insurance on?
Any sort of recreational vehicle such as RV’s, Motorbikes, Golf Carts, Jet Skis, Motorcycles, ATV’s, Four Wheelers, or any other kind of motorized vehicles should have insurance coverage.

What kind of insurance do I need on these vehicles?
You should have both property damage and liability coverage in case of serious injury to you or others.

Are recreational vehicles covered under my homeowner’s policy?
Some are covered for certain perils such as theft, or physical damage from storms, wind, etc. But most are only covered for a small amount of money, and liability insurance is not included.

Life

Do I really need life insurance?
Life insurance protects your family members in the event that something happens to you. It is important that they be able to cover funeral costs, loss of income, and outstanding debts.

How much life insurance should I have?
This is a personal decision that you and your agent should discuss. Different people need different amounts of life insurance based on their profession, age, financial status, etc.

At what age should I purchase life insurance?
You should have life insurance if you are currently living independent from a primary caregiver.