Auto Insurance Questions
Will I pay a different insurance premium based on where I live?
Your likelihood of having an accident or having your car stolen or vandalized is linked to where you keep your car.
The chances of encountering these problems go up in densely-populated areas, such as cities, and go down in relatively low-populated or rural areas.
Other factors include:
- Estimated response times of the local police and law enforcement
- Road conditions in your area
- Traffic conditions in your area
- Local medical services
- Litigation rates (e.g., how many lawsuits are filed, go to trial, are settled out of court, the award amounts)
Do all states require some kind of liability insurance?
No. Not every state requires auto insurance; some have laws requiring drivers be able to pay for any damage or injury they cause in the event of an accident.
However, purchasing liability insurance is a good way for you to meet the financial responsibility laws in your area.
How do I avoid cancellation of my insurance policy?
Maintaining a driving record free of accidents, tickets and moving violations is the most effective way to prevent an insurance company from canceling your policy.
Consider taking a defensive driving course to reduce your likelihood of causing an accident and improve your safety.
Will my policy cover another person if I loan them my car?
Yes. Liability, Comprehensive and Collision coverage is connected to your car; if the driver of your car is injured, that driver’s policy can also cover the cost of damages and injuries.
The same is true if you borrow someone else’s vehicle. Your own insurance follows you regardless of the automobile you drive, but if you are involved in an accident while driving that car, the owner’s insurance provides the key coverage for damages and injuries.
If you have a relative, friend or household member who regularly drives your car, make sure you give their name and driver’s license number to your insurance agent.
Am I covered for natural disasters or “Acts of God”?
Coverage for natural disasters or “Acts of God” (such as wind damage) is generally provided by the same comprehensive insurance that protects you against file and theft. However, flood and earthquake need to be on a separate endorsement – be sure to ask your agent about these coverages.
Comprehensive covers you, except in situations such as your car being overturned during a natural peril, which is covered by your liability insurance.
If you have specific questions or concerns regarding insuring your vehicle against natural disasters, please contact our offices for more information regarding catastrophic coverage.
What happens if my insurer refuses to cover a claim?
Usually, when insurers refuse to cover a claim, they have a strong legal reason for doing so (though you may disagree with that reason). If you feel that you are being treated unfairly, please contact your Balcos Insurance representative.
Your agent is a strong advocate in insurance matters. However, if you are facing a legal problem, you may need to seek legal counsel.
(877) 783 – 0335
The reader assumes all responsibilities for his/her own actions in regards to any items discussed in this report. Adherence to all applicable laws and regulations, federal, state and local, governing the use of any product or service described in this report in the US or any other jurisdiction is the sole responsibility of the reader. The publisher and author assume no responsibility or liability whatsoever on the behalf of the reader of these materials. The reader is encouraged to consult directly with his/her insurance professional.
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