General Insurance Questions
Why is insurance important?
State law or other institutions such as your mortgage company require you to have some types of insurance, such as your homeowners or car insurance.
Insurance is necessary to protect yourself and your loved ones against the risks in life – talk with your agent about how much to invest in your insurance.
- In the event a court decision is made against you, insurance can protect your assets against attachment from the award.
- Helps reduce the cost of defense if you are sued.
- Insures the collateral on high-value items (e.g., house and car) on behalf of the lending financial institution.
- Provides health care coverage for you and immediate family members through regular monthly payments.
- Provides you with methods to save for retirement and reduces the tax burden on those savings.
- Protects the financial security of your family and you in the event of your death, serious illness, or unemployment.
What does insurance cost and why?
Many things influence the cost of the insurance coverage you purchase. For instance:
Car and Driver Factors
- Type of car
- Age of driver(s)
- Driving and claims history
- Auto body repairs
- Location of home and length of commute
Aspects of Buildings and Property
- Building type and age
- Foundation
- Grade
- Type of heating
- Renovations
- Roof
- Claims
General Health Factors
- Age
- Health
- Risky behaviors
- Prescriptions
- Number of dependents
Discounts and Premium Reductions
- Credit score
- Good-driver records
- Good-student discounts
- Membership in some associations
- Number of policies with one company
Expenses for Insurance Companies
- Medical care
- Automobile repair
- Construction
- Legal fees and defense
- Judgments and jury awards
- Claims adjustment
- Investment income
- Fraud
- Overhead (e.g., rental costs, utilities, employee salaries and benefits, supplies and equipment, furniture).
For specific questions, please contact our agents directly by phone or email.
(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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