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Frequently Asked Questions
The most frequently asked questions have to do with billing. The best way to solve a billing question is to call your insurance company directly or contact them online. We do not receive payments here and do not have direct access to the answers. However, if for any reason you do not get a satisfactory answer, please call our office. I sent a check but now I have a cancellation notice. Because we do not know what was paid and when the insurance company received payment, it is best to call the toll free number on the invoice for assistance or access the company online. What is Gap Coverage? If you lease or borrow money to purchase a vehicle, the amount you owe may be greater than the value of your vehicle. Insurance generally pays for the depreciated value of the car. Gap Coverage covers the difference between this value and the amount owed. Should I insure my home for its market value? No, you should insure your home for its replacement cost which may be more or less than its market value. What is Umbrella or Excess Liability insurance? This type of policy adds an additional amount of liability coverage over your home and auto policy. It is usually written in layers of $1,000,000. Uninsured and underinsured motorists liability coverage can be included with most companies.
What is the difference between an independent insurance agent and an agent who sells for only one company? An independent agent represents multiple insurance companies so they can offer you a variety of coverage choices and tailor a plan to meet your individual needs. A captive agent who sells for only one company does not have that ability. Why is health care so expensive? There is no quick or easy answer to this. A variety of demographic and economic factors are contributing to rising health care costs. On the provider end, doctors and hospitals are raising their rates because of reduced reimbursements from programs like Medicare and rising malpractice costs. Meanwhile, prescription drug costs are skyrocketing because of the costs associated with research and development and advertising. Add to this an aging population with growing health care demands, the astronomical cost of developing new high-tech lifesaving procedures and an obesity epidemic, and it’s easy to see how our health care system is being hit from all sides. Unfortunately, the cost is getting passed on to the consumer more and more each year.
How does my credit score affect my premium? Many insurance companies have begun using insurance scoring—essentially pulling consumer credit information—when writing auto and homeowners policies. Insurance companies look to a consumer’s credit information (provided by the three major bureaus) to help forecast the likelihood of future insurance claims. Insurers hold to the theory that a responsible use of credit carries over into other areas, and will offer the lowest rates to consumers with the best credit scores. By law, if you are denied insurance based on your credit information, you must be notified, and you will have the chance to dispute it. It’s a good idea to periodically request a copy of your credit report to make sure there are no errors (under the law, you’re now entitled to a free copy of your credit report once a year). |