Important Pricing Details for Automobile Policies

Full Tort vs. Limited Tort

This is an option that is asked when purchasing your policy. Full tort insurance allows you to sue the At-Fault driver for pain and suffering as well as medical costs. Limited Tort, by contrast, restricts your ability to sue for pain and suffering and may limit other claims as well. Typically, the Full Tort option is more costly because the coverage is much greater.

Higher Limits vs. Lower Limits

The other key factor when choosing your Automobile policy are the limits that you choose. Many policies have very low limits and are only purchased for state minimum requirements and the buyer is just focused on the monthly premium, when in fact, there is little to no insurance coverage. People that have more to lose and that have assets typically purchase higher limits to protect their assets from being exposed to lawsuits.

Age of Drivers and the Household

The insurance companies have claims data that tell them that drivers under age 25 and over age 65 are more prone to accidents according to National databases. If there are multiple youthful drivers, the insurance company will experience rate the whole household.

Location of the Garaging Address

The insurance companies will charge much higher rates depending on where the car is garaged or where you live. Typically, the more Urban the area, the higher the rate will be to the owner of the vehicle. The reason for this is the more people that are congested in an area, the more likely something will happen to that car. Conversely, if you live in the Country where there are not a lot of people the rates are more likely to be lower because actuarily there is less chance of a claim.

Credit

The insurance companies reward good credit with lower rates because they feel as though the data shows that people with better credit put in less claims.

Car and Driving Record

The type of vehicle you drive is a key ingredient of the rate that is charged. If you have a brand-new sports car, you are going to be charged more for two reasons. The first reason is that you will most likely drive faster, and that will weigh the odds of an accident to be higher. Second, if you get in an accident, the value of a brand-new sports car is going to cost the insurance company more money to replace or fix. Also, if you have points on your license or have been involved in any at-fault accidents, you will see a very high car insurance rate.

Coverages and Pricing Details of Homeowners Insurance

Dwelling

This is the portion of your policy that covers the actual structure (main house). The cost to replace your home can fluctuate from time to time based on the cost of raw material and labor, and of course, supply and demand. We’ll run a replacement cost analysis on your home to see how much it would actually cost if the worst happened and you had to rebuild.

Other Structures

This covers any structure on your property that is not permanently attached to your house, like fencing, driveways, sidewalks, and detached buildings like sheds and garages. Usually this coverage is 10% of whatever your Dwelling limit is, but can be increased if you need more coverage.

Personal Property

This covers all of your personal belongings like clothing, furniture, electronics, and appliances. Basically anything that would fall out of your house if you turned it upside down and shook out the contents.

Medical Expense

This covers medical expenses for guests if they are injured on your property, and in certain cases covers people who are injured off of your property. It does not cover health care costs for you or other members of your household.

Family / Personal Liability

Personal Liability Coverage applies if someone is injured or their property is damaged and you are to blame. The coverage generally applies anywhere in the world. When choosing your liability coverage limits, consider things like how much money you make and the assets you own. Your personal liability coverage should be high enough to protect your assets if you are sued. In some situations, an Umbrella policy may be necessary to provide extra coverage.

Scheduled Personal Property

There are some situations where you might want special coverage for valuables, or collectibles like jewelry, guns, collectibles, rugs, etc.

Details on ATV’s Golf Carts, and Watercraft Policies

All-Terrain Vehicles (ATV)

These are quickly becoming a fast-growing hobby for adults and teenagers. The model and the horsepower of the ATV will dictate which policy will be written. Most insurance companies have a different set of rules for providing coverage for ATVs, depending on the vehicle type.

Golf Carts

These are a little tricky in the placement of the insurance. The key factor is whether or not the Golf Cart has a speed of over 25 miles per hour, how many passengers it can handle, and if it is street legal. That term lends itself to the question…does the Golf Cart have to be licensed as a vehicle. Some states have different rules than other states, so we just have to find out the applicable laws. We can write mono-line policies to cover Golf Carts which are becoming ever so popular.

Personal Watercraft

Boating is a wonderful past time that many people and families participate in to spend time on the water. When writing personal watercraft like jet skis, ski boats, or fishing vessels it is key to communicate the location of the harboring dock. Most insurance companies offer protection that covers you up to 75 miles from the U.S. coastline, and sometimes will limit coverage along the coastline below certain locations. The reason for this is essentially because of hurricanes.

There are two main coverages to the Boat policy. This is referred to as Protection & Liability for personal liability coverage. This provides coverage to other boaters and boat owners in the event you are in an at-fault accident on the water. Just like car insurance, this policy pays for Bodily Injury and Property damage that arises out of a boating accident.

The other coverage is Physical Damage / Hull Insurance for the boat that is listed on the policy. Actual cash value policies can make it difficult to replace a boat that has been stolen, destroyed by fire, or sunk from a bad storm. Therefore, it is best to write an Agreed Value policy which will give you a specified amount minus your deductible in the event of a total loss.