Frequently Asked Questions
Below are some of our frequently asked questions. If you have any other
questions or concerns, please feel free to contact us.
| What are the best policy limits for Auto Liability?
Answer: It is generally accepted among insurance agents that the state minimumpolicy limits are not enough. Most insurance professionals would agree for theaverage driver the best liability limits to have are 250/500/100. This means: 250,000 per person for bodily injury 500,000 per accident for bodily injury100,000 per accident for property damage Since in most areas medical treatmentis in fairly the same range, the last limit, per accident for property damage,is the one you may want to take into account if you are not the average driver.If you live in an area where you feel that if there was an accident, that wasyour fault, and property damage may exceed 100,000, you may want to considerhigher limits. Remember, property damage is the other person's car and any otherproperty damaged during the accident if you are at fault. In some areas
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| Is Anyone Who Drives My Car Covered?
Answer: In most cases, yes, as long as they have the permission or reasonablebelief from the insured that they can use the vehicle. The insured is the personnamed on the insurance policy and their spouse if applicable. There are someexclusions, so you would need to look at your particular insurance policy tomake sure. Remember, everyone in your household must be listed on your insurancepolicy if they have a license. For example, if a girlfriend you live with usesyour car, she may not be covered if you did not list her on your insurancepolicy. On the other hand, if you live separately, she could use your car withyour permission and be covered.
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| How Does My Driving Record Affect My Insurance Premium?
Answer: The premium you pay is a direct reflection of your driving record forthe past three to five years depending on the insurance company. Insurancecompanies order driving records from the DMV of your residence state and fromother states where you've been licensed. Statistics show that drivers withtickets and accidents are more likely to have accidents than drivers with
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| What Happens When My Loan Was More Than My Insurance Company Says My Car Is Worth?
Answer: Sometimes the value of a car is less than the balance on your car loan.There can be several reasons for this. Interest rate changes may have increasedthe amount of your loan. Rebates may not have been applied to the purchaseprice, or poor maintenance of the auto may have reduced its value. The insurancecompany bases its payments on the actual cash value (ACV) of the car, not theamount of your loan. In some states you may be able to purchase a special typeof insurance, known as guaranteed auto protection (GAP), when you buy a car. GAPinsurance covers the difference between the ACV and your
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| What is the difference between replacement cost and actual cash value on my homeowners policy?
Answer: Replacement-cost coverage pays to replace your home and belongings withmaterials of "like kind and quality" at current prices. Actual cash-valuepolicies reimburse the depreciated value. A replacement-cost policy will usuallycost a little more. Some companies no longer offer replacement
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| Why didn't my Homeowners policy pay for damage caused by flood?
Answer: Flood damage is not covered by most homeowner policies. A separatepolicy can be purchased through the National Flood Insurance Program insurancecompany or other insurance companies that write flood policies.
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| Why didn't my Homeowners Insurance pay to replace everything I lost?
Answer: Most homeowner policies have "dollar limits" on certain types ofbelongings. Generally, these limits are on silverware, guns, jewelry, watches,furs, and computers. The limits usually cover losses of the average person. GivePenn Summit a call today about increasing these limits to meet your individualneeds.
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