Frequently Asked Questions About Insurance

Insurance can be a very tricky and confusing market to try and understand. And then once you figure it all out, something changes. You don't need to worry, though. We've included a few of the most commonly asked questions as well as the answer. If you still have questions, we invite you to call us anytime so we can help you understand what insurance is right for your situation and help you and your family to be properly protected.

Q: What's the difference between comprehensive and collision insurance?

A: Collision insurance is a more limited type of insurance that covers you against damages to your vehicle that result from a wreck with another automobile or collision with an object. Comprehensive, as the name implies, is a broader coverage that protects you in the event of any damage to your vehicle as the result of vandalism, theft, glass breakage, and certain other causes. If you are financing the purchase of your vehicle, you will generally be required to carry comprehensive coverage.

A: The price increase is probably due to your new 2-door vehicle being classified as a sports car by your insurer. Replacement parts for sports vehicles are typically more expensive than compared to parts for non-sports vehicles. Additionally, sports vehicles typically have statistically higher accident rates and, thus, are considered a higher risk to insure than non-sports vehicles.

A: It depends on the type of life insurance policy you own. Term life policies typically do not build up cash value and, therefore, you cannot borrow against them. If your life insurance policy is, for example, a permanent whole life policy, you may borrow the cash value of the policy. Keep in mind that such a loan will require you to pay the loan back with interest or have the amount plus interest deducted from the face value of the policy.

A: In most cases, your insurance would pay for the repairs unless the damage resulted from your neighbor’s neglect. One such example is if the tree was dead and your neighbor neglected the threat it posed to your home. But, it can be difficult to prove neglect. You should file with your insurer to let them deal with the question of your neighbor’s liability.