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FAQ

• AUTO INSURANCE
• BOAT INSURANCE
• HOME INSURANCE
• LIFE INSURANCE
• BUSINESS INSURANCE
• PET INSURANCE
• TRAVEL INSURANCE
• COMPUTER INSURANCE

AUTO INSURANCE

What is auto insurance? How does it work...

• Automobile insurance covers losses and expenses from auto-related liabilities.
• Automobile insurance polices generally feature several kinds of coverage, insuring against bodily injury, property and vehicle damage, policyholder medical expenses, and uninsured drivers. Get started with an auto insurance quote online.
• Here are some common forms of automobile insurance coverage: Bodily Injury liability: Covers injuries to a third party, including medical fees and lost wages. Bodily injury and property damage liability coverage are often included in the same policy and required by law. Here's a common policy formula, called a split limit: 100/300/100. 100,000 per person for bodily injury 300,000 per accident for bodily injury 100,000 per accident for property damage Property Damage Liability: Covers damage to a third-party's vehicle or personal property. In most states, law requires it. No deductible. Physical Damage: Covers damage to the insurer's vehicle, regardless of fault. Available in two forms, collision and comprehensive, each usually with separate deductibles. Collision covers damage caused by your vehicle colliding with another vehicle or object; comprehensive covers damage from events such as fire, theft, vandalism, and weather. Lenders often require both forms of coverage before approving a loan. Medical Payments: Covers policyholder medical expenses resulting from an accident, regardless of fault. Usually covers costs for the first three years after an accident. Uninsured/Underinsured Motorist: Covers losses and expenses from accidents with uninsured or underinsured drivers. Learn about auto insurance online, and then request an auto insurance quote from one of the best insurance companies listed here.
• A Personal Auto Policy (PAP) bundles many of the above forms of auto insurance into one convenient policy. It usually includes bodily injury and property damage liability, physical damage protection, medical payments, and uninsured/underinsured motorist coverage.

Policy premiums are a direct reflection of a policyholder's driving record for the last three to five years, acquired from the state DMV.

Also of note, most automobile insurance policies pay the depreciated actual-cash value of a car, not its replacement cost, if the vehicle has been totaled in accident.

Finally, auto insurers offer scores of valuable driver discounts, including The Good Driver Discount, Safe vehicle Discount, Good Student Discount, Senior Discount, Low Mileage Discounts, and Rural Discount. Find your best auto insurance online with FindInsurance!

BOAT INSURANCE

What is boat and watercraft insurance?

• Boat and watercraft insurance is a specialized form of insurance coverage that protects boaters in the event of boating-related accidents and liabilities.
• With comprehensive boat and watercraft insurance, you'll be covered not only when your boat is the water but also when it is being transported or stored.
• Policies may include the following coverage areas: bodily injury, medical payments, roadside assistance, on-water towing, uninsured boaters coverage, wreckage removal, fuel spill liability, and fishing equipment coverage.

Why is boat and watercraft insurance necessary?

• A boat is a prized possession. Owners need to protect themselves against damage and theft, as well as ensure their safety and the safety of their passengers.
• Don't rely on a homeowner's policy to cover your boat-it probably won't provide enough coverage. Boat and watercraft insurance offers coverage that's more comprehensive and specialized.

What else should I know?

• Coverage options for boat and watercraft insurance can vary from state to state.
• Some carriers may limit where you can take your boat or watercraft, and you may be charged extra if you travel outside that radius.
• Discounts may be available if you are older and married, or have multiple boats, boats that are smaller in size and possess less horsepower, or a newer boat (less than 10 years old, for example).

HOME INSURANCE

What is homeowners insurance? How does it work...

• Homeowners insurance covers your physical property and possessions against theft and damage from recognized risks and perils, such as:
  • Theft
  • Fire and lightning
  • Smoke
  • Frozen pipes
  • Ice and snow
• Most homeowners insurance policies also include personal liability coverage against claims of personal injury or damage that occur on your property or at your place of residence. Liability coverage of $100,000 is common. If you rent or lease your property, you should still obtain personal liability insurance.
• Some homeowners insurance policies also cover medical payments to third parties and legal expenses incurred from lawsuits filed against you.
• Claim reimbursements are either based on the actual cash value of your home and possessions or their replacement cost. ACV polices pay out less to policyholders, as they take into account property depreciation. However, ACV policy premiums and deductibles are lower.
• Personal possessions often receive less coverage than physical property in homeowners insurance policies. Property is covered on an "all risk" basis, meaning that it is covered against all risks except those excluded in the policy. Possessions are covered on "named perils" basis, meaning that they are only covered against risks explicitly named in the policy. In short, an all-risks policy provides broader protection than a named-perils policy

What's not covered? Loses due to war, nuclear accident, terrorism, flood, earthquake, and mold typically are not covered. Supplemental insurance covers these perils.

LIFE INSURANCE

What is life insurance? How does it work...

• Life Insurance covers expenses and loss of income from the untimely death of a spouse or wage earner. Life insurance is also often used in estate planning and retirement funding, as permanent, cash-value lifeinsurance proceeds are tax-free.
• Life insurance costs generally increase if you fall into four high-risk groups: 1) if you are a smoker, 2) if you are overweight, have high cholesterol, or asthma and other breathing disorders, 3) if you have an alcohol-abuse problem, and 4) if you participate in extreme sports.
• Life insurance comes in two general forms: term (or temporary) and permanent insurance. There also are several variations of permanent insurance, including whole, universal, and variable life. Specialty life insurance options also are available, such as children's insurance and smoker's insurance.
  • Term Life Insurance: Term life is the most and affordable type of coverage. The buyer selects a term of coverage (10 to 20 years, for example). A specified death benefit is paid to the estate if the policyholder dies within that term. Some term policies can be upgraded to permanent insurance. [Learn More]
  • Whole Life Insurance (permanent): Lifelong coverage with a fixed premium and cash-value accumulation of paid premiums plus interest. Cash value also can be used as loan collateral for emergencies, family purchases, or college tuition.
  • Universal Life Insurance (permanent): Lifelong cash-value coverage with more flexible premiums and plan transparency. Appropriate for younger buyers who may require flexible payment schedules.
  • Children's Life Insurance: Specialized life insurance, enabling parents to provide their children lifelong insurance coverage (usually Whole Life) at today's rates. [Get a Children's Life Insurance Quote] [Learn More]
  • Smoker's Life Insurance: Specialized term-life insurance for smokers up to 20 years. [Get a Smoker's Life Insurance Quote] [Learn More]

How much coverage do I need...

• Many agents and brokers recommend coverage of six to eight times an individual's annual earnings.
• An insurance advisor can provide you an exact coverage calculation based on your marital status, number of dependents, spousal earning capacity, and more.
• Consider your insurance goals. Is the coverage just for emergencies or a tool to cover education expenses, retirement costs, and estate taxes? Current estimates suggest that raising a child to college age can cost nearly $700,000.

HEALTH INSURANCE

Health insurance for groups and individuals...

There are two primary kinds of health insurance: group health, administered through a group entity, such as a company or union, and individual health insurance, purchased by an individual directly from an insurance company. It's important to distinguish between the two because they have different costs and benefits.

The fundamental difference between individual and group health insurance is that insurers cannot deny service to individuals eligible for group coverage via their employer or union. This is not always the case for individuals seeking health insurance on their own. If individuals don't meet specific state and federal requirements, they can be deemed a "bad risk" by an insurer and denied coverage.

Because insurers must cover all individuals in a group, regardless of each member's health and lifestyle, group health plans are intrinsically risky for insurers. This raises premiums for employers offering group plans. Essentially, insurers hedge their bets by charging employers higher rates. This often goes unnoticed by employees and other plan benefactors because they usually only pay a portion of the plan premiums (minimum premium plan). Many, as a result, mistakenly assume group health insurance is more expensive than individual health insurance. It's actually not. What is less expensive than individual health insurance is the typical group member's portion of group health insurance.

What does this mean for the average person...

Try to obtain group health insurance whenever possible. In the final analysis, it will be less expensive for you and offer better guaranteed benefits than individual health insurance.

However, there is a benefit to purchasing individual health insurance. People can work with a health insurance broker to tailor a plan to their needs from the insurance company of their choice. When comparing policies and health insurance quotes, consider what medical services are covered, what benefits are paid, and how much you must pay in deductibles and co-insurance.

How does health insurance work...

Regardless if you are an individual or a member of a group, healthcare is administered two basic ways (if you are not over 65 or eligible for federal aid). Medical care is either provided through an indemnity (fee-for-service) plan or a managed care plan.

Both cover various medical, surgical, and hospital expenses. Many also offer a prescription-drug and dental-care benefit. However, there are some important differences between the two.

• Indemnity: This is the most flexible, yet expensive option. Policyholders select the doctor of their choice and pay as they receive services. The patient or doctor then submits a claim to the patient's insurer for reimbursement, minus a negotiated deductible. The patient is reimbursed for "covered" medical expenses, listed in the plan's benefits summary. Generally, the insurer pays 80 percent of the "reasonable and customary charge," while the patient pays a 20 percent coinsurance. Lifetime benefit limits also are set, usually at $1 million.
• Managed Care: These plans provide comprehensive health services at a lower cost, yet limit physician choice. Coverage also is paid in advance, instead of per visit or service. There are three popular types of managed or prepaid care: HMO, PPO, and POS. For more detail, see Individual Healthcare or Group Health. Be aware that managed care plans evaluate if physician-recommended services are medically necessary. This is known as a utilization review. If you don't want to risk denial of service, indemnity plans may be the better option. Also, note that managed care plans use discharge planning to reduce expenses. Patients that don't require hospitalization are often transferred to more costeffective units, such as nursing facilities.

A Third option - Medicare and Medigap...

Medicare and Medigap offer a third way to obtain high-quality healthcare, if you meet eligibility requirements.

• Managed by the Social Security Administration and financed by the federal government, Medicare provides healthinsurance for people who are over 65 as well as younger individuals with disabilities.
• Medigap (or Medicare Supplement) is an exciting form of supplemental health insurance for Medicare, reducing out-of-pocket Medicare costs.

For more on Medicare and Medicaid, see AARP Health Insurance.

BUSINESS INSURANCE

What is business insurance? How does it work...

• Business insurance comes in a variety of forms, covering everything from property damage and consumer lawsuits to employee injury. Here are some general forms of business insurance:
  • Business Property: Covers physical damage or loss due to natural perils, theft, vandalism, and other catastrophes.
  • Commercial General Liability: Protects against personal injury claims and other lawsuits, resulting from on-site accidents, defective products, substandard work, and other issues.
  • Business Owners Policy (BOP): An economical business insurance policy that packages business property insurance and general liability coverage.
  • Professional Liability Insurance: More specialized liability insurance that protects against claims of professional error, omission, and negligence.
  • Employment Practices Liability Insurance: Offers protection against harassment, discrimination, and wrongful termination claims that are not covered under general liability.
  • Worker's Compensation: State-mandated, no-fault insurance, covering employee injury and illness.
• Before granting coverage, insurers evaluate the risk of insuring each business. As part of this process, agents visit the business's premise. The more a business manages its own liabilities, the lower its premiums will be.

Benefits of business insurance...

• Protect your investment in costly inventory and capital assets, such as heavy machinery and specialized equipment.
• Avoid bankruptcy due to catastrophic loss from accidents, fire, flood, theft, vandalism, and other perils.
• Insure against employee complaints or suits, which can lead to devastating legal costs and plaintiff rewards.

Tips for lowering business insurance costs...

• Maintain adequate lighting throughout your premises to limit customer and employee mishaps. Keep carpeting, electrical wiring, elevators and escalators, flooring, and stairways in good shape. Install a security system and fire-prevention devices, such as sprinklers and smoke and fire alarms.
• Limit the amount of cash in the register (if applicable).
• Retain good records of inventory, accounts receivable, and equipment purchases. Keep a second set of records off-site with an accountant, insurance agent, for example.
• Hire and keep employees with good driving records.
• Discuss safety practices with employees. Educate them about proper lifting techniques and necessary safety equipment, such as goggles, gloves and respirators (if applicable).
• Contact a risk management consultant, who can advise you on state safety and environmental regulations.

PET INSURANCE

How pet insurance works...

Policyholders pay their vet bill and then file claims for reimbursement. (Please review claim processing estimates before signing up.)

• Not all plans cover routine wellness care, such as flea control, heartworm medication, and immunizations. Rather, they cover accident and illness. Clarify your needs before selecting a plan.
• Most, if not all, plans have coverage maximums for particular procedures, typically between $1,500 and $4,000 per incident.
• Though pets of any age usually can be covered, insurance premiums are often greater for older pets.

Benefits of pet insurance...

• Pet insurance policies, such as dog health insurance policies, are more affordable than veterinarian loan programs, which charge high-interest rates.
• Many pet health insurance plans cover preventative and emergency care, including shots, spaying, lab tests, X-rays, surgery, and hospitalization.
• Most pet insurance companies insure for the life of your pet, even with relocation.

Dos and Don'ts of pet insurance:

• Use the Internet to compare pet insurance policies and request pet insurance quotes. Insurers will compete for your business. Shopping around pays.
• Research the following before selecting a policy:
  • How much is the monthly premium?
  • How much is the deductible?
  • What are the enrollment requirements (usually 8 months)?
  • Is there a Benefit Limit?
  • Are there any discounts available?
  • Does the plan cover pre-existing conditions?
  • Is cancer covered? Is sterilization covered?
• If a general policy is inadequate, request a special package. They are often available for older pets. Also, some pet insurance companies will offer multi-pet discounts.
• If you have a mature pet (dog or cat), avoid policies that don't cover preexisting conditions or ones common to its breed.

Take a few minutes to request a pet insurance quote from one of the many highly qualified pet insurance carriers. It'll ease your mind and save you money.

TRAVEL INSURANCE

What is Travel Insurance? How does it work?

• Travel insurance is a form of specialty coverage that protects individuals while they are on vacation, whether they are traveling abroad or on a cruise or tour.
• There are four kinds of travel insurance:
  • Trip Cancellation Insurance: Covers the expense of canceling a reservation with a cruise or tour operator, due to illness, death in the family, or another calamity listed in the policy. It also reimburses trip expenses if an operator goes out of business. Some travel insurance policies reimburse the remaining cost of a trip, if the policyholder must return home to care for a seriously ill or injured family member.
  • Personal Effects Coverage: Covers a traveler's personal belongings against loss, damage, or theft during a vacation. According to the Insurance Information Institute, insuring $1,000 worth of personal belongings for a week roughly costs $50 per year.
  • Emergency Medical Assistance: Covers vacation-related medical expenses, resulting form injury or illness. Generally, travel medical insurance covers the expense of treatment abroad or the cost of being transported home for treatment, which can be significant if one requires a stretcher on a commercial airline.
  • Accidental Death: Covers financial losses and expenses incurred from the accidental death of the policyholder or a family member during a vacation. This coverage often is not necessary if one has a robust life insurance policy.

Benefits of travel insurance...

• Protect you and your family's welfare and personal belongings from unforeseen liabilities while in a foreign country or situation.
• Protect your investment in expensive vacations and cruises. Many trips cost thousands of dollars.

Ready to compare travel insurance quotes? Keep these tips in mind:

• Use the Internet to compare travel insurance quotes and find the cheapest travel insurance.
• Purchase a policy from a highly rated insurer graded "A" to "AAA" by companies such as A.M. Best and Standard and Poor's.
• Investigate how much coverage your airline or trip operator provides for personal property.
• Review your homeowner's policy to see if it covers off-premises theft. Additionally, review your medical insurance to verify that it does not provide travel coverage.

COMPUTER INSURANCE

How computer insurance works...

• Policyholder pays the replacement or repair bill and then files a claim for reimbursement. (Please review claim processing estimates before selecting a plan.)
• Some plans have coverage maximums for particular repairs and types of equipment.

Benefits of PC computer insurance...

• Supplemental computer insurance covers your PC and data more completely than conventional homeowner's or renter's insurance against PC theft or damage. Frequently, these general insurances do not provide high enough coverage limits to replace or repair computers. Additionally, they don't cover all kinds of software and computer equipment without higher premiums.
• Computer insurance covers the replacement value of your PC, not just its depreciated actual cash value (ACV). This enables you to replace your server, desktop or laptop computer without out-of-pocket costs. General insurances often demand higher deductibles for computer repair and only refund ACV on replacement claims.
• Computer insurance covers user-negligence, including accidental and power-surge damage, the most common forms of failure. General insurance and manufacturer extended service contracts typically only cover fire, theft, and mechanical breakdown.
• Computer insurance covers damage incurred away from home, which is particularly important for laptop computers. If you're looking for laptop insurance, consider that many homeowners' policies have low coverage limits for personal possessions stolen or damaged away from your residence. Laptop insurance provides much more coverage, generally speaking.

Dos and Don'ts of computer insurance:

• To ensure prompt computer claim processing, retain all of your computer equipment and software receipts.
• Use the Internet to compare computer insurance policies and request computer insurance quotes. Insurers will compete for your business. It pays to shop around.
• Select a desktop or laptop computer insurer with an excellent financial rating (A to AAA) from A.M. Best, Duff and Phelps, Moody's, and Standard and Poors. Don't trust your property and financial security to an unstable insurer and underwriter.

Don't let your significant computer investment go unprotected. Request qualified quotes for computer insurance for your desktop and laptop computers today.

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