Frequently Asked Questions
What is the difference between comprehensive and collision coverage on an auto policy?
Comprehensive losses or other than collision pays for damage to your auto resulting from fire, vandalism, water, hail, glass breakage, falling objects, civic commotion or hitting a bird or animal.
Collision coverage pays for physical damage to your auto caused by your auto colliding with an object, another vehicle or an overturn. Collision coverage will pay to repair your vehicle up to the amount equal to the value of the vehicle before the accident.
What are the major factors that affect auto insurance rates?
Age and gender of driver, driving record, use of car, garaging address, number of vehicles, coverages & limits, deductibles and the type of car
Does my auto insurance cover other drivers?
While policy language varies from company to company, auto policies generally cover anyone given permission to drive your auto. Normally all coverages remain in effect, regardless of the driver. Permission is automatically granted to all members of your household unless a driver is specifically excluded from your policy.
What is No-Fault Coverage?
No Fault coverage is a very misunderstood term. The No Fault law is a MN law. It was created to help ease the burden of courts and to ensure prompt treatment for accident victims. No Fault covers your medical costs, wage loss, replacement services such as housekeeping and in the event of death $2000 in funeral expenses. Minimum coverage is $40,000-$20,000 Medical and $20,000 non-medical. Higher coverages can be purchased. No Fault coverage does not apply to motorcycle or snowmobile policies.
What are Uninsured motorists and Underinsured motorists insurance?
Uninsured motorists (UM) coverage applies to bodily injury to you, your family and other occupants of your vehicle when hit by an uninsured motorist or a hit and run driver. It also covers you and your family if injured as a pedestrian when struck by an uninsured motorist or a hit and run driver.
Underinsured motorists (UIM) coverage increases the bodily injury protection you and the people in your car up to the amount of coverage you purchase. It becomes effective when the party causing an accident has lower bodily injury limits than your UIM limits. The maximum paid is the difference between the two limits.
What is Total Replacement Cost of a homeowner’s policy?
This is defined as the cost to replace an entire dwelling of equal quality and utility. This square foot valuation method generates a total replacement cost for the residence. The prices use labor, materials, overhead, profit and fees that are currently in effect prior to the incidence of loss. Companies vary from 100-140% of the insured value.