Why do I need to buy insurance?
Protects your assets against attachment as a result of a court award. Provides for cost of defense when you are sued. Allows you to purchase such high value items as a car or a home by insuring the collateral on behalf of the financial institution that lent you the money. Provides financial security for your family in the event of your death. Provides for the health care of you and your family through systematic payments. Allows you to save for retirement while deferring interest payments to a time when your income is lower, thus reducing your tax payments. Allows you to remain financially solvent when you’re ill and can’t work.
How does where I live affect my premium?
Where you keep your car directly affects your chances of having an accident or becoming a victim of theft or vandalism. The likelihood of encountering these problems increases in larger, more densely populated cities, while such incidents remain relatively low in rural areas. Additionally, the time and efficiency of police response and law enforcement, local road and traffic conditions, and the quality of local medical services can affect regional insurance rates. Some insurers even factor in the litigation rates in a given area (how many lawsuits are filed, go to trial, out of court settlements, and their amounts).
Who decides on the type of insurance, the mortgage company or me?
You do. The mortgage company collects a set amount from you each month in order to protect their investment. This money is put in escrow and covers your insurance and taxes. However, the policy is still yours and you might select the insurance you feel offers the best coverage at the best rates.
How expensive is renters insurance?
Renters insurance is typically available for as little as $100 a year.
I’m just getting my business started. Do I need insurance immediately?
Yes. Your chance of suffering a loss begins with the first day of business. If you suffer a loss and have no insurance or have improper or insufficient coverage, your insurance agent can do little, if anything, to help you.