Rating Factors
What factors typically influence the cost of premiums?
Examples include driver's age, driving record, type of vehicle, location, coverage limits, and deductible
How does liability coverage protect drivers?
Liability coverage protects drivers financially if they're responsible for causing injuries or property damage to others in a car accident. It can help cover the costs of legal fees, medical bills, and property repairs.
What is the definition of 'Risk'?
The chance of loss from a type of danger.
What is the average amount of time a driver needs to carry an SR-22?
3 years.
Josh lives in Oregon but had a DUI violation occur in California. He needs to reinstate his license and the DMV is informing him he needs to file an SR-22. What state would the SR-22 be filed in?
California.
How can policyholders lower their premium?
Examples include maintaining a clean driving record, bundling policies, discounts, and higher limits.
What is the difference between collision and comprehensive coverage?
Collision coverage pays for repairs or replacement of your vehicle if damaged by another vehicle or object (collides) while comprehensive covers damage to your vehicle caused by other events such as theft, vandalism, fire, or natural disasters (AOG)
Why is UM/UIM coverage important?
It provides protection if you're involved in an accident with a driver who either doesn't have insurance or doesn't have enough insurance to cover your losses. It helps pay for medical expenses, lost wages, and other damages.
What states are required to carry Personal Injury Protection (PIP)?
Examples include Florida, Delaware, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, and Utah.
True or False. In Michigan, I can opt out of PIP coverage if I carry medical insurance.
True.
How do insurance companies determine a vehicle's actual cash value (ACV)?
Factors include the vehicle's age, mileage, condition, market value of similar vehicle's and depreciation.
What is the difference between combined and split limits?
A split-limit coverage breaks your bodily injury and property damage into 3 separate components while a combined merges so you have one limit for both.
What is meant by "No-Fault" insurance?
No-Fault insurance means that if you're injured in a car accident, your policy will cover your medical expenses regardless of who was at fault for the incident.
What is the difference between Full vs. Limited Tort?
Full Tort means you have the right to sue for medical expenses, lost wages, automobile repair, and pain and suffering while limited tort gives you the right to sue for economic damages only.
Blake lives in Florida, his DUI was in Florida, but has a drivers license in Tennessee. Do you file SR-22 or FR-44 and what drivers license would you use?
File FR44 in Florida on a Florida policy.
How does a deductible work in the event of an accident?
A deductible is what you pay out of pocket on a claim before your insurance covers the rest.
What are the primary types of coverage included in a standard auto insurance coverage?
Examples include liability coverage, collision, comprehensive, and uninsured/underinsured motorist coverage.
What are optional coverages that drivers might consider adding to their insurance policy?
Examples include rental reimbursement, roadside assistance, customized equipment coverage, or pet injury coverage.
*Progressive pays up to $1,000 for medical care for your dog or cat if they are hurt during a car accident and you have collision insurance.
What is an Certificate of Financial Responsibility (CFR)?
A certificate filed with your state that proves a driver meet's the state's minimum mandated car insurance requirements.
Sam lives in Texas with an Oklahoma drivers license but got his DUI in Arizona. How would you write this policy?
A Texas policy with an out of state filing to Arizona.
What role does credit history play in determining premiums?
What is gap insurance and when would it be recommended?
Gap insurance covers the difference between what you owe on a car loan/lease and the vehicle's ACV if it's totaled or stolen. It's recommended for new cars with high depreciation rates o when a loan amount exceeds the vehicle's value.
How does 'Stacked' UM/UIM coverage work?
You can "stack" or combine your UMBI coverage which will increase your liability limits. This can be done either on a single policy that is insuring 2+ vehicles or across separate car insurance policies depending on the state.
What is a "Take-All-Comers" state. Bonus points if you can name one of the states.
A state that must sell auto insurance to any car owner if requested.
New Hampshire and North Carolina.
Anna lives in Washington but has a California drivers license and her DUI was in Washington. Where would you file the SR-22 and with what drivers license number.
A Washington policy with a Washington filing.