Frequently Asked Questions & Answers About Home & Car Insurance

From Your Comparison Insurance Quotes Experts

The questions and answers below are a good starting point to learn more about home insurance, auto insurance and bundling the two types of coverage together in Indiana, Illinois, Ohio, Georgia and Wisconsin. Our agents are always happy to answer any additional questions or address any concerns you may have!

FAQs About Auto Insurance

What questions should I ask when changing to different auto insurance coverage?

When it comes to changing your auto insurance coverage, not all questions are created equal. Make sure to include the following questions as part of your research process:

1. What does the policy cover?

This question may sound obvious, but it is easy to overlook the coverage that you need for your individual situation. Many policyholders do not fully understand the details of their coverage, making it easy to assume they have the level they need when it actually falls short. When asking about your policy, make sure to inquire about comprehensive, collision, property damage liability, bodily injury liability and personal injury protection.

2. Does the policy provide protection from uninsured and underinsured motorists?

In states that follow a tort system, the driver who causes the accident is legally required to pay out injury and damage claims to the other driver, passengers and that driver’s vehicle. However, not all states follow the tort system and even in those that do, a driver who cannot afford car insurance may not have the ability to pay these costs. The safest bet is to add uninsured/underinsured motorist coverage.

3. How much will I pay if I cause a car accident?

The amount of coverage you have determines your premium. While a lower premium means a lower monthly or yearly payment, it also means you will have to pay more out-of-pocket if you cause an accident.

What does auto insurance cover?

There are different types of coverage under the general car insurance umbrella. It is imperative to learn about each so that you can determine whether or not you need them.

  • Liability – Liability pays others for bodily injury or property damage, caused by you when you were deemed to be substantially at-fault or negligent. Depending on the state, it pays for repairs to their car, medical costs if any injuries were suffered, transportation cost or damage caused by your vehicle hitting an object.
  • Collision – If you hit an object or another vehicle, collision covers the cost of repairs made to your vehicle. It is important to note that you must pay a pre-set deductible before collision kicks in.
  • Comprehensive – Much like collision, comprehensive goes into effect after you pay your deductible. This type of coverage pays for losses to your vehicle in the event that the culprit is something other than an accident. For example, if a severe storm caused a tree to fall onto your car, comprehensive would take effect.
  • Uninsured/Underinsured Motorist – With far more uninsured drivers on the road than you might suspect, uninsured/underinsured motorist is essential to have. It covers the cost of repairing vehicle damage and treating injuries you sustain after being hit by a driver who does not have any insurance or has insufficient insurance. If a driver causes an accident and then flees the scene, this coverage comes to the rescue by taking care of your associated expenses.
  • Medical Expenses – Think of medical expenses coverage as an extension of your health insurance. It pays the cost of treating injuries sustained by yourself and anyone else riding in your vehicle regardless of who is at fault. It even pays for injuries you sustain while riding in a vehicle other than your own.
Is auto insurance required by law?

Car insurance is considered a must-have in 47 out of 50 states, where drivers are required to have a minimum level of coverage before they are permitted on the road. Failure to carry it can result in a fine, license suspension or revocation and even jail time. The majority of states consider motorists legal if they have liability, with a smaller number of states requiring collision and comprehensive, as well.

How much does car insurance cost?

A number of different factors affect the cost of your auto insurance. They include your age, gender, location, driving record, the overall safety rating of your car and whether it is new or used. Compass Insurance Agency makes a variety of discounts available including multi-policy, multi-car, good driver and a good student.

If something happens to my garage while my car is in it, and my car is destroyed, does homeowners insurance cover the loss of my car?
Do not rely on homeowners insurance for reimbursement or replacement when it comes to your car. Only comprehensive physical damage coverage on your automobile insurance policy will cover your vehicle in this scenario.
Do I need to purchase rental insurance when I rent a car or will my existing coverage suffice?
You should never rely on your existing policy to cover a rental car, as all insurance carriers cover rental cars differently. Contact your insurance agent to confirm what level of coverage, if any, they offer for rental cars.

FAQs About Home Insurance

What questions should I ask when changing my home insurance coverage?

Choosing homeowners insurance coverage is a major decision; after all, it affects the biggest investment you will ever make. The following questions will help ensure you choose wisely.

1. How much would it cost to rebuild my home in its current location in the event of a total loss?

Your home insurance policy should cover the cost of building a new home from the ground up – not just rebuild part of it or make repairs. Your home insurance agent can calculate the cost of doing so by figuring in the cost of the construction materials used when it was originally built and knowledge of your neighborhood.

2. Which natural disasters should my policy cover?

A standard homeowners insurance policy should cover partial or total damages caused by fire, hurricane, hail and lightning. Earthquake and flood-related coverage, however, require separate policies.

3. How much liability protection do I need?

Liability protects you in the event that you, your family members or pets cause bodily injury or property damage to other people. You are covered regardless of where in the world you are when the harm is inflicted. It is recommended to purchase at least $300,000 worth of liability protection.

What does homeowners insurance cover?

The different types of homeowners insurance coverage are designed to safeguard you against certain risks that tend to affect homeowners most.

  • Property Damage – Including your residence and any attached structures, property damage pays for damage inflicted on your house or storage shed by a covered hazard. Not every natural disaster is included, so it is imperative that you review your homeowners policy and purchase any additional coverage you may need.
  • Personal Property Loss – Personal property loss does not just cover damage; it also covers theft. Earthquakes and flooding are rarely covered. If your property is worth a significant amount of money, you will likely need special endorsements or additional “riders.”
  • Personal Liability – Homeowners insurance can protect you even when you are not at home. It can cover you up to your liability limits if yourself, a family member or a pet is responsible for causing an accident, an injury or property damage.
Is homeowners insurance required?

While not all states require homeowners insurance, the vast majority of mortgage lenders in Georgia, Wisconsin, Arizona, Ohio, Illinois and Indiana do. They will not approve a home loan without proof of coverage. Homeowners insurance is important for those who own their homes outright, as well. It provides compensation to repair or rebuild after a loss and offers financial protection if a liability claim leads to a lawsuit.

How much does homeowners insurance cost?

There are so many different factors that affect the cost of a home insurance premium, it can be difficult to pin down a generic cost. Each policy truly is unique. These factors include:

  • The value of your home
  • The state in which you live
  • The crime rate in your area
  • The level of coverage you purchase
  • The number of claims you have filed in the past

Your best bet is getting guidance from an experienced independent insurance agent who can steer you in the right direction, helping you save money and ensuring you are fully covered.

Will a basic homeowners insurance policy provide coverage if someone breaks into my home and steals my jewelry?

It is wise to purchase a personal articles floater if you own valuable jewelry, as the majority of basic home insurance policies offer limited coverage for jewelry.

How does homeowners insurance differ from condo insurance?
While homeowners insurance covers the structure of your home and the contents within it, condo insurance only covers your unit and your belongings. There are two reasons behind this. First, you are purchasing the unit, not the building. Second, in most cases, you belong to a condo association that takes care of external structural damages.

FAQs About Bundling Insurance

Why should I bundle my home and auto insurance?

The benefits of bundling your coverage include the convenience of working with one agency versus multiple agencies. This makes filing claims and renewing your policies so much easier. All of the information about your policy and any associated passwords is in one central place. The savings you receive as a result of bundling is another compelling benefit. Compass Insurance Agency offers a bundling discount for choosing one of our carriers for your home and car insurance.

What does bundling insurance involve?

One of the best ways you can get a discount on your home and auto insurance is by bundling them together. This simply means you obtain both policies from the same carrier.

Is it easy to bundle my policies?

Bundling your home and auto insurance is as fast and easy as contacting Compass Insurance Agency! We will guide you through the entire process and make sure you find the right coverage for your individual situation.