What’s Your Insurance IQ?

IQ

Reading through your auto insurance policy can be a daunting task. It’s similar to reading a legal document. The insurance business has its own vocabulary with terms such as: premiums, deductibles, comprehensive, liability, etc. In many cases, the insured is not well-versed regarding the details of their insurance policy until they are forced to read it when something happens. Needless to say, that’s not the most opportune time to find out that your coverage is not what you thought it was. What’s your insurance IQ? Take the quiz below to find out.

True or False?

  1. True or False: While your credit score certainly affects buying a car, it does not affect the cost of your car insurance.
  2. True or False: Not all states require car insurance.
  3. True or False: If your auto policy says your liability coverages are 100/300/100, the last figure represents the maximum amount your insurance company will pay for property damage.
  4. True or False: Your car insurance will cover your losses if valuable items are stolen from your car.

Answers:

  1. False: Your credit score can affect the cost of your auto insurance as well as the cost of your homeowners insurance. Where you live, the age and type of vehicle you are insuring, and your driving record also affect the amount you will pay for auto insurance.
  2. True: Believe it or not, all 50 states do not require you to have your vehicle insured. Those that don’t, however, may require proof that you are financially able to pay bodily injury and/or property damages if you are at fault.
  3. True: The last number is your property damage limit. For instance, if you cause an accident due to negligence, your auto insurance policy will pay up to $100, 000 in property damages.
  4. False: A comprehensive auto insurance policy does not cover items stolen from a car unless the car cannot function without them or they were permanently attached to the car. Such items might include a car stereo, or a built-in, factory-installed navigation system. A dashboard-mounted GPS unit, laptop, or iPod, however, would not be covered. It is homeowners or renters insurance policies that cover personal items stolen from your car.

ABOUT YOUR DALLAS, TX INSURANCE COMPANY:

With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets. To learn more, or to get a free quotecall our Carrollton, TX office today at 972-492-8500.

ABOUT YOUR CARROLLTON, TX, INSURANCE COMPANY:

With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets and put your mind at ease. To learn more, or to get a free quote,  call our Carrollton office today at 972-492-8500.