Does my credit rating have an effect on my premiums?
Yes, most insurance companies now incorporate your credit score into how much they charge for premiums on your personal auto and homeowners insurance. The effect of your score on your premiums can be quite dramatic. Some states are currently challenging the use of the credit score in the underwriting process, but PA does currently permit its use.
700 Darby Rd., Ste 100, Havertown, PA 19083
Phone: 610-853-4900 Fax: 610-853-2491
Will submitting a Homeowner's claim effect my premium?
Yes, submitting a claim on your Homeowner's Policy can effect your premium. Now, just as with auto policies, many companies surcharge your premium for three years in the event of a paid claim. In addition you may lose a loss free credit you may have on your current policy. The difference in premium can be substantial, so you might want to discuss that property claim before submitting it to the insurance company.
Typically split limits are provided for bodily injury such as $100,000 per person and $300,000 per accident*. In this example it means the most you have available from your insurance to protect you is up to $100,000 for injuries you cause to any one person in an accident, and no more than a total of $300,000 for all injuries, regardless of how many people may have been injured. Factors to consider in how much you should carry include: how much could you be responsible for in the event of a very serious accident; the assets you need to protect from lawsuits resulting from an accident; the premium you wish to pay; what you want available to another party you injure in the way of limits, should you seriously injure them. One way to look at it is to consider what you, or your family, would seek from another party in monetary damages if they very seriously injured, or caused the death, of you or a member of your household. A party you seriously injured would probably seek the same, or more, from you.
Your limit for property damage you cause is typically a single limit per accident. Assuming a limit of $100,000*, this would be the most available for all property damage you might cause as a result of one accident. When deciding on the proper limit for you, you should consider: the value of cars or trucks, or other property, that you may damage and the possible resulting loss of use.
Limits on an automobile policy are usually available up to $500,000 for bodily injury and $500,000 for property damage. Higher limits than these can be obtained by purchasing a personal umbrella policy.
*The above limits are only for illustrative purposes, and your own policy details the limits actually available to you.
What limits should I carry for Auto Liability?
What are some possibly important coverage options I may wish to consider?
- Back-Up of Sewers and Drains - No coverage is provided on the basic Homeowners. Coverage for this, including damage due to the malfunction of sump pumps, is available by endorsement.
- Jewelry, Furs, etc. - Limits and coverage for items such as: Jewelry, Furs, Silver and Goldware, Firearms, Coin & Stamp Collections, Fine Arts & Antiques are very limited on the Homeowners. You might want to consider purchasing Valuable Items coverage. Depending on the amounts needed, it can be done as an endorsement to the Homeowners, or the purchase of a seperate policy.
- Identity Theft Coverage - You can purchase up to $25,000 in coverage for the expenses incurred as a result recovering your stolen identity.
- Home Business - Businesses run from the home are excluded on the Homeowners. Coverages for some types of businesses can be added on by endorsement.
- Personal Injury - The liability portion of your Homeowners covers you for bodily injury and property damage. By endorsement you can also be covered for Libel & Slander, Invasion of Privacy and False Arrest.
- Flood and Earthquake - No coverage is provided under the Homeowners for damages caused by Flood or Earthquake. Coverage for Earthquake can be endorsed onto the policy. Coverage for Flood can be arranged through the purchase of a seperate policy.
- Lease/Loan Gap - When leasing/financing a new auto, you sign agreements obligating yourself to pay off the lease/loan at a specified amount in the event the car is totalled at a given point in time. At that particular time, it could be the amount the insurance company is obligated to pay you for the loss of the vehicle is less than the amount you are obligated to pay for the balance of the lease/loan. This optional coverage would cover that difference.