Buying Insurance FAQs | Pittsburgh, PA | Nalley Insurance Agency LLC | 412-366-5223

Our experience can save you money on insurance today!

Rely on our expertise and knowledge to find you just the right amount of coverage, so you're not overpaying for too much coverage or underpaying which will eventually cost you in liabilities.

Buying Insurance FAQs | Pittsburgh, PA | Nalley Insurance Agency LLC | 412-366-5223

Get reliable, quick insurance answers in one call

We will help you map out your insurance needs and find a policy that fits like a glove. Your question may already have an answer on this page. If not, just give us a call today!

What are the best liability policy limits?

It is generally accepted among insurance agents that the state minimum policy limits are not enough. Most insurance professionals would agree for the average driver the best liability limits to have are 100/300/100. This means:

  • 100,000 per person for bodily injury
  • 300,000 per accident for bodily injury
  • 100,000 per accident for property damage

Since in most areas medical treatment is in fairly the same range, the last limit, per accident for property damage, is the one you may want to take into account if you are not the average driver. If you live in an area where you feel that if there was an accident, that was your fault, and property damage may exceed 100,000, you may want to consider higher limits. Remember, property damage is the other person's car and any other property damaged during the accident if you are at fault. In some areas one's landscaping can cost over 100,000!

Back to top

What is the difference between comprehensive and collision?

Collision coverage is when you have a collision with something like another car. Comprehensive coverage is when it is anything else other than a collision such as fire or theft. Most people would have both when using the car on a regular basis. Sometimes when one is just storing a car they may only keep comprehensive coverage since they are not using it on the road therefore, it is unlikely to be in a collision.

Back to top

How does my driving record affect my insurance premium?

The premium you pay is a direct reflection of your driving record for the past three to five years depending on the insurance company. Insurance companies order driving records from the DMV of your residence state and from other states where you've been licensed. Statistics show that drivers with tickets and accidents are more likely to have accidents than drivers with clean records.

Back to top

Does everyone have to have auto insurance?

Yes, automobile liability insurance, or proof of financial responsibility is required in all fifty states. Although each state sets their own limits on how much insurance is needed, these are only minimum limits and in most cases additional coverage is needed if you don't want to have to pay additional expenses out of pocket. If you have a lease or loan on your car you are usually required by the lender to have comprehensive and collision coverage in addition to the state required liability coverage.

Back to top

What do I do at the scene of an accident?

  1. Stop immediately, but do not obstruct traffic.
  2. Assist the injured. Have someone call the police, repeat after 5 minutes.
  3. Secure names, phone numbers, addresses of other drivers, witnesses, injured persons.
  4. Secure make, model, license numbers of all cars involved.
  5. Make rough drawings of the scene, showing positions of cars and other details.
  6. Don't hastily accept claim settlements at the scene of an accident.
  7. Remain calm, courteous and consistent in your version of the accident.
  8. Notify your insurance agent as soon as possible.

Back to top

What is homeowner’s insurance, and who should buy it? What should I consider when buying homeowner’s insurance?

Homeowners is one of the most popular forms of personal insurance on the market. The typical homeowner’s policy has two main sections: Section I covers your property, and Section II provides personal liability coverage (to cover you in case of lawsuits arising from things that happen on your property). Almost anyone who owns or leases property should have this type of insurance. Often, homeowners insurance is required by lenders as a requirement to obtain a mortgage.

First and foremost, buy the amount and type of insurance you need. Remember: if your policy limit is less than 80% of the replacement cost of your home, you will face a "coinsurance penalty," which means you'll have out-of-pocket expenses to cover costs beyond your policy's deductible. For example: Your home's estimated replacement value (RCV) is $100,000. The co-insurance clause requires you carry at least $80,000 (80% of your RCV), so you would be underinsured by half if you bought a $40,000 policy. In such a scenario, the company would pay half of a loss less the policy deductible - so if you had a $500 deductible and suffered a $10,000 covered loss, your policy would only pay $4,500.

Also, figure out how much personal property insurance and personal liability coverage you need. Personal property, like a home, should be insured for its replacement value. Personal liability is a bit more subjective, but limits should not be less than those on other liability insurance such as auto. Seek advice from a financial or legal professional if in doubt. Finally, think about the extras you could add to your policy. For example, do you want the personal property replacement cost endorsement or the earthquake endorsement? Finally, once you have decided on the coverage you want, contact Raymond A. Nalley Insurance Agency to discuss your options.

Back to top

What is the difference between the replacement cost and the actual cash value of my property?

Replacement-cost coverage pays to replace your home and belongings with materials of "like kind and quality" at current prices. Actual cash-value policies reimburse the depreciated value. A replacement-cost policy will usually cost a little more. Some companies no longer offer replacement cost coverage.

Back to top

What is the difference between an "all risks" policy and a "named perils" policy?

A named perils policy covers losses that are due to only those perils listed in the policy. Those typically include fire, windstorm, hail, and other physical losses. An all risks policy covers losses that are due to any peril except those specifically excluded in the policy. An all risks policy provides broader protection than a named perils policy.

Back to top

If I have an accident I think is covered under my homeowner’s policy, what should I do?

Insurance contracts are conditional contracts, which means policy owners have certain responsibilities to meet if a covered loss occurs. Not completing these can result in non-payment by the insurance company for losses that otherwise would have been covered. These include: (1) notifying the insurance company or the agent that a loss has occurred -- this should be done as soon as you discover the loss; (2) protecting the property from further damage and/or making any repairs necessary to prevent further damage; (3) preparing a detailed list of the personal items damaged that contains descriptions, the items' actual cash value, or their replacement cost if you have added the replacement cost endorsement to your policy; (4) being prepared to show the company and/or the insurance agent the damaged items; (5) completing a statement for the insurance company that explains how the loss occurred -- for example, the time the damage occurred, the cause, etc.

Back to top

For any additional questions or frustrations about insurance,
please call or visit Nalley Insurance Agency, LLC today.

412-366-5223 | 3349 Babcock Blvd

© 2017 hibu,Inc.  All Rights Reserved | Privacy Policy