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What is the difference between property damage liability insurance and collision insurance?

Property Damage Liability insurance covers the cost of damage you may cause to the property of others. Collision insurance covers damage to your own car caused by a crash or upset, minus any deductible.

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What is the difference between collision insurance and coverage for damage other than collision?

Collision insurance and coverage for other damage besides collisions varies from state to state. Collision insurance generally covers damage to your automobile caused by collision with another object or by upset, and Comprehensive insurance covers from causes such as vandalism, theft, or glass breakage.

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What is an endorsement?

An endorsement is an amendment to your policy written especially to cover unique items just for you. It is also a change to your policy that is made during the policy's term. An endorsement is attached to your policy to modify the terms of the insurance contract.

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Should I buy collision insurance if I have an old car?

Buying collision insurance is a personal decision. You may want to consider the value of your car or the amount of loss you can personally assume. Our aim is to help you decide what coverage's are best for you.  Please contact your Fred Vogel Sales Representative for more information.

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What is the difference between bodily injury liability coverage and medical payments coverage?

Bodily Injury Liability coverage pays for injuries you or anyone covered under your policy may cause to others. Medical Payments coverage pays for reasonable medical expenses for you or your passengers, regardless of who caused the accident.  Some states require passengers to first seek reimbursement under their own automobile policy.  Your Fred Vogel Sales Representative can advise you of your state's coverage regulations.

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Is my child who is covered under my policy still covered by my policy while driving someone else's car?

If your child is a resident of your household and will have use of your vehicle,  he or she should be listed on the policy in order to be covered while driving a vehicle included on the policy.   If your child is driving someone else's car with their permission, the other person's insurance often covers the damage.  If you have any questions about who should be listed as a driver, contact your  Fred Vogel representative.

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What is the difference between split-limit liability coverage and single-limit liability coverage?

A single limit policy provides one total amount of coverage for bodily injury and property damage in an accident, regardless of the number of people involved or the extent of the property damage. Split-limit coverage specifies individual amounts in an accident for an injured person, for all injured people, and for damaged property.

For example, a $50,000 Single-Limit policy provides a total amount of $50,000 for bodily injury and property damage in an accident. A policy with $25,000/$50,000/ $10,000 Split-Limit coverage provides $25,000 per person.

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What is an insurance score?

An insurance score is a number calculated by a statistical model using information contained in a credit report.  Insurance scores have been developed to help predict the likelihood of having an accident or filing a claim.

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What is the difference between an insurance score and a credit score and how are they calculated?

While insurance scores predict insurance losses, credit scores predict credit delinquency.  Both are calculated from information in a credit report, such as outstanding debt, bankruptcies, length of credit history, collections, new applications for credit, number of credit accounts in use, and timeliness of debt repayment.  Insurers or scoring agencies then calculate the insurance or credit score by taking the information in the credit report and assigning positive weights to the favorable information and negative weights to the unfavorable information.  Information such as income, ethnic group, age, gender, disability, religion, address, marital status, and nationality are not considered when calculating an insurance score. 

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What type of credit information is generally associated with a favorable insurance score?

• Lengthy, established credit history
• Absence of collections
• No late payments
• Low credit balances relative to limits available
• Few recently opened credit accounts (new accounts opened only as needed)

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How can I learn more about my credit information and how to manage it?

A good credit rating must be built over time.  There are no "quick fixes."  The Federal Trade Commission website provides articles about managing personal credit history and scores.
http://www.ftc.gov/bcp/menus/consumer/credit/reports.shtm
 

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I have an excellent credit rating; does this mean I qualify for the best insurance premium?

That depends.  Since insurance scores measure items related to insurance losses and credit scores measure creditworthiness, these scores may be very different.  Items on a credit report considered by an insurance company may not be ones considered by a lender.  Likewise, there may be items on a credit report used by a lender that are not relevant to an insurer.  Additionally, insurance companies consider a number of other factors when determining your automobile premium such as driving record, prior loss history, and vehicle type.  For your homeowner premium, insurers may consider prior loss history, construction type, distance to fire stations and fire hydrants, and presence of protective devices such as smoke detectors, theft alarms, and deadbolt locks.  State laws and regulations also vary, so the factors insurers may use to calculate premium or determine eligibility may differ by state.

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Does the use of credit affect my credit rating?

There is no affect on an individual's credit rating when Fred Vogel makes an inquiry into their credit history.  No banks or other lending institutions will be able see the credit record inquiry made by Fred Vogel.  The only record of the inquiry by Fred Vogel will be on the copy obtained by the consumer, if he or she chooses to receive a copy of their credit report. 

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How do I know what information is in my credit report?

Under the federal Fair Credit Reporting Act you are entitled to receive a free copy of your credit report once during any 12-month period.  Otherwise, the credit bureau may charge a fee for more frequent requests.  It is a good idea for you to annually check your credit information on file with the three major credit bureaus to verify the report's accuracy. If an error is found, you should ask the credit bureau how to correct the information. 

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How can I receive a copy of my credit report?

You can receive a copy of your credit report by contacting the following agencies.

• www.annualcreditreport.com
• Equifax  www.equifax.com 800-685-1111
• Experian www.experian.com 888-397-3742
• Trans Union www.transunion.com 800-888-4213