Frequently Asked Questions

We are asked many times, "What monetary amount makes sense for my deductible?" Generally, the savings on a deductible will be equal to the premium paid over a 2 1/2 to 3 year period. Most people won't have claims that frequently and should take the savings.

Another point to consider is that most people have a threshold claim amount that they would not turn in to prevent from documentation on their record. It's recommended you carry that deductible amount and take the premium savings, if you wouldn't turn in a claim. Simply, our recommendation is to carry the highest deductible you can afford, and take the savings and apply it to purchase an umbrella policy, or increase your limits where you are vulnerable to a high claim settlement.

It is very likely that your credit history can and will affect your personal insurance premiums. Many companies are reviewing past credit history using Transunion, Equifax, or other popular credit reporting companies. Your credit history can be influenced by late payments on credit cards, mortgages, car payments, etc.

Soft hits vs. Hard hits: When you get a quote for car insurance, one of the first parts of the process involves the company in question checking your credit history. Unlike some other credit inquiries, this will not negatively affect your credit score in any way, because it’s considered a “soft hit.” A soft hit does not appear on your credit score and does not affect your history negatively. An example of a “hard hit” would be if you were to apply for a credit card and get turned down, that information would stay on your credit report and have negative results.

Ask your agent if your company used your credit history to rate your policy. Find out which company supplied the credit background, and contact the company to receive a copy our credit report. Bottom line - Keep your credit clean!

Your liability coverage protects you from having to pay damages to someone if you cause an accident. Your liability policy will not pay for your expenses resulting from an accident with an uninsured or underinsured motorist. Even if the other driver has liability insurance, it may be only the minimum amount, and this coverage can quickly be exhausted. Medical care is expensive. The replacement cost of even a single vehicle easily can be $30,000 or more. Your underinsured coverage kicks in to pick up all or part of the difference once the other person's liability limits are exhausted. If possible, have as much uninsured and underinsured coverage as you have liability coverage.

Loan-Lease Gap Insurance is provided by insurance companies to offset the difference in the actual value of a car involved in a total loss and the amount of the loan or lease payments remaining. By adding Loan-Lease Gap Insurance to your policy, the insurance carrier will make up the difference to the bank to pay off your existing loan.

Be careful; many banks have already included this coverage in your loan or lease, so be sure to ask to avoid paying for the coverage a second time. Most companies require that the car be within 2 model years of the current year. The Loan-Lease Gap coverage will exclude late payments, upside down purchases from the previous car, or any other negative impact directly related to your loan or lease.

Other than contacting your insurance agent right away, you would begin to think about all the things that you could never replace.

The first thing that comes to mind is your photographs. Give all your negatives to a neighbor, relative, or anyone who could safekeep your precious memories. Buy a fireproof safe to store your home videos, wedding pictures, deeds, tax returns, etc. Next would be the family heirlooms, artifacts, pictures and crafts. You should videotape all these collectibles to have a permanent record. You already have smoke detectors in the house, but what about the garage?

Place a heat/smoke detector in the garage. Many fires start in this area and are undetected until it's too late. Ask Collaborative Insurance Services for other things to think about before you have a claim.

The Age Old Question! Most experts say you need between 7 to 10 times your combined annual income, less any liquid assets.

Basically it boils down like this:

• For Funeral Expenses, Medical and Hospitals, and Estate Administration, count on between $12,000 and $15,000.
• Add to it debt repayment - car loans, home improvement loans, credit card balances, and miscellaneous loans.
• Add to that mortgage balance, college costs times your number of children (figure $20,000 in state-$40,000 private annually).
• Then add 50-75% of your annual income times the number of years needed and total that all together.
• Now subtract savings, stocks, employer provided insurance and any other life insurance you may have, and there you have it!