General Questions
Question: How do I know what insurance is right
for me?
Sprague: It's not easy. The most important thing you
can do is to seek help from an insurance agency that
has a reputation for expert knowledge and a high
level of integrity. You deserve good answers to
questions like these: Why do I need this amount of
coverage? What does this term mean? Why do you
recommend this policy over that one? What is the
track record of each company in paying claims?
Question: I got quotes from several companies,
and there's a big difference in price. Why?
Sprague: That's an excellent question. If you begin
by reading the endorsement page, you'll probably
find some differences in the amount of coverage and
perhaps, too, the amount of deductible in various
items. Sometimes the lowest premium truly provides
the best coverage for your needs at the best price;
sometimes the cost or risk are actually higher when
you look at what you really get for your money. The
best way to get answers to these important questions
is to sit down with a knowledgeable insurance agent
with a reputation for integrity.
Car Insurance
Question: Why does auto insurance cost so much?
Sprague: The biggest single reason may come as a
surprise to you: fraud. Some of it is high-level
criminal activity, but other factors are false or
exaggerated claims and fraudulent or inflated
medical bills. Other factors that influence the cost
of car insurance: theft, litigation, high speed,
alcohol and drugs, cost of parts, cost of medical
care, and simply the fact that there are more cars
on the road than ever before.
Question: What can I do to reduce my auto
insurance premiums?
Sprague:
1. Choose a safer car. Among the features
that safeguard you and save you money are airbags
and anti-lock brakes. Avoid sports cars and other
high-performance vehicles; they have a worse
accident rate.
2. Drive defensively and keep your
driving record clean. There are often discounts
available to drivers who have had no tickets for
three years. Enrollment in defensive driving classes
can reduce your premiums, too.
3. Don't waste your money on coverage you don't
need. You can reduce premiums by raising your
deductibles. Make sure you review your policy with
your insurance agent each year; the value of your
car changes as it ages.
4. Buy multiple coverages from one company. Many
companies offer discounts for carrying multiple
policies with them.
5. Choose your agent carefully. A good insurance
professional can help you get the coverage that is
right for you at the most competitive price.
Home and Property Insurance
Question: Why does my insurance policy show
coverage that's more than I paid for my house?
Sprague: If you should need to replace your home
because of a total loss, you will want your
insurance company to rebuild your same home. You
must account for the current cost of labor and
supplies.
Question: What kinds of damage does my
insurance policy cover?
Sprague: Coverage may differ considerably from one
company and type of policy to another. It's very
important to understand from the outset exactly what
protections your policy offers you. Your coverages
are outlined on the declaration page of your policy,
and your agent can explain these in greater depth.
For example, water in the basement is not an
uncommon occurrence. Some policies will cover the
cost of repair, but many will not unless you
specifically have flood insurance - regardless of
the cause.
It's important for you to work with a
knowledgeable insurance agent who can help you to
understand exactly what your options are and can
help you make decisions that best serve your needs.
Question: Do I need a special policy to cover
jewelry, silverware and original artwork?
Sprague: Most homeowners and rental policies have
limits to the coverage offered for expensive items,
and these are usually only for the named perils in
the policy. For more comprehensive coverage for your
valuables, talk to your agent about purchasing a
policy specifically for these items.
