Frequently Asked Questions (FAQ)


What is the difference between comprehensive coverage and collision coverage?


Collision covers your own vehicle for any damages sustained during a car accident, even if it is your own fault.
Comprehensive covers for anything else that could happen to the car besides an accident (fire, flood, theft, striking an animal etc…)

What are the minimum requirements for auto insurance by law?


In New Jersey it is a combined liability limit of $35,000 or split limits of $15,000 Bodily Injury Per Person/ $30,000 per Accident and $5,000 Property damage.

Why is my home covered for more than I could sell it for?


Homeowners are not based on the sale price. Insurance companies go by what it would cost to replace the home if it was a total loss.
Many times when the markets are down the cost to rebuild is more than you could buy or sell the home.

Does my homeowners policy cover me for flood and earthquake?


No, Flood would need to be covered under a separate policy.  Earthquake coverage can be added as an endorsement but is quite expensive.

Why should I use an independent agent?


An Independent agent is a licensed professional that can shop your business with multiple companies rather than just one.
Also we can advise on what coverages and limits would best suit the insured.

Is Property Damage Liability Necessary for Insurance Coverage?


The majority of states require a driver to carry property damage liability. The requirements are often fairly low, in the $10,000 range. Which would be insufficient if you were in a serious accident that damages someone’s property. Property damage liability covers the cost of repairs to things such as houses, fences, yards and other structures. It is best to check with your local DMV in regards to the guidelines and requirements of your particular state. Even if property damage liability is not required, it is a good idea. Damages can quickly add up if you are in serious accident.

Is Comprehensive Car Insurance Worth the Extra Cost?


The best comprehensive car insurance really depends on the value of your vehicle. If you are driving an older, low value car, then comprehensive is probably a waste of money. In many cases, the cost of the premiums will exceed the value of the car. Comprehensive insurance covers you in the event that your car is damaged from incidents other than an accident. An example would be flooding or a fire that destroyed the vehicle. This type of coverage is required if your vehicle has a loan against it. The bank or finance company will require you to carry full coverage.

Do You Get Fined or Arrested after a Car Accident if You have No Insurance?


Getting into a car accident with no insurance usually leads to a ticket and a fine. It will vary depending on the state you live in. In most cases, if you provide proof of insurance at your court date, the ticket will be dropped or the fine greatly reduced. This is assuming this is a first offense. If you have been caught driving without insurance more than once, the fine will be higher, and you will have to get a SR-22 from an insurance company proving you have insurance. In most states, an SR-22 is in effect for 3 years and if you drop your insurance or miss a payment, the insurance company must notify the state. They will immediately suspend your license.

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