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Q) What's the difference between comprehensive and collision insurance?
A) Collision insurance is a more limited type of insurance that covers you against damages to your vehicle that result from a wreck with another automobile or collision with an object. Comprehensive, as the name implies, is a broader coverage that protects you in the event your auto is damaged as the result of vandalism, theft, glass breakage and certain other causes. If you are financing the purchase of your vehicle, you will generally be required to carry comprehensive coverage and collision coverage.

Q) I went from owning a sedan to owning a 2-door car and my insurance premiums went up. Does it usually cost more to insure a 2-door vehicle?
A) The rate increase is probably due to your new 2-door vehicle being classified as a sports car by your insurer. Replacement parts for sports vehicles are typically more expensive than comparable parts for non-sports vehicles and sports vehicles also have statistically higher accident rates and, thus, are considered a higher risk to insure than non-sports vehicles.

Q) Will filing a claim on my homeowners insurance cause my rates to increase?
A) You should typically not see an increase in your premiums based on a single claim being filed. If, during the claims review, your insurer discovers previously unknown risks, however, your rates may increase accordingly.

Q) Can I borrow against my life insurance policy?
A) It depends on the type of life insurance policy you own. Term life policies typically do not build up cash value, and you therefore can not borrow against them. If your life insurance policy is, for example, a permanent whole life policy you may borrow against the cash value of the policy. Keep in mind that such a loan will require you to pay the loan back with interest or have the amount plus interest deducted from the face value of the policy.

Q) If my neighbors' tree falls on my home will his insurance pay for repairs?
A) In most cases, your insurance would pay for the repairs unless the damage resulted from your neighbors' neglect. If, for instance, the tree was dead and your neighbor neglected the threat then they would be liable, but it can be difficult to prove neglect. You should file with your insurer and let them deal with the question of your neighbors' liability.

Q) I don't live near a body of water. Do I need flood insurance?
A) You don't have to live near water to need flood insurance. Basically, a flood as defined by the National Flood Insurance Program is a temporary condition that involves the complete or partial inundation of at least 2 acres of normally dry land or of at least 2 properties by water or mud. As populations grow, new construction can cause a decrease in the lands ability to absorb water and can result in flooding of adjacent areas. Depending on the location of your home flood insurance can be extremely affordable.

Contact us today in Muskegon, Michigan, to learn more about our versatile insurance agency.