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Search & common questions
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Auto
What does collision coverage cover?Collision coverage pays to repair or replace your own car after a crash, regardless of fault, minus your deductible.
What does full coverage mean?“Full coverage” isn't an official policy type -- it's shorthand for a bundle that typically includes liability, collision, and comprehensive.
What is gap insurance?Gap insurance pays the difference between a totaled car's actual cash value and what you still owe on the loan or lease.
What affects my auto insurance rate?Age, driving record, location, credit-based score (where allowed), vehicle type, and coverage choices are common general rating factors.
Renters
Does renters insurance cover water damage?Sudden, accidental water damage (like a burst pipe) is typically covered; flooding from outside water usually isn't and needs separate flood coverage.
Is my dorm room covered by my parents' homeowners policy?Some homeowners policies extend limited coverage to a dependent's belongings at school, often at a reduced sub-limit -- worth checking the actual number.
Homeowners
Does homeowners insurance cover flood damage?Standard homeowners policies generally exclude flooding; it typically requires separate NFIP or private flood insurance.
What's covered under personal liability on a homeowners policy?Personal liability coverage pays for injury or damage you or your household causes to someone else, plus legal defense costs if you're sued.
Umbrella & Liability
Claims & Costs
How do claims affect rates?A claim, especially an at-fault one, can raise your premium at renewal. The exact effect depends on your insurer, state, and claim type.
How much does auto insurance cost on average?National averages generally run in the low thousands per year for full coverage, but your own rate depends on many personal factors -- see the full breakdown.
How much does renters insurance cost on average?Renters insurance is typically one of the least expensive policy types, often well under $200 a year on average nationally.
What happens when I file a claim?Most claims follow a similar path: notify the insurer, document the loss, an adjuster reviews it, then settlement or repair happens.
General Concepts
What does comprehensive coverage cover?Comprehensive covers non-collision damage to your car: theft, fire, hail, vandalism, or hitting an animal.
What is actual cash value?Actual cash value is what an item is worth today after subtracting depreciation, not what it costs to replace new.
What is replacement cost coverage?Replacement cost coverage pays what it costs to replace a damaged item new, without subtracting for depreciation.
What is a deductible?A deductible is the amount you pay out of pocket before your insurance starts paying on a claim.
What is a premium?A premium is the regular payment, usually monthly or annually, that keeps a policy active.
What's the difference between term and whole life insurance?Term life covers a fixed period with no cash value; whole and other permanent policies last a lifetime and build cash value.
What is a named perils policy?A named perils policy only covers the specific causes of loss it lists, rather than everything except what's excluded.
What is an insurance claim?A claim is a formal request to your insurer for payment after a covered loss.
Do I need renters insurance if I don't own anything valuable?Renters insurance also includes liability coverage, which protects you if someone is hurt in your home, regardless of how much personal property you have.
What is subrogation?Subrogation is the process where your insurer seeks reimbursement from the at-fault party's insurer after paying your claim.
What is underwriting?Underwriting is the process an insurer uses to evaluate risk and set a price before issuing a policy.
What is loss of use coverage?Loss of use (or Additional Living Expenses) helps pay for temporary living costs if a covered loss makes your home unlivable.
What is a rating factor?A rating factor is a characteristic, like age or location, that insurers use as one input to help calculate a premium.
What is a total loss?A total loss is when repair costs exceed a set threshold relative to a vehicle or property's value, so the insurer pays its value instead of repairing it.
What is an insurance beneficiary?A beneficiary is the person or entity named to receive the payout from a life insurance policy.