FAQs

What is Auto Insurance?
Auto insurance is a way of covering a loss to your vehicle resulting from an accident, damage or theft. Auto Insurance policies usually also cover liability, should an accident occur due to your actions. In Minnesota it is a law that you must carry basic liability insurance to cover the losses you may cause to others in an accident. Back to TOP

What is the difference between comprehensive coverage and collision coverage on an auto policy?
Comprehensive losses are auto/vehicle damages resulting from events other than a collision, such as: fire, vandalism, hail, glass breakage, falling objects, hitting an animal (bird, deer, etc.). Your insurance company will pay out for these damages as long as you have comprehensive coverage.

Collision coverage is just that, it is coverage that will pay for the physical damage to your vehicle caused by a collision with another vehicle, with an object (tree, telephone pole, etc.), or a rollover. Collision coverage will pay for repair costs equal to the value of your vehicle before the accident happened; any costs above the equal value need to be paid by the vehicle owner. Back to TOP

What major factors affect auto insurance rates?
There are numerous factors that affect insurance rates; many of these are taken into consideration by all or most insurance providers. However some companies have other factors, contact us to learn more. The common factors include:
  • Driver's Age
  • Driver's Gender
  • Driving Record
  • Type of Vehicle (Year, Make, Model, etc.)
  • Number of Vehicles Insured
  • Coverages & Limits
  • Deductible
  • Credit History
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What is meant when a vehicle is considered "totaled"?
After an accident or theft, your car insurance company may decide your vehicle is "totaled" if the estimated cost of repairs exceeds the vehicle's actual value – essentially it would cost more to fix the damages then what the car is actually worth. Most often when a vehicle is "totaled" out by the insurance company, the policyholder receives a check for the vehicles pre-accident value. In these situations the insurance company keeps the vehicle unless other arrangements are made. Back to TOP

What types of coverage are commonly included in a standard personal auto policy?
Bodily Injury Liability – This coverage is necessary when you or your vehicle is involved in an accident that results in the injury or death of another person. It pays for medical expenses, legal expenses, and judgments against.

Property Damage Liability – This type of coverage pays for damages to others' property caused by your vehicle.

Uninsured/Underinsured Motorist (UM/UIM) – Covers your injuries caused by an uninsured, underinsured, or hit-and-run driver.

Medical Payments – Medical Payments cover the medical costs for your injuries.

Collision – This coverage can pay for the damages to your vehicle resulting from a collision, regardless of who is responsible.

Comprehensive Physical Damage or Comprehensive Coverage – Pays for damages to your car resulting from fire, hail, theft, vandalism, hitting a deer, etc. Back to TOP

What is homeowners insurance?
This is a type of coverage protecting private homes against most risks and losses, including fire, hail, theft, and other weather related damages. A homeowner's insurance policy covers damages directly to the structure as well as losses of personal belongings (furniture, electronics, clothing, etc.). Back to TOP

Does homeowners insurance cover flooding?
No, homeowners' insurance policies do not include flood protection. However, you can purchase a separate flood policy from certain providers if you feel your home is in a potential flood area. Back to TOP

As a renter, will my landlord's insurance cover my belongings if damages or theft occur to the building?
In short, no… your landlord's insurance will cover the damages to the structure itself and to his/her personal belongings. Your personal belongings – furniture, electronics, clothing, etc. – are not covered unless you have a renter's insurance policy; which is sort similar to a homeowner's policy but for non-homeowners. Back to TOP