The Fox Insurance Agency - A division of HTT Agency, Inc.

Personal Auto

Q. What is Liability insurance?

A. This part of an auto insurance policy covers the injuries and damage you cause to other drivers and their vehicles when you are at fault in an accident. If you are taken to court, liability coverage will apply to your legal costs. Most states require drivers to carry liability coverage. The amount of coverage varies by state.

Q. What is Medical payments coverage?

A. This part of an auto insurance policy pays for medical expenses and lost wages to you and any passengers in your vehicle as a result of an accident regardless of fault. It is also known as personal injury protection (PIP).

Q. What is Comprehensive Coverage?

A. This is optional coverage for losses by fire, theft, vandalism, falling objects, and various other perils such as deer collision. On Personal Auto Policies, this often appears as "other than collision" coverage.

Q. What is Lease Loan Gap Coverage?

A. If you are thinking about leasing or buying a car, you might consider adding Lease Loan Gap (LLG) Coverage to your auto policy. LLG Coverage is an extension of your auto's physical damage coverage.

Ordinarily, your comprehensive and collision coverage provides you with up to the actual cash value (the vehicle's cost minus depreciation) in the event of a total loss. When you sign a lease or loan agreement, you may be obligating yourself for an amount higher than the vehicle's actual cash value.

At a cost of approximately 5% of your current comprehensive and collision premiums, LLG Coverage protects you from out-of-pocket expense when such a "gap" occurs. Although there are some limitations, LLG Coverage will pay up to your lease or loan amount if your car is stolen or if the cost of repairs is greater than its salvage value. Contact our office and we'd be happy to discuss this coverage further.

Note: Some car manufacturers may provide gap coverage as part of the lease agreement -- check your particular contract for details.

Q. My son/daughter has their temporary driver's license; do I need to add them to our policy?

A. It varies from one company to the next. Some carriers require you to add your youthful drivers once they receive their temporary driver's license while others will add them only when they receive their permanent license. A few, however, require that the youthful driver be added at age 16, even if they have not yet received their permanent license. We suggest that you call us when your youthful driver is about to apply for their temps so that we can discuss your situation with you in more detail.

Q. What is the Indiana Graduated Driver Licensing Law?

A. Indiana’s Graduated Driver’s Licensing Law (Senate Enrolled Act 16) is effective January 1, 1999. The law is designed to provide young drivers with a slow, steady introduction to driving and help develop safe driving habits. The provisions of the Law are as follows:

Drivers under 18 may not operate a motor vehicle during existing Indiana curfew hours (11 pm – 5am Sunday-Thursday nights; 1 am – 5am Friday and Saturday nights) They may drive during these hours if they are driving to and from a Legal job, school, sponsored event, church activity or when driving with a parent or legal guardian.
During the first 90 days after getting their license, drivers under 18 can’t transport other people in their car unless someone at Least 21 years old who holds a valid driver’s license, is riding in the passenger seat. Young drivers may drive unaccompanied as long as they do not carrier passenger during the first 90 days.
All passengers must wear a seat belt if riding with a driver under the age 18.

Q. What do I need to get an auto rate quote?

A. You need the following:

Information about your current insurance policy (Examples: current renewal notice, declaration page showing coverage’s/deductibles).
Information about your vehicle (Examples: alarm system, air bags, automatic seat belts, Vehicle Identification Number).
Information about the driving record for you and all licensed drivers in your household (Examples: drivers license number, social security numbers, tickets and accidents).

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Q. Who do I contact if I need to make a change to my policy?

A. Please contact your agent. He/She can make the change with the company and keep all copies of changes on file.

Q. Do I need to file a police report if I'm involved in an auto accident?

A. Yes. Always file a police report for your own protection. The insurance company may surcharge your policy for an accident that may or may not be your fault based on not filing a police report.

Q. Who do I call to file a claim?

A. Most cases you would contact your agent unless he/she specifically advises you to contact the insurance company direct. Some companies will only take a claim directly from the insured.

Q. Whose policy pays for an accident with a borrowed car?

A. If you lend your car to a friend and your friend has an accident, it might be your insurance that's on the hook. It all depends on the insurance company that issued your policy. One company’s policy may state: "the insurance follows the car"; while another company’s policy states "the driver’s insurance is the primary coverage" even though you own the vehicle involved.

Q. Should I purchase rental agency coverage for rental cars?

A. If you have collision and comprehensive ("other than collision") coverage on your own car, you are most likely covered if you're traveling in the United States, its territories and possessions or Canada (for example, travel in Mexico, the Bahamas or Europe would not be covered). Most policies cover damages sustained to any rental car that you drive at no additional premium. However, most all policies do not cover loss of use charges you could be held liable for while the rental car is in the shop for repairs. Give us a call before you leave for your "fun in the sun and/or snow" to confirm your coverage.

Q. What do I do if I have an accident?

A. Here are some general guidelines about what to do if you find yourself in this situation:

Stop at once. Never leave the scene of even a minor accident.
Seek medical assistance and summon the police.
Do not admit fault. Do not comment about the accident to anyone but your insurance representative and the police. Never accept or make an offer of cash, check or "private" settlement.
Obtain information on the other driver including: name, address, phone number, make of car, vehicle license number, insurance company and agent's name and telephone number. Record a description of what occurred.
Draw a diagram of the accident showing the direction of both cars and the point of the accident. Include street names and location of traffic signs/signals.
Report the accident promptly to your insurance agent.

Homeowners

Q. What does credit have to do with getting homeowner's insurance?

A. A few years ago, insurance companies started research on new criteria for underwriting. It was discovered that there is a strong correlation between a consumer's credit history and the number/severity of claims that they will likely submit.

Q. Does an insurance quote affect my credit score?

A. When an insurance company does a credit inquiry to price an insurance policy, it usually does not affect a consumer's credit rating. While the inquiry does appear on the credit report, it is clearly identified as an insurance company that checked. Most reputable lending institutions realize that you're not borrowing money from that insurance company and will ignore that entry on your credit report.

Q. Why am I being declined homeowner's insurance because I own a high-risk dog?

A. Another frequent problem with homeowner's insurance is the presence of ‘high risk’ dogs. Dog bites are extremely expensive for property insurers and the company has the right to avoid those risks.

High risks dogs include Pit Bull, Rottweiler, Doberman, German Shepherd, Akita, Chihuahua and sometimes Labrador. Standard companies will usually deny coverage to anyone owning one of these animals. The Indiana Fair Plan (our state supported program) will take any of these dogs EXCEPT pit bulls and any dog that has bitten someone.

Q. Am I covered for tornado damage and does this also include windstorms?

A. Since the policy specifically refers to windstorm as a covered cause of loss, some residents have wondered what exactly a windstorm includes. Tornadoes, hurricanes, high winds, thunderstorms and blizzards are all included in the definition of a windstorm. Your homeowner's policy also provides 'loss of use' benefits to cover additional living expenses while repairs are being made to your home.

Please call us with any specific questions regarding your property coverage. We are always happy to review your current coverage needs.

Q. Am I covered for volunteer activities?

A. You are a volunteer soccer coach, a 4-H advisor, a chamber of commerce committee member, on the church board, or you helped raise contributions for the last United Way campaign. Perhaps you have volunteered hundreds of hours this year without a thought of insurance coverage. If someone is injured, who pays for any legal action brought against you in these volunteer activities? If you serve as a board member and are sued for breach of duty, imprudent investments, and discrimination in hiring or wrongful termination -- are you covered? To answer these questions, there are two places to check: your homeowner's insurance and the organization's insurance. Let's look at them:

Your homeowner's insurance policy gives you liability protection for bodily injury and property damage to others in non-business activities, like a child who is injured when you are the volunteer soccer coach or 4-H advisor. On the other hand, no protection is provided if your volunteer activity is related to a business (i.e., chamber volunteer, union, trade or professional association representative, etc.) or if you receive any compensation. Any legal action other than bodily injury and property damage is not covered (an exception: some homeowner's policies cover personal injury -- libel, slander, false arrest, false imprisonment, etc.).

Also check for coverage under the organization's policy. Ask the organization leadership for proof of insurance for general liability, directors and officers liability and employment practices liability. Also check to see if volunteers are covered (named as additional insured’s) under those policies. Some other potential loss situations could include:

Failure to examine documents signed
Silence with respect to improper conduct of fellow officials
Improper rejection of bids
Failure to exercise diligence in management
Incurring unnecessary expenses

Communities are fortunate to have so many volunteers donating their time in a host of different areas. This discussion is not meant to discourage any present or prospective volunteers. Rather, our intent is to help individuals be well informed, comfortable and adequately protected when it comes to volunteering.

Q. Will I be covered for earthquake, flood and sewer back-up?

A. While not wanting to dampen your anticipation of this long-awaited season, it is a good idea to review some optional coverages you may wish to add to your current homeowner's policy. Flood insurance as well as the sewer back-up and earthquake endorsements is worth a brief examination.
Since flood damage is excluded under your homeowner's coverage, you should be aware that flood insurance is available from the National Flood Insurance Program.

Sewer back-up provides protection for direct loss caused by water that backs up through sewers, drains, or sump pump wells. Just as flood insurance excludes coverage for sewer back-up, this endorsement excludes any coverage for damage due to flooding. Coverage is subject to a deductible.

Earthquake coverage is available with the premium determined by the structure of your home or building. Since it will better withstand an earthquake, a frame structure is less to insure than a masonry one. A substantial deductible (often a percentage of the amount of insurance that applies to the destroyed or damaged property) is in effect.

For clarification of your current policy or information regarding the above coverages, please contact us. We welcome the opportunity to evaluate your present needs and to discuss possible insurance improvements for you and your family.

Q. Does homeowner's insurance cover me for my home-based business?

A. Let's consider the following:

While caring for a child for a fee, the child is injured in your home. The parents expect you to cover the hospital bills.
You replace your friend's car brakes for a "few bucks" and the car is damaged or your friend is hurt in some way. He expects compensation.
A friend slips on an icy walk or trips on a toy while picking up the craft item she paid you to make. She expects you to cover medical bills.
You use your detached garage for a small woodworking business and the garage is damaged in a windstorm. You want your garage rebuilt.
You are a self-employed sales representative with an office in the home. While entertaining a client in your home, the client is injured and expects compensation.

In each situation described, the answer is probably "not covered" -- unless you have added specific coverage to your policy for this home business. Take away the compensation, or business aspect, and each would probably be "covered". Situations like those described can be covered in one of three ways:

Your employer may cover it if your business is conducted on behalf of your employer.
A business insurance policy may be purchased to cover it.
Your homeowner's insurance policy can sometimes be broadened to cover it.

If you have any concerns about a business-type activity in your home, call us. We'll be happy to discuss it with you.

Q. How broad is my homeowner's insurance coverage?

A. The HO15 endorsement broadens a homeowner's policy so that it also covers other personal property lost due to extraordinary situations. Consider these other covered losses:

Lost jewelry or gemstones falling out of jewelry not specifically insured (subject to a policy dollar limit).
Loss in value when a gemstone is scratched or cracked (subject to a policy dollar limit).
Cameras or other personal items falling overboard from a boat or a capsized canoe.
A hot iron falling on and scorching an area rug.
A deer crashing through a sliding glass door causing extensive damage to household contents as it struggles to deal with the unfamiliar surroundings of a family room.
Raccoon damage (rodents and vermin are not covered).
Lost hearing aids, eyeglasses, telescopes, cameras, etc.
Spillage of paint, India ink, nail polish, acid, bleach, and other chemicals that damage household contents.

Most homeowner's insurance policies list 17 or 18 different perils of coverage for household contents that do not include the above or numerous other bizarre possibilities. The H015 will cover most of these -- subject to your policy deductible.

Q. Is my portable cell phone covered by my homeowner's or renters insurance?

A. Sometimes it is, but coverage is subject to the policy provisions and deductible in your homeowner or renter’s policy.

Q. Can I buy broader coverage for my portable cell phone?

A. Yes, most companies offer a special, broader coverage for portable cell phones that can be added to a homeowners or renters policy. Call us for details.