Top 10 questions about personal lines

✅ Top 10 FAQs About Personal Insurance

1. What is personal insurance, and why do I need it?

Answer: Personal insurance protects individuals and families from financial loss due to accidents, illness, property damage, or death. It gives peace of mind and ensures you're not stuck with large bills if the unexpected happens.

2. What types of personal insurance should I consider?

Answer:

• Auto Insurance – Covers damage to your car or others’ in an accident.
• Homeowners/Renters Insurance – Protects your home or belongings and liability.
• Health Insurance – Covers medical care, hospital stays, and prescriptions.
• Life Insurance – Provides financial support to your loved ones if you pass away.
• Disability Insurance – Replaces income if you can’t work due to illness/injury.
• Umbrella Insurance – Extra liability coverage beyond home or auto limits.

3. What’s the difference between a premium and a deductible?

Answer:

• Premium is the amount you pay (usually monthly or annually) to keep the policy active.
• Deductible is the amount you pay out of pocket before insurance kicks in on a claim.

4. How much life insurance do I need?

Answer: A common rule is 10–12 times your annual income, but it depends on your family’s needs, debts, mortgage, and education plans. A licensed agent can help you calculate the right amount.

5. Will my auto insurance cover me if I’m driving someone else’s car?

Answer: In most cases, the car’s insurance is primary. If you're borrowing a friend's car and cause an accident, their policy typically pays first. Your insurance may act as secondary if needed.

6. Does renters insurance cover my belongings if I’m away from home?

Answer: Yes! Renters insurance typically covers your belongings anywhere—like if your laptop is stolen at a coffee shop or your suitcase is lost during travel.

7. Can I stay on my parents’ health insurance plan?

Answer: Yes, under the Affordable Care Act, you can usually stay on your parents' plan until age 26, even if you’re not living with them or financially dependent.

8. What is an umbrella insurance policy, and do I need one?

Answer: Umbrella insurance adds extra liability coverage beyond your auto or homeowners policy. It’s affordable and protects your savings or assets in case of a large lawsuit or major accident.

9. How often should I review or update my insurance policies?

Answer: At least once a year or when major life events happen—like getting married, having a baby, buying a car or home, or changing jobs.

10. How can I get the best value for my personal insurance?

Answer:

• Bundle auto and home/renters policies.
• Raise your deductible (if you can afford it).
• Maintain good credit.
• Install safety features in your home or car.
• Work with an independent agent who can shop multiple carriers for you.

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