At Sharp, we love nothing more than to have customers ask us questions about insurance! We are passionate about what we do (some might say we're insurance nerds!) and are thrilled to answer any and all questions about policies, premiums and insurance in general. Here are our answers to some of the most commonly asked questions we receive.
Why do I need insurance?
Insurance can be expensive; we get that. Over a lifetime, you spend a great deal of money on insurance and it's easy to question why people who are responsible drivers, homeowners and businessowners need to buy insurance. Unfortunately, life is full of uncertainty. The most defensive driver can lose vigilance for a moment and cause an accident. The most careful homeowner can still encounter a flood or a fire. A businessowner with state-of-the-art security gadgets and alarm systems can still be robbed by tech-saavy thieves. Insurance allows you to pay relatively small monthly payments in the event that tragedy strikes and you are forced to foot a bill in the thousands --or even millions-- of dollars.
If someone borrows my vehicle and gets in an accident, will my premiums go up?
When someone is driving your car, it's essentially as if you're driving it. In one sense this a good thing because your insurance will cover damages and allow you to make a claim as if you were driving. In another sense, this also means that your premiums could go up. This is often a matter left to the discretion of your insurance company, who will decide if your decision to lend the vehicle to someone who got in an accident means you're a greater risk.
If I increase the deductible on my home insurance policy, will my premiums be cheaper?
Yes. One of the best ways to reduce the cost of your premiums is to increase the price of your deductible. Remember, though, that increasing your deductible means that it will cost you more to make a claim. If you're fairly certain that you won't need to make a claim, then it is to your economic advantage to increase your deductible.
If you have any further questions, be sure to contact the insurance experts at Sharp. We're more than willing to answer them!