| AUTO INSURANCE |
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What should I do if an accident or loss occurs?
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If you are involved in an accident or loss:
- Help any injured.
- Get names, addresses, auto license plate numbers of involved, including witnesses.
- Do not discuss an accident with anyone except the police or our representative.
- Protect your auto and any property from further damage.
- Promptly call the police if someone is injured, damage is extensive, or in case of theft.
- Notify your Agent of the accident or loss.
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Am I covered if I borrow someone else's car?
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Your ERIE policy will pay the amount for which you are liable for damage to other vehicles or property and injury to other persons that are not covered by the vehicle owner's insurance.
Coverage for damage to the vehicle itself is provided, if at least one of your cars on your ERIE policy has comprehensive and collision coverage. However, this coverage pays only for damage that is not covered by the vehicle owner's policy.
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What are "Physical Damage Coverages?"
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Comprehensive and collision coverages are the "Physical Damage Coverages." Under comprehensive coverage, we will pay for damage to your car and its equipment not caused by collision. Under Collision coverage we will pay for damage to your car and its equipment caused by collision or upset.
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If I rent a car, will it be covered if I damage it? Should I purchase the "Collision Damage Waiver" from the rental company?
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Generally, private passenger cars you rent (including motor homes, pick ups and vans) are covered for damage you cause to them, if they are not covered by the rental agency's insurance. Coverage is available for up to 30 consecutive days. Coverage only applies if there is physical damage coverage on at least carry physical damage on your policy, we recommend you buy the rental company's "collision damage waiver."
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If I loan my car to someone else, is there coverage?
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Generally, anyone to whom you give permission to drive your car is covered under the ERIE's policy. Relatives who live in your home are automatically covered while driving your car.
Drivers specifically excluded on your policy however, are not covered.
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What is provided by the Liability Coverage in my policy?
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Under your Liability coverage, we agree to pay all sums you legally must pay as damages caused by an accident covered by the policy.
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When should I add my children to my auto policy?
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Your children should be added to your policy as soon as they obtain their learner's permit.
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My automobile policy was canceled because I did not pay my premium on time. Is this legal?
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Pennsylvania law does not require insurance companies to extend a grace period for premium payments. If payment is not received by your due date, the company is permitted to cancel for non-payment of the premium.
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What is a surcharge?
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This is the extra fee charged to a policy holder's premium as a result of a claim payment or a serious violation or suspension under the policy. A surcharge will remain on your auto insurance bill for three years.
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Can I exclude my spouse or teenager from my insurance policy to lower my premium or avoid being canceled?
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Yes, The FIRST NAMED insured may exclude any family member from the policy provided that the person being excluded can prove he has auto insurance with another company or is in the Assigned Risk Plan.
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How much is my insurance company required to pay me if my car is damaged?
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The principle behind insurance is to make the insured whole after a loss. You cannot profit from a loss. Your insurance will pay the amount needed to repair the car to the condition it was in before the accident and may include installing after market parts (parts manufactured by a company other than the manufacturer of the car). The insurance company does not have to pay you for the amount you owe the bank if you have a loan. If the cost to repair the vehicle is more than the car is worth, the company will declare the vehicle to be total loss and pay you the replacement value determined by one of three methods selected by the company.
- The guide book method (the average retail value of the red and blue-NADA book);
- The actual cost method (the appraiser's determination of the actual cost of a vehicle of similar or like kind or quality);
- The dealer quotation method (the average of at least two quotations from actual dealers).
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Is it legal for my insurance company to non-renew my auto insurance because I have too many claims?
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A company may non-renew a policy for two or more accidents of certain types, within 36 months, where the amount paid in claims for both accidents exceeds $750 after the insured pays any applicable deductible.
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I don't understand all the terms in my policy. What should I do?
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First, you should contact your agent or company with specific questions about your coverages. Their primary job is to service policyholder's questions. If you still do not understand certain terms, you can call one of the four regional Consumer Services Offices of the state Insurance Department. Or you may bring your policy and other information to one of these offices and discuss your questions with one of the department's consumer services representatives.
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What could cause my premiums to increase other than an accident?
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Various factors can change the cost of your auto premium such as: adding or increasing coverages, adding another vehicle to the policy, replacing an older vehicle with a new one, adding a new driver, increasing the number of miles driven per year and moving to an area with more congested traffic. In addition, your company may have been granted a rate increase since your last bill. Direct questions on increases to your agent or company.
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| LIFE INSURANCE |
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Why do I need life insurance?
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Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. An important feature of life insurance is that there is no federal income tax on proceeds paid to beneficiaries.
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How much life insurance do I need?
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Before buying life insurance, you should assemble personal financial information and review your family's needs. There are a number of factors to consider when determining how much protection you should have. A professional agent can help you determine the amount of life insurance that is right for you, or click on Life Planning.
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What is term insurance?
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Term insurance provides protection for a specific period of time. It pays a benefit only if you die during the term.
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What is permanent insurance?
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Permanent insurance provides lifelong protection and is known by a variety of names, described later. As long as you pay the necessary premiums, the death benefit always will be there. These policies are designed and priced for you to keep over a long period of time.
Most permanent policies have a feature known as "cash value" or "cash surrender value". This feature, which is not found in most term insurance policies, provides you with some options.
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What are the advantages and disadvantages of term and permanent insurance?
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Term Insurance
Advantages
- Initially, premiums are generally lower than those for permanent insurance.
- It's good for covering specific needs that will disappear in time.
Disadvantages
- Premiums increase as you grow older.
- Coverage may terminate at the end of the term or may become too expensive to continue.
Permanent Insurance
Advantages
- As long as the necessary premiums are paid, protection is guaranteed for your entire life.
- Premium costs can be fixed or flexible to meet personal financial needs.
- Policy accumulates a cash value that you can borrow against.
- The policy's cash value can be surrendered in total or in part for cash or converted into an annuity.
Disadvantages
- Required premium levels may make it hard to buy enough protection.
- It may be more costly than term insurance if you don't keep it long enough
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How do I choose an agent?
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Is the agent licensed in your state?
What company or companies does the agent represent?
Does the agent have any professional designations?
Is he or she a member of a professional association?
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