Richard J. Nelligan Insurance Agency, INC. has compiled a list of some of the most common questions about insurance and hope that you find it helpful.
For additional information and answers to questions not included here, please call us at 508-697-3179
and we will respond with the information you need as quickly as possible.Q: What’s the difference between comprehensive and collision insurance?
A: Collision insurance is a more limited type of insurance that covers you against damages to your vehicle that result from a wreck with another automobile or collision with an object. Comprehensive, as the name implies, is a broader coverage that protects you in the event your auto is damaged as the result of vandalism, theft, glass breakage, and certain other causes. If you are financing the purchase of your vehicle, you will generally be required to carry comprehensive coverage. Q: I went from owning a sedan to owning a two-door car and my insurance premiums went up. Does it usually cost more to insure a two-door vehicle?
A: The rate increase is probably due to your new two-door vehicle being classified as a sports car by your insurer. Replacement parts for sports vehicles are typically more expensive than comparable parts for non-sports vehicles and sports vehicles also have statistically higher accident rates and, thus, are considered a higher risk to insure than non-sports vehicles.Q: Will filing a claim on my homeowner's insurance cause my rates to increase?
A: You should typically not see an increase in your premiums based on a single claim being filed. If, during the claims review, your insurer discovers previously unknown risks, however, your rates may increase accordingly.Q: Can I borrow against my life insurance policy?
A: It depends on the type of life insurance policy you own. Term life policies typically do not build up cash value and you therefore can’t borrow against them. If your life insurance policy is, for example, a permanent whole life policy you may borrow against the cash value of the policy.