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Frequently Asked Questions

Below are some of our frequently asked questions.  If you have any other questions or concerns, please feel free to contact us via the web, or come and visit us at a location near you. 

You may also view our glossary for definitions of the most commonly used Insurance terms.

  1. What are the best policy limits for Auto Liability?
  2. Is Anyone Who Drives My Car Covered?
  3. How Does My Driving Record Affect My Insurance Premium?
  4. What Happens When My Loan Was More Than My Insurance Company Says My Car Is Worth?
  5. What is the difference between replacement cost and actual cash value on my homeowners policy?
  6. Why didn't my Homeowners policy pay for damage caused by flood?
  7. Why didn't my Homeowners Insurance pay to replace everything I lost?
What are the best policy limits for Auto Liability?
Answer: It is generally accepted among insurance agents that the state minimum policy limits are not enough. Most insurance professionals would agree for the average driver the best liability limits to have are 100/300/100. This means: 100,000 per person for bodily injury 300,000 per accident for bodily injury 100,000 per accident for property damage Since in most areas medical treatment is in fairly the same range, the last limit, per accident for property damage, is the one you may want to take into account if you are not the average driver. If you live in an area where you feel that if there was an accident, that was your fault, and property damage may exceed 100,000, you may want to consider higher limits. Remember, property damage is the other person's car and any other property damaged during the accident if you are at fault. In some areas

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Is Anyone Who Drives My Car Covered?
Answer: In most cases, yes, as long as they have the permission or reasonable belief from the insured that they can use the vehicle. The insured is the person named on the insurance policy and their spouse if applicable. There are some exclusions, so you would need to look at your particular insurance policy to make sure. Remember, everyone in your household must be listed on your insurance policy if they have a license. For example, if a girlfriend you live with uses your car, she may not be covered if you did not list her on your insurance policy. On the other hand, if you live separately, she could use your car with your permission and be covered.

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How Does My Driving Record Affect My Insurance Premium?
Answer: The premium you pay is a direct reflection of your driving record for the past three to five years depending on the insurance company. Insurance companies order driving records from the DMV of your residence state and from other states where you've been licensed. Statistics show that drivers with tickets and accidents are more likely to have accidents than drivers with

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What Happens When My Loan Was More Than My Insurance Company Says My Car Is Worth?
Answer: Sometimes the value of a car is less than the balance on your car loan. There can be several reasons for this. Interest rate changes may have increased the amount of your loan. Rebates may not have been applied to the purchase price, or poor maintenance of the auto may have reduced its value. The insurance company bases its payments on the actual cash value (ACV) of the car, not the amount of your loan. In some states you may be able to purchase a special type of insurance, known as guaranteed auto protection (GAP), when you buy a car. GAP insurance covers the difference between the ACV and your

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What is the difference between replacement cost and actual cash value on my homeowners policy?
Answer: Replacement-cost coverage pays to replace your home and belongings with materials of "like kind and quality" at current prices. Actual cash-value policies reimburse the depreciated value. A replacement-cost policy will usually cost a little more. Some companies no longer offer replacement

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Why didn't my Homeowners policy pay for damage caused by flood?
Answer: Flood damage is not covered by most homeowner policies. A separate policy can be purchased through the National Flood Insurance Program insurance company or other insurance companies that write flood policies. Call Penn Summit today for a quote. 724-329-0386

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Why didn't my Homeowners Insurance pay to replace everything I lost?
Answer: Most homeowner policies have "dollar limits" on certain types of belongings. Generally, these limits are on silverware, guns, jewelry, watches, furs, and computers. The limits usually cover losses of the average person. Give Penn Summit a call today about increasing these limits to meet your individual needs.

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