Your Insurance Questions Answered

We are dedicating our blog to allow anyone and everyone to ask whatever questions you may have related to insurance. We know insurance products and policies are extremely confusing to those outside the industry, so remember, “there is no such thing as a stupid question.”

We will start with a few of our most frequently asked questions (and answers) about insurance, and we encourage readers to chime in with their own questions about insurance.

Do I need auto insurance when I buy a new car?

Yes, you will not be allowed to drive the car away from the dealership without proof of insurance. The bank will also require it if you are financing the vehicle. If you currently have auto insurance, your present policy should be sufficient for the dealer, because most will automatically cover a new car purchase for a limited time. However, you should talk to your insurer ASAP to put coverage on the new vehicle.

Will my car insurance premiums rise if I purchase a new car?

Your premiums may or may not go up, depending on the make, model, and year of the new car you purchase. Whenever you buy a new car, we advise that you shop around for insurance, because although a current carrier may offer a competitive rate on your present vehicle, that might not be the case with your new vehicle.

Who Needs to Buy Life Insurance?

While no one is required to buy life insurance, most adults should have at least some level of coverage, especially if you have a spouse and dependents and you are one of the major earners in your family. But even if you are single, you should still carry enough life insurance for a funeral and burial.

Is it better to buy term or whole life insurance?

That depends on your budget, what level of coverage you need, and how long you will need it for. Term life insurance is cheaper, but the policy also runs for a limited “term”, and once it expires, you will have to take out a new policy. Whole life insurance is permanent and is also a financial instrument that builds cash value. Many people use whole life policies as investment vehicles that simultaneously provide permanent coverage in the event of a worst-case scenario.

What kind of insurance do I need for my business?

Every business is unique, so your insurance needs will always depend on a number of factors; such as type of location (office, warehouse, home), number of employees, property owned by the business, vehicles used (if any) and several others. An independent business insurance agency is best suited to tailor a solution around the specific needs of your business because they have access to multiple major carriers and can shop around and find you the best coverage.

 

Call us today at (301) 874-0772 to learn more information about Maryland business insurance.