Frequently Asked Questions
1. What are the different types of coverage under the automobile policy?
- General Liability covers damage you caused to other peoples property and injuries to the people themselves.
- Collision covers damage to your own vehicle due to an accident.
- Comprehensive (fire, theft and other non-collision damage) covers fire damage, break-ins, vandalism, and theft as well as natural disasters
(earthquake, hail, hurricane, flood, etc.)
- Medical Payments covers medical expenses for injuries. This “good faith” coverage guarantees immediate medical payments for you, your
passengers, and other parties regardless of who is at-fault. It also covers you and members of your household in any accident involving an
automobile whether you are on foot, on a bicycle, or in a friend’s car.
- Uninsured motorists and underinsured motorists coverage protects you if you are injured in an accident with others who themselves carry
insufficient or no liability insurance.
- Extra coverage includes expenses for towing, labor, temporary replacement vehicles, etc. These are generally defined as add-ons or
endorsements.
2. What happens if I have an accident with an uninsured driver?
- First, call the police to make sure all details of the accident are properly recorded.
- Contact your HPW Insurance Services agent to immediately discuss filing a claim.
3. What are NC liability requirements?
- The minimum limits of liability for NC are $30,000 per person, $60,000 per accident for bodily injury and $25,000 per occurrence for
property damage.
- Although, these are NC requirements, your HPW Insurance Services agent recommends higher limits due to the nature of our litigious society.
4. What are my responsibilities after an accident?
- First, call the police to make sure all details of the accident are properly recorded.
- Provide prompt notice to the insurance company or your HPW Insurance Services agent.
- Cooperate with your insurance company in investigations and defense efforts.
- Submit a proof of loss to the insurance company.
- Protect your vehicle from further damage.
5. Why would my insurer cancel my insurance policy?
- You failed to pay your premium.
- You lose your drivers license.
- You are guilty of material misrepresentation during the application process. i.e. you failed to notify your insurer of a recorded violation
such as a DUI.
- You fail to report a substantial change of risk such as buying a high powered sports car to replace the family sedan.
The above are reasons to cancel your policy. However, your insurer may choose to non-renew your coverage due to bad driving records,
excess number of speeding tickets, DUI, careless and reckless, etc.
6. What happens if I loan my car to someone else? Is that person covered under my policy?
- Liability and coverage for physical damage always follows the vehicle. If a friend borrows your car and has an accident, you are still
protected against the cost of damages or injuries. If the driver of your car is insured, his policy will also be available to cover the cost of
damages and injuries. But the vehicle owner’s policy is the primary coverage if there is an accident.
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