Is UM coverage different from collision coverage?

Yes, UM coverage pays for medical expenses and damages caused by an uninsured driver, while collision coverage pays for vehicle repairs regardless of fault. Collision coverage is separate and usually subject to a deductible.

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What discounts are available to reduce insurance premiums?

Common discounts include multi-policy (bundling), good driver, safe home, low-mileage, loyalty, security system installation, non-smoker, and student discounts, depending on the insurer and policy type.

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Can I choose my own repair shop or service provider for claims?

In most cases, you can choose your own repair shop or provider, but the insurer may recommend or have preferred vendors to control costs.

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What are the main types of UBI programs?

The main types of UBI programs include Pay-As-You-Drive (PAYD), which bases premiums on mileage, and Pay-How-You-Drive (PHYD), which considers driving behaviors such as speed, acceleration, and braking. Some programs combine both approaches for a more comprehensive assessment.

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What is the difference between a high and low deductible?

A high deductible means lower monthly premiums but higher out-of-pocket costs in claims, whereas a low deductible results in higher premiums but lower costs per claim.

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What happens if I need an air ambulance while traveling?

If a medical professional determines that an air ambulance is necessary, the insurer arranges the transport, which may include a medically equipped aircraft and trained personnel. Without coverage, air ambulances can cost tens of thousands of dollars, so having an adequate policy is crucial for international travelers.

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What does third-party liability cover?

Third-party liability insurance covers the cost of damage or injury you cause to others. This can include bodily injury, property damage, or legal fees if you're found at fault. It ensures that the third party receives compensation without you personally bearing the costs.

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What is the difference between proportional and non-proportional facultative reinsurance?

In proportional facultative reinsurance, risks and premiums are shared in a fixed ratio, while in non-proportional reinsurance, reinsurers cover losses above a specific threshold.

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