Other Insurance Topics

Frequently Asked Questions

• What’s the difference between an insurance agent and a broker?

  An insurance agent directly represents one or more insurance companies, while a broker has more flexibility to work with a range of insurers. Brokers may coordinate with agents to find their customers the coverage they need, but you could pay more for the service. Both need to be licensed to sell insurance in the state they do business.

  Learn More: Insurance Agent vs. Broker: What's the Difference?
• What is umbrella insurance?

  An umbrella policy is liability insurance that provides coverage above and beyond the liability limits you have on your other policies, such as homeowners insurance and auto. It supplements those existing coverages and kicks in if you become liable for damages above your other policies’ limits. For example, if the liability limit on your homeowners policy is $300,000, but you’re sued for $500,000, an umbrella policy could cover the difference.
  

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• What does travel insurance cover?

  Travel insurance reimburses you for travel-related costs as a result of unforeseen events like illness or injury; canceled flights, tours, and cruises; and weather-related events. It can also offset the expense of lost, damaged, or delayed luggage. Coverage varies between policies, so make sure you compare specific coverages when getting travel insurance quotes.

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• How much does motorcycle insurance cost?

  The average annual cost of motorcycle insurance was $702 in 2020. But how much you pay will depend on the type of motorcycle you ride, the coverage you choose, your driving record, credit history, gender, age, and where you live. You may be able to reduce your premium by taking a motorcycle safety course and bundling your motorcycle insurance with other policies.

  Learn More: How Much Motorcycle Insurance Costs
• What is insurance credit scoring?

  Also called your credit-based insurance score, it’s used by insurers (along with your age, gender, and other factors) to set your premium. The score takes into account your payment history, outstanding debts, the length of your credit history, if you’ve recently applied for new credit, and the different types of credit you carry. It’s not the same as your regular credit score, but may be prepared by the same companies who create your credit score like FICO.

  Learn More: What Is Insurance Credit Scoring?
• Is cellphone insurance worth it?

  Whether cellphone insurance is smart comes down to a few things: how much your phone costs to replace, how high the deductible is, and if you can pay to replace it out of pocket. Generally speaking, if you own a high-dollar phone, insurance is a good idea. But if you own an older model, the deductible plus insurance premiums could cost you more than buying a replacement. If you skip the insurance, just be sure you have the money to buy a new phone. 

  Learn More: How to Pick a Cellphone Insurance Plan
• Do you need electric bike insurance?

  Whether you need e-bike insurance depends on a few things, including where you live and the type of bike you have (the bigger the motor, the more likely coverage is required). But even if not required, you may want insurance anyway. Your existing policies aren’t likely to cover damage to your bike from a collision and may not cover damages you’re liable for. Fortunately, e-bike insurance isn’t very expensive—policies start at around $100 per year. 
  

  Learn More: What Is Electric Bike Insurance and Do You Need It?