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.

1.	What if I do not live in the immediate LA area?
2.	What is the difference between a quote and a rate?
3.	What is the difference between buying a policy through an agency and through a broker?
4.	What is the difference in purchasing a policy directly through a carrier versus buying the same policy through an agent/broker?
5.	Should I buy a policy from a company I have never heard of or seen on TV?
6.	What are liability limits (i.e. 15/30/5)?
7.	What liability limits are right for me?
8.	What is an SR22?
9.	What is uninsured motorist?
10.	How does rental car coverage work?

	What if I do not live in the immediate LA area? We can provide you with insurance services via email and phone. We utilize an electronic system that is completely secure and compliant with signature controls. There is no download necessary, it's as easy as replying to an email message. Back to Top
	What is the difference between a quote and a rate? A quote is an estimate based off of basic quoting factors. There are varying levels of accuracy when you get a quote but it depends on who is quoting you. A quote is subject to change even after you by the policy. When this happens it is called an uprate. A rate is a final, guaranteed price. A rate has been underwritten and will not change after purchasing the policy. Please see our blog entry for additional information. Back to Top
	What is the difference between buying a policy through an agency and through a broker? An agent usually works for one company. He/she can only quote and sell that one company. Everything he/she sells is called premium. They do not charge broker fees. A broker works by shopping multiple carriers and when the policy is purchased, there is a broker fee on top of the insurance carriers premium. There are a few things to be careful about. One thing is an agent using “no broker fee” as a selling tool. If the total price they give is $1,000 a year with no broker fee that may not be the best option if a good broker finds you the same coverage and quality of company, but gets you a total price of $600 including broker fee and total premium. The other thing to watch out for is a place that only has brokers. If they can’t offer you both options (agent only carriers and carriers that work through brokers) they may end up charging you an exorbitant broker fee. Here at BMP insurance we give you all of your options in the market and let you decide what’s best for you. Back to Top
	What is the difference in purchasing a policy directly through a carrier versus buying the same policy through an agent/broker? With many carriers, you can buy the policy directly from them or go through an agent/broker. The first thing to consider is the cost. Going directly through a carrier may be 15% - 25% more in price. This is because the carrier has to service your policy. They handle all of your questions, changes, payments, etc. They hire customer service call centers to handle their own customers. If you  go thru an agent, all customer service goes thru that agency. The only thing the carrier will handle at that point is anything claims related and provide the payout in the event of an accident. If you find the right agent you may also get even deeper discounts based on the amount of business that agency sends to a carrier. As your agent, we provide you with personalized service instead of automated call centers that have you speaking to someone different each time you call. At BMP Insurance, you will have specific, live people you can contact to handle any of your needs that may arise. Back to Top
	Should I buy a policy from a company I have never heard of or seen on TV? This is very important when purchasing. There are many carriers out there - almost 400 programs in California alone. There are some that advertise heavily. This does not always mean that because they buy a lot of TV ad space they are a good carrier. In fact, it is quite the opposite. In most cases, if they spend all that money on ads, a lot of that cost is passed onto the consumer. There are, of course, great carriers that advertise on TV but don’t let that sway your decision too much. The main thing we go by here is how well a carrier handles claims, how long they have been in business, and the financial soundness of a carrier... all of which can be found on one of the best rating sites: A.M.s Best. Back to Top
	What are liability limits (i.e. 15/30/5)? Liability limits refer to the amount of money the insurance carrier will pay out to other parties on your behalf. There are two portions: bodily injury liability and property damage liability. The format for liability limits is a series of 3 numbers like 15/30/5 or 100/300/50. This means up to $15,000 per person in bodily injury, up to $30,000 per accident in bodily injury, and $5,000 for any property damage you may have caused. The state of California requires that any insurance policy you carry must have at least $15,000 per person and $30,000 per accident for injuries you may cause to others in an accident and $5,000 for property damage you may cause to another party. Liability limits are the portion of a policy that pays to someone else in the event that you are at fault. Back to Top
	What liability limits are right for me? There are many liability limits available. From state required limits to over a million dollars in liability limits.You always need to decide what is right for you but we can give some recommendations based on your situation. A general comparison is a homeowner and/or business owner needing to carry much higher limits for the purpose of protecting his/her liquidable assets as opposed to someone who is 19 years old and just out of high school with no assets to his/her name. Taking into account what you are protecting should someone decide to pursue legal action is one factor. Another factor is your budget for insurance. One thing to watch out for is insurance agents that get paid to sell you higher coverage. Since they are incentivized to sell higher coverage they can end up selling fear and worst case situations to a lot of people they talk to. It is important to find the right coverage that is appropriately suited for you.   Back to Top
	What is an SR22? An SR22 may be required when insuring a driver with a record as a previously uninsured motorist, DUI or DWI, license suspension or other major driving violations. It is a certificate that proves you have auto insurance based upon the financial responsibility laws of California. An SR22 is provided by your insurance company to the DMV. Back to Top
	What is uninsured motorist? An auto policy option which covers one for property damage and bodily injury caused by another driver who does not have insurance. Back to Top
	How does rental car coverage work? Rental reimbursement is an optional coverage that helps pay your rental car costs while your car is being repaired as a result of a covered claim. Rental reimbursement coverage may be subject to a daily and per claim limit. For example, if you have $20 per day/$600 per claim rental reimbursement limits, the insurance company will pay up to $20 per day but no more than $600 per claim for your rental vehicle. Back to Top