Auto - FAQ's |
|
|
| I’m going on vacation abroad and renting a car; do I need to buy the insurance offered by the rental car company? |
If you are renting a vehicle in a foreign country, purchase the necessary insurance from the rental firm. Personal auto policies only cover you in the United States, its territories or possessions and Canada.
|
| If my car is in an accident, is the cost of a rental car covered? |
If you are at fault in the accident, you will be responsible for rental car expenses. Most auto policies do not provide this coverage automatically; it is an option that can be purchased. Typical limits available are $15 per day to $40 per day and costs vary from $8-$24. The coverage needs to be added to each vehicle that you wish the coverage to apply to.
|
| Do I need to purchase insurance or call my agent before I buy a new car? |
Yes; if this is your only car, you’ll have to buy auto liability insurance before you drive the car off the dealer’s lot. If you are financing the purchase, the lender will require that you also buy a policy that includes comprehensive and collision coverage.
If you already have an active insurance policy, your new vehicle is generally covered for up to 14 days after you buy it, depending on the insurance company, but the coverages you need or want may be considerably different from the coverage on your previous car(s).
We suggest you contact the agency prior to or as soon after the purchase as possible to make sure you have the coverages you want.
|
| Should I expect my premium to rise if I report an auto accident in which I was not at fault? |
Your insurance company would not likely raise your premium just because you were in an accident in which another person was at fault. However, your premium could increase if that accident was one of several incidents you have had in recent years. Your insurance company might consider the pattern of incidents to be a predictor of future events and decide a higher premium is in order.
|
| My teenager just got a driver’s permit. Does my teenager need to be added to my insurance policy? |
It is a good idea to inform your agent that there will soon be a new driver in your household. However, your son or daughter will not be “rated” on the policy until they obtain an actual driver’s license. We have a lot of good information to share with customers on how to help your son or daughter be a safer driver – contact us and we’d be happy to send it to you!
|
| I have a new teenage driver. What can I do to keep my premium as low as possible? |
Driver’s training and obtaining a “B” average in school will help reduce the premium considerably.
Also, the premium increase will not be as great if there are more drivers than cars in your household.
If you decide to provide a car for a newer driver, consider an older but safe car that can be insured for liability only. Physical damage coverage (comprehensive and collision coverage) can double, and sometimes triple, the insurance costs for young drivers. The vehicle you chose makes a big difference in the insurance cost. The safer the vehicle, and the lower the repair costs, the less expensive the insurance is between two cars with similar values.
|
| My car was damaged in an accident. Who will the check be made out to for the repair of my car? |
The check will most likely be made out to you and the body shop and/or lienholder unless you have made other arrangements with the adjuster.
|
| Can I use the body shop of my choice to repair my car after an accident? |
Most states do not allow an insurance company to force you to use a particular repair facility. However, an insurance company is not obligated to pay more than the reasonable and customary charges.
|
| I have a chip in my windshield and the repair bill is $60 but I have a $250 deductible. Does that mean I will have to pay this out-of-pocket? |
No, if you have comprehensive coverage on your vehicle, the deductible is waived for the repair of your windshield. This type of payment is more favorable than a windshield replacement on your loss history as well.
|
| I hit a pot-hole on the roadway and damaged a tire and rim. Does the comprehensive deductible apply? |
No, in this situation you actually collided with the roadway and the collision deductible
would apply.
|
| Is personal property in my car covered if the car is stolen? |
Generally, personal property would not be covered as part of the auto claim. A separate claim would have to be made under your homeowner’s or renter’s policy, with the deductible from that policy being applied to that portion of the claim.
|
| What does “No-Fault” mean? |
When you hear the term no-fault auto insurance being used, it does not mean that no one is determined to be at fault for an auto accident. The no-fault concept only applies to injuries that arise out of an auto accident. How no-fault works is best illustrated by a hypothetical auto accident. Driver A rear-ends the car owned and driven by Driver B at an intersection. Driver B’s car is pushed into Pedestrian C, who suffers minor injuries. Driver B also suffers a minor neck injury.
That Driver A is clearly at fault is a given. Driver A’s liability coverage will pay for the damage to B’s car. No-fault does not apply to the damaged vehicle. However, when Driver B and Pedestrian C try to collect for their injuries, they will be told to submit their medical bills to their own auto insurance companies because no-fault applies to injuries arising out of an auto accident. Even the pedestrian will have to submit it to his/her auto carrier because a car accident caused the injury. Once the injuries reach a certain severity, the claim is presented to the responsible party and his/her insurance company.
|
| Do red vehicles cost more to insure than other vehicles? |
No, insurance companies do not consider the color of your vehicle when determining premiums. Factors that insurers consider include your age, the kind of vehicle, your claims history and your driving record.
|
| I borrowed my friend’s trailer to pull behind my car. If it comes unhooked and rolls into another vehicle, am I covered for damage or injuries to the other vehicle? What about damage to my friend’s trailer? |
For damages to the other car, yes. Your auto policy’s liability coverage will automatically extend to a trailer you are pulling with your vehicle to cover damage or injury subject to your policy limits. The damage to your friend’s trailer will be covered if you have collision coverage on the vehicle that is pulling the trailer, subject to the collision deductible and a deduction for depreciation for age, wear-and-tear, and condition.
|
| I’m pulling my trailer with my car. It comes unhooked and the trailer is damaged. Am I covered? |
Not unless you have the trailer listed on your auto policy with collision coverage.
|
| I carry a large amount of sale samples in my car for work and my boss says I am responsible for these samples if they are lost or stolen. Does my home or auto insurance cover me? |
Your auto policy will not cover you for any loss to the sales samples. Your homeowners may provide some coverage but the standard limit for business personal property away from your home is only $250. The coverage is typically $2,500 while on the premises insured on the policy.
|
| How can I reduce the cost of my auto insurance? |
There are a few things you can do. First, raise the comprehensive and collision deductibles. For example, increasing the deductibles could reduce your premium by 15%.
Second, consider dropping the collision coverage. Collision coverage is generally not worth purchasing on older vehicles with high mileage because if you file a claim for significant damage, your insurance company will likely declare your vehicle a total loss rather than fix it. The amount you get for the total loss may not justify paying the premium for collision coverage.
Consider dropping comprehensive coverage on older vehicles for the same reasons.
Consider taking a safety course which would reduce the premiums 5-10% on the vehicle you drive most frequently.
When purchasing a new car, consider the safety and repair costs – two factors that make up a large part of the insurance premium.
In the long run, the best thing you can do to lower the cost of your insurance is to drive carefully and obey all traffic laws. People with no accidents or violations have the best auto rates!
It is generally not a good idea to lower the liability or uninsured/underinsured motorist coverage on the policy. Discuss your situation with your agent thoroughly to determine the best options for your situation.
|
