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AUTOMOBILE QUESTIONS
Who do I need to list on my automobile policy?
You must list ALL household members on your automobile policy
as well as any licensed individual who regularly operates your
vehicle. Each operator must also be listed correctly as the principal
or occasional operator on each vehicle. Be aware that the insurance
company can deny your claim if this information is incorrect,
even if there is no intent to deceive the company!
What limits do you recommend I maintain on my policy?
There are many limits available that we can customize to suit
your needs. However, to ensure property coverage, we recommend
the following limits.
Bodily Injury to Others: $250,000 per person/$500,000 per accident
Damage To Someone Else's Property: $100,000 per accident
Bodily Injury Caused By An Uninsured Auto: $250,000 per person/$500,000
per accident
Bodily Injury Caused By An Underinsured Auto: $250,000 per person/$500,000
per accident
Am I covered if I rent a vehicle?
Whenever you rent a vehicle of the same classification, if you
have Collision, Limited Collision, or Comprehensive coverageís,
your policy would provide protection, less the deductible to
pay for repairs or to cover the value of the vehicle in the
event of a loss. However the Massachusetts Auto Insurance Policy
does not provide coverage for:
a. Replacement Cost of the Vehicle: The MA auto policy will only
provide Actual Cash Value, not the cost to replace the vehicle.
b. Loss of Use: If the vehicle is unable to be rented by the
rental company, they may charge you the highest rate possible
per day the vehicle while the vehicle is unable to be rented.
c. Depreciation of Value: After an accident, the value of the
vehicle could decrease. There is no coverage for this on the
MA auto policy, but the rental company may require you reimburse
them the difference between the value of the vehicle before the
accident and the value of the vehicle after the accident.
Many credit card companies provide some or all of the protections
above if the vehicle is rented using their credit card. Please
check with your credit card company to see if they offer any
of these additional coverageís.
Please note that your policy only provides coverage while you
are in the US, its territories or Canada.
If I lose the use of my auto, will the insurance company pay
for me to rent one?
If you carry Substitute Transportation on your policy and you
cannot use your vehicle because of a covered collision or comprehensive
loss, the company will pay the limit that you chose for up to
30 days or until you regain use of your auto towards a rental
vehicle.
What happens when the At-Fault Driver Does Not Have Enought
Massachusetts Bodily Injury Insurance?
Many times following a Massachusetts auto accident it is found
that the at-fault driver does not have enough bodily injury insurance
to cover the injured party's medical expenses, lost wages and
pain and suffering. Since many Massachusetts drivers only have
the minimum required amount of $20k/$40k, this scenario happens
far too often. You should think about increasing this limit when
putting together a quote.
What if My Personal Injury Damages Exceed the Policy Limits
of the Driver Who Hit Me?
This is a common scenario. The driver who caused your Massachusetts
motor vehicle accident only has $20k in liability protection.
But, suppose your damages (medical bills, lost wages, pain and
suffering) exceed $20k. In that event you must make an underinsured
claim with your auto insurance carrier. The minimum amount you
must have in Massachusetts for underinsurance is $20k. But, your
underinsurance coverage only kicks in if it exceeds the amount
of the liability policy limit of the at-fault driver. Therefore,
purchase as much underinsurance coverage as you can afford. If
can make a world of a difference and protects you when you most
need it.
Q: Am I covered for rental car expenses if my car is inoperable?
A: Only if you have rental car reimbursement coverage added to
your policy.
Q: Will my teenage son/daughter be covered if he/she drives
my car?
A: Yes, as long as they have a valid drivers license and have
been added to your policy.
Q: If I let a non-family member drive my car is he/she covered
in the event of an accident?
A: Yes, as long as they have a valid drivers license.
Q: What is the difference between collision and comprehensive
coverage?
A: Collision covers physical damage resulting from accidents
with another vehicle or a fixed object. Comprehensive covers
losses other than collision, subject to policy exclusions.
Q: If a tree in my yard is struck by lightning and crashes into
my house am I covered?
A: Yes. Damage to the house and removal of the tree is covered.
Q: Will damages caused by a furnace puff back be covered by
my homeowners insurance?
A: Cleaning expenses are covered.
Q: My pet damaged my carpet. Can I claim it on my insurance?
A: No.
Q: A flood destroyed my home. Am I covered?
A: No. Flood coverage is excluded under your homeowner policy.
A separate flood insurance policy would cover the loss.
Q: An earthquake damaged my home. Am I covered?
A: Only if you have an earthquake endorsement on your policy.
Q: What are the differences between actual cash value/replacement
costs and all risks/named perils?
A: Replacement cost is the current cost to replace an item. Actual
cash value is the replacement cost less depreciation for age.
Special form coverage covers all losses except those that are
excluded. Named perils cover only specifically named perils such
as fire, lightening, windstorm, etc.
Q: Is all my personal property automatically covered under my
homeowner policy?
A: Yes. However, there are limitations on certain items.
Q: A visitor slipped and fell on ice and is suing me. Am I covered?
A: Yes, up to the policy limit of your comprehensive personal
liability.
Q: Should I advise my agent every time I make a home improvement?
A: You need to make sure that your home is always insured for
at least 80 percent of its replacement cost or you will be
subject to a co-insurance penalty in the event of a claim.
Q: Will my homeowner's policy cover me if my wedding ring is
stolen or lost?
A: Your homeowners policy will cover the loss only if there is
reasonable thought that a theft occurred up to $1,000. If you
need more coverage an Inland Marine policy should be purchased
with the value based upon an appraisal of the item.
Q: What is the most comprehensive policy available for small
businesses?
A: The Business Owners Policy is the most widely used form of
coverage. It provides coverage for building and contents, loss
of income, and general liability up to policy limits. Separate
policies for business auto, worker's compensation, bonds, and
other business exposures are also available. Your agent can tailor
these coverages to the needs of the specific business.
Q: Why should I package all my insurance?
A: By packaging all of your insurance policies you can achieve
significant savings
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