F.A.Q.'s

There are several things you should consider when purchasing automobile insurance that your independent agent will help you with. Here are a few:Purchase the amount of liability coverage which makes sense for you.Select the optional coverages you want.Decide which company to purchase insurance from.Don’t base your decision solely on price. Other factors like service and claim response are extremely important in selecting the right insurance.

When you loan your car to a friend or an associate, he or she will be covered under your automobile insurance policy. If your friend lives with you be sure to notify your agent as eliminations/exclusions may apply.

Collision is the loss you incur when your automobile collides with another vehicle or object like a telephone pole. Hit and run accidents are also covered under collision coverage.

Comprehensive provides coverage for direct physical damage losses you could incur to your car from something like a hailstorm, fire, theft, vandalism or hitting a deer.

There are several things you can do to lower the cost of your automobile insurance.One way is to look for competitive pricing. An independent agent works with many companies and can provide you comparative rates and insure that your are getting the same coverage.Another way to lower the cost is to change your deductible. By raising your deductible you may lower the cost of your automobile insurance almost 10% You must be able to pay the deductible amount in case of a claim. You can also look for discounts that you may be entitled to. Some examples of discounts that may be available are: multiple cars under the same policy, carrying a homeowners policy with the same insurance company, different groups or associations, paperless options, good student discounts for youthful drivers and paid in full discounts.

I recommend that you buy the insurance through the rental car company. With regards to rental car coverage, you have the same coverage when you rent a car as you do for the best coverage you have on a car that you own. Your liability limits are the same as the limits on the vehicles that you own. If you have comprehensive and collision coverages, they are the same on the vehicle you rent as the vehicle with the lowest deductibles on your policy.There are several reasons you should consider taking the insurance offered by the rental car company.Many rental car companies are implementing a diminution in value clause (sometimes referred to as the “before and after” clause). When a rental car is damaged, the rental company no longer repairs the vehicle. They are concerned about potential liability if they put the vehicle back in their fleet. They determine the value of the vehicle at the time it was rented. Then they sell the damaged car at a salvage sale and that determines the “after” value. The renter is billed the difference. This difference could be several thousand dollars. This would NOT be covered under your auto insurance policy.If you do not have collision or comprehensive coverage on any vehicles, you do NOT have that coverage on a rental vehicle.The car rental companies have a right to make a claim for the loss of income they incur as a result of their vehicle being out of service due to the accident. No personal or commercial auto policy, that we are aware of, provides for this type of coverage.Rental companies may not wait for an insurance adjustor to come out and view the vehicle before they make repairs – this could void coverage on your auto policy. Rental companies do not have any incentive to work with the insurance companies since they put the repair charges right on the person’s credit card.Repair bills could be inflated (many rental companies do their own repairs and charge what THEY feel is the proper amount) When there are multiple individuals renting the vehicle (example: four friends go on Spring Break_ it could be very unclear as to which insurance company will pay the claim. This could lead to a long, drawn out claim process…meanwhile; someone is sitting with a large repair charge on their credit card.Other important concerns when renting a vehicle:Be sure to read the rental contracts carefully!!! Some of the possible things to watch for are:Some void coverage if the driver has been drinking (even if under the legal limit).Some void coverage off a paved road (there are lots of gravel roads in small towns).Most contracts allow only certain people to drive (usually just those listed on the contract) – even if they were given permission (i.e. a valet)!Certain credit card companies offer coverage for some of these types of risks; however, unless you have documentation that you have coverage for the risks mentioned here, I highly recommend that you purchase the coverage offered by the car rental company. The circumstances outlined here are for short-term rental agreements only. Long-term agreements need to be treated differently.