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| If I go on vacation and rent a
vehicle, must I buy their insurance coverage or will my automobile policy cover me? |
| This is commonly known as Collision Damage Waiver (CDW) coverage or Loss Damage Waiver (LDW)
and is offered by the car rental companies at outlandish prices. There are numerous issues involved and if you actually read and fully understood the
contract that you will sign, you will most certainly want to spend the extra money so that you don’t ruin your vacation or suffer further financial
losses not covered by your automobile policy. The contract language, the type of vehicle rented, the authorized drivers, the type of vehicle, the
roads driven whether approved and paved are only a few of the points to consider. Our agency position is to always
recommend purchasing the CDW and/or LDW coverage; regardless of the cost! Do yourself a big favor and click
here for ten more very important reasons why you should buy CDW
coverage. |
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| Am I
covered if I loan my personal automobile to another person? Is that person also covered? |
Yes! Liability and Physical Damage (Comprehensive and Collision) will follow your
vehicle if permission to use it was given. If the driver of your vehicle is insured; their policy will also be available to cover the cost of damages
and injuries.
Conversely, when you borrow someone else's vehicle; your own insurance will follow you no matter whose car you're driving. The vehicle owner's
policy is the key coverage in the event of an accident and your policy would be secondary. This is assuming the borrowed vehicle was a substitute
vehicle for your own and NOT for regular use, which is normally excluded. |
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| How can I take advantage of the AAA group
discount offered exclusively by Commerce Insurance Company? |
| It is quite simple but there is a procedure that needs to be followed to assure proper credit
is applied to your policy. We can guide you through the process, so give us a call or email us at
info@peloquinagency.com. |
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| What is the
difference between Comprehensive and Collision coverage? |
| Comprehensive insurance typically covers your auto for fire, theft (of the vehicle), glass,
flood, earthquake, hail, contact with a bird or animal and other natural perils, subject to any applicable deductible. However, it does not cover
accidental upset or overturned vehicles. Collision insurance typically covers your auto for direct and accidental damage caused by collision,
accidental upset or overturned vehicles, whether or not at-fault and subject to any applicable deductible. |
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| When purchasing automobile insurance, what
should I consider? |
| As your independent agent we can help you decide the amount of liability coverage that best
fits your situation. Decide what optional coverage is needed and the appropriate deductibles for physical damage coverage if purchased. Select a
financially sound insurance company that offers local agency support. Base your decisions on service, claims handling, ease of doing business and not
just on price alone. |
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| What Is Compulsory Insurance? |
| In the Commonwealth of Massachusetts, you are required to carry minimum limits of liability
coverage in order to legally register a vehicle. Minimum limits include $20,000 per person, $40,000 per accident for Bodily Injury to Others and
Uninsured Motorist coverage, $5000 for Property Damage and $8000 for Personal Injury Protection. |
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| What is difference between Bodily
Injury liability and Medical Payments coverage? |
| Bodily Injury Liability coverage pays for injuries you or anyone covered under your policy
may cause to others. Medical Payments pays for reasonable medical expenses for you or your passengers regardless of who caused the accident. |
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| Am I eligible for the Low Mileage
Discount (LMD)? |
| If your vehicle is driven less than 7500 miles a year; you are eligible for a 5% discount. If
your vehicle is driven less than 5000 miles a year; you are eligible for a 10% discount. Please note the LMD is NOT automatically applied each year. |
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| The salesperson at the dealership who sold me a
vehicle told me I was insured and that I can safely drive it away. Is that really true? |
| First of all, the car salesperson probably isn’t a licensed agent or qualified to advise you
regarding your insurance coverage. Circumstances and insurance coverage can vary all over the place. You should never drive off without first checking
with your insurance agent that coverage is in place for that vehicle; no matter what you were told by the dealership. Please take a moment and read
this article: What You Should Know |
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| Am I covered if my car
breaks down? |
| If you have purchased Towing and Labor coverage, the policy pays up to $50 each time your
vehicle breaks down whether or not it was involved in an accident. You may also purchase coverage up to $100 per disablement for an additional cost. |
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How do I cancel my coverage if I take my vehicle off the road? |
| You need to return the license plates to the Registry of Motor Vehicles (RMV). The RMV will give you two copies of the plate return receipt. Keep one copy for
your records and be sure to return one copy to our office. We will then be able to remove the vehicle or cancel the entire policy as needed. |
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| My son/daughter just got their learner's
permit. Can I add him/her to my automobile policy? |
| No! The insurance company will not add a driver to a policy until they have their
actual driver's license. Your child will be covered while driving on a learner's permit as long as there is a properly licensed adult operator with
your child. |
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| When my son/daughter gets licensed; when do I need to
notify my insurance company? |
| To be safe, you should notify your insurance company immediately when any household member
gets their license to avoid any confusion or possible denial of a claim in the event they are involved in an accident. |
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| When my son/daughter gets licensed; should they get
their own policy? |
| It depends on several factors. This question shouldn't be answered in this forum. Please call
our office so we can determine the best approach and provide any appropriate quotes for your consideration. |
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| Why is my older vehicle just as expensive as my
newer vehicle to insure? |
| Each vehicle's premium is based on several factors. They include SDIP points or credits,
assigned drivers, coverage selection and limits and the vehicle itself. Every vehicle is assigned a symbol that determines what the cost would be to
replace or repair that vehicle. While you may have paid more for a vehicle, its symbol may be lower than another vehicle that you paid less money for. |
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| How do I appeal my surcharge? |
| When you receive a surcharge notice in the mail; follow the instructions on the back of the
form. This must be done within 30 days of the date on the form. The Board of Appeals will hold the hearing and will notify you, the Merit Rating Board (MRB) and your insurance company of its decision. Be aware that your hearing may not be
scheduled for several months in the future. If any surcharge points are applied to your policy for an at-fault accident while your appeal is pending,
you must pay the additional premium or your policy will be cancelled. If the Board of Appeals determines you to be not more than 50% at fault, the MRB
will remove the incident from your driving record and your insurance company will adjust your policy accordingly. |
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| Will my company give me replacement cost for my vehicle in
a total loss? |
| The Massachusetts Auto Policy will only pay the actual cash value (ACV) of your vehicle as of
the date of loss; but not the cost to replace it. Several factors determine the ACV, such as retail value for another auto of like kind and quality
before the loss, price paid for the vehicle, prior improvements and existing prior unrelated damage. Note: If you have an antique, classic or restored
vehicle you should have it appraised and then insure it for its appraised value. |
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| I don’t have any Collision coverage and my
insurance company won’t help me. It isn’t my fault, so why do I have to file a claim against the other company? |
| Having Collision coverage provides the convenience of having your insurance company represent
you regardless of fault. When you choose not to buy Collision coverage, you make the decision to not involve your company. The only way to collect for
damages is for you to file your claim against the other party directly. |
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| Will my insurance company pay for original equipment
manufacturer (OEM) parts? |
| If the repair of the damaged part impairs the operational safety of the auto, the insurance
company will pay to replace it with an OEM part. For non-safety parts, unless your claim occurs during the first 15,000 miles, you are not entitled to
OEM parts. For vehicles over 15,000 miles, state regulation allows for the replacement of damaged parts with used, reconditioned or after market
parts. If you insist of OEM parts, you must pay the difference in cost. |
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| Is there a time limit for my insurance company to
pay Collision or Comprehensive claims? |
| No! However, they are required by law to pay all claims in a prompt and reasonable
amount of time. Some claims may take longer to resolve; depending on the situation. Winter weather conditions and holidays could also cause an
increase in claims that can also slow down the process. |
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| Do I need to buy Collision coverage
for my old vehicle? It isn't worth much anymore! |
| This is a personal decision that only you can answer. The Massachusetts Auto Policy only pays
on an Actual Cash Value (ACV) basis. The cost of the Collision coverage and any applicable deductible along with the value and condition of the
vehicle must be considered. Finally, can you absorb such a loss without the Collision coverage? |
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| What is the difference between Property Damage
liability and Collision insurance? |
| Property Damage insurance covers the cost of damage to the property of others that you may
cause or be responsible for. Collision insurance covers damage to your own vehicle caused by a crash or upset; subject to any applicable deductible. |
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| Should I continue paying my premium after a
total loss? |
| Yes! Your auto is insured until you turn in the license plates to the
Registry of Motor Vehicles (RMV). If your plates are lost or missing due to your vehicle being
stolen or destroyed in a fire; you must still visit the RMV to obtain a lost of stolen plate receipt. Your insurance company needs that receipt in
order to cancel your coverage or policy so you can avoid paying any additional premiums. |
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| My vehicle was damaged in an accident and I didn’t have
substitute transportation coverage. I need a vehicle. What can I do? Why isn’t my company helping me? |
| If the accident is your fault or is a single vehicle collision, you will bear the cost of a
rental car. If it is not your fault, you have the right to file a claim against the other insurance company, if known. Unfortunately, they may not
cooperate until they contact their insured, get a police report if available and then determine liability. By not purchasing Substitute Transportation
coverage, you elected to not involve your company and are stuck with the procedures outlined by the other company. If you need transportation, then
buy adequate coverage! |
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| May I keep my vehicle after it has been
declared a total loss? |
| Your insurance company is entitled to any salvage value of your vehicle once they have paid
your claim. However, you can negotiate with your insurance company. If you keep the vehicle, the salvage value will be deducted from your settlement
offer. |
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| Something damaged my windshield! I
can't determine how it happened! Am I covered? |
| If you have Comprehensive coverage you will be covered for the full amount of the glass loss,
unless you selected the special $100.00 deductible for glass breakage. The normal deductible associated with the Comprehensive coverage does not apply
to a glass loss. Please be aware that if your glass loss is due to a Collision, your Collision deductible will be applied. |
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| Can my insurance company deny a claim for damages to my vehicle if the
garaging location is incorrect? |
| Yes! If you or someone on your behalf gives false, deceptive, misleading or incomplete
information on any application and if such information increases the insurance company's risk of loss, your company may then refuse to pay claims
under any or all of the Optional Insurance coverage of the policy. Such information includes the description and place of garaging of the vehicles to
be insured, the names of the operators required to be listed and the answers given for all listed operators. Make sure you notify your insurance
company of any changes of address and location of your vehicles. |
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| I’m about to move to Massachusetts. What will
I need to do about automobile insurance and in what order? |
| You first need to purchase automobile insurance because proof of insurance is required prior
to visiting the Registry of Motor Vehicles (RMV). We will prepare the paperwork you need when
applying for your Massachusetts registration, license plates and title. |
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| I just moved to Massachusetts and got my new drivers license? Will I get
credit for my previous good driving record? |
| You must secure a Massachusetts private passenger or commercial automobile liability policy
prior to any visit to the Registry of Motor Vehicles (RMV). We will prepare the application
paperwork required by the RMV for your Massachusetts title, registration and license plates. You will need to personally visit the RMV to apply for
your Massachusetts operators license. |
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| How can I lower my automobile
insurance rates? |
| An independent insurance agent working with several companies can look for competitive
pricing by reviewing various discounts that you might be eligible for, including multiple vehicles, anti-theft devices, group discounts along with
accurate rating, proper driver classification codes and garaging locations. Selecting a higher deductible for Collision and Comprehensive coverage
will help lower your premium. If there is no lender, you may consider dropping Collision coverage. Obviously, maintaining a clean driving record is
the key to lower premiums. |
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| Why should I carry Optional Bodily Injury to
Others if it isn't compulsory? |
| While it may not be compulsory, it certainly is necessary if you plan to operate your vehicle
beyond your driveway. This coverage protects your guest occupants in your vehicle should you be found responsible for their injuries. It protects you
while driving outside of Massachusetts. It also protects you while operating a vehicle on any non-public road or highway within Massachusetts. It’s
probably the most important coverage in the policy. |
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| Why is my automobile insurance
premium higher than my friend’s? We both insure with the same company? |
| Many factors determine the premium for automobile insurance. The rate is based on the city or
town where the vehicle is garaged, the driving record of each operator, the year, the make and the model of the vehicle, the coverage selected and the
limits of liability involved. |
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| How does where I live affect my premium? |
| Where your vehicle is garaged has a direct affect on your chances of having an accident or
becoming a victim of theft or vandalism. Unfortunately, such problems are more likely to happen in densely populated or congested cities while such
incidents are less likely in rural areas. |
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| How can I keep my insurance company from
canceling my policy? |
| Simply pay your premium bill on time each month. If it does go into cancellation status,
contact your insurance agent immediately for guidance. If your policy is actually cancelled for non-payment; you will most likely be expected to pay
the full annual premium up front for a new policy along with any premium owed on the cancelled policy. |
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Do you have a question that we didn't address here?
Contact us for a professional and thorough answer! |
