Rental Cars: Should you purchase rental agency coverage?

If you have collision and comprehensive ("other than collision") coverages on your own car, you are most likely covered if you're traveling in the United States, its territories and possessions or Canada (for example, travel in Mexico, the Bahamas or Europe would not be covered). Most policies (except business policies) cover any rental car that you drive at no additional premium. Business cars frequently require an extra premium to afford the same coverage. Give us a call to confirm your insurance coverage.

What to do after an accident?

You've been in an accident. Here are some general guidelines about what to do next. Stop at once: Never leave the scene of even a MINOR accident. Seek medical assistance and summon police. Do not admit fault: Do not comment about the accident to anyone but your insurance representative and the police. Never accept or make an offer of cash, check or "private" settlement. Gather accident information: Note the date and time of the accident. Obtain information on the other driver including: name, address, phone number, make of car, vehicle license number and insurance company. Record a description of what occurred. Draw a diagram of the accident showing the direction of both cars and the point of the accident. Include street names and location of traffic signs/signals. Report the accident promptly to your insurance agent.

What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?

Yes. Liability and coverage for physical damage (i.e., comprehensive and collision) always follow your car. So, if a friend borrows your car and has an accident, you're still protected against the cost of damages or injuries. Plus, if the driver of your car is insured, his/her policy will also be available to cover the cost of damages and injuries.

The same rules apply when you borrow someone else's vehicle. Your own insurance follows you no matter whose car you are driving. But the 0vehicle owner's policy is the key coverage if you have an accident.

Lease Loan Gap Coverage

If you are thinking about leasing or buying a car, you might consider adding Lease Loan Gap (LLG) Coverage to your auto policy. LLG Coverage is an extension of your auto's physical damage coverage. Ordinarily, your comprehensive and collision coverages provide you with up to the actual cash value (the vehicle's cost minus depreciation) in the event of a total loss. When you sign a lease or loan agreement, you may be obligating yourself for an amount higher than the vehicle's actual cash value. At a cost of approximately 5% of your current comprehensive and collision premiums, LLG Coverage protects you from out-of-pocket expense when such a "gap" occurs. Although there are some limitations, LLG Coverage will pay up to your lease or loan amount if your car is stolen or if the cost of repairs is greater than its salvage value. Contact our office and we'd be happy to discuss this coverage further. Note: Some car manufacturers may provide gap coverage as part of the lease agreement --- check your particular contract for details.