Wednesday, December 18, 2013

Loan/Lease GAP coverage

What is GAP coverage?

Buying a new car this holiday season? If you are, this may be a good time to review the coverage limits on your auto policy. One coverage that you should look into if you are purchasing a brand new vehicle is GAP coverage. 

You've probably heard that your car depreciates in value as soon as you drive it off the lot. Well, what if a week after you drive your brand new car off the lot you get into a wreck and total your car? You could be left holding the bill for the difference in the depreciated value of the car and the money you still owe on your auto loan. That is where GAP coverage will fill the gap between the depreciated value of the vehicle and the amount you still owe on the loan.

Sometimes GAP coverage is included in your loan or lease agreement. It is a fairly inexpensive additional coverage that could wind up saving you a couple thousand dollars, so it is worth checking into!

Wednesday, December 11, 2013

Rental Car Coverage

Should I buy rental car insurance?

Does my auto insurance provide coverage for a rental car? We get this question a lot at Mason Insurance Agency. Unfortunately, this question is not followed by a simple yes or no answer.

Typically, a personal auto policy will extend coverage equal to what you have on your vehicle. For instance, if you have collision coverage on one of your vehicles then collision coverage is extended to the rental car. However, there are some significant gaps in coverage that you should take into consideration:
  •  Loss of use: should you damage your rental car, you could be left responsible for the income lost while the rental car was in the shop and could not be rented out.
  • Diminutive value: you could also be responsible for the difference in value of the vehicle pre-accident, and the diminished value after you damaged it. 
Some insurance carriers offer endorsements to cover these gaps in coverage. The best answer is to speak with your insurance agent before making a decision not to purchase insurance from the rental car agency.

Wednesday, November 20, 2013

Personal Umbrella

What does a personal umbrella policy cover?

 If you are ever faced with a lawsuit, even if groundless, false, or fraudulent, chances are you are going to wish you had an umbrella policy to foot your defence costs.  Personal umbrella policies provide excess liability coverage for bodily injury, personal injury, and property damage lawsuits beyond the limits of your individual insurance policies. 

Umbrella policies provide an emense amount of coverage, starting at $1 million of protection.  Even with this much protection umbrella policies are typically inexpensive, starting at about $130 per year depending on your underlying policies. On top of that, some carriers offer discounts on your home and auto policies to lower the cost even further.

Feel free to email us with questions or visit our website to inquire about a quote.

Thursday, November 7, 2013

MCCA - Michigan Catastrophic Claims Association

What is the Michigan Catastrophic Claims Association (MCCA)?

Have you ever looked at your auto insurance policy and notice a fee at the bottom for the MCCA? If you have, there are probably a couple of questions that popped into your head. The first question you most likely asked yourself is 'What the heck is the MCCA?' followed very quickly by '...and why is it costing me $186.00 per vehicle?'. 

The MCCA is a private non profit association created by the Michigan State Legislature that provides unlimited lifetime medical benefits for auto related accidents. Private insurance companies are reimbursed for personal injury protection (PIP) claims in excess of $530,000. Visit the MCCA's website for more information.

Currently, Michigan is the only state to offer unlimited lifetime medical benefits for PIP claims, with New York coming in second with a benefit cap of $50,000. MIC  Government officials are working hard in Lansing to reform Michigan no fault insurance. You can read more about no fault reform at the Michigan Insurance Coalition's  website.

Tuesday, November 5, 2013

Auto Collision Coverage

What is the difference between limited, standard, and broad collision?

Most people know enough about insurance to know the difference between full coverage and PLPD, but did you know there actually three different forms of collision offered? It is important consider the advantages of each type when placing coverage on a vehicle.

Limited Collision: If you purchase limited collision, your insurance will only pay for collision damages when the driver of the insured vehicle is not at fault. If the driver of the insured vehicle is more than 50% of the cause of the accident, there is no collision coverarge.

Standard/Basic Collision: If you purchase basic or standard collision, your insurance will pay for collision damages regardless of who is at fault, less your deductible.

Borad Collision: If you purchase broad form collision, your insurance wil pay for collision damages regardless of who is at fault. If the driver of the insured vehicle is found not at fault, the deductible is waived.