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.

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.