Are you Covered? Quiz:
- My car is 7 years old and has 60,000 miles. Should I still carry collision coverage?
We first need to get an approximate idea of what your vehicle is worth. Once we have a general idea we now need to look at what your deductible and premium is for collision protection. If the combined cost of collision and the deductible amount is close to or exceeds the value of the vehicle, we recommend you eliminate this coverage. - I hit the rear of a vehicle in front of me last month that I called and spoke to you about. Yesterday I was notified by an attorney that I am being sued! Do I need to hire a lawyer?
Your Automobile insurance provides you with legal defense automatically at no additional cost to you up to your policy limit. This protection is in addition to and does not reduce the limit of the policy. - I'm going on vacation next month and will rent a vehicle while there. Do I need to purchase their insurance?
Yes, we recommend that you do purchase their protection for the following reasons:- Replacement Cost versus Actual Cash Value - Rental contracts can vary greatly by each agency and also by state. Depending on the stipulations of the rental car agreement, they may require reimbursement for damages on a replacement cost basis (old for new). Automobile insurance policies do not pay replacement cost but rather actual cash value (depreciation).
- Loss of Use - Some rental contracts make you responsible to pay a loss of use charge for the time their rental vehicle is out of use for repairs. Most Automobile insurance policies do not provide coverage for loss of use charges.
- Important Notes - Another important note, be sure to list any/all people in your party that could potentially operate the rental vehicle on the rental contact as operators.
