Good Insurance Information to Know
We want you to be informed. These articles may answer some of your insurance questions but the best way to get the answers you need is to talk to an informed agent from FSC Insurance Agency. Call, e-mail or stop by today!
Does Your
Auto Policy
Go On Vacation With You?
Everyone loves to get away and head off on a nice, relaxing vacation. There are many things you need to plan on: airline tickets, hotel reservations, and car rentals. Yet, have you every considered what happens to your auto insurance?
You auto policy does not automatically follow you where you go. If you decide to visit Bermuda, Europe, or Mexico, did you know that you will have no coverage? Your Massachusetts auto policy only cover you in the United States, U.S. Territories, Puerto Rico and Canada.
What coverages transfer to a rented vehicle when you remain in the policy territory? Your personal injury protection will follow you and household members if the rented vehicle does not have Massachusetts compulsory PIP coverage. Your insured and under-insured motorist protection also follows you in non-owned vehicles. Coverage for Property Damage will remain in place if you are "legally responsible" for the accident in a non-owned vehicle whether you drive a car, truck, motorcycle, or motorhome. Also, Medical Payments coverage follow you in a rental vehicle.
For the most part, it seems that you are covered when renting a vehicle. Yet, there are a number of limitations to consider:
- If your auto policy is for a private passenger auto, your collision, limited collision and comprehensive coverages only follow you in a private passenger auto. This would exclude you from renting a motorcycle, motorhome or truck. It is important to check with your agency to determine if you coverage will carry over to the vehicle you plan on renting.
- When collision, limited collision and comprehensive are applicable, only the actual cash value (amount car cost new minus depreciation) will be paid in the event of an accident. However, the rental company may want replacement cost (amount to replace the car with a similar model, quality, features, etc.) paid above what your policy will pay.
- Some people carry a Substitute Transportation or Towing option on their policy, but this is not applicable to any vehicle other than the one you pay a premium on.
- There have been instance where the car rental company has expected payment on the spot for any damages to the car caused by an accident when the rental company's extra insurance was not purchased. If the vacationer had purchased the insurance, the rental company would have waited for the payment until the insurance company settled the claim.
- Gold Cards sometimes cover the insurance on these vehicles, but each one has different conditions. Read them carefully before deciding what to do.
- Some rental companies will want to charge you a daily rental fee for their "loss of use" of the vehicle should damage occur. This "loss of use" is the time the car is unavailable for rental while the damage is fixed. Usually, this is covered by the rental agent's agreement, but not by your insurance policy.
- Note that the policy excludes coverage under Property Damage and all optional coverages, such as collision, should the non-owned vehicle be used regularly by you or your household members. Keep this in mind should you decide to rent a vehicle for an extended period of time.
Make sure you read the rental agreements offered from the car rental companies before you decide whether to purchase the additional insurance. And remember, you can always call you agent before you decide.