Risk & Business Magazine General Insurance Services Magazine | Page 8

AUTO INSURANCE
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U
Common Auto
Insurance Questions
nless you’ve taken time to look
up information about auto
insurance or bought a policy
recently, you might not know a
lot about it . . . and that’s okay!
In my experience, there are some common
questions that get asked frequently. Here’s
the common answers that I like to share:
IF A FRIEND DRIVES MY CAR, IS HE OR
SHE COVERED BY MY POLICY? Since
most insurance coverage is connected
directly to the car, if someone else borrows
your car occasionally, he or she should
be covered under your policy. Yet, your
premium is based on both your vehicle
and the “primary” driver of that car—you.
If someone else starts driving your car
more than you do, contact us to have them
added to your policy to avoid coverage
complications.
IF I BORROW A FRIEND’S CAR AND HAVE
AN ACCIDENT, WHO PAYS? When you
borrow someone else’s car and are involved
in an accident, his or her insurance will
kick in first. However, beware of driving
someone’s car if he or she has little or no
insurance as your policy could be triggered
once their limits are exhausted.
MY GOLF CLUBS WERE STOLEN FROM
MY VEHICLE. AM I COVERED? Your
homeowners insurance policy provides
coverage for personal property, regardless of
where you are. However, if your golf clubs
are old, consider buying a replacement cost
endorsement for your personal property.
This way you will get what it costs to
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replace the golf clubs, less the applicable
deductible.
MY CHILDREN HAVE LEFT HOME FOR
COLLEGE. DO I STILL HAVE TO INCLUDE
THEM ON MY POLICY? Yes, because when
your college-bound kids come home to visit,
they will have access to the family car. You
may be eligible for reduced premiums if
the college is more than a certain distance
from your home (100 miles, for example).
Check with us on specifics.
AN UNINSURED DRIVER TOTALED MY
CAR! WHO PAYS? Your collision coverage
or your uninsured motorist property
damage coverage pays, if you bought it.
Either way, you'll have to pay a deductible.
I CAUSED AN ACCIDENT AND AM BEING
SUED BY THE OTHER DRIVER. AM I
COVERED? Yes. The liability portion of
your insurance policy guarantees your
insurance company will defend a claim or
lawsuit on your behalf, up to your policy’s
limits of liability.
DOES RENTAL REIMBURSEMENT
PROVIDE COVERAGE IF I TAKE MY CAR
TO A SHOP FOR MECHANICAL REPAIRS?
No. Rental reimbursement is for cars that
are being repaired as a result of accidents
or other insured damages (such as storm
damage).
IF MY ENTERTAINMENT SYSTEM
IS STOLEN FROM MY VEHICLE, IS IT
COVERED UNDER MY AUTOMOBILE
INSURANCE POLICY? Some auto
insurance policies exclude coverage for
losses of media players and other sound-
transmitting or receiving equipment used
in an automobile. For added protection,
check with us about purchasing additional
coverage for the stereo and media players
used in your vehicle.
If you’re unsure about the type of coverage
you have, it doesn’t hurt to review your
policy every couple of years. Having the
right vehicle coverage, policy limits, and
deductibles in place is an important part of
financial planning. +
Michelle Snider joined GIS in April 2018 and currently resides
in Valparaiso. In her free time, she enjoys volunteering at
Valparaiso Nazarene Church, watching baseball, running, and
spending quality time with friends and family.
BY: MICHELLE SNIDER
PERSONAL ACCOUNT EXECUTIVE,
GENERAL INSURANCE SERVICES