Auto Insurance Tips for New Residents
When relocating to a new city, life changes whether you want it to or not and so will your insurance needs. It is essential for you to understand how to protect yourself in every phase of life changes. The insurance which works for you and your loved ones today needs to be constantly monitored in the face of these constant changes. Below are some great auto insurance tips from Steve Stiles of Stiles Insurance (www.stilesinsurance.com).

1. Will my personal auto policy provide coverage if I use my vehicle for business purposes?

Some insurers may provide coverage for business use vehicles depending upon the type of vehicle and its particular use in business, but you may need to purchase a commercial auto policy to receive the coverage you need. You should consult with an insurer or insurance agent or producer to determine the proper policy needed.

2. If I go on vacation and rent a vehicle, will my auto policy provide coverage while I am driving the rental vehicle or must I purchase coverage from the rental company?

If you vacation within the United States (and in many cases Canada), for liability coverage, the policy carried by the rental company will be primary (pay first), and your policy will be excess (pay second) if the rental company's limits are not enough to pay for the injuries or property damages you cause. For physical damage to the rental vehicle, some companies insurance allow the coverages you have under your comprehensive and collisions coverages to apply to the rental vehicle, subject to the deductible stated in your policy. Before renting, check with your insurance agent to determine if your coverage applies to the rental vehicle.

3. What is typically covered under Comprehensive coverage?

Some of the coverages provided under Comprehensive include theft of all or part of the vehicle, glass breakage, and damage due to fire, windstorm, hail, water, falling objects, vandalism, explosion, or hitting a bird or animal.

4. What is covered under Collision coverage?

Collision coverage pays if your auto collides with an object, including another car, or if it overturns. Your insurer will pay to repair these damages even if the collision is your fault.

5. I have an older vehicle which I do not care to insure for comprehensive and collisions coverage’s. Is there any reason why I should carry higher than minimum liability limits?

If you have assets you need to protect, you may want to carry higher than minimum liability limits to protect yourself from lawsuits by a person or persons you may injure in an accident.

6. What is covered under Bodily Injury coverage?

Bodily Injury pays for bodily injury to others for which you become legally responsible due to an auto accident in which you were involved. It does not pay for bodily injury you may sustain. You would need to have Medical Payments coverage in order to have the injuries you sustain in an auto accident covered under an auto policy.

7. Does Property Damage coverage provide coverage to fix my vehicle if the other driver is at fault and has no insurance?

No. Property Damage coverage protects you for damage you may cause to the vehicles or property of others. You would need to have Collision coverage on your auto policy in order to have coverage to fix or replace your vehicle in this situation.

8. How is the deductible for Comprehensive or Collision coverage applied?

The deductible for Comprehensive or Collision applies to each loss that occurs to your vehicle. A deductible is the dollar amount you will have to pay toward the loss before the insurer begins to make payments on the loss.

9. What is covered under Medical Payments coverage and to whom does the coverage apply?

You will need to read your policy for a complete description of the coverage provided. Basically, Medical Payments coverage provides coverage for necessary and reasonable medical and funeral expenses incurred as the result of an automobile accident up to the limit stated in the policy for you or passengers in your vehicle.

10. If I already have health insurance, do I need to carry Medical Payments insurance on my auto policy?

Even though you have major medical insurance, you may still wish to carry some medical payments insurance to cover deductibles and co-payments which are not covered by your health insurance plan.

11. What is the difference between Uninsured and Underinsured Motorist coverages?


Uninsured Motorist coverage protects you or passengers in your vehicle for bodily injury you or your passengers sustain in an accident involving a driver who has no liability coverage. Underinsured Motorist coverage protects you or passengers in your vehicle for bodily injury you or your passengers sustain in an accident involving a driver who has insufficient insurance to cover the injuries of you or your passengers.

12. If everyone is required to purchase liability coverage, why do I need Uninsured Motorist coverage?

Even though the law requires all motorists to carry liability insurance, not all motorists have liability coverage in force. Also, motorists may come from other states or countries and not have liability coverage on their vehicles.

13. What does Rental Reimbursement coverage provide, and does it provide coverage if I take my vehicle to a shop for mechanical repairs?

Rental Reimbursement coverage provides a specified amount for you to rent a vehicle while your covered auto is being repaired or replaced after it has been damaged because of a loss covered under Comprehensive or Collision. It does not provide coverage for mechanical repairs that result from mechanical breakdown that are not related to a comprehensive or collision loss.

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