Frequently Asked Questions
Below are some of our frequently asked questions. If you have any other
questions or concerns, please feel free to contact us
via the web, or come and visit us at a location near
you.
| I’ve heard about auto insurance being competitive now. What’s going on?
On April 1, 2008, car insurance companies began setting their own rates. This means that if you request quotes for the same coverage from several different companies, you will receive different premium quotes from each of them. Even though companies file for their own rates, the Commissioner of Insurance still has to approve them.
Since 1977 all rates for car insurance were set by the Commissioner of Insurance under what was known as the “fixed-and-established” system. So, if you requested a premium quote for the same coverage from different companies, each of those companies should have given you the same price for that coverage. The only changes to these rates were if you qualified for "group discount", like AAA, the North Andover Soccer Association, or the North Reading Skate Association.
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| What if I Rent a Car while on Vacation?
Your Collision, Limited Collision and Comprehensive coverages will follow only for
“non-owned private passenger type autos. If you rent a car, van or SUV, these “physical damage” coverages would respond. Physical damage coverages would NOT respond to, for example, a rented motorcycle, motor home or
moving truck. In the event of a total loss or theft of a rented vehicle, the MAP will pay for the actual cash value (ACV) of the damaged, destroyed or stolen vehicle. As a result, you may end up paying out-of-pocket for the difference between the vehicle’s ACV and replacement cost as well as the LOSS OF REVENUE because the vehicle cannot be rented during the time it is disabled. Be sure to read the rental agreement because each rental firm’s contract is slightly different! Again, it might make sense to purchase the CDW or LDW offered.
The Bodily Injury coverage is a bit more confusing. Bodily Injury and Property Damage apply as long as you are legally responsible for the accident while using an auto you own,
borrow or rent. B. Medical Payments coverage follows you and household members while occupying autos owned by others.
In the case of Bodily Injury and Property
Damage, the Vehicle Owner’s Policy (ie the rental company), would have to pay its limits before your policy would respond.
The types of vehicles you can use and have
your Bodily Injury, Property Damage and
Medical Payments respond in the event of an
accident are very broad. There are some policy exclusions.
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