Accident With a Borrowed Car: Whose policy pays:

If you loan your car to a friend and your friend has an accident, it’s your insurance that’s on the hook.  “The insurance follows the car” is the general rule of thumb.  

Might there be circumstances where the borrower’s insurance would become involved?

Yes.  Suppose you borrow a friend’s car and have a serious accident.  If your friend’s (the owner’s) coverage (called the primary coverage) is used up, then your own coverage (the secondary) would step in.  Or suppose you borrow your friend’s car, have an accident, and then find out your friend did not have insurance in force on the car.  Then your insurance may step in and become the primary coverage.

All these rules go out the window in many cases if the person whose car you borrow happens to be a relative who resides in your household.  Remember these two things: First, always exercise caution when it comes to lending your car.  Second, if you’re ever in doubt about whether you or another driver is covered in any given situation, please call us. 

 

Rental Cars:  Should you purchase rental agency coverage?

If you have collision and comprehensive (“other than collision”) coverages on your own car, you are most likely covered if you’re traveling in the United States, its territories and possessions or Canada (for example, travel in Mexico, the Bahamas or Europe would not be covered).  Most policies (except business policies) cover any rental car that you drive at no additional premium.  Business cars frequently require an extra premium to afford the same coverage.  Give us a call before you leave for your “fun in the sun and/or snow” to confirm your coverage.

 

What to do after an accident?

You’ve been in an accident.  Here are some general guidelines about what to do next.

Stop at once: Never leave the scene of even a MINOR accident.

Seek medical assistance and summon police.

Do not admit fault:  Do not comment about the accident to anyone but your insurance representative and the police.  Never accept or make an offer of cash, check, or “private” settlement.

Gather accident information:

            Note the date and time of the accident.

 Obtain information on the other driver including:  name, address, phone number, make of car, vehicle license number and insurance company.

Record a description of what occurred.

Draw a diagram of the accident showing the direction of both cars and point of the accident.  Include street names and location of traffic sign’s signals.

Report the accident promptly to your insurance agent.

 

Cellular Phone Coverage

Since many of us now have cellular telephones, we thought it might be worthwhile to highlight a few points regarding how insurance applies to this technology.

If a cellular phone is stolen from your car (or along with your car if it is stolen), is it covered by your auto insurance?

No, it is not unless the phone is permanently installed and powered by the car’s electrical system.

Is your portable cell phone covered by your homeowners or renters insurance?

Sometimes it is, but coverage is subject to the policy provisions and deductible in your homeowners or renter’s policy.

Can you buy broader coverage for your portable phone?

Yes, most companies offer a special, broader coverage for portable cell phones that can be added to a homeowners or renters policy.  Call us for details.

What if you lease a portable cell phone?

If you lease a phone, check with the company you lease the phone from to see what (if any) coverage they may provide.  You may then want to check with us to compare coverages and cost.

 

Lease Loan Gap Coverage

If you are thinking about leasing or buying a car, you might consider adding Lease Loan Gap (LLG) Coverage to your auto policy.  LLG Coverage is an extension of your auto’s physical damage coverage.

Ordinarily, your comprehensive and collision coverages provide you with up to the actual cash value (the vehicle’s cost minus depreciation) in the event of a total loss.  When you sign a lease or loan agreement, you may be obligating yourself for an amount higher than the vehicle’s actual cash value.

At a cost of approximately 5% of your current comprehensive and collision premiums, LLG Coverage protects you from out-of-pocket expense when such a “gap” occurs.  Although there are some limitations, LLG Coverage will pay up to your lease or loan amount if your car is stolen or if the cost of repairs is greater than its salvage value.  Contact our office and we’d be happy to discuss this coverage further.

Note: Some car manufacturers may provide gap coverage as part of the lease agreement --- check your particular contract for details.

 

New Car Selection: Safety Counts

The Insurance Institute for Highway Safety has published a shopping guide for those wanting to buy a new car based upon safety features.  While the guide does provide specific car lists (from station wagons to sports cars) it also reveals some overall safety basics to keep in mind.

Vehicle Size – Quite simply, bigger means safer.  According to the shopping guide, “People in small vehicles are injured more often and more severely than those in large vehicles.  In relation to their number on the road, small vehicles account for more than twice as many occupant deaths as large vehicles.  Small sport utility vehicles have the highest death rates of all, in part because of their greater involvement in fatal rollover crashes.  “While utility vehicles and passenger vans might go head-to-head in a popularity contest, passenger vans have good on-the-road crash experience --- similar to that of station wagons.”

Air Bags – Serving as a buffer between vehicle interiors and occupants’ heads and faces, air bags provide automatic protection in frontal crashes.  The Institute advises that although “the speed and force of air bag inflation may occasionally cause minor injuries such as abrasions, this slight risk is far outweighed by the benefits.”  This type of injury

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