Does Your Insurance Policy Have Your Back?

When picking an insurance policy, too often we let what “we can afford” be the major deciding factor in choosing a carrier.  In other words, coverage and protection (in case of an accident) take a back seat to price.  While we understand that cost is undoubtedly important to consider, there are three items that are MUST HAVES for any solid insurance policy to have should you ever have a collision.

§ Deductible.  We always suggest that a $500 deductible or less is best, but there are cost savings when you have a policy with a higher deductible.  Find the deductible that both suits your budget, and protects your car if an accident were to happen. 

§ Substitute Transportation INS.  (Rental Coverage).  If you get into an accident, the last thing you want to have to worry about is “how am I going to get around while my car is being repaired?”  We suggest, at minimum, have $30 per day up to $900 dollars.  You’re already inconvenienced.  Don’t be stuck without a ride too. 

§ Waiver of Deductible. With the popularity of online discount insurance policies taking hold, we’ve noticed that the option of waiver a deductible isn’t there.  In Massachusetts, when a policy is bought through an insurance agent, the policy states that if you are in an accident, and are deemed “not at fault” and identify the “at fault” party, your deductible is waived immediately.  If you don’t have this clause, the insurance company does not have to pay your deductible UNTIL they collect it from the “at fault” party’s insurance company.  This could take weeks, forcing you to put the amount of your deductible up front at the time your car is fixed. 

Taking that extra 5 minutes to examine your auto insurance policy can save you money (and headaches) if you ever get into an accident.