At Eagle Trust Insurance, we are dedicated to providing helpful information to our customers. With that in mind, here are a few things you may not know about MA auto insurance.
1 – You Can Change Insurance Companies Any Time
Most car owners are under the impression that you cannot change insurance companies until your policy end date. In reality, you can change at any time. Your old insurance company will prorate their charges. If you paid ahead, you will receive a refund of the remaining premium, although this may take up to 30 days to receive.
2 – Discounts Change Over Time
If you asked about discounts years ago when you first purchased auto insurance but haven’t checked again recently, you may be missing some savings. Even if you didn’t change your affiliations, insurance companies may have changed their programs. It’s a good idea to check with your insurance company every year to determine any new discounts for which you may be eligible.
3 – Insurance May Not Be Enough to Pay Off Your Loan
Your insurance coverage is based on the market value of your vehicle, as pulled from third party sources (such as Kelly Blue Book). In some cases, your car may have depreciated below your loan amount. If you experience a total loss, this means that the money received from insurance will be less than what you owe on the loan, leaving you personally responsible for the difference. For instance, if the insurance value of your car is $13,000 but you still owe $16,000, you will need to pay the extra $3,000 from your own funds. Fortunately, there is a solution to this problem. You can purchase something called GAP insurance. For just a few dollars a month, it guarantees that the amount paid to you (for a total loss) will be sufficient to pay off your auto loan.
4 – Increased Coverage Is Often Inexpensive
The state of Massachusetts requires only minimum coverage for auto insurance. Many people neglect to ask for quotes on higher coverage, assuming that it is too expensive. Increasing coverage amounts may be more affordable than you think. Be sure to ask your Independent Insurance Agent for pricing information on higher limits and coverage add-ons.
5 – Having Low Insurance Coverage Can Leave You Personally Liable
One of the most important things you may not know about MA auto insurance, or auto insurance in any state for that matter, is that it never fully protects you from liability. Every coverage category has a dollar limit. Anything beyond that is your personal liability. For example, let’s say that you are at fault for an accident and cause serious injury to someone. They incur medical expenses of $80,000 but your insurance coverage for “Bodily Injury to Others” is only $20,000. You could be held personally liable for the remaining $60,000.
Learn More Things You May Not Know About MA Auto Insurance
Could there be other important things that you are missing about MA auto insurance? Contact us for a review of your policy. We can help identify better ways to protect you and/or save you money.