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Rental Cars: Should you purchase rental agency coverage?

If you have collision and comprehensive ("other than collision") coverage 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. It is best to call us to confirm coverage.

Fitzgerald Insurance Agency phone # is 484-318-7755

The rental car company may offer you "extra" coverage to cover your deductible, in the event of any accident. This would be at you discretion. Please ask questions to the representative.

What To Do After an Accident.

You've been in an accident. Here are some general guidelines about next steps:

  • 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.
  • Pictures can be of great value, if you have access.
  • Gather accident information. Note the date, time and township of accident.
  • Obtain information on the other driver including: name, address, phone number, make of car, vehicle license number, insurance company and agent's name and telephone number.
  • Record a description of what occurred.
  • Report the accident promptly to your insurance agent. If insured with Erie call 800-821-2902 and have your policy number available. Grange claims number is 800-445-3030. Progressive is 1-800-876-5581.

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 coverage 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. Always ask about this to your dealership. This coverage could save you thousands of dollars in the event of a total loss.

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 can be reduced by selecting a seat position that is not too close to the steering wheel.

Safety belts - Remember, the more comfortable the safety belt, the more likely you are to always use it. Even though shoulder belts allow some forward movement, automatic crash tensioners and/or belt webbing grabbers can reduce the chance of an occupant hitting the steering wheel or dashboard in a serious frontal crash.

Antilock brakes - Especially designed to avoid skidding and loss of control, antilock brakes automatically pump several times a second. Drivers need to become familiar with the difference in braking style as antilock require heavy braking pressure to activate this safety feature.

Head restraints - Required in the front seats of all new passenger vehicles, head restraints prevent occupants' heads from snapping back in a rear-end crash. Look for a fixed head restraint or an adjustable restraint that is designed to protect tall and short people even in the "down" position. Avoid a poorly-designed adjustable restraint that would only protect the shortest occupants.

Built-in child seats - Several cars and vans offer built-in child safety seats as options.

Uninsured Motorist Coverage: Do I Really Need It?

All Pennsylvania drivers are required by law to have auto insurance. However, even though it is illegal to drive without auto insurance in Pennsylvania, the unfortunate fact is that there are a surprising number of uninsured drivers on the road.

If you discover that the person who caused an accident has no auto insurance, and you carry Uninsured Motorist coverage, your own insurance company steps in to take the place of the uninsured driver so that you can get money for your injuries. Uninsured Motorist Coverage applies whether you are a driver, passenger, pedestrian, or even the victim of a hit-and-run accident.

You are not required to purchase Uninsured Motorist coverage in Pennsylvania. And while you might save a few dollars on your insurance premium, not having the coverage when you need it could cost you literally thousands of dollars that otherwise would have been available for you to collect.

EXAMPLE:

You elect to carry Uninsured Motorist coverage at our recommended levels on your car insurance policy. You are injured in an accident caused by a driver who is uninsured. Because you have uninsured motorist coverage, your own insurance company will pay you for all recoverable damages up to the limits you have chosen on your coverage.

However, if you did not have Uninsured Motorist coverage, and if the uninsured driver has no assets, there may be no way for you to receive any money for your pain and suffering, lost wages, and excess medical bills.

Uninsured Motorist Property Damage Coverage

It is estimated that one out of every 20 motorists is driving uninsured. Although this figure represents only 5% of today's drivers, uninsured motorists are responsible for approximately 13% of all auto accidents. If you become involved in an accident with an at-fault driver of an uninsured motor vehicle there are coverage options available to ensure that you are adequately protected:

  • UMBI- Uninsured Motorists Bodily Injury Coverage provides bodily injury coverage for you and for the occupants of your vehicle. Most policies already provide this coverage.
  • UMPD- Uninsured Motorists Property Damage provides coverage for your vehicle. Vehicles without collision coverage have no protection for damage resulting from an accident with an uninsured driver. If the optional UMPD coverage is added to your policy and you find yourself tangled in an accident with the at-fault driver having no insurance, you won't be left to pay for the damage to your car out of your own pocket.

If you own more than one vehicle, you have the option to "stack" your UM/UIM. Please contact us to learn more at (484) 318-7755.

Multi-Policy Discounts

Most companies will offer discounts if they write your auto and home insurance with the same company. Erie, for one, will offer 25% discount for have auto and home together. You can add ANOTHER 5% off auto and 5% off home, by adding a life policy with Erie Insurance.