|
|
Effective April 1, 2008, insurance companies can set their own rates, which are not based strictly on driving records, driving experience, or the town a vehicle is garaged in. Instead, they now are based on a combination of many factors that will vary by company. In most cases, there are more than 100 factors used to determine your rate with each insurance company. Some examples are:
Currently, no socio-economic rating factors such as age, sex, marital status, or credit score can be used. All rates must still be approved by the Insurance Commissioner.
Coverages
New coverages that are now available include:
In addition to the coverages listed above, most insurance companies now offer optional package endorsements that can be added to your auto policy for a fee, and include a selection of the coverages above. Not all coverages are available with every insurance company. Restrictions apply, and fees are subject to change.
In addition to the standard low mileage, anti-theft, multiple car, and good driver discounts, there are new discounts available including:
Our Recommendations
Be sure to evaluate both coverage and premium when comparative shopping. A lower priced quote could mean less coverage. With so many rating factors to be considered, you need an experienced insurance agent like Protector Group working for you. Don’t sacrifice service for premium savings – it could make a big difference at the time of a loss. Since most large direct writing companies do not have agents that you can go to for assistance, getting immediate local service could be difficult.
Coverages
Replacement Cost for New Vehicles. This coverage pays the difference between the actual cash value of a vehicle at the time of a total loss and the best negotiated price of a comparable replacement vehicle. The fee for this coverage varies by insurance company, and can run up to 10% of the annual premium. Restrictions on the age, original purchase cost of the vehicle, and the mileage at the time of the total loss apply and vary by insurance company. Accident Forgiveness. With accident forgiveness, a surcharge resulting from an at-fault accident will not be applied to your policy. Only the first surchargeable at-fault accident is “forgiven.” Any violations relating to the accident or any subsequent accidents are subject to the applicable surcharge. Operators must be incident free at the time coverage is requested in order to qualify. The fee for this coverage varies by insurance company and can range from 5% to 11% of the annual premium. Disappearing Deductibles. This coverage option reduces your deductible each year you are free of surchargeable accidents. To be eligible, a policy must have at least one vehicle with collision or limited collision coverage during the entire claim-free period. The fee for this coverage varies by insurance company and can range from 0% to 10% of the annual premium. Pet Injury. This coverage provides payment up to $500 for veterinary fees related to injuries sustained by a dog or cat owned by you that is involved in a covered collision loss, and up to $500 for burial or disposal expenses if the dog or cat dies in a covered collision loss. No deductible applies. Currently, this coverage is only available through a package endorsement, and is not offered by all insurance companies. Personal Belongings. This coverage allows for payment up to $250 for personal belongings (i.e. clothing, luggage, sunglasses etc.) that are lost or damaged during a covered loss to your vehicle. Restrictions vary by company. Emergency Road/Travel Expenses. This endorsement provides additional coverage for expenses incurred by you when your auto is involved in a covered loss occurring more than 100 miles from home, as long as the vehicle has been stolen or is not drivable. Covered expenses are overnight lodging, meals, alternate transportation expenses, and towing. The maximum amount of coverage available is $250 per accident. Loan/Lease Gap Coverage. Pays the difference between the actual cash value of the vehicle at the time of a total loss and any greater amount the owner of the vehicle owes under a written loan or lease agreement. The fee for this coverage is usually a percentage of the cost of your collision coverage and varies by insurance company. Restrictions may apply due to the age of the vehicle. Increased Towing and Rental. This coverage pays amounts that are in addition to your current towing and rental coverage already on your policy. Limits and premium vary by insurance company. Customized Equipment. This endorsement provides coverage for Customized Equipment that may be defined as any piece or part that was not installed by the manufacturer, but has been permanently added to your vehicle. Some examples are snowplows, electronic equipment, and/or custom interior. Limits and premium vary by insurance company.
Discounts
Loyalty/Renewal Credits. Insurance companies are now offering automatic loyalty/renewal credits based on the amount of time you have been insured with them. The discounts vary by company, depending on how many times you have renewed your policy with them, and range from 1% to 8%. Account Credits. Insurance companies are now offering account credits on the auto insurance if you also have a home, condo, or tenant’s policy with the same company. Previously, the discounts were offered only on the property policy. The discounts vary by insurance company, and range from 5% to 19%. Good Student Discounts. If you or an operator on your policy has been licensed less than 6 years, is enrolled as a full-time high school or college student, and has a grade point average of “B” or higher or equivalent grading structure, you may be eligible for a 10% to 15% discount on the vehicle the good student is rated on. Discounts and availability vary by insurance company. Student Away at School Discount. This discount is available if an inexperienced listed operator (licensed less than 6 years) is a full-time student residing at an accredited educational institution that is at least 100 miles away and does not have regular access to a vehicle listed on the policy. The discount varies by insurance company from 5% to 15% of the vehicle premium the student is rated on. Depending on the insurance company, this discount may or may not be combined with the Good Student Discount. Advanced Driver Training Course Discount. The Advanced Driver Training Course is not the typical drivers education you complete when you first learn how to drive. It teaches you advanced driving techniques such as skid control. If you or a listed operator have completed an Advanced Driver Training Course, you may be eligible for an additional discount. The discount varies by insurance company and can be as much as 10%. Hybrid Vehicle Discounts. You may be eligible for a 10% savings if you drive a hybrid vehicle. Availability of this discount varies by insurance company. Payment in Full Discount. Some insurance companies are offering an additional discount if you pay your premium in full each year at the time of renewal. This is in addition to saving as much as $50 annually on installment fees by paying the premium in full. Group Discounts. Various group discounts are available including AAA, Massachusetts CPAs, Boston College Alumni, Friends of R. Sugden Library, SBLI Health and Safety Group, and WBUR Members and range from 4% to 9%.
|
|
|
