Insurance Question
of the Month
Question
Why do I need Uninsured/Underinsured motorist coverage on my car auto
policy?
Answer
If you get into accident that causes death, dismemberment or permanent
disability and discover that the at-fault driver is uninsured, that is an
unpleasant situation. If you have uninsured/underinsured motorist protection
your auto insurance will kick into gear up to the limits you and your agent
have selected.
Question
I have a painting in my home valued at $5500. I have a house fire and the
painting is destroyed. What will the insurance company pay me?
Answer
Most standard insurance policies would pay the $5500 for the painting lost
in the fire IF you have an appraisal. If you do not have an appraisal it
would be left to a third party to estimate the value.
As always, ask your McKenzie Price agent if you have any questions on your
policy!
Question
What is the MCCA and why does it exist?
Answer
The Michigan Catastrophic Claims Association (MCCA) is a
non-profit association established in 1978 by the Michigan
Legislature. At present, the MCCA pays for all medical expenses
for people with auto-related medical injuries that exceed
$375,000 (effective July of 2006). This state mandated law
requires the MCCA to assess insurance companies an annual
fee on each registered automobile and motorcycle the company
insures in Michigan. (taken from www.michagent.org)
Question
I am age 65 and on Medicare. If I get hurt in an automobile
related accident, Medicare will cover my medical expenses,
true or false?
Answer
False, Medicare and most Medicare supplements, exclude auto
related claims.
Question
I keep my motorcycle and jet ski in my garage during the
winter. Is it true that my homeowners insurance will cover
these in the event of a loss?
Answer
No! Even though these items are in your house there is no
coverage. There motorcycle and jet ski policies that would
cover them during the summer while in use still cover them
in the winter during storage. It is important to keep coverage
on these items even when they are not in use.
Question
Your car is parked in your garage for the winter storage.
There is no insurance on the car because no one is planning
on driving it during the winter. An electrical fire starts
in the home causing a total loss of the home, garage and
all of the contents including the car. Is the car covered
because it was on the home property?
Answer
The car IS NOT covered. Automobiles are excluded on the
Homeowners policy. If you are storing an automobile anywhere
in the United States it should have comprehensive coverage
to take care of such causes of loss as theft, vandalism
or fire.
Question
You are on vacation in the US and have rented a car for
the week. You end up getting in an accident that is your
fault and damaging the car. Are you covered by your current
auto policy?
Answer
You are only covered if you are currently carrying full
coverage on at least one vehicle on your personal auto policy.
If you are carrying liability only there would be no coverage
for the physical damage to the rental car, you would need
to purchase the insurance offered by the rental company.
There is no physical damage coverage under your personal
auto without full coverage.
If you have questions on this,
or any insurance matters please contact
your highly trained staff at McKenzie Price Agency,
were service beyond the contract is our priority.
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