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Topics in Car Insurance
Car Insurance Coverages in Plain English
Who needs insurance industry jargon? Read this to get an explanation of your car insurance coverages in plain English.
What Do I Have To Have?
The state of Ohio requires a minimum amount of coverage for other people. If you owe money on your car, your bank will require additional
coverage on the car itself. Read this article to find out more.
Do You Need Rental Car Insurance?
When you filling out your paperwork at the rental agency, they will try to sell you Collision Damage Waiver. Do you need it?
What about Rental Reimbursement coverage on your auto policy? Do you need it? Read this article to find out!
Seven Secrets to Saving Money on Auto Insurance
Have you ever heard the expression, "Price is what you pay, but value is what you get"? Our goal is to get you the best coverage,
and we'll try to save you money, too. Here are seven very smart ways you can save money without settling for less-than-perfect coverage.
Don't pay too much for car insurance!
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Deliveries and car insurance: The world's most expensive pizza delivery
 Christy M. Perry, President
Community Insurance Center, LLC
Do you deliver pizzas, newspapers, mail, flowers, or any other product in your personal vehicle?
Does your son or daughter have a newspaper route and use the family car?
If you or your family member had an accident while delivering, do you know if your
insurance would pay for the claim? Most policies would not pay it. That is
why delivering pizza in the family car could be the world's most
expensive pizza delivery.
What does a typical personal auto policy cover?
Auto policies are designed and priced for people who do not use their cars for business purposes. Commuting to work is
expected, and driving for personal use is expected. Occasionally running an errand for work is okay.
Beyond that, you need to talk to your agent about your specific situation. Many types of business use are
allowed on a personal policy, but at a slightly higher rate. If you are a salesperson and drive between appointments, ask about the business use
rating.
However, most policies do not cover any sort of delivery of goods or transport of people for a fee. This includes taxi service,
pizza delivery, newspaper delivery, mail delivery, and many other types of delivery.
What kind of policy do I need for deliveries?
Although a few companies might do this on a personal auto policy, most want to put it on a commercial auto policy. Commercial auto policies
are designed and priced for risks where the driver goes to many different locations, often in a hurry to complete deliveries on time, and often
looking at directions or maps to find the right home. It might cost more, but isn't it worth it to have the peace of mind knowing that the claim
will be covered?
The employer usually has insurance only to protect itself. It should have non-owed, hired auto coverage on its
business policy. If a driver causes an accident, and the claimant sues both the driver and the pizzeria, this coverage will protect the pizzeria
from its portion of the liability judgment, but it will not pay for damage to the employee's car.
Unlike pizza and newspaper companies, businesses like flower shops and couriers are more likely to furnish
company cars, with the company's fleet of cars insured on a business policy. This takes the insurance obligation away from the driver. In this
case, however, the company will check their employees' driving records and restrict driving privileges only to those who drive safely and
responsibly.
What if I just don't tell my agent that my son is delivering pizzas?
Don't ask, don't tell, right? Actually, not telling will not prevent coverage problems.
Policies vary widely from company to company and from state to state, but most policies have
language in the policy that says something like, "We will not pay for damages arising out of the operation of the motor vehicle to carry persons
or property for a fee." Read your policy. If your company has language like this, then your policy will not pay for such a claim.
This is the difference between underwriting and claims adjusting. The "don't ask, don't tell" idea is that you can get a policy by not telling the whole
story. You might think you've gotten away with it, just because the policy was issued. The claims process is based on the policy contract, however,
and if the policy contract says it isn't covered, then you will not get a claim check.
What if I'm a real estate agent, and I carry passengers in my car?
Most policies allow this, because you are not transporting people for a fee. However, the company might charge more
for "business use" because of the increased risk (high mileage, with passengers in the car).
Some policies require you to notify your agent that you are using the car for business, and exclude this type of
coverage unless you have done so. Ask your agent if you need to have your policy rated differently.
Contact your agent!
Policies vary widely from company to company and
from state to state. Contact your agent for more information on what your
current policy covers. Your car is one of your biggest assets, so you need
to protect it properly. More importantly, your car is your dream. If your
policy cannot be adjusted to get the coverage you need, consider shopping
for a different company. And if your agent cannot answer your questions,
consider shopping for a different agent. This type of consultation is the
agent's job. It is why you pay him! Don't you deserve to have your car
properly protected?
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