Common Questions
Index of Questions & Answers
Deductibles
How do I intelligently use deductibles? Most people do
not like deductibles. Deductibles are the amount that the individual
has to pay before the insurance company pays.
A deductible is the amount of any loss that you elect not to insure.
From the insurance company's standpoint, deductibles are a valuable
tool because they serve to eliminate small losses, which are more
frequent and more costly to administrate. If the insured chooses
not to insure these small losses, the savings can be passed back
to the insured in the form of lower premiums.
For example, a person insuring a $300,000 home could expect to save
30% of his or her premium for changing his deductible from $250
to $1,000. Essentially, insuring for small losses is not cost efficient.
You will pay less in the long run to cover small losses out-of-pocket,
than you will pay in premiums for coverage for coverage, which includes
low deductibles.
How do you determine which deductible level is best for you?
First. Determine what the cost savings for a higher deductible
would be. 30% of a $1,000 premium is meaningful. 30% of a $250 premium
will not be as attractive.
Second. What are your net worth and your cash flow? The chances
are that if you own a home with a value of $300,000, a $250 loss
is not a catastrophic financial event. Even a $1,000 loss represents
a loss of only one third of 1% of your home value. Cash flow is
another consideration. Someone who has $2,000 a month left over
after paying all ordinary expenses is in a better position to use
higher deductibles a person with the same net worth who has very
little money left over after paying all ordinary expenses.
Third. What is your tolerance for risk? Could you select
a $2000 deductible on your new luxury car instead of a $500 deductible
for a yearly savings of $350 and then park it overnight at the airport
without worrying that someone may have hit or stolen it? If you
answer is no, then your personal risk tolerance is not high enough
for you to be comfortable with a higher deductible.
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Getting paid
without coverage?
Someone else hits your car! The accident is not your fault, but
you have no collision coverage. How do you get paid?
What you do is make a claim to the other person's insurance company.
Our agency has a Rolodex full of 800 numbers in order to help our
customers pursue such claims. Such claims are only paid if the other
drive is more than 50% at fault and are called "third party claims."
Nothing here is automatic. No one has to look out for you, but knowing
your obligations and rights can help you to process your claim successfully.
As a claimant, you are obligated (1.) to identify the other driver,
the vehicle, and the insured person, (2.) to describe the circumstances
of the accident, and (3.) to provide an estimate of the damage.
These damages include both the physical damage to your auto and
for the loss of its use. This information should be provided to
the insurer in writing. The insurer, in turn, is obligated to investigate
and respond to your claim within thirty days.
Before you write, make a few phone calls. You should be able to
determine the claims office that will handle your claim. You may
also be able to get things going faster by relaying information
by telephone or fax. Again, we can help.
Both fault and damage issues are disputable. Be willing to negotiate
and to accept reasonable compromise. If you are unable to reach
an agreement with the insurance company, ask the insurer to state
its position in writing. They are required by law to do so.
Massachusetts' laws allow you to sue in small claims court regardless
of the amount of damage and to win up to twice the amount of your
claim if the insurer's position is found to have been unreasonable.
The right to sue in small claims court and the possible penalties
against the insurer translate into considerable consumer protection.
Knowing your "rights" and obligations from the beginning should
assist you in making your third party claim a smooth and successful
process.
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How do I cancel
my auto insurance?
When you registered your auto in Massachusetts, you were required
to obtain and show proof of insurance. To terminate your auto insurance
in Massachusetts, you are, in most cases, required to show that
you have terminated your auto registration.
Here's what you need to do
1. Return the registration plates of your car to the Registry of
Motor Vehicles and then mail or fax us a copy of the plate return
receipt. We will then cancel coverage on your vehicle to be effective
one day after the date on the plate return receipt.
Or
2. Return the registration plates to our office. We will return
the plates to the Registry and we will then cancel the coverage
on your vehicle effective a day after the date on the plate return
receipt.
If you are placing your auto insurance with another insurance company,
that insurance company must send us a document indicating that they
have assumed your coverage. We can then cancel your coverage and
your automobile registration will remain intact.
These general rules also apply to leased vehicle and to vehicles
that have been registered in another state. There are some exceptions.
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Glass Breakage
Claims for glass breakage are the most common and frequent automobile
insurance claim.
Essentially, if the windshield or other glass in your automobile
breaks and you have comprehensive coverage (Part 9), the damage
is covered. The broken glass will be repaired or replaced and
no deductible will apply unless you have selected a specific deductible
for glass.
The coverage applies to all auto glass including door glass, mirrors,
sun and moon roofs, and glasslike lenses. If there is damage to
something other than glass, the standard comprehensive deductible
will apply to that other damage.
You do not need to contact us or Commerce in order to proceed
with the glass replacement You can contact an auto glass company,
arrange the repair or replacement work, and the auto glass company
will process the claim for you. There are Web site links for
several area glass companies on our home page for your convenience.
There are just a few fine points. Coverage is for glass breakage.
Leakage, discoloration, and sand etching are examples of glass damages
that are not covered by your auto policy. Also, glass that is broken
as the result of a collision is not considered to be a "comprehensive"
claim for glass breakage. Glass broken in a collision is subject
to the application of a deductible.
Useful "Glass Breakage" Links:
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What is the Homestead
Act?
Should I claim a homestead on my residence?
The Massachusetts Homestead Act provides a homeowner with protection
from the attachment or from the forced sale of his or her home for
the payment of a debt. A judgment against you for having injured
another person in an automobile accident is a good example of such
a debt.
Anyone who owns their own residence may protect may protect
up to $300,000 of the equity that the have in their home. For homeowner's
who are age 62 or older, this protection is $300,000 per person.
A senior husband and wife, may each file separately, and protect
up to $600,000 of the equity of their home.
To claim a homestead, a person must record the claim at the Registry
of Deeds where their deed is recorded. The filing fee is $10. .
Forms can be obtained from your attorney, at any stationary store
that sells legal forms, or you can download them from www.suffolkdeeds.com.
There are exemptions to the protection afforded by the Homestead
Act. Federal, State, and local tax assessments, mortgages of record;
debts, liens, or contracts existing prior to the filing of a homestead;
support or alimony judgments. Also, any liens imposed by the Mass
Department of Revenue for payment of medical assistance are exempt.
A homestead claim will not shelter you from liens against your home
for nursing home care. .
It is important to note that a Homestead declaration is a valuable
and inexpensive financial tool. Although limited, it can act to
reduce the risk that your home will be taken from you to pay a judgment
against you. It does not supplant the need for adequate liability
insurance. The Homestead Act does not protect you from the attachment
or seizure of assets you may have or acquire in the future, not
will it provide the investigation, negotiation, settlement, or legal
defense services that are part or any liability insurance coverage.
For more detailed information, contact www.suffolkdeeds.com
or your attorney.
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Will my policy cover
a vehicle that I rent while on vacation?
"Yes" is the short answer.
"Yes" with some caveats, is the long answer.
- You can rent a vehicle and be covered under your own auto policy
only where you could drive your own car and be covered. Your automobile
is covered in the United States, US territories, Puerto Rico,
and Canada. Your auto policy does not cover you anywhere else.
In Bermuda, in Cancun, and in Great Britain, for example, you
must buy additional insurance.
- Your Collision and Comprehensive coverage apply to any private
passenger vehicle that you rent. It does not apply to trucks,
motorcycles, or a motorhome. You may also have a credit card that
extends free physical damage waiver coverage. If you use that
card to rent a vehicle, you will obtain a second layer of coverage.
Your deductible will apply to rental car damage just as it would
have applied to your own auto.
- Your Personal Injury Protection, Property damage, Bodily Injury,
and medical payments coverage will also apply. Substitute transportation
and towing coverages do not apply.
Your auto policy pays for damages on an "actual cash value basis."
Your rental car company may attempt to apply an alternate measure
of damages. Leasehold value may be one alternate measure of value.
The rental company may also attempt to charge for lost rental receipts.
Your auto policy does not cover these types of losses.
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Put us to work for you!
Please call us so we
can address your needs and concerns personally.
(508) 376-4377 or Toll Free at (800) 513-4377
Monday, Tuesday, Wednesday, and Friday:
9am to 5pm
Thursday: 9am to 7pm
(or by appointment)
Walk-ins welcome!
Curley Insurance Agency, Inc. – Offering auto insurance, home insurance, business insurance, and life insurance in the areas of Millis, Medfield, Sherborn, Holliston, Medway, Norfolk, Wrentham, and Franklin, Massachusetts. Representing the Commerce, Plymouth Rock Assurance, Bunker Hill, and Merchants Insurance Group.
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