Merastar Auto and Home Insurance

Common Auto Insurance Questions

The following information, although a reasonable description of the coverage provided, does not constitute part of the policy or binder of insurance and shall not be construed to replace any provision of the policy itself. In the event of any conflict between the policy and this information, the provisions of the policy shall prevail. It is therefore important that you read your policy carefully for complete details.

Questions

 
1.
  Does insurance for a leased car cost more?
 
2.
  Why do I need to give so much personal information?
 
3.
  Why do my rates increase, as my car becomes older?
 
4.
  Why is my premium higher on my policy than what you originally quoted?
 
5.
  Why must I list all household members, when they do not drive my car?
 
6.
  What other ways can I save money?
 
7.
  What if I retire or leave my company?
 
8.
  Does my policy extend coverage to rental automobiles?
 
9.
  Why does an accident cause my premium to increase?
 
10.
  What is an appropriate deductible amount?
 
11.
  Should I select collision coverage on my vehicle?
 
12.
  Must I carry Comprehensive and/or Collision coverage on all my automobiles?
 
13.
  What is a Declaration Page?
 
14.
  What is a Deductible?
 
15.
  What is an Endorsement?
 
16.
  What is the definition of an accident?
 
17.
  What is Underwriting?
 
18.
  What is a VIN?
 
19.
  What are VIN Etchings?
 
20.
  What do I do if I have an accident with my vehicle?
 
21.
  Are personal belongings stolen out of my car covered under my auto insurance?
 
22.
  Is my vehicle insured if I loan it to someone?
 
23.
  Is my car covered outside the United States?
 
24.
  Does my auto policy automatically cover towing and rental reimbursement due to a loss?
 
25.
  Does my auto policy cover rental vehicles when I'm on vacation?
 
26.
  How long does a surcharge point stay on my automobile policy?
 
27.
  Does my deductible apply per loss or per year?
 
28.
  How do I know if I have a deductible and what my deductible is?

Answers

  1.   Does insurance for a leased car cost more?
The premiums should not vary between leased or owned automobiles, unless your leasing company requires higher liability limits than you might otherwise carry.
 
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  2.   Why do I need to give so much personal information?
We only collect information necessary to provide accurate insurance rates.

Access to your information is limited to people involved in processing this information such as our sales, customer service, underwriting or claims associates.

It is not our practice to request personal information solely for marketing purposes.
 

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  3.   Why do my rates increase, as my car becomes older?
Even though a car ages, replacement cost, repair cost, and hospital expense consistently rise. Therefore, claim costs are much higher today than even five years ago.

Some policyholders who have older cars, and have paid off their loans, may choose to control their insurance costs by removing the comprehensive and collision coverage on those cars or raising their deductibles.
 

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  4.   Why is my premium higher on my policy than what you originally quoted?

The premium quoted is based on the information you provided at the time of your quotation. After a policy is purchased, driving and claims records are verified through consumer reports. Any forgotten information is then added, and the insurance premium is adjusted to reflect the new information.

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  5.   Why must I list all household members, when they do not drive my car?

All household residents have access to the vehicles. Therefore, we need to verify their driving records and insurance information. In some states exclusions are available for household residents who either do not require coverage, or have their own insurance protection.

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  6.   What other ways can I save money?
We offer several auto and home discounts/credits* to save you money which may include:
    • Anti-Theft Device
    • Anti-Lock Braking System
    • Airbags
    • Auto-Home Multi-Policy Discount
    • Good Student
    • Group Discount
    • Multi-Car
    • Student Away at School
    • Payroll deduction
    • Renewal Discount
    • Safe & Sound® Discount
    • Senior Operator/Defensive Driver
*Available in most states to those who will qualify.
 
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  7.   What if I retire or leave my company?
In most states, if you retire or leave your company for another reason, you may continue coverage without interruption.
 
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  8.   Does my policy extend coverage to rental automobiles?
The coverage on your covered auto transfers to cars rented on a short- term basis (such as a vacation).

Rental Reimbursement coverage applies when you rent a vehicle while your auto is being repaired after a covered loss.
 

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  9.   Why does an accident cause my premium to increase?
Statistics and studies show that the chances of having an accident increases proportionately to how many accidents a driver has already had.

Insurance companies charge higher rates to drivers with accidents because they are statistically higher risks.
 

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  10.   What is an appropriate deductible amount?
The deductible amount should be one that you are comfortable paying should your vehicle need repairs in the event of an accident.
 
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  11.   Should I select collision coverage on my vehicle?
Take into consideration whether the cost of insurance is more economical than the cost of repairing or replacing the car at your own expense.
 
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  12.   Must I carry Comprehensive and/or Collision coverage on all my automobiles?
No. However, you must carry comprehensive coverage to have collision coverage.
 
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  13.   What is a Declaration Page?
The part of your written policy which includes your:
    • Name
    • Address
    • The property that is being insured, its location and description
    • The policy period
    • The amount of insurance coverage and the applicable premiums.
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  14.   What is a Deductible?
Deductible is the amount of the loss that the insured is responsible to pay out of their pocket for the loss. You may choose a higher deductible to lower your premium.
 
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  15.   What is an Endorsement?
A document that amends an insurance policy by adding or deleting coverage or otherwise modifying the coverage.
 
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  16.   What is the definition of an accident?
An accident is an unintended occurrence involving you or another driver of your vehicles that resulted in damages to property and/or bodily injury.
 
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  17.   What is Underwriting?
This is the process of determining risk, in what amounts, and on what terms the insurance company will accept the risk.
 
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  18.   What is a VIN?
The specific number assigned to the vehicle by the manufacturer.

This number may be found on the registration, title, inside the driver's door on a silver tag on some models or on the small plate at the base of the windshield in front of the steering wheel.
 

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  19.   What are VIN Etchings?
Permanently marked vehicle identification number on at least two windows of the vehicle other than the small vent windows.
 
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  20.   What do I do if I have an accident with my vehicle?
    1. First check for any injuries and get yourself and your passengers out of harms way
    2. Call the police
    3. Do not admit responsibility or divulge your policy limits
    4. Collect the name and address of each driver, passenger and witness.
    5. Write down the year, make, model, license number, insurance company and policy number for all vehicles involved in the accident.
    6. Draw a diagram of the accident
    7. Report the accident to the company as soon as possible, regardless of fault and even if the damage is minor.
    8. Call 800.637.2782 and follow the directions to report a loss
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  21.   Are personal belongings stolen out of my car covered under my auto insurance?
No, they are not covered.
 
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  22.   Is my vehicle insured if I loan it to someone?
Your auto insurance coverage follows the vehicle. So, in most instances, your car will be covered when someone else is using it with your permission.
 
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  23.   Is my car covered outside the United States?
In most cases, your auto policy provides coverage in the United States, its territories or possessions, Puerto Rico or Canada, or while a car is being transported between these places.
 
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  24.   Does my auto policy automatically cover towing and rental reimbursement due to a loss?
Towing coverage is an optional coverage and must be purchased separately. Transportation Expense (rental reimbursement) is also an optional coverage and must be purchased separately. However, Transportation Expense is automatically provided if your auto is stolen and you have Comprehensive coverage on the stolen vehicle. Transportation Expense is provided for this type of loss up to the specified amount stated in your policy.
 
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  25.   Does my auto policy cover rental vehicles when I'm on vacation?
Yes, if the driver of the rental car is listed on your auto policy, and you carry comprehensive and collision coverage on your vehicle. You should also remember that the driver must be listed on the rental contract and the deductible on your policy will most likely apply to your rental car.
 
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  26.   How long does a surcharge point stay on my automobile policy?
In most states, it stays on three years from the time it was added to the policy. Surcharge points are added and removed at renewal, not during the policy term.
 
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  27.   Does my deductible apply per loss or per year?
The deductible applies per loss.
 
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  28.   How do I know if I have a deductible and what my deductible is?
If you have a deductible, it is usually listed on your Declarations Page (the policy document you receive from your insurance company at renewal.) If you have Collision and/or Comprehensive Coverage under your auto policy, you may have a deductible.
 
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Helpful Information

About Auto Insurance
Auto Insurance Terms and Definitions
Get an Auto Insurance Rate Quote

About Home Insurance
Common Home Insurance Questions
Home Insurance Terms and Definitions
Get a Home Insurance Rate Quote

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