Auto Insurance
Personal automobile insurance covers private passenger vehicles. It provides protection against economic loss to an insured from bodily injury or property damage to others (liability) arising from the operation, maintenance, or use of a covered automobile. Coverage may also be purchased for damage to vehicles owned by you (Collision & Other than Collision).
While it may appear difficult to read, it is extremely beneficial to understand your personal auto insurance policy. The main purpose of your personal auto insurance is to transfer some of the risks of driving from yourself to your insurance company. By transferring that risk, you save yourself from the heavy financial burden that can come after an accident. Your policy can pay for these losses and satisfy legal requirements.
Types of Auto Insurance Coverage
Generally, auto policies include several different types of coverage, all of which may be priced differently. For instance, insurance may cover:
Bodily Injury Liability
This type of coverage pays for medical bills, lost wages or income, pain and suffering, and even funeral expenses for those injured in an accident where you were legally responsible for their injuries. This coverage also pays for the legal and court costs to defend you in a covered lawsuit. This type of coverage is required in most states.
Property Damage Liability
If you are responsible for causing an accident, you are legally held responsible for repairs to another person’s vehicle or property. Property damage coverage not only covers the cost to repair the other person’s car, but it also covers repair costs of anything you hit with your vehicle, such as a street lamp, fence or building. This type of coverage is required in most states.
Collision
This type of auto insurance coverage pays for damage to your car as the result of a collision with another vehicle. Even if you are at fault for causing an accident, this type of coverage will reimburse you for the cost of fixing your car once you have paid the out-of-pocket deductible amount. If you are not at fault, your insurance company can seek reimbursement from another driver to cover the cost of repairs to your vehicle. Collision coverage is optional in all states. However, if your automobile is financed, your bank or lending institution will require you to have this coverage.
Comprehensive
This coverage protects you for losses due to hazards not caused by a collision with another vehicle. This includes damages that are the result of theft, vandalism, fires, falling objects, earthquakes and storms, or contact with animals, such as deer. Comprehensive coverage is optional in all states. Though, like Collision coverage, if your vehicle is financed, your bank or lending institution will require you to have this coverage.
Uninsured and Underinsured Motorist Coverage
This policy protects you and other passengers in your automobile if you are injured in an accident by a motorist who is uninsured and held legally responsible for your injuries. It pays the medical expenses and related expenses you have incurred up to the coverage limits you select.
1. Are mechanical repairs covered by auto insurance?
Auto insurance typically does not cover routine mechanical failures, breakdowns, or normal wear and tear. Policies in Massachusetts are designed to protect against sudden and accidental losses rather than maintenance-related repairs.
2. Does auto insurance cover business use of a vehicle?
Personal auto insurance may provide limited coverage for business use, but it depends on how the vehicle is used. Drivers in Arlington who regularly use vehicles for work may need commercial auto insurance.
3. Does my insurance cover rental reimbursement after an accident?
Rental reimbursement coverage may help pay for a rental vehicle while your car is being repaired after a covered claim. Drivers in Arlington, MA should review the daily and total reimbursement limits included in their policy.
4. What is uninsured motorist coverage?
Uninsured motorist coverage can help protect you if you’re involved in an accident with a driver who does not carry auto insurance. Depending on your policy in Massachusetts, it may help cover medical expenses, lost wages, and other accident-related costs.
5. Does auto insurance cover hitting a deer?
Yes, collisions involving deer are generally covered under comprehensive auto insurance. Drivers in Arlington, MA often rely on comprehensive coverage for animal-related accidents, especially during periods of increased wildlife activity.
6. What happens if I let my auto insurance lapse?
Allowing your auto insurance to lapse can result in penalties, registration complications, higher premiums, and a gap in financial protection. Drivers in Massachusetts should maintain continuous coverage whenever possible.
7. Can I get insurance for a financed vehicle?
Yes, financed vehicles can and should be insured. Lenders in Arlington, Massachusetts typically require drivers to maintain full coverage auto insurance until the vehicle loan is paid in full.
8. Is full coverage required on a financed vehicle?
Most lenders require full coverage auto insurance on financed vehicles. This generally includes liability, collision, and comprehensive coverage to help protect both the vehicle owner and the lender’s financial interest.
9. Does working from home affect auto insurance?
Working from home may reduce auto insurance costs if it significantly lowers your annual mileage and commuting frequency. Drivers in Massachusetts should notify their insurance provider when driving habits change.
10. Why do auto insurance rates vary from one insurer to another?
Insurance companies evaluate risk differently based on factors such as claims history, underwriting guidelines, available discounts, and rating models. As a result, drivers in Arlington, MA may receive different premiums and coverage options from different insurance carriers.
Contact us today to learn more about insuring your new venture or to review your existing policy.
Kalivas Insurance Agency
635 Massachusetts Ave
PO Box 148
Arlington, MA 02476
Fax: (781) 648-5633
Licensed to write policies in MA & NH
HOURS
Monday-Friday:
9:00 am - 5:00 pm
Weekends & Evenings:
By Appointment
