Auto Insurance is a contract between an individual (the policyholder) and an insurance company. It provides financial protection and coverage in case of accidents, damage, theft, or other events related to the insured vehicle. The primary purpose of auto insurance is to help the policyholder mitigate the financial consequences that can arise from unexpected situations involving their vehicle.
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Are You Covered When You Borrow Someone’s Car?
Borrowing or driving a friend’s car is common, yet we often overlook coverage considerations. It’s important to be aware of exclusions and conditions in auto policies, particularly regarding “regular use” and “business use” coverage issues.
Bump Up that Deductible!
Insurance consumers often seek ways to cut costs on personal lines insurance, but not all approaches are prudent. Requests for reductions in dwelling or liability limits on homeowners or auto insurance policies may seem tempting, but they often carry significant risks, particularly in liability situations such as auto accidents or injuries on your property, where substantial losses could occur if a judgment goes against you.
Exercise Care on Freeways
Automobile accidents are a leading cause of death in the United States, especially among children and young adults, as reported by the National Highway Traffic Safety Administration. Many of these fatalities occur on freeways and highways, due to the high speeds involved.
Avoid Those Cell Phones While Driving
According to the National Highway Traffic Safety Administration (NHTSA), nearly 700,000 drivers in the United States use cell phones or manipulate electronic devices while driving during daylight hours. In 2012, there was a 9 percent increase from the previous year, resulting in an estimated 421,000 injuries in auto accidents involving distracted drivers.
Reduce Your Exposure to Intersection Auto Accidents
Automobile crashes causing injuries and property damage are most prevalent in urban areas, with one study finding that 81 percent of crashes happen in cities. Additionally, approximately 43 percent of auto accidents are linked to intersections, as highlighted by another study.
Increase to Accident Surcharge Thresholds Limits Effective July 1, 2015
Governor Baker’s signing of the Massachusetts 2016 State Budget on July 17, 2015, led to increased minor and major thresholds for surchargeable accidents, offering potential savings for drivers in the state who may be involved in at-fault accidents.