A Reservation of Rights letter will be sent to you if there is a potential conflict between you and your insurance company while a claim is open. A Reservation of Rights letter does not automatically mean there will or will not be applicable coverage. It simply means that your insurance company is “reserving their rights” to make a formal decision on the claim until the issue is cleared up.

All insurance policies have a list of acts and events which are covered, as well as a list of excluded ones. If you look in your policy jacket, it is quite easy to find and understand. Depending on your carrier, exclusions may vary, but for the most part they are the same across all companies. Here are eight common exclusions likely found in your auto in insurance policy.

1.  Bodily injury or death caused while you are using your vehicle to carry people or property for compensation or a fee. In other words, don’t use your vehicle for any business reason if you do not have a commercial policy.

2.  Liability assumed under a contract.

3.  Bodily injury or death to an employee.

4.  Bodily injury or death caused by an intentional act.

5.  Damage to property owned by or rented by the insured person.

6.  Bodily injury or property damage resulting from your operation or use of a vehicle owned by you, other than a covered vehicle.

7.  Bodily injury or death or property damage resulting from a relative’s use of a vehicle, other than a covered vehicle, owned by a person who resides with you.

If you receive a Reservation of rights letter from your insurance company, it is best to call and speak to your claims adjuster or agent to make sure you fully understand the situation.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

If you’ve been in a car accident before, then you most likely know the importance of having rental car insurance. Rental car insurance helps reimburse you for the cost of a rental vehicle while yours is being fixed. If you don’t have rental car insurance, and your car is in the shop for an extended period of time, then you might be stuck with a large rental bill or stuck taking the bus.

Most types of rental coverages are standard across the industry. Typically, adding rental car insurance onto your auto policy is only a matter of a few additional dollars. Trust me, it is well worth it. If your car is in the shop for 2 weeks, that can cost over $400 for a rental.

In the auto insurance industry, there are typically three different levels of rental car insurance. They are 20/600, 30/900, and 40/1200. What this means is that if you select 20/600, your limits are $20/day with a $600 maximum payout. There are some companies out there that offer additional rental car insurance if you know that you will need a larger truck or van or prefer a luxury vehicle.  Some carriers limit the coverage to a total number of days rather than a total amount.

Rental car insurance can be a little tricky if your car is deemed to be a total loss. Once your auto insurance company reaches a settlement with you to settle the total loss, depending on the company you have between 1 and 5 days left to use your rental car; even if you reach a settlement the day after the accident. That means that you may have only a very short amount of time to shop and find a replacement vehicle, which can put you in a bind.

Rental car insurance is a must have for any auto insurance holder. You can’t afford to be without it!

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

No fault insurance is a very ambiguous topic. Many people have a mistaken impression of what no fault insurance really is. If your state is a “No Fault” state, it is extremely important to know exactly what this means.

Many people who are at fault for accidents are very quick to say, “but this is a no fault state.” They may think that no matter who is at fault for an accident, that each person must go through their own insurance.  However, they are incorrect. No fault insurance is applied to accident related injuries. What it really means is that whether you are at fault or not for an accident, each person has the right to go through their own insurance carrier for medical related expenses.

In most no fault states, policies are required to have Personal Injury Protection (PIP) included. Most of those states have a mandatory minimum of $10,000 PIP coverage. No matter who is at fault for the accident, your PIP coverage automatically covers the first $10,000 in medical expenses resulting from the accident.  If you are at fault, PIP may be the limit of coverage for your medical expenses unless you purchase additional coverages. Such coverages include extended PIP benefits and MedPay. Although MedPay is an optional coverage; just like PIP, the benefits are available regardless of fault. MedPay covers your medical expenses (up to your policy amount) after your PIP benefits have been exhausted. You also have the right to sue the other party in most cases once your PIP limit is exhausted, if you are not at fault.  Make sure to file your claim in a timely manner as in most states the statute of limitations is three years from the date of the accident.

The following is a list of “No Fault” insurance states:

District of Columbia*
Florida                                                                                    
Hawaii                                     
Kansas                                    
Kentucky*                              
Massachusetts                         
Michigan
Minnesota
New Jersey
New York
North Dakota
Pennsylvania*  

*These states allow you to choose between “No Fault” and standard liability/tort coverage.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.