Pachuta Insurance
  • Home
  • About
  • Insurance
    • Personal Insurance
    • Commercial Insurance
    • Church Insurance
    • Companies We Represent
  • FAQs & Tips
    • Home Insurance FAQs
    • Tips For Homeowners
    • Auto Insurance FAQs
    • Tips For Auto Owners
    • Renters Insurance FAQs
  • Customer Service
    • Request a Free Quote
    • Report a Claim
    • Request a Policy Change
    • Request an Auto ID Card
  • Contact
  • Blog

AUTO INSURANCE FAQs

Accident With a Borrowed Car: Whose policy pays? 
If you lend your car to a friend and your friend has an accident, it might be your insurance that's on the hook. It all depends on the insurance company that issued your policy. One company’s policy may state:"the insurance follows the car," while another company’s policy may state the driver’s insurance is the primary coverage even though you own the vehicle involved. 

Let’s take a look at the two different scenarios:
  • If the insurance follows the car and you lend your car to a friend, your coverage is considered the primary coverage. If your friend has an accident, it’s your insurance that will pay the claim. If the accident is serious enough to use all of your policy’s coverage, then your friend’s coverage, which is considered secondary, might also be used. 
  • If the insurance follows the driver, coverage is provided the other way around. If you lend your car to a friend and they have an accident, it’s their policy that is considered primary coverage, meaning their insurance company will pay the claim. In this case, your policy would be secondary and wouldn’t pay for anything unless your friend’s policy limits were reached.

​All of these rules go out the window in many cases if the person borrowing the car happens to be a relative who resides in the same household as the owner. You should read your policy carefully to see what type of coverage applies to you. 

Always remember two things: First, always exercise caution when it comes to lending your car.  Second, if you're ever in doubt about whether you or another driver is covered in any given situation, please check your policy.

Rental Cars: Should you purchase rental agency coverage? 
If you have collision and comprehensive ("other than collision") coverages on your own car, you are most likely covered if you're traveling in the United States, its territories, and Canada (for example, travel in Mexico, the Bahamas or Europe would not be covered).  Most policies (except business policies) cover any rental car that you drive at no additional premium. Business cars frequently require an extra premium to afford the same coverage. Always remember to check your policy before you leave for your "fun in the sun and/or snow" to confirm your coverage.

What To Do After an Accident?
If you've been in an auto accident, here are some general guidelines about what to do next:
  • Stop at once. Never leave the scene of even a MINOR accident. 
  • Seek medical assistance and summon police. 
  • Do not admit fault. Do not comment about the accident to anyone but your insurance representative and the police. 
  • Never accept or make an offer of cash, check, or "private" settlement. 
  • Gather accident information and note the date and time of the accident. 
  • Obtain information on the other driver including: name, address, phone number, make of car, vehicle license number, insurance company, and agent's name and telephone number. 
  • Record a description of what occurred. 
  • Draw a diagram of the accident showing the direction of both cars and the point of the accident. Include street names and location of traffic signs/signals. 
  • Report the accident promptly to your insurance agent.

Lease Loan Gap Coverage?
If you are thinking about leasing or buying a car, you might consider adding Lease Loan Gap (LLG) Coverage to your auto policy.  LLG Coverage is an extension of your auto's physical damage coverage. 

Ordinarily, your comprehensive and collision coverages provide you with up to the actual cash value (the vehicle's cost minus depreciation) in the event of a total loss.  When you sign a lease or loan agreement, you may be obligating yourself for an amount higher than the vehicle's actual cash value. 

At a cost of approximately 5% of your current comprehensive and collision premiums, LLG Coverage protects you from out-of-pocket expense when such a "gap" occurs. Although there are some limitations, LLG Coverage will pay up to your lease or loan amount if your car is stolen or if the cost of repairs is greater than its salvage value. Contact our office and we'd be happy to discuss this coverage further. 

Note: Some car manufacturers may provide gap coverage as part of the lease agreement --- check your particular contract for details.

Uninsured Motorist Coverage: Do I Really Need It?
You're driving your son to soccer practice when you are rear-ended at a stop sign. Dealing with the initial trauma of the accident and injuries, and the subsequent disruption of a period of medical recovery and the inconvenience of car repairs is bad enough, but what if the injuries are serious? And what if the at-fault driver has no insurance? Where do you turn? 

This is where your Uninsured Motorists (UM) Coverage comes into play. What is UM Coverage? Coverage that "pays the policyholder and passengers in his/her car for losses sustained by reason of bodily injury ... caused by the owner or operator of an uninsured automobile or a hit and run driver." 

What is the difference between Uninsured and Underinsured Motorists Coverage?
Underinsured Motorists Coverage covers you and passengers in your car for "losses unpaid because sufficient bodily injury liability limits are not available from the policy of an at-fault driver." In other words, Uninsured Motorists covers you if the wrongdoer has no insurance while Underinsured Motorists covers you in the event that the wrongdoer has some coverage but not enough. 

Many people wonder if UM is really necessary, after all, isn't liability insurance mandatory? How can there be any uninsured drivers out there? The problem is that not everyone obeys the law.   

Others question the necessity of UM in light of the fact they have very comprehensive medical coverage.  In the event of an accident with an uninsured driver, they assume their own medical coverage will fully protect them. Yes, medical insurance would likely cover most medical expenses, but it will not generally compensate the injured person for lost wages, disfigurement, pain and suffering, mental anguish, and changes in quality of life. For a person permanently disabled following an accident, even things such as modifications to make a home and a vehicle more accessible can cost tens of thousands of dollars. UM can compensate the victim in these broader areas. 

There are ways insurance dollars can be saved, but paring down or going without UM is one we strongly discourage! The largest claim recorded in many agencies is not a huge fire loss or a big liability settlement. It is, you guessed it, a UM claim. 

Uninsured Motorist Property Damage Coverage?
It is estimated that one out of every 20 motorists is driving uninsured. Although this figure represents only 5% of today's drivers, uninsured motorists are responsible for approximately 13% of all auto accidents.If you become involved in an accident with an at-fault driver of an uninsured motor vehicle there are coverage options available to ensure that you are adequately protected:
  • UMBI- Uninsured Motorists Bodily Injury Coverage provides bodily injury coverage for you and for the occupants of your vehicle. Most policies already provide this coverage. 
  • UMPD- Uninsured Motorists Property Damage provides coverage for your vehicle. Vehicles without collision coverage have no protection for damage resulting from an accident with an uninsured driver. If the optional UMPD coverage is added to your policy and you find yourself tangled in an accident with the at-fault driver having no insurance, you won't be left to pay for the damage to your car out of your own pocket.
PACHUTA INSURANCE
1031 Village Drive, Suite A
Watkinsville, Georgia 30677‎
johnny@pachutainsurance.com

​
(706) 769-2262 (Office)
(888) 769-2262 (Toll Free)
(706) 769-2282 (Fax)
(706) 201-1901 (Mobile)
  • Home
  • About
  • Insurance
    • Personal Insurance
    • Commercial Insurance
    • Church Insurance
    • Companies We Represent
  • FAQs & Tips
    • Home Insurance FAQs
    • Tips For Homeowners
    • Auto Insurance FAQs
    • Tips For Auto Owners
    • Renters Insurance FAQs
  • Customer Service
    • Request a Free Quote
    • Report a Claim
    • Request a Policy Change
    • Request an Auto ID Card
  • Contact
  • Blog