Auto Insurance FAQ

Researching auto insurance can leave you asking questions. To aid you in making the best decision for you and your family, we have answered some of the most frequently asked auto insurance questions. 

Are high deductibles worth the savings? 

This is a personal choice as to what you feel like you can afford. Higher deductibles can save you premium, but it may not be the best route for all insureds. When choosing a higher deductible, you are assuming more financial liability in the event of a claim. If you are comfortable with paying a higher amount out of pocket, higher deductibles can be a way to save on premium. If you are thinking about making a change to your deductible give us a call and let us run the numbers. 

Why did my rates change when I moved? 

Part of a policy’s rating includes the territory where the risk is located. Territories are rated using a tool called a Census tract. Census tracts define where you live and where you drive the most. This information allows for greater granularity in rating analysis. Often when you move, you change from one census tract to another and if your rate went up then that area has a higher rating factor resulting in increased premiums. 

Does my auto insurance cover rental vehicles? 

It depends where you are traveling.  Auto insurance issued by a US based company is good in all 50 states, US Territories and Possessions, the Virgin Islands, Puerto Rico and Canada. If traveling anywhere else in the world you need to buy the insurance offered through the car rental company. However, in general, if you have Comprehensive and Collision on your personal vehicle, the insurance options offered by a rental company often overlap with the insurance provided within your policy, except for Loss of Use or down time on the damaged vehicle.  We recommend you buy this coverage from the rental company.  Another important reminder, most policies extend coverage for the use of a “Temporary Use Vehicle” similar to your primary vehicle.  So, if you’re renting an expensive sports car or a motorhome your Personal Auto Policy may not extend to those vehicles, we suggest you always check with your insurance agent prior to renting a car or other vehicle.  

What steps should I take if I’m in an accident?

If the accident is on a public road, call the police. Regardless of the location of the accident, do your best to obtain the contact information and license plate of the other driver or vehicles that were involved. Don’t forget to gather names and contact numbers for any witnesses. Always take photos/video of the accident scene and document any damage to all vehicles involved. Once you are safe, call your insurance company for next steps in setting up a claim. 

Why do insurance companies use insurance scores?

Leading insurance companies in Michigan utilize insurance scores to determine rates for Auto and Homeowners Insurance. These scores are composed of various factors, including your claims history, location, age, and other demographic information, such as your FICO score. Actuaries—those who analyze statistical data—have demonstrated that individuals with specific financial characteristics on their credit reports are less likely to file claims. Consequently, this results in lower rates. Insurance companies rely on these factors to assess the potential for loss and set appropriate rates.

What’s difference between Collision and Comprehensive Coverages? 

Collision coverage pays to repair or replace your car if it’s damaged in an accident with another vehicle or impact with an object, such as a fence or a tree. Comprehensive Coverage protects you from events other than collision.  Comprehensive Coverage pays for repairs resulting from the theft of your vehicle, fire, vandalism, glass breakage, and certain accidents involving animals such as deer, turkeys or farm animals. 

If you have additional questions, please reach out to our agency at 517-580-7832.

Haddad Wilson Group is located at 403 S Clinton St, Grand Ledge MI 48837. Protecting your future, the things you value and the people you love for 15 years.