Kevin Johnson, Author at Massachusetts Auto Insurance

What is bailment?

On your Massachusetts auto insurance policy, a “bailment” situation occurs when the operator (“bailee”) borrows a vehicle temporarily from the owner (“bailor”) and is responsible for returning the vehicle in the same condition as when it was borrowed. Otherwise, a claim for damages exists against the operator.

A “valid” bailment situation allows 100% recovery of physical damage payments against the other party’s insurance company in instances where the operator of your vehicle may have been primarily at fault.

In order for bailment to apply 4 conditions must be present:

the operator of your vehicle cannot be the owner and must have permission to use it
the owner cannot be an occupant of the vehicle at the time of the accident
the owner cannot benefit from the operator’s use of the vehicle at the time of the accident
at least 1% negligence must be proven against the other party involved in the accident

If all of these conditions apply, both the owner and the operator of the vehicle will need to complete a “Bailment Affidavit” which we will send to you. This signed document will be presented as evidence that a valid bailment exists and full recovery of all physical damage claim payments is warranted.

What is Gap Insurance?

Gap Insurance sounds like something to be worried about.

Gaps can be dangerous. Gaps are something Evel Knievel might have jumped.

When talking about insurance, no one wants to have a gap in their coverage.

So, What is Gap Insurance?

If your vehicle is stolen or declared a “total-loss,” your auto insurance carrier will only pay what they determine is the actual cash value.

Actual cash value can be very different than what is owed.

The difference is known as: the gap. Gap insurance covers this amount.

Without gap insurance the lender will hold you responsible therefore look to you have pay the difference between the actual cash value and the amount left on the loan.

Many insurance companies allow Gap insurance to be added to the Massachusetts auto policy.

What’s the cost of Gap Insurance?

The cost for Gap insurance can range from between +$25 annually to +$120.

Sometimes Gap insurance coverage is included in lease agreements.

If leasing, make certain you know whether Gap insurance is included or not because it might be quite a shock to learn you don’t.

Is Gap coverage a good idea?

In conclusion, depending on the gap, it might be a great idea!

Give us a click or a call to find out more about Gap insurance & your Massachusetts auto policy!

MassAutoQuote is Massachusetts Auto Insurance

MassAutoQuote is Massachusetts Auto Insurance.

We’ve been quoting auto insurance online in Massachusetts, and only Massachusetts, since 1999. Not even Geico can say that.

MassAutoQuote is consumer-friendly. We offer 4 convenient ways to get a Massachusetts auto insurance quote:

Real-Time Quote – Spend a few minutes and get sample, real-time quotes from A rated carries.
Easy Quote – Click and attach a copy of your auto insuranc Coverage Page and let our insurance professionals find you the best rates.
Quick Quote – Enter only basic information and let us show yo different coverage and premium options.
Give us a click, call, fax or stop by!

Utilize the power of your independent insurance Agent!

By using MassAutoQuote you’re using the power of the Massachusetts, independent insurance Agent. We shop auto insurance with numerous, top-rated companies. We find the best discount programs and coverage. We’ll make recommendations and offer you the best premiums. We’ll save you money and improve your coverage. MassAutoQuote is Massachusetts auto insurance.

Buy your auto insurance from a Massachusetts, Independent Insurance Agent!

Some people think it doesn’t matter where you buy your insurance, but it does. Rather than if you go direct, you have a third party to help you at claim, billing or insurance shopping time. When you buy your auto insurance from a MA Agent, we work hard to keep your business. In addition, it helps keep the local economy strong and keeps jobs here in Massachusetts.

MassAutoQuote is Massachusetts Auto Insurance.

We write auto insurance in Massachusetts … and only Massachusetts.

Click, call, fax or stop by! info@massautoquote.com, phone 781-246-8699, fax 781-224-0546, MassAutoQuote powered by Johnson & Rohan Insurance, 50 Salem Street, Lynnfield, MA 01940

Uber Drivers Beware

Uber drivers beware: The Massachusetts personal auto policy is very strict when it comes to Uber/Lyft or other rideshare programs.

Per a recent article in The Massachusetts Agent (Official Newsletter of the Massachusetts Association of Insurance Agents), companies can void all optional coverage if the consumer is in an accident while working as a driving service.

The article states, “Here is how the policy may or may not respond:

Part 3. Bodily Injury Caused by an Uninsured Auto – Coverage is limited to $30/80M for anyone injured while occupying your auto while it is being used as a public or livery conveyance.
Part 4. Damage to Someone Else’s Property – The policy will not pay if property damage occurs while your auto is being used as a public or livery conveyance.
All Optional Coverages – The policy will not pay under any of the optional coverages if the accident happens while your auto is being used as a public or livery conveyance.
Part 12. Bodily Injury Caused by an Underinsured Auto – The policy will not pay for anyone injured while occupying your auto while it is being used as a public or livery conveyance.”

In addition, if the insurance company knows how vehicle is being used, they can cancel coverage.

Although premium prohibitive, the other option is to write coverage as a commercial vehicle/commercial insurance policy.

Uber drivers beware.

Massachusetts Plates: regular vs. commercial

surprise-real-time-ma-insurance-rates

Our Massachusetts Independent Insurance Agency received a question from a client regarding putting lettering on the back of her car and if this would require commercial plates.

Great question.

The Long answer:

The Massachusetts Department of Transportation defines commercial vehicles (requiring commercial plates) as:

“ANY MOTOR VEHICLE WHICH IS NOT A PRIVATE PASSENGER MOTOR VEHICLE, ANTIQUE MOTOR CAR, MOTORCYCLE, TRAILER, SEMI-TRAILER, AUTO HOME, HOUSE TRAILER, TAXICAB, AMBULANCE, HEARSE, LIVERY VEHICLE. BUS, SCHOOL BUS OR PUPIL TRANSPORT VEHICLE”.

This includes: Any vehicle which has a vehicle weight of more than 6,000 pounds unless it is a sport utility vehicle, passenger van, pickup truck or cargo van meeting the definition of a private passenger vehicle.

Any vehicle which as five or more wheels i.e.; a dually
Any pickup truck or cargo van, owned by a partnership, trust or corporation unless the vehicle meets the definition of a private passenger vehicle.
Any pickup truck or cargo van if on the bed , roof or sides of the vehicle tools, equipment, supplies and materials are transported to or from a job site (personal projects without compensation are not considered a job site).
A vehicle which has business lettering, markings and/or advertisements on it.
A vehicle used for hire to plow.
A vehicle used for hire to transport or store goods or merchandise (unless the vehicle is owned by an individual, the maximum carrying capacity is 1,000 pounds or less and is only used on a part-time basis).
A vehicle used to transport or store goods or merchandise intended for sale in the operator’s business (unless the vehicle is owned by an individual, the maximum carrying capacity is 1,000 pounds or less and is only used on a part-time basis).

So, according to the MA Department of Transportation, if the vehicle has business lettering, markings +/or advertisements, then the vehicle should have commercial plates.

Ways to Save Money on Massachusetts Auto Insurance

kids-in-car-2000x650_c

1.) Package Your Auto & Home Insurance through the same agency/company!

Insurance companies that write in Massachusetts offer account discounts on both home and auto insurance. Discounts available are anywhere from 5% – 15% on the auto & between 10% – 20% on the home.

2.) Utilize an Independent Insurance Agency!

Most Massachusetts Insurance Agencies write business with five auto insurance carriers. By utilizing an Independent Agency you will be utilizing the most valuable tool that the new, managed competition system offers. An Independent Insurance Agency will be most familiar with the different discounts and programs that are available.

3.) Take advantage of available discounts!

This one is, sort of, the tricky one. Different companies offer different discounts and knowing which ones are best for you is where an Independent Insurance Agent should be able to provide you valuable assistance.

When reviewing different companies discounts, however, keep in mind that no matter how many alleged discounts or percentage points companies are promising, the bottom line premium is the most important thing.

Discounts that are available are:

Account discount on your auto if you have a home, apartment or condominium policy with the same company.
Improved excellent driver & excellent driver plus discounts (99 & 98 drivers).
Pay in full discounts.
Hybrid vehicle discount.
Advanced driver training discount.
Certain college (for example: Boston College & Merrimack College) and organization (for example: Mass Bar Association & Mass Medical Society) discounts.
Good student discount (“B”or better)
Student away at school discount.

4.) Make certain that you have the best insurance program!

Some of the new insurance programs that are available include:

Disappearing Collision Deductible.
Accident and Moving Violation Forgiveness.
Guaranteed Replacement Cost.
Emergency Road Travel Expenses.
Auto loan/Gap Coverage.
Combined bill options.
Electronic Funds Transfer billing option/ No service fees.