At least around 77% of Americans surveyed by MetLife Auto & Home’s insurance literacy survey believe that they would not mind paying a little more to the insurance company in order to get peace of mind and better insurance coverage. However, there were many surprises in store while the survey was carried out. For instance, more than half the population believed they would get full coverage for their new vehicles in case their vehicle was totaled. While most people think that it is insufficient if one gets just some basic coverage from the plan. Instead, they are looking for better protection and avoid nasty surprises later on.
To get a better understanding one has to know the key answers to ten basic questions before taking the insurance plan and then decide accordingly as to which plan would be best suited.
- Whether the insurance company would replace the totaled vehicle and clear the lease amount due. ANSWER: Maybe. Depending on whether the gap insurance was purchased by the rental company.
- Whether the insurance company would cover the whole costs of replacing the tires, tubes, batteries etc. ANSWER: Maybe not. Depreciation is taken into account in this case.
- Whether the insurance company would expect the customer to pay more than the worth of the vehicle at the time of loss. Would gap insurance have to be purchased to avoid this? ANSWER: Yes. Gap insurance will have to be purchased to avoid this.
- Whether the insurance company would cover costs in case of theft of cell phones or ipods/MP3 players, music download costs etc. ANSWER: Most standard policies do not cover these items.
- Whether the insurance company would offer discounts for groups or association memberships. ANSWER: Yes.
- Whether the insurance company would offer coverage in case of a rented mover’s truck wherein personal belongings are being transported. ANSWER: It is entirely dependent on the policy
- Whether the insurance company would pay the full cost claims to a rented company in case of accidents involving rented vehicles. ANSWER: It is entirely dependent on the policy.
- Whether the insurance company would offer discounts in case the consumers shorten their commuting for instance, carpooling etc. ANSWER: Yes. If the commute is reduced to a certain number of miles/year.
- Whether the insurance company would require additional insurance to be purchased in case of a rented vehicle. ANSWER: Maybe not.
- Whether the insurance company would offer discounts for going through their offices and workplaces. ANSWER: Yes certainly!
In short, by understanding what may or may not be covered by the policy, one may get an overall understanding and avoid future shocks.
