Q: Does my auto policy automatically cover a rental car if I decide to take one on vacation instead of my regular car?
Restrictive policies cover only the vehicles specifically listed on the policy. Don't assume all policies are the same. You may have to accept the additional expense of the car rental company's pricey insurance.
Be sure you know if you can loan your car to a friend or other family member. What if they crashed your car and your insurance refused to pay for it because it doesn't allow "permissive use"?
Q: If I wreck and total my car, do you take depreciation out before you pay me, or do you give me a fair market valuation, similar to what car dealers in the area are charging?
How your insurance policy valuates your vehicle at claims time can mean a huge difference in dollars to you. Watch out for the phrase "Actual Cash Value" in your policy.
Do you think the low-cost insurance purveyors are going to specifically point out these deficiencies in their policies? Of course not! You only learn about them after it's TOO late. Now, you have no excuse, if you read this blog!
David Yates – Farmers Insurance