Kids going away to school? Answers to some pertinent questions.

When should I add my son or daughter to my auto policy?
Once a member of your household has obtained a driver's license, he or she should be added to your automobile insurance policy.

How is my auto policy affected if I have a child at school who doesn't have his or her own car there?
All policy coverages continue to apply to your child while he or she is away at school. Whether you receive a premium decrease depends on several criteria.

In all cases, if your child is the registered owner or remains the principal operator of a vehicle, there will be little or no difference in the premium, and the small difference depends on whether the usage of the vehicle changes. All other circumstances being equal, if your child is not the registered owner or principal operator and he or she is attending school more than 100 miles from home, you will see a decrease in premium in most locations. Note: If your policy is based in Massachusetts, you will not see a decrease in premium based solely on your child's being away from school. Your child should remain on your policy even if he or she doesn't have a vehicle at school. That will cover all bases -- when your child borrows a car or needs to drive and when your child is a passenger or even a pedestrian.

If my child is away at school with his or her own car, how will that affect my insurance policy?
In all states, if a child is away at school with a vehicle, that vehicle's location will be changed to the city where your child is living. If the city is in a different state from the one where you live, a separate policy will be issued. Depending upon the circumstances, this situation could result in a decrease, an increase or no change at all in overall premium on your auto policy or policies. The factors that influence the change in premium are the location where the car is garaged, how your child has been using vehicles on your policy in the past, how he or she will use the vehicle at the new location and whether he/she was or is the registered owner or principal operator of a vehicle.

When should my child get his/her own auto insurance policy?
Your child should obtain his/her own policy when you can no longer claim the child as a dependent on your federal income tax return or - if you don't claim your child - he/she is less than 50 percent financially dependent on you or if your child owns the car. To start a separate policy, your child can call MTAB's Quick Quote Hotline at 1.888.441.1118.

Some General Auto Insurance Questions

What's the difference between a principal operator and an occasional operator?

An occasional operator is a driver who has access to all vehicles on the policy and

• does not use any particular vehicle on a routine basis,
• operates a vehicle less than half the time it is in use,
• does not drive a vehicle to work or school, or
• does not have a vehicle away at school.

A principal operator is a driver who may have access to all the vehicles on the policy, but one or more of the following apply. The principal operator:

• operates a particular vehicle on a routine basis,
• operators a vehicle more than half the time it is in use,
• is the registered owner of the vehicle,
• drives a vehicle to work or school, or
• has a vehicle while away at school.

What are some of the insurance discounts I should know about?

Auto Insurance:

• Low mileage credit
• Multi-car discount
• Driver Training discount
• Anti-theft device discount
• Passive restraint device discount
• Senior driver discount

As an MTA member insured through the MTA Group Auto Plan, you can save 12% on your auto insurance.*

*Policies canceled prior to the expiration date may be subject to a short rate cancellation.

How soon should I add a new vehicle to my auto policy?
As soon as you purchase a new vehicle, you should add it to your policy. If possible, notify MTA Benefits before taking possession of the vehicle so you'll be sure to have the amount of coverage you prefer and an idea of the premium as soon as you begin driving the vehicle. Call MTA Benefits at 1.800.336.0990, ext. 7001.

Are there any specific time limits for an insurance company to pay for collision or comprehensive claims?
There are no specific time limits for the settlement of claims. Insurance companies are required by law to pay all claims in a prompt and reasonable amount of time. However, what constitutes "prompt and reasonable" may vary from claim to claim. Claims that require special or extended investigation may take longer to resolve. Inclement weather conditions often cause an increase in the number of claims filed and that can slow the process down as well.

Is my insurance company required to give me the replacement cost for my automobile if the automobile was declared a Total Loss because of an accident?
Unless you made special arrangements and paid an additional premium, your insurance company will only pay you the actual cash value of the automobile as of the date of the loss, not the cost to replace it. Your auto's value is determined by the following: the retail value for an auto of like kind and quality prior to the accident; the price paid for the auto plus the value of prior improvements to the auto at the time of the accident; the decrease in value of the auto resulting from prior unrelated damage which is detected by the appraiser or for which a claim has been paid; and the actual purchase cost of an available auto of like kind and quality.

If your auto has substantial value because of its exceptional condition such as an antique, classic, or restored auto, you should have it appraised and then insure it for the appraised value.

Do I have to pay an insurance premium after my auto is declared a total loss?
Yes, the auto is considered insured until the policyholder returns the license plates to the Registry of Motor Vehicles. If you don't have your license plate because your auto was stolen or because your auto and plates were burned in a fire, then you have to go the nearest Registry of Motor Vehicles office and obtain a lost or stolen plate(s) receipt and use that instead. You must give this receipt to your insurance company in order to cancel your policy and avoid paying any additional premium.

Can I keep my auto if my insurance company declares it a total loss?
No, your insurance company has the option to take title to your auto because it is entitled to any salvage value your auto may have. You can, of course, negotiate with your company to purchase your auto for the agreed salvage value.

An object damaged my windshield and I am unable to determine where it came from. Am I covered for this loss?
Yes, if you have comprehensive insurance you are covered for the full amount of the loss, unless you opted for a $100 deductible for glass breakage.

Can my insurance company deny a claim for damages to my auto if the principal place of garaging listed on my application is false?
Yes. If you or someone on your behalf gives false, deceptive, misleading or incomplete information in any application and if such information increases the insurance company's risk of loss, then your company may refuse to pay claims under any or all of the Optional Insurance Parts of the policy. Such information includes the description and place of garaging of the vehicles to be insured, the names of the operators required to be listed and the answers given for all listed operators. If you have moved since you filled out your initial application, notify your insurance company and the Registry of Motor Vehicles of your new address.

Is my insurance company required to notify me of its decision to cancel my policy?
Yes. Your insurance company must send you a notice at least 20 days prior to the effective date of the cancellation.

What can I do if I receive a cancellation notice?
You can pay the exact amount called for on the cancellation notice or, if you feel that the cancellation is incorrect, you may submit a written complaint to the Board of Appeals at 470 Atlantic Avenue, Boston 02210-2223. The written complaint must be submitted prior to the effective date of the cancellation.

Who is liable for the storage charges on my damaged auto when there is a dispute as to the amount of the claim payment?
The insurance company is responsible for paying storage charges until it makes a reasonable offer to settle the claim. However, if the consumer disputes the amount offered and the company revises its offer, this does not necessarily mean that the original offer was unreasonable. Disputes over what is reasonable can be resolved with your company through the process described in your insurance policy. You can also submit a written complaint to the Division of Insurance if you are unable to settle the dispute.

May an insurance company request a down payment in advance when I purchase or renew an auto insurance policy?
Your insurance company may request up to a 30 percent down payment of the annual premium prior to the renewal or issuance of your policy.

Is it possible to pay my premium monthly?
Most insurance companies offer a monthly type payment plan after you pay an initial down payment of the annual premium. Check with your insurance company to see what options are available to you.

If I own an auto with collision and comprehensive coverage, will my insurance apply to the rental of another private passenger auto?
Yes. Your collision and comprehensive insurance are transferable to a substitute rented or borrowed private passenger auto that is damaged while it is being operated by you and by members of your household.

Notes: There is no coverage under your policy for family, friends or significant others. This coverage is available only if you rent or borrow a private passenger auto in the United States or Canada.

Your policy does not provide coverage for borrowed or rented trucks. If you are renting a truck, check with the rental company regarding the purchase of collision and comprehensive insurance. If you are borrowing a truck, make sure you determine whether or not the owner has purchased collision or comprehensive coverage. If the owner does not have insurance, you may be personally liable for any damage to that truck which is the result of your negligent operation.

Finally, if the use of the rented or borrowed vehicle is for business rather than pleasure, call your insurance agent first. Business use is usually not automatically covered. The coverage is for a substitute vehicle, not an additional one.