March 29, 2017
Rathbun Insurance
Auto Insurance FAQ's
Q: When purchasing automobile insurance what should I consider?
A: There are several things you should consider when purchasing automobile insurance that your independent agent will help you with. Here are a few:
  • Purchase the amount of liability coverage which makes sense for you.
  • Select the optional coverages you want.
  • Decide which company to purchase insurance from.
  • Don't base your decision solely on price. Other factors like service and claim response are extremely important in selecting the right insurance.
Q: Does my insurance policy cover a friend if I loan him/her my car
A: When you loan your car to a friend or an associate, he or she will be covered under your automobile insurance policy unless you have excluded them from coverage.
Q: What is the MCCA charge and why do I have to pay it?
A: The Michigan Catastrophic Claims Association (MCCA), is a program established by the state that reimburses no-fault auto insurers by providing coverage for unlimited medical benefits for an automobile accident victim where medical costs exceed $400,000. The MCCA assessment is charged as a per vehicle charge on every auto insured in the state regardless of the carrier you are with.
Q: What is collision physical damage coverage?
A: Collision is the loss you incur when your automobile collides with another vehicle or object like a telephone pole.

There are three types of collision coverage in Michigan:

Broad Collision - You are covered regardless of fault, if the other party is more than 50% at fault you do not pay your deductible.

Basic Collision - You are covered regardless of fault, but always pay your deductible. Michigan law allows you to go against the other person or their insurance company for up to $500 to recoup your deductible.

Limited Collision - If you are less than 50% at fault you have coverage, less your deductible. If you are 50% or more at fault you do not have coverage.
Q: What is comprehensive physical damage coverage?
A: Comprehensive provides coverage for direct physical damage losses you could incur to your car from something like a hailstorm.
Q: How can I lower my automobile insurance rates?
A: There are several things you can do to lower the cost of your automobile insurance.
One way is to look for competitive pricing. An independent agent works with many companies and can provide you comparative rates and insure that your are getting the same coverage.

Another way to lower the cost is to change your deductible. By raising your deductible you may lower the cost of your automobile insurance almost 10% You must be able to pay the deductible amount in case of a claim. You can also look for discounts that you may be entitled to. Some examples of discounts that may be available are: multiple cars under the same policy, carrying a homeowners policy with the same insurance company, different groups or associations.
Q: How do I sign up for electronic deduction or change my checking account information?
A: To sign up please click the link below that will take you to the EFT page which has the necessary forms for most insurance carriers. Simply click on the form, print it, complete it and either mail, fax or email the form back to us and we will set this up for you.
Click this link to go the the EFT Forms page.