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If you lease a car, you still need to buy your own auto insurance policy. The auto dealer or bank that is financing the car will require you to buy collision and comprehensive coverage. You will need to buy these coverages in addition to the others that may be mandatory in your state, such as auto liability insurance, nor will your personal auto policy pay for the reduction in the vehicles value due to an accident or the administrative fees charged by the rental car company.

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  1. What is “gap” insurance?
  2. If you “total” your car before you finish paying for it, there will likely be a gap between what you owe and what the insurance company will pay you. This is because the insurance company’s check is based on the car’s actual cash value which takes into account depreciation. Whether you have an auto loan or a lease, you may want to buy gap insurance to protect yourself from having to come up with the gap amount in the event of a total loss. For more details, click here. (




  1. Q. How is family auto insurance coverage handled when students

   are away during the school year handled?


  1. All household members need to be listed as operators of

family vehicles. While students are away at school, they may

be excluded as operators. This saves premium dollars for the

parents. But they must remember to call us and add back

student operators during holiday breaks, spring break, summer, etc.


  1. Q. Do we need to buy insurance from a rental car

       company when we’re on vacation?



  1. If you have collision and comprehensive insurance on your

personal auto, you automatically have the same coverages,

subject to your deductible, under the physical damage insurance.

You are NOT covered, however for the soft costs. That is, your

personal policy will not pay for any lost business income for

the rental car company while their damaged vehicle is being

repaired. We recommend that you buy the insurance from

the rental company.

   Q. If a tree falls on my car at home, does my homeowner’s insurance pay for the damage?


  1. No. At home or away from home, you are only covered

if you have comprehensive coverage on your automobile policy.


  1. Is personal property in my car covered by my auto policy?


  1. Stolen or damaged items like laptop computers or cell phones aren’t covered by your auto insurance. You’d have to file a claim on your home insurance.

Most home insurance policies cover smaller, less expensive items.

However, if you carry expensive items such as computer equipment,

ask us about the need for a rider on your home insurance policy.


  1. Can a newly licensed driver transport any age passenger?


  1. No. According to Massachusetts law, a newly licensed driver cannot transport

any one under 18 years of age.

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