Automobile Insurance FAQs

Does my deductible apply to all claims, even if I am not at fault?

Yes. If your policy makes a payment to you under your collision or comprehensive coverage, the applicable deductible will be applied. However, if you were not negligent and the responsible operator is insured, we will subrogate our loss and include your deductible in our claim. If we recover, you will be reimbursed your deductible.

Am I required to have insurance on my vehicle?

In most jurisdictions, yes. Many states have mandatory insurance. Check with your local agent to find out if your State has a mandatory insurance statute.

If I have an older vehicle, do I need collision coverage?

This is a personal decision based on the value of your car and how much you can personally handle without financial hardship. You may want to discuss this with your agent.

Does my auto policy cover my pick up cap and plow?

Plows and standard pickup caps are covered by your automobile policy.  Plows are considered part of your vehicle’s equipment. Caps that are not customized are covered; however, if you have a customized cap that provides additional living space, special carpeting, furniture, cooking facilities, extended roofs, or custom murals, paintings or decals, these items are not covered without an endorsement on the policy and additional premium. If you have any questions about coverage for a pickup or van that you own, please check with your agent.

If I have a van or pick up and have customized it for camping or sleeping and cooking, are my belongings covered by my automobile insurance?

No. Custom furnishings and equipment must be specifically endorsed on the policy for coverage to apply. If you have a customized van or pick up, please check with your agent to be sure you have coverage.

What is Actual Cash Value?

Actual cash value of a motor vehicle is the value of the vehicle at the time of the loss or what it would cost to replace your vehicle with one in similar condition in your area. This may not be the same figure as the selling price of a vehicle of the same year and model because mileage, prior damage, and wear and tear are considered when arriving at the actual cash value of the damaged vehicle.

What is the difference between collision and comprehensive coverage?

Collision coverage pays for damage to your vehicle as a result of its impact with an object or its upset. Comprehensive coverage applies to damage of your vehicle caused by vandalism, theft, glass breakage, missiles or falling objects, fire, explosion or earthquake, windstorm, hail, water or flood, riot or civil commotion or contact with bird or animal. Comprehensive coverage varies by state, please check your policy and with your agent.

What is the difference between bodily injury liability coverage and medical payments?

Bodily injury liability coverage applies to injuries you or anyone insured under your policy becomes legally responsible for as a result of an accident. Medical payments coverage pays for reasonable medical expenses incurred by you or passengers in your vehicle regardless of who is at fault for the accident. Your local agent can advise you of the coverage provided by your policy for both bodily injury liability and medical payments.

What is the difference between Split Limit liability coverage and Single Limit liability coverage?

Split Limit liability coverage provides a specific limit per person for bodily injury and a total amount the insurance company will pay for all injury as a result of one accident. There is a separate and specific amount that is available to pay for property damage in addition to the bodily injury liability coverage limit.  A Single Limit policy provides one total amount that the insurer will pay for bodily injury and property damage as a result of one accident.

What is the difference between property damage liability coverage and collision?

Property damage liability coverage pays for the cost to repair damage you cause to property owned by someone else. Collision coverage pays to repair your own vehicle less your deductible.

What is negligence?

Negligence is an unintentional act. The failure of a person to exercise the degree of care that a reasonably prudent person would have exercised under similar circumstances to avoid harming another person is negligence. This can be failing to do something a reasonably prudent person would do (an act of omission) or doing something a prudent person would not have done (an act of commission). Negligence is the most common basis for claims covered by liability insurance policies.

What is subrogation?

If you are involved in an accident and another party is responsible for the damage, your insurance company, after paying you for the damages, may have a right to attempt to recover their payment from the responsible party or their insurance company. This subrogation right may be granted by statute or provided for in the insurance policy.

Does my policy apply in Canada and Mexico?

Your automobile policy with MMG Insurance Company applies in Canada. You may need a Canadian Insurance Card. Please ask your agent if you’re planning on travel to Canada. Your policy does not provide coverage in Mexico.