Spring 2016

Your MN Auto Insurance Covers Rental Cars

Minnesota law requires every auto insurance policy, under the property damage liability portion, to provide a minimum of $35,000 in coverage, without a deductible, for damage to, and loss of use of, a rental car (including pickup trucks and vans under 26,000 pounds). This means you do not need to purchase additional coverage from the car rental company unless you're concerned $35,000 isn't enough coverage. Feel free to contact me with any questions before you rent a car.

Have You Been the Victim of Insurance Fraud?

According to the Insurance Federation of Minnesota, insurance fraud costs the average Minnesota family about $1,000 per year. Knowing how to recognize fraud helps keep you safe and keep insurance costs lower overall.

Fraudsters use many different strategies to get money out of you and your insurance company. One such technique is called the "Drive Down". Here's how it works: You're waiting to turn and the vehicle opposite you waves you forward, then suddenly blocks your car and a third vehicle crashes into you. The video more clearly explains how the Drive Down scheme works.

In addition to the Drive Down, scammers will often cause accidents by targeting distracted drivers. They'll pass a distracted driver, then suddenly jam on the brakes, causing the victim to rear end them. Many times they employ the help of a second vehicle to drive in the lane beside the victim blocking them from changing lanes to avoid the collision.

What can I do to avoid auto insurance fraud?

1. Stay alert when you're behind the wheel.
2. Take note of what's happening beyond the vehicle in front of you so you can prepare early to brake or otherwise avoid collision.
3. Don't tailgate.
4. If you do have an accident, call the police.
5. Be alert for people trying to talk you into using a specific medical, legal, or auto body provider.
6. Install a dash cam. They cost as little as $40 and can save you if you're ever targeted by fraudsters.

What do I do if I think I've been a victim of auto insurance fraud?

1. Let your insurance agent know right away.
2. Only use medical or legal providers you know and trust.
3. Keep records of your medical treatments and compare them with the statements you receive from your insurance company. Unscrupulous service providers will "pad" the costs or add services that were never performed.