Untitled

• Additional coverages protect the insured in an accident with someone without insurance or without enough insurance.
• Depending on the state, these coverages can be either mandatory or optional.
• They typically don't add too much in premium and must match the client's own selected liability limits.

Uninsured/Underinsured Motorist Stacking

• Stacking Uninsured/Underinsured motorist coverage allows the client to potentially collect not only the UM/UIM coverage on the vehicle involved in the accident but also on any other vehicles on the policy.
• Stacking multiplies the UM/UIM limits by the number of vehicles on the policy.
• Example Scenario: if a client has three vehicles on a policy and carries 50/100 on each vehicle, their total UM/UIM limit would be 150/300
• Stacking is only available in a few states, and practices/laws can vary widely in these states.

Florida (FL)

• UMBI Non-Stacked provides the opportunity for the insured to un-stack the UMBI/UIMBI provided on the policy.
• This typically lowers premium, but the insured loses the obvious benefits of stacking.
• If the policy is bound with the stacking option rejected, the client must send a signed form confirming their rejection within 21 days.
• If the form is not received, the coverage will be added back to the policy and the appropriate premium will be charged.

Pennsylvania (PA)

• Uninsured/Underinsured Motorist Bodily Injury – Non-Stacked/Stacked can be rejected with a signed form.
• The coverage cannot exceed Bodily Injury limits, but Uninsured and Underinsured Motorist limits do not have to match.

Mississippi (MS)

• When adding a second vehicle to a policy, the Uninsured Motorist Bodily Injury (UMBI) is automatically stacked.

Connecticut (CT), Georgia (GA), Maryland (MD), and Virginia (VA)

• Additional underinsured motorist coverage works differently in Connecticut (CT), Georgia (GA), Maryland (MD), and Virginia (VA).
• This coverage takes the client's Underinsured Motorist Bodily Injury (UIMBI) limit and adds it with the other party's Bodily Injury limit.
• Insured's UIMBI limits + other party's Bodily Injury limits = payout for insured
• Though they work the same way in each of these states, there is a different name:
• Underinsured Motorist Conversion Coverage - Connecticut (CT)
• Uninsured Motorist Added – Georgia (GA)
• Enhanced Underinsured Motorist Coverage(EUIM) – Maryland (MD)
• Uninsured/Underinsured Motorist Alternative – Virginia (VA)
• If the underinsured driver is carrying $25,000 in Bodily Injury and the insured is carrying $250,000 in UIM Conversion, the maximum amount of coverage would be $275,000.
• Explanation: the insured's policy pays out $250,000, the other party's policy pays out $25,000, so the insured gets a total of $275,000.
• $250,000 (insured's policy) + $25,000 (other party's policy) = $275,000 (for the insured)
• Georgia (GA) Underinsured Motorist Reduced Coverage: The insurance company will only pay up to the difference between your uninsured motorist limit and the at-fault driver's liability limit.
• Insured's Underinsured Motorist Bodily Injury (UIMBI) - Other party's Bodily Injury limits = payout for insured.
• This could save money on the premium, but the client loses extra protection. Best practice is to give the client 'Added' coverage in GA.

Expanded Physical Damage Coverages

• Coverages protect the insured's vehicle against physical damage.

Custom Equipment

• Custom equipment includes any devices, accessories, changes, and enhancements that in any way alter the appearance, performance, or any other function of a vehicle.
• $1,000 of custom-equipment coverage is included when physical damage coverage is selected.
• Examples of custom equipment include (but are not limited to) rims, spoilers, aftermarket remote starters, and aftermarket paint.
• Inform clients to save the receipts for any custom work done to their vehicle in the event they need to make a claim.

Gap Coverage

• GAP coverage pays for the difference between the loan on a financed vehicle and the value of the vehicle at the time of loss if the vehicle is totaled.
• The insured must request GAP coverage within 30 days of purchasing the new vehicle that has not previously been titled.
• This coverage cannot be applied to leased vehicles, and the insured must purchase Comprehensive and Collision.
• At this time this coverage is only available in the state of Washington (WA). Gap Coverage will display as ‘ALC' in the NPS system.

Comprehensive Full Glass

• When this coverage is chosen, the insured can waive their deductible for the windshield glass claim made on the policy.
• The insured must pay their deductible for all other glass claims.
• All other covered comprehensive losses (theft, fire, flood, etc.) are still subject to the regular deductible.
• Replacement Cost (Private Passenger Auto-PPA Only)

Replacement Cost (Private Passenger Auto-PPA Only)

• This coverage pays the cost to replace new vehicle when there is a comprehensive or collision total loss- including theft.
• Replacement cost is the current amount that must be paid for a new vehicle same model, make, year and equipment as the covered vehicle without adjustments for depreciation.
• Replacement Costs is available for a vehicle only if all of the following criteria are met:
• The policy has Comprehensive and Collision coverages
• The model year is 2 years old or less from the current calendar year
• The vehicle has not been previously titled
• The insurance is with Comprehensive and Collision Replacement Cost coverages within the first year of ownership.
• Coverage is not available for leased vehicles.
• Deductible must be same deductible as Comprehensive and Collision.
• Coverage will be removed on the first renewal after auto becomes 3 years old.
• If the covered vehicle is a total loss, NGIC reserves the right to replace the vehicle or to pay the total loss in money.

Diminishing Deductible

• If Diminishing Deductible is included on the policy, every vehicle on the policy with Comprehensive and Collision coverages will have their respective Comprehensive/Collision deductibles reduced every claim-free year.
• For every claim-free year, the credit balance increases by 25% at each annual renewal up to a maximum of 100%.
• The maximum deductible credit is 100%; however, based on Pennsylvania (PA) Regulations, the Collision deductible amount cannot be lower than $100.00.
• If a claim is filed, the credit can be applied toward the Comprehensive or Collision deductible for any covered vehicle.
• Towing and labor only claims do not reset the deductible credit to 0%.
• If the Comprehensive or Collision deductible is changed on any vehicle, the deductible credit is reset to 0%.
• Diminishing deductible is great to include for new drivers or those with a good driving record.
• Comprehensive and Collision are required in order to have Diminishing Deductible coverage on the policy.

Original Equipment Manufacturer (OEM) (PPA Only)

• When used for the repair of a covered vehicle, NGIC will specify the use of parts that are made by the original equipment manufacturer.
• When used for the repair of a non-owned vehicle, NGIC may specify the use of mechanical, non-safety-related parts not made by the original manufacturer.
• These parts will be at least equal in terms of fit, quality, performance, and warranty to the original manufacturer parts they replace.
• Must be purchased for any vehicle with any Comprehensive and Collision coverages (deductibles still apply).

Accident Forgiveness

• This coverage will forgive the insured's first at-fault accident and their other rates will not be impacted by the first at fault accident.
• Rates can increase significantly, but not with Accident Forgiveness.
• To include this for new drivers is great, or those with a good driving record.
• Subsequent at-fault accidents during the experience period will cause the endorsement to be removed and points will be charged for all accidents that occurred in the previous 35 months including the first (forgiven) accident.
• Only one forgiven at-fault accident can be on a policy at any given time during the experience period.
• Accident Forgiveness is available to clients who meet the following requirements:
  • No driver on the policy can have had any violations in the 12 months prior to the policy effective date.
  • Had any chargeable accidents in the 12 months prior to the policy effective date.
  • Major violations within 35 months, or more than one chargeable accident in the 35 months prior to the policy effective date.
  • Non-chargeable accidents are not considered.

Mexico Coverage (PPA Only)

• This coverage provides Physical Damage coverage for any accident that occurs in Mexico within 50 miles of the United States border.
• The insured may purchase for any vehicle with Comprehensive and Collision coverages.
• Repairs must be made in the United States.
• Liability insurance from a licensed Mexico insurance company must be in-force at the time of loss. Proof of coverage is required when a loss occurs.
• Coverage does not include towing and labor or rental reimbursement.
• If the covered vehicle cannot be driven as a result of a loss that occurred in Mexico, the coverage will pay the cost of necessary towing and labor to return the covered vehicle to the nearest point in the United States where repairs can be made.
• NGIC has a partnership with International Insurance Group, Inc., which gives more product options for insureds who want to drive across the border into Mexico.

PPA Restricted Coverage

• If the insured selects 'yes' this means only drivers and vehicles on the policy will be covered (eliminating permissive use).
• Depending on the state and/or client tier, the company may require you to select 'yes' for PPA restricted.

Rental Coverages

Rental Reimbursement

• Rental Reimbursement pays for a substitute car rental when a covered auto is damaged due to a covered comprehensive or collision loss (excluding theft).
• The vehicle must have Comprehensive and Collision coverage.
  • Limit Example: $25 per day/$750 max

ETE – Extended Transportation Expense

• Extended Transportation Expense pays for a substitute vehicle rental when a covered vehicle is damaged due to a covered collision or comprehensive loss.
• It also covers loss of use expense for a loss to a non-owned vehicle.
• The vehicle must have Comprehensive and Collision coverage.
• Limit Example: $900, $1,050, $1,200 or $1,500

SureDrive

• SureDrive replaces the standard Rental Reimbursement.
• It gives the client the security of knowing that they won't be left without a vehicle in the event of a covered loss.
• The client will receive up to a full-size rental vehicle (i.e., Toyota Camry, Ford Fusion) with no out-of-pocket costs.
• If a more expensive vehicle class than a full-size is desired, the client may choose to pay the difference out-of-pocket.
• Enterprise will bill NGIC directly, so there is no paperwork for the insured.
• There is a 45-day limit on rental vehicles in most states. Arizona (AZ), New York (NY) and Pennsylvania (PA) have a 30-day limit. (Comprehensive/Collision).
• The vehicle must have Comprehensive and Collision coverage.

Towing

• Towing reimburses the client for emergency roadside service expenses incurred as a result of the insured's vehicle becoming inoperable.
• The vehicle must have Comprehensive and Collision coverage.
• Limit Example: $35, $50 or $75