Ahhh, sweet summertime. Time for warm weather, grilling out, and taking vacations. While traveling and renting a car, one question always comes up, “Should I purchase the rental car insurance?” Well, to put it simply…”it depends”. There are a variety of factors to consider when deciding whether or not to purchase rental car insurance.
Here are a few tips from American Advantage – Petersen in New Berlin, Wisconsin to help decide if you should purchase coverage:
What coverage will the rental car company offer?
While at the rental car counter, they will typically offer you 2 different coverage waivers – they can be purchased individually or together
Physical Damage Waiver: covers damage to the car itself
Liability Waiver: which covers resulting damage to the other person’s car and medical bills if you are at fault in an accident
What will my auto policy cover on a rental vehicle?
Your personal auto policy will extend physical damage and liability to a rented vehicle, within the limits of your current coverage. Example: If you have a $500 collision deductible & liability limits of $300,000, you would have that same coverage while driving a rental
If you only have liability coverage on your own vehicle, you will need to purchase the Physical Damage Waiver
If you have collision and other than collision coverage on at least 1 vehicle, that same coverage will carry over from your policy to the rented vehicle
What will potentially not be covered on a rental vehicle?
Some rental agreements can hold you responsible for “loss of use”. If you are in an accident while driving a rental and the car needs to be repaired, the rental company can charge you the loss of rental fees while the car is in the shop. Example:If a rental car costs $30 a day and the car is in the shop for 3 weeks, you could be charge $30 X 21 or $630 of “loss of use”
Some rental agreements can also hold you responsible for “diminution in value”. This means, the renal company can charge for the reductions in the car’s market value due to its having been in an accident. When the repaired car is eventually sold, it may bring in a lower price. The difference in value of the car before the accident and after the accident is the “diminution in value”. Example: If a rental car is worth $20,000 prior to the accident, and can only be sold for $15,000 after the accident, the diminutive value would be $5,000. Most personal auto policies will not cover this.
Things to consider when purchasing rental car insurance:
How important is your time and cost of your trip? If you’re in an accident with a rental car and did not purchase the physical damage or liability waivers, you need to file a claim with your own personal auto carrier and pay any applicable deductibles. Reporting and sorting through the loss details can occupy enough of your time and may cause you to miss a flight or scheduled event. Purchasing the insurance through a rental company can save time and hassle.
What type of vehicle are you renting? If you are renting a U-Haul or another large truck you will most likely need to purchase the rental agency’s insurance. There is a weight limit on your personal auto policy and most times these vehicles fall outside that limit.
Where are you traveling? Your personal auto policy covers you only for travel in the USA, its territories, & Canada. If you are traveling internationally, you will definitely need to purchase from the rental agency.
Cost for insuring your teen driver relies on many different factors, such as age, where you live, type of vehicle, age of vehicle, etc. Young drivers are more expensive to insure due to lack of experience driving. If you live in a larger city, your premium will be higher due to that. To reduce costs, consider purchasing an older vehicle for your teen driver to use. Having liability only on a vehicle vs. full coverage will help to keep the premium lower. If your child has a 3.0 or higher in school, they will be eligible for a good student discount with many insurance companies. Typically, this discount can reduce the premium about 10% for the driver receiving the discount.
Tips to help avoid claims for a teen driver:
Distracted Driving: Stress the importance of not texting while driving to your teen driver. It has shown that texting and driving can be 10x more dangerous than drinking and driving.
Alcohol/Drug Use: This one may seem obvious, but with the new freedom of having a driver’s license, it might be the best time to discuss the ill effects of driving while under the influence of alcohol or drugs.
Bad Weather: Always avoid the first solo ride for your child when there is inclement weather (ex: snow storm, high winds, heavy rain). It is best to experiment in parking lots during this time to better prepare your young driver for future . Also, ensure the windshield is kept clean & free of any debris that will interfere with visibility while driving.
Distance behind gravel trucks: Gravel flying off of trucks can be very harmful to a vehicle’s windshield. It can cause the windshield to have to be repaired, or fully replace. Make sure your child keeps 2 car’s length of distance between themselves and the truck to avoid being hit with falling gravel.
Lending and Borrowing: Do not let your child lend out the vehicle they are driving to their friends or borrow their friend’s vehicle, even if it is just for a quick ride. If your child borrows the car to their friend, and the friend gets in an accident, the responsibility falls onto your child’s insurance policy. Car insurance follows the vehicle, not the driver.
Enjoying the summer weather boating on the lake is one of the best ways to spend the summer. Boats can provide a lot of fun for the whole family, but it is also important to make sure you and your boat are properly covered with the right boat insurance policy this summer.
While some homeowners insurance policies provide some coverage for your boat, they typically do not provide enough coverage. Homeowners insurance policies put many size and power restrictions on the types of boats they will cover. To make sure your boat is properly covered, it is important to invest in a specific boat insurance policy.
Boat insurance will cover any damage that is done from many different situations, including a fire, storm, theft, or if your boat sinks. Boat insurance will provide coverage for the entire boat, and its contents, including tools, dinghies, trolling motors, and upholstery.
Typical boat liability insurance will cover the payments in the event that your injure someone with your boat or damage another person’s property. It will also pay for the legal fees in the event that you are sued for an accident that you are at fault for. Boat medical payments coverage will cover the costs of someone’s medical fees that are injured while on your boat.
There are many other boat insurance options, including:
Wreckage removal – will cover the fees associated with removing your boat from the water in the event of a wreck.
Reasonable repairs – covers any repairs that are done to protect the boat from further damage.
Emergency service – will cover up to a predetermined amount of costs that result from specified emergency service to your boat.
Many people do not understand the value of renters insurance, until they need it and do not have it! Here are four scenarios where you would be thankful you decided to purchase renters insurance:
Did you know your personal property is not automatically covered if a fire occurs in your apartment complex? The landlord’s insurance policy will cover the damage to the building itself, but not personal belongings. Renters insurance will cover items such as clothing, furniture, and electronics in the event of a loss.
If you or your pet cause someone to be hurt on your premises, you may be liable for their injury. Renters insurance includes liability which will help to protect you by paying in the event you are sued.
Auto insurance generally will not cover the loss if someone breaks into your vehicle and steals valuables, but renters insurance will. Renters insurance insures personal belongings in a vehicle the same way it does in an apartment.
Damage to other’s property
Imagine, water is left on in your apartment and leaks into the apartment below and causes damage to their furniture. If you are found to be liable for the damage, renters insurance may help pay for it.
American Advantage – Petersen Group is a local independent insurance agency, helping to protect family’s stories since 1974. As an independent agency, we partner with multiple insurance companies to secure the right renters insurance coverage for you at a competitive price.
When it comes to making a list of priorities, purchasing life insurance generally isn’t included. Most of us don’t plan on needing life insurance anytime soon, so purchasing it isn’t a priority. There are many advantages to purchasing coverage now. Here are common reasons why life insurance isn’t purchased sooner, and why you should re-think them:
I don’t need it right now Certain policies purchased at a young age can help to fund retirement. On the other hand, if you are already retired, a policy can help leave your legacy.
It is too expensive Most of the time, the cost of life insurance is overestimated. Purchasing coverage at a young age can help to lock in a lower cost.
I will find it cheaper As you age, the likelihood that you will develop an illness increases and that will affect your insurablilty. Life insurance rates are generally lower the better your health is.
I don’t want to think about death Think about life insurance in a different light, think about those you care about. A death benefit can help to protect their financial future and stability.
It is overwhelming An insurance agent will help understand your needs and provide options. They will save you time by guiding you through the process.
American Advantage – Petersen Group is a local independent insurance agency, helping to protect family’s stories since 1974. As an independent agency, we partner with multiple insurance companies to secure the right coverage at a competitive price.