It’s not often I simply post a link to an article on my blog without much commentary: however, this will be one of them. Here is a great article here on what your credit card does and does NOT cover when renting a car.
If you rent cars (like the ones at the airport) and rely on your credit card for insurance, this is some very good information to know. I recommend discussing your rental car coverage needs with your insurance professional.
This is really some good research and information: Here is the LINK.
We recently asked our fans to tell us the most common questions about insurance that they have or that they hear from others. Here are some simple answers for those questions.
• Why did my premium go up when I haven’t had any claims?
Premiums may have gone up for all insureds in your class. Insurance involves a lot of people sharing the losses of a few people. When, overall, losses go up, your share (in the form of your insurance premium) goes up.
• Why did the amount of coverage on my house go up when the value has gone down?
That depends on how you define “value.” If you’re talking about market values which have declined in the current real estate market in the past couple of years, the resale value of your home may be depressed. However, insurance covers the cost to rebuild or replace your home or property. The real estate market has little to do with that. If construction costs rise, your policy limits should increase accordingly.
• Do I need to buy the coverage when I rent a car?
We suggest that you purchase the loss damage waiver in case the vehicle is damaged. While most auto insurance extends to rental cars, your policy probably has exclusions that aren’t in the loss damage waiver. Likewise, there are things the loss damage waiver doesn’t cover that your insurance does. Having both makes it less likely that you will have an uncovered loss.
• Why did my business liability insurance after 18 years and never had a claim go from $17,000 a year to almost $30,000 a year?
Premiums may have gone up for all insureds in your class. Insurance involves a lot of people sharing the losses of a few people. When, overall, losses go up, your share (in the form of your insurance premium) goes up. In addition, your premium may be based on payroll, sales, or some other factor that has increased substantially. If your business is growing rapidly, your exposure to loss probably is too. Your insurance premium may be reflecting that growth.
• Is it true a red sports car costs more to insure than a black sports car (same year, make & model)?
Nope. The color of your car has absolutely nothing to do with the cost of insurance. This myth may be based on the premise that a red sports car is flashier than a black one and might attract the attention of local law enforcement if you’re driving a bit too fast. Getting speeding tickets almost certainly will increase your insurance costs.
• Why does my car insurance go up when my car keeps getting older?
The component of your premium that pays for physical damage claims to your car usually goes down with age. However, other coverages like liability might go up. In addition, experience for that model car or for all insured cars in general may be going up so your increase is similar to that being experienced by others insured by your insurance company.
• What’s my credit got to do with my insurance?
Statistical studies have demonstrated that loss experience is directly proportional to an insured’s credit score. For that reason, some insurance companies use that as a factor in establishing rates if permitted by law in your state.
Courtesy: The Trusted Choice
As the holiday season approaches, millions of Americans will take to the roads to visit family and friends. Since many will make the trip in a rented car, it’s an appropriate time to discuss one of the most frequently asked questions of agents and brokers all over the country: “Should I buy the insurance from the rental car company?”
Following are a few considerations when mulling this important decision:
DAMAGE WAIVER & YOUR PERSONAL AUTO POLICY
First, the good news: In many cases, a personal auto insurance policy will cover damage to a rented vehicle. That said—don’t get too comfortable! There are other costs associated with damage to a rented vehicle that the policy will not cover. For this reason, careful consideration should be given to purchasing the damage waiver offered by the rental car company.
On your personal auto policy, “Collision” insurance covers your vehicle for damage resulting from a collision with another object. “Comprehensive” (sometimes called “Other Than Collision”) covers your vehicle for theft, vandalism, falling objects and other causes not resulting from a collision. If you have a car loan, your lender will require you to purchase both. If you pay the loan off, the choice to purchase collision or comprehensive—and both or neither—is up to you.
Your personal auto policy will only cover damage to the rental car if you have the appropriate coverage type on at least one vehicle you own. For example, if you damage the rental car in a collision, you must have “collision” coverage on at least one vehicle covered by your personal auto policy. But if the rental car is stolen, vandalized, or damaged in any way not resulting from a collision, you must have “comprehensive” coverage on at least one vehicle covered by your personal auto policy. The key point: If your personal auto policy excludes the coverage type that damages the rental car—and you reject or violate the damage waiver—you will become personally responsible for paying all costs related to the damaged rental car out of your own pocket!
In contrast, the damage waiver usually offered at the rental counter will cover the damaged rental car regardless of what’s covered by your personal auto policy.
Jon Jepsen, CIC