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Monthly Archives: March 2017

Renting A Car and Get Rental Insurance, Should You?

If you have ever rented a car for a short period of time, whether during a vacation, a business trip, or while your own automobile was being repaired, you have probably faced the question of whether to take out insurance at the rental agency desk when you rent the car. Paying your rental company for insurance on your rental car is necessary sometimes, but not always. In fact, much of the time rental car insurance ends up adding some fairly steep fees onto your rental even though the coverage you’re paying for may be completely redundant.

To know whether you need to write a check for the hefty chunk of change that many automobile rental companies collect for insurance coverage, all you need to do is spend a bit of time finding out exactly what kind of coverage you already have. In many cases, your regular auto insurance is more than sufficient to protect you financially if you do damage a rental car. Anyone who owns an automobile of their own has an insurance policy that gives them some level of coverage in case of damage to the car from an accident, theft, vandalism, or other mishap. It varies a bit from policy to policy, but most of the time this same coverage will apply to a car rented in the policy owner’s name. This means that if your car is fully insured, any rental car that you drive will probably be just as well covered as your personal automobile.

Of course, before you turn down added rental insurance at a rental car agency, make sure you have spoken to your personal insurance agent or a representative from the company that holds your policy to make absolutely sure your policy covers rental cars. If your auto insurance doesn’t cover your rental, you could be left holding a bill for tens of thousands of dollars. This kind of costly mistake can be easily avoided just by making one phone call in advance. Even if you are not planning to rent a car in the near future, it is not a bad idea to find out today whether your policy covers rental cars. That way, all the necessary information will be there for you when you need it.

Even if your regular insurance plan doesn’t adequately cover rental cars, you don’t necessarily need to pay the high insurance fees that a rental agency will probably charge. There are plenty of options to make sure your temporary wheels are covered in case of a collision or other cause of damage to the car. In fact, you can get a much better rate than a rental agent is likely to offer you even if you don’t own a car of your own. There are specific policies that insurance companies offer for customers who rent cars frequently. A non-owner auto liability insurance policy provides affordable and usually quite comprehensive protection for rental drivers who do not own cars. If you don’t have personal automobile insurance that already covers rentals, one of these can offer you the security of knowing you are fully covered without the steep prices of rental agents’ insurance packages.

Whether you find out that you need to take out a non-owner auto liability insurance policy, or whether you discover that you don’t need to pay anything above what you already do for insurance, a bit of forethought and planning can save you a lot of money at the rental desk. Your rental car may be temporary, but the savings will be permanent.

 

Banks And Car Insurance Companies Secrets

Let’s say you’re involved in an accident and it’s serious enough that the car is considered a “total loss” by your Insurance Company. Or, maybe your vehicle gets stolen. A few weeks later, you get a check from your Insurance Company.

When you look at the amount, you’re shocked. It’s thousands less than what you owe on your car. How can that be, you ask?

Well, like most, your policy has this short clause buried somewhere in all that legalese –

“In the event of a total loss, the policy holder will receive the actual cash value of the vehicle, minus any deductible.”

Did you catch the 3, very important words in that clause? The three words are – “actual cash value.”

Actual Cash Value means you’re going to get a get a check for….

“What it’s worth” not “What you owe.”

Isn’t that a nasty little surprise.

And like most, you owe quite a bit more than what the car or truck is worth. What would you owe your Bank or Credit Union if your car was totaled today?

So, how do you avoid this situation?

Well, when you buy a new or used vehicle, add a “rider” to your policy or purchase a separate “rider.”

If you have Homeowners or Rental insurance, a “rider” might sound familiar. For a homeowner’s policy, if you own expensive items, like fine jewelry, you need to add a rider to your policy. The reason – Insurance Companies won’t cover those types of items as part of a regular insurance policy.

So, you pay an extra $5 or $6 a month to have those items fully covered by the rider.”

If anything ever happens to the jewelry, it gets replaced.

A rider for your car or truck is called GAP Insurance or GAP Protection. It’s just like the rider for your Home – except it’s only for cars, vans, trucks or suv’s.

It covers “What You Owe”, not “What its worth.”

It doesn’t matter what the reason is – if it’s ever totaled due to theft, fire, accident, flood, tornado, vandalism, hurricane, it’s covered – and paid-in-full!

You can protect yourself four different ways.

1. Put at least 20%-30% down on any new or used car purchase to erase any gap;
2. Purchase a “Rider” – AKA GAP Insurance from your Car Insurance Company or Bank;
3. Purchase Gap Insurance from another Insurance Company;
4. Buy Gap Insurance from the Dealership you’re buying at.

Any one of these options is great way to protect yourself. Whether you’re getting ready to purchase a new car or truck, or purchased a vehicle in the last 2 years or so, make sure the “gap” between what your vehicle is worth and what you owe is covered.

 

Use Car Insurance to Protect Your Assets

Car manufacturers, in order to solve these problems, put additional parts in cars to enhance their safety components. They put seatbelts and air bags to protect the driver and the passengers. They also make the body of cars durable enough to withstand collisions. Car manufacturers usually put every car through several tests to determine how it will react to collisions, before putting it in the market to insure its durability.

Even with these safety measures performed by car manufacturers, accidents still happen. Most accidents are caused by reckless driving and driving under the influence of alcoholic drinks. On the average, a motor vehicle crashes every 5 seconds, a person is injured in an accident every 11 seconds and a fatal injury occurs every 12 minutes. These statistics are convincing evidence of why car insurance is so necessary.

Drivers are not the only reason why accidents occur. Sometimes, the cars that drivers use can also be the major cause of an accident. Passenger cars and light trucks accounted for nearly 95% of the 11 million vehicles involved in motor vehicle crashes in 2004. Large trucks accounted for only 15 % of the vehicle accident. Regardless of the severity of the crashes, the majority of the accidents occurred during daylight, in normal weather conditions, while driving on a straight roadway. This pattern shows that no one can say that he/she is safe riding in any type of vehicle.

As stated, accidents do happen, but you can avoid them by following simple safety measure, include the wearing of seat belts and the following of simple traffic rules such as paying attention to speed limits and being cautious of your surroundings. Having car insurance is also advisable for your protection. This will serve as a protection for you and your family. It does not protect you physically in the same way that seat belts and air bags or helmets do, but it can protect you and your family financially.

Most countries like United Kingdom, Australia, and New Zealand make it compulsory for drivers to get their own coverage. In most countries in Asia, a driver cannot renew his license without getting covered.