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You’re standing at the rental car counter with a long line behind you. You got a great rate on a car for the week, and you’re ready to go on vacation with the family. Then, you’re handed a clipboard with an intimidating rental car contract filled with confusing insurance options. Suddenly, you wish you’d spent less time packing and more time researching rental car insurance.
Here’s your chance to be prepared at the rental car counter so you can be on your way faster, and you’ll keep the people in line behind you happy.
I have car insurance. Do I really need to buy their coverage, too?
This is the most common question when it comes to renting a car for domestic travel. The answer is: it depends. You want to make sure you’re covered, but you also don’t want to pay for unnecessary duplicate coverages that could double the price of your rental.
The first step is to check your auto insurance policy, or contact your Independent Insurance Agent to see what type of coverage for rental cars may already be included in your personal auto insurance. If you carry comprehensive and liability coverage on your personal car, coverage typically will extend to your rental car. If you’re renting a car of similar value to your personal car, in all likelihood the insurance coverage will be adequate for the rental vehicle. Now if you’re off to a blowout beach weekend in a slick set of wheels like a Corvette Stingray and you’re leaving your 2008 Subaru Forester at home, the extra coverage offered by the rental company might be a good idea.
You should also check with the credit card company—the credit card that you’ll be using for your car rental. If there are any gaps in coverage with your personal auto policy, the credit card company could provide secondary coverage.
Understanding the Rental Car Insurance Options
Rental car agencies typically break out their extra insurance offerings into four sections:
Liability coverage is intended to help protect you if you injure someone or damage their property while driving. If you have sufficient liability coverage through your own auto insurance, you may not need to buy extra coverage from the rental agency.
Collision/loss damage waiver (also known as an LDW or CDW) isn't technically insurance. If you damage the rental car, this waiver may help cover the cost of repairing it. The waiver typically excludes coverage for damage caused by speeding or driving on unpaved roads.
An LDW may duplicate your existing coverage if you have collision and comprehensive coverage on your own car. However, if you've dropped collision or comprehensive coverage from your policy, and you don't purchase the waiver, you would likely have to pay for damage you cause to the rental car. Additionally, a rental agency could charge you for "loss of use" of the car (lost rental income) while the car is in the shop being repaired. Your own auto policy typically won't reimburse you for that. Be sure to read your car rental agreement carefully to clarify what kinds of charges you could incur if you were to damage the vehicle.Personal effects coverage may help cover your personal belongings, such as your laptop or clothing, if they're stolen from the rental car. If you have renters or homeowners insurance, the personal property coverage on that policy typically helps cover your personal items through what's known as "off-premises coverage." Off-premises items are usually only covered up to a certain percentage of your personal property coverage. The deductible on your homeowners or renters insurance will apply. Check with your agent about the limits of your coverage.
Personal accident insurance may help pay your and your passengers' medical bills if you're injured in a rental car accident. If you have health insurance, medical payments coverage or personal injury protection on your car insurance policy, you may already have coverage comparable to what the rental company offers. Medical payments coverage and personal injury protection (not available in all states) may help pay for medical bills due to a covered car accident.
Now you know... The next time you rent a car you will be prepared when they hand you that annoying clipboard and put the high pressured sales pitch on you! Knowledge is the key!
More choices, less hassle, and just the right amount of protection.
The right insurance is about more than choosing the right company. It's about selecting coverage that fits your specific needs. Your local independent agent will provide the expert guidance to help you do both – so you can focus on your life, not on your insurance.
How Independent Agents Work for You
Having an UNBIASED ADVOCATE on your side means you don't have to navigate the insurance world on your own. In fact, if you don't want to, you don't even have to think about the insurance world. You can rest easy knowing that your agent has the knowledge and resources to protect what matters most to you.
CHOICE – You’ll Have Many Options
Because they aren’t limited to products from any one company, independent agents have the FREEDOM to create a personalized insurance package that fits your needs and your budget.
ADVICE – An Expert on Your Side
Is an umbrella policy right for you? Do you have enough uninsured motorist coverage? Does your jewelry require a special rider on your homeowners policy? An independent agent can answer all of your insurance questions - even those you didn't know you had.
- They build stronger communities. Agents are business owners and employees, but above all, they are members of the community. They make an impact by sharing their time and resources with local nonprofit organizations.
- They build long-term relationships. Three out of four people use an agent to buy insurance, according to a recent survey, and many of them stay with the same agency for years. When you work with a local independent insurance agency, you deal with people you know and trust- and people who know you.
We think you will agree... Independent Insurance Agents make Insurance EASY!!!
Paschall Insurance Group, LLC has been selected for membership in the Safeco Premier Partner Program for the fifth year in a row. This elite program recognizes the outstanding achievement and partnership of only the best insurance agencies.
Fewer than 10% of independent insurance agencies that sell Safeco personal lines products receive this distinguished honor.
At Paschall Insurance Group, we are pleased to be among the top agencies in the country!
As a member in the Safeco Premier Partner Program, Paschall Insurance Group will receive access to special resources and programs that will support us in serving our customers even better with expert data and advice.
Paschall Insurance Group continuously strives to provide our clients with the absolute best products and services available in the industry; this distinct honor helps to recognize our achievements and success! We are extremely proud to carry this Safeco honor for the fifth year in a row!
Conduct a Storm Damage Inspection
The beauty of spring is often tempered by powerful storms, with heavy rains, strong winds and destructive hail. Through it all, your home protects you from the elements, so be sure to check it for damage afterward.
Even if you have no reason to suspect that damage occurred, check your home and its surroundings (once it’s safe to do so, of course). It’s important to identify problems, make emergency repairs and determine if an insurance claim is necessary.
Here’s a handy list of things to check after a storm from the National Storm Damage Center:
Roof Your roof might be the area of your home most vulnerable to damage in a storm, because so many things can impact it. Whether you’ve had high winds and downed tree branches or just a simple hailstorm, look for these indicators of damage:
- Holes in the roof
- Split seams
- Missing shingles
- Leaks in your roof or ceiling
Building Exteriors While siding, stucco and brick all are durable, they also are susceptible to storm damage. In some instances, homeowners don’t notice until it’s too late to file a claim, so check carefully for:
- Cracking, chipping or dings and dents on siding. Even if there doesn’t appear to be damage at first, check again at a different time of day. You may see something you missed when the lighting is different.
- Holes in stucco. This is a serious problem, even when small, so look closely. If you find holes, have a professional conduct a full property inspection.
- Damaged brick and tuck pointing. While brick typically holds up well, a check can identify any problem areas.
- Detached or damaged trim, gutters, etc.
Driveways and Walkways Concrete can chip, crack and split, not only reducing the lifespan of your driveway or walkway, but potentially creating a safety issue.
Trees: Fallen trees and limbs cause more than $1 billion in damage each year, according to the National Storm Damage Center. Keep in mind that property owners generally are responsible for removing trees and limbs that have fallen on their property, even if it is a tree from a neighbor’s yard. Your insurance policy may help to cover the cost of removal and repairs, depending on the coverage you have and the circumstances of the incident. (There are exceptions to this, depending on the maintenance of the tree, so check with your insurance agent.)
General Tips
- Severe storms often will knock down power lines. If this happens on your property, rope off 30 feet in each direction around the line and do not touch it. Call 911 and the power company immediately.
- Be sure to do a full check of your property, including things such as your air-conditioning unit, fences, vent caps, etc. And don’t forget to check your vehicles if they were not garaged at the time of the storm.
- Don’t forget the crawl space. “Most people don’t ever look down there,” according to J. Szczesny, owner of 4 Seasons Home Inspections in Seattle and a Certified Master Inspector. “You need to be sure no water is getting in, and, if it is, make sure it is removed quickly via a sump pump or underground drainage system.”
- Take pictures of all damage from different angles. You want to document as much as possible.
Finally, knowing the details of your homeowners coverage, your limits and your deductibles can help you during the insurance claims process. It’s a great idea to examine your policy and know what your homeowners insurance covers now, before the storm.
It’s Your Home. Get the Insurance Coverage You Want.
Trying to decide how much and what kind of protection is right for your home and its contents can be difficult, even a little intimidating. Odds are your home is your single biggest possession, and it's where you keep most of your other possessions, too.
Choosing the right insurance coverage for your home needn't be an overwhelming task, though. It's a matter of taking a systematic look at what you have and what it's worth, then matching it up with coverage limits and options that fit your needs and budget.
Following are nine questions you'll want to ask your independent agent as you explore what home insurance coverage is right for you:
- What does my home insurance policy cover? A standard homeowners policy helps repair or rebuild the structure of your home in the wake of covered losses, which your policy will outline. This includes structures attached to your home, such as a balcony. As for detached structures, such as a fence or shed, these are generally covered at a designated percentage of the home coverage.
- Do I have enough coverage to rebuild my home? The amount for which you insure your home typically equates to the estimated cost to rebuild it. If you insure it for less, such as for the market value, and lose it in a fire or other covered disaster, you likely won’t have the coverage needed to fully rebuild it. That’s because the market value of your home may be well below the cost of the materials and labor it would take to build a similar dwelling today.
- What about personal property? Policies typically cover such property as furniture, clothing, artwork, electronics and sporting goods for theft, damage or loss. Property is usually covered both at the home site and everywhere else, generally for a percentage of the amount of coverage on the structure of your home. If that isn't enough, you can purchase more, or you can “schedule” high-value items individually. Scheduling an item designates separate coverage for it. When might this be appropriate? Say your home policy limits payouts for jewelry-related losses to a certain amount, such as $3,000, but your diamond necklace is worth $6,000. By scheduling it separately, you have coverage for its full appraisal value, oftentimes with no deductible.
- What else does home insurance cover? Liability coverage included in a standard homeowners policy may help protect you and your family members against lawsuits if you're held responsible for bodily injury or property damage at your home or elsewhere. It also may help cover costs if a guest is injured at your home. Another form of coverage, additional living expenses, helps pay the cost of temporary living arrangements while your home is repaired or rebuilt following a covered loss.
- What doesn’t home insurance cover? Standard homeowners policies typically don't cover earthquakes and floods. If you live in an area where earthquakes are likely, you can usually get separate coverage from your insurer. For flood insurance, there is the National Flood Insurance Program. Furthermore, your home insurance won’t cover anything outside the scope of your policy.
- Do any options or complementary policies fit my needs? In addition to standard home insurance coverages, many carriers offer options such as equipment breakdown coverage or identity recovery coverage. The former helps to cover the sudden malfunction or breakdown of such appliances as your washer and dryer, refrigerator, air conditioner and more. Note this doesn’t cover normal wear and tear. The latter provides guidance and support should your identity be stolen. In addition, you may want to consider an umbrella policy for extra liability coverage on top of what your home insurance provides. In the event of a costly lawsuit or other incident that exhausts your homeowners liability coverage, your umbrella policy may pick up the remaining costs of a covered event, up to your policy limits (typically $1 to $5 million).
- Do I qualify for discounts on my home insurance? You may. For starters, check the age of your home. You might be able to get a discount if it's relatively new – less than 10 years old, for example. Discounts are also sometimes available for homes with burglar alarms and/or sprinkler systems. Location can make a difference, too. You might be able to get a discount if your home is located near a fire station.
- Can I get a discount for using my current insurer? Say you already have an auto insurance policy (or two) with a certain carrier. If you add your home, you may qualify for a multi-policy discount.
- Can I own a home without insurance? Probably not, especially if you financed your home purchase with a mortgage. Most lenders require insurance to protect their investment. In addition, if you live in a flood- or earthquake-prone area, lenders may require flood or earthquake insurance. Once you've paid off the mortgage and own your home, there's no legal requirement that you maintain insurance. But, considering the potential to lose everything you’ve invested in the property, you'll certainly want to think twice before you cancel your policy. After all, where would you live if you lost your home in a fire and didn’t have the money or insurance to rebuild it?
From hail to fire to falling trees, you just don’t know when something might happen to your home. But, you can know you selected the right insurance coverage for it. Bring these questions – and any others you may have – to Paschall Insurance Group to help inform your decision.
