Rental Car Insurance - Do You Need It?

Michael Russell

First of all, most U.S. drivers already carry auto insurance which will provide full or partial protection while driving a rental car (within certain dollar limits and coverage only for rentals within the United States and, sometimes, Canada). Some insurance policies only cover cars rented while your own car is being repaired, while most do not cover certain types of vehicles, like luxury cars or vans. Check your own personal policy for these limitations and exclusions.

Even with these limitations, your personal auto insurance will be the primary source of coverage if you have an accident or suffer injury while driving a rental car. Other types of coverage, such as credit card policies and the rental company's optional insurance offered at the time of the booking, will be subrogated. This means it will not apply until you have reached the maximum of your own auto insurance coverage. Also, be aware that your personal auto insurance rates may increase if you file a claim for damaging a rental car.

Some states have legislature in place requiring rental companies to inform you that their insurance coverage may duplicate your personal auto policy, though these laws do not specify how you must be notified. The best way for you to do is to talk directly with your auto insurance agent before you rent a car and ask the following questions.

What geographical area does my policy offer rental coverage in? (Generally speaking, auto policies cover the U.S. and Canada only.)

How much liability coverage do I currently have? (If you own an older car, for example, you may carry only the minimum amount of liability coverage that is required by the laws of your state, a level that may be insufficient to protect you against the risk of completely replacing a brand-new rental vehicle or, potentially even worse, paying an excessive personal injury claim.

How much is my deductible? (Are you willing to pay that amount out of pocket if you have to file a claim for damaging a rental car?)

Does my policy cover only the value of the vehicle(s) listed on my policy? (If so, you should compare that value to the replacement cost of the type of car you will be renting.)

Does my policy cover theft and collision damage? (Most U.S. drivers already carry collision coverage that can replace the protection sold by rental car companies.)

In the end, the decision of whether or not to purchase optional extra insurance from a car rental company is yours, of course. Consider well the value of the insurance against the cost and bear in mind the above information and make the decision with all the facts.

Is the Cost of Automobile Insurance Breaking You?

Stacey Zimmerman

Follow These Tips To Lower Your Rates

When it comes to automobile insurance, many of us get frustrated. In most states, it is required by law to have it and the prices for it can be astronomical. The fact is automobile insurance does not have to be. The following are ways that you may be able to lower your rates.

One of the most important things you can do to lower your rates is to shop around. Make certain you get at least three different price quotes and you'll even be able to access this type of information by using the Internet. Prices of automobile insurance vary from one company to the next, so you'll want to ask others you know where they get their insurance from. It will pay to compare prices on the same coverage.

Another way to lower the cost of your automobile insurance is to ask for a higher deductible. The fact is if you increase your deductible by even $400, you can reduce your coverage by up to 30 percent. However, if you do raise your deductible, you'll want to make sure that you would be able to pay it if there was a claim.

Make sure you check with your insurer to find out if they offer any discounts. Many will offer discounts for having a higher deductible, more than one vehicle on the automobile insurance, having a clean driving record for so many years, taking a defensive driving course, and even having low annual mileage. Many will offer a discount if you work within a certain amount of miles from your home. The fact is there may be many discounts that would apply to you but are not given to you since you didn't ask.

You may also find lower rates by not having multiple drivers on your policy. If you are the only one to drive your car, there is no reason to have all people in the household on it. You may also be able to lower your rates by letting them know the exact value of your vehicle. The fact is many of us think are cars are worth more than they actually are. If you bought your vehicle four years ago, obviously the value of the car has gone down considerable. Don't overpay on your vehicle if you do not have to.

If you have several types of insurance, such as homeowner's insurance and life insurance, you may be entitled to a discount by getting all your insurance needs through one insurance company. Many may offer reduced rates for this, but it is still important to shop around multi-policy rates.

Many of us are paying a lot more than we should have to for automobile insurance. Keeping your driving record clean is, of course, a must to keep your rates lowered. You'll find many of us could have much lower rates if we simply price compared and asked about what discounts may be available to us. Don't pay too much for your automobile insurance. Start your price comparing today!

Copyright 2006 Stacey Zimmerman

Budget Car Insurance Car Insurance Buying Tips

Gavin Bloom

Car insurance is an integral part of the insurance budget. There are a lot of variables that cause the rates to increase or decrease. Some of these variables cannot be controlled by the insured but there are some things the insurance buyer can do to keep their policy reasonable without losing a lot in protection.

What Are Your Assets? - Do you own a home? Do you have several vehicles? Do you own a business? Do you rent an apartment? Your strength in assets is a factor when selecting your liability limits. If you accidentally injure or kill someone in an automobile accident and you carry low liability limits on your car policy then your assets are next in line to be used to pay for the damages.

The Age of the Vehicles - Newer vehicles usually require physical damage coverage by the lender. Older vehicles with a lot of miles sometimes do not warrant physical damage. Physical damage rates can be adjusted up or down based on the deductible you choose.

The Age of The Drivers - Adult rates, senior adult rates, and rates for young drivers make a huge difference in the overall rate. Young drivers on vehicles with physical damage coverage can be very costly.

What are the Discounts? - There are a number of discounts on car policies. The multi-policy discount is given by insurance companies for purchasing both auto and home insurance. Retirement discounts are available to the senior adult. Young drivers receive discounts for drivers training education. Some companies give good student discounts for young student drivers that maintain a 3.0 grade point average.

Full Tort or Limited Tort - Many states have a discount for selecting a limited tort option. Tort is your right to sue for pain and suffering damages over and above the basic liability settlement. This varies from state to state.

This is the overall picture what insurance companies use to determine your individual rate. You have a choice when it comes to liability, physical damage, and tort options. Ask plenty of questions about these three areas when purchasing car insurance.