When someone rents a car, the automobile rental companies hold the renter accountable under the rental agreement for damage to their car. They offer a Damage Waiver at an extra cost. This Damage Waiver is not insurance, but a contractual agreement between the renter and rental company. If a waiver is not purchased, it is important to review your own automobile policy to determine if any extension of coverage applies. Also, establish how the liability coverage afforded by your policy applies in the event you are at fault in an accident with the rented vehicle. In California, you are required to have auto insurance regardless of whether you are driving your own car or if you are renting one.
Rental car agencies do provide wide range of auto insurance coverage and it would not be prudent to blindly select rental car insurance as every policy offers its individual advantages under particular situations. You should examine each policy so offered and judge it against the requirements you have. It would be prudent to discuss the policy with the car rental agent, rather than just read the summary over the website.
Sometimes you are not required to purchase any car rental insurance because you are already covered by your car insurance. Usually, your coverage does remain the same with a rented car as it would if you would be driving your own vehicle. Also, you could be covered by auto insurance coverage under your credit cards. You should check with your credit card company about the coverage to which you are entitled.
Before you rent a vehicle, check the financial and insurance obligation you will face, and find out how these would be covered by your own auto insurance. In case you do need to exercise your insurance policy and realize that certain aspect is not currently covered, you should check if it would be covered under other insurance policies.
By: Eric Morris
June 28th, 2010 | Posted in Article | Comments Off
While loads of car insurance companies are in operation, finding the best deals can be somewhat challenging. Besides the number of companies in the business, there are also several other variables to consider. Here are some tips to help you find the lowest car insurance possible:
1. Take out multiple policies from the same company.
If you already have a health insurance or life insurance policy through one company, then consider taking out auto insurance from the same company. Insurance companies wouldn’t mind getting the extra business, and they’re often willing to provide fairly hefty discounts for repeat customers. However, as a word of caution never assume that a current insurer will always provide you with the best deal. So shop around to ensure that you get the absolutely, positively, best deal possible!
2. Look for student discounts.
If you’re a high school or college student, you might be eligible for student discounts. Typically, insurers offer these discounts to students who maintain a “B” (3.0) average. Of course, you’d need to submit official documentation certifying the grades. If you’re a parent of a student, then these discounts can serve as a fantastic motivator. Either your child hits the books, or they’ll be less “mobile” until they do.
3. Buy a used car.
You’ll need to take out more insurance for a new car, so one of the best ways to save on auto insurance, is to buy a used car. And it doesn’t have to be a lemon for you to enjoy substantial savings!
4. Keep your driving record clean.
This is one of the easiest ways to find cheap car insurance, since auto insurance companies provide various discounts for clean driving records. While accidents can happen, you want to avoid those in which you’re at fault. At-fault accidents can add points to your driving record, which can cause your auto insurance to shoot through the roof! If you already have point(s) on your driving record, then avoid any future at-fault accidents. That will help you to secure cheaper insurance once the points disappear.
5. Maintain good credit.
What does your credit rating have to do with car insurance? More and more insurers are looking at an applicant’s credit rating, to determine the interest rate that they’re willing to offer. The assumption is that someone who’s fiscally disciplined is likely to be disciplined behind the wheel. If you have outstanding credit, then look for insurers who consider one’s credit rating as a crucial factor to determine interest rates. And if you have less-than-perfect credit, this is a motivator to start paying your bills in full and on time!
6. Shop around.
This is definitely one of the key steps you should take when searching for auto insurance. The good news is that the Internet has made the process much more convenient. It’s now very quick and easy to get online quotes from various auto insurance providers. But always make sure that you’re comparing apples with apples, and orange with oranges. In other words, the quote that you get should be applicable to you, in terms of your age, gender, driving record, and so on.
Following these tips will help you to find cheap AND good auto coverage. Good luck!
By: Graeme Renwall
June 28th, 2010 | Posted in Article | Comments Off
What is Car Gap Insurance For?
If you have purchased a new or used car with a loan, you probably owe more than the book value of the car for the first several months you pay on your loan. If you did not put down a large down payment or if you rolled over a loan from your old car, you may owe quite a bit more than your car’s value. You are probably willing to accept this fact because you are really just making car payments, have a car you like, and know that you will get the car paid off in time. But the fact is, most cars lose 20% of their value the minute you drive them off of the car lot.
If you buy a $20,000 car, the actual value of that car may drop to $16,000 very quickly. You have just taken the 20% hit. However, accidents happen. If you have an accident, or your car is stolen, you may be asked to settle for the book value. That means, you still owe $4,000 more on a car you cannot use!
Car Gap Insurance closes the gap between a car’s value and your loan. You normal car insurance will still pay off the car’s value. The auto gap insurance policy will make up the difference. Now some comprehensive auto policies may pay the financed value, but most do not. Be sure to look at your policy or ask your agent to make sure.
Where do you Buy Car Gap Insurance?
When you buy a car, your dealer will offer you a car gap insurance policy. He or she may even offer to roll the price into your loan. However they will charge you a premium price. Some people choose to purchase auto gap insurance this way because it is simple, or because they don’t realize they even have an option!
However, you do have a choice. You do not need to pay $700 or $800 for car gap insurance from a car dealership. You can buy the same policy online, directly from the insurance company. Online car gap insurance policies ill cost less than half as much as car gap insurance from the dealer. You could pay $399 instead of $700 to $800!
Your other choice is to find a comprehensive car insurance policy that will cover your car’s financed value. You can call around, but it is easier to use an online quoting system. Look for an insurance quoting system that is BBB approved and has a stated privacy policy.
By: Marilyn Katz
June 28th, 2010 | Posted in Article | Comments Off
