Does my auto policy cover my rental car?

I'm picking up a rental car today for a road trip I have over the next couple days, which got me thinking...  I get asked at least once a month whether or not someone should purchase the insurance that the rental car company offers.  Like many things in insurance (and life), the answer is "it depends".

Most personal insurance companies (this is the company you use to insure the car you own) will cover liability of a rented car, and if you have physical damage listed on your policy (comprehensive and collision) it will also cover that.  So what are the other limitations?

• Time: Rental cars are usually covered for 30 days in your care by your personal auto insurance.  Make sure you look at your policy contract to confirm, but we usually see 30 days.  So what happens after that 30 days is up?  No coverage.  Best advice is to turn the car in to the rental car company and rent another (or ask for the same one if you liked it).  This starts a new rental agreement and you'll have coverage from your personal auto policy for another 30 days.
• Loss of Use:  If you're in an accident in the rental car, the car company can charge you loss of use.  Basically, they're asking for you to pay because they can no longer rent out the car.  There is almost no personal auto policy that will pay for loss of use to a rental car.  Check with the credit card companies you do business with to see if they offer some coverage.  If you pay for your rental car with that credit card, they may offer some of this coverage for you.
• Deductible: Your personal auto policy usually has a deductible for comprehensive and collision coverages.  If you are in an at fault accident, you will be responsible for that amount before you auto insurance will pay.  This is another place to check with the credit card company that you intend to pay for the service with.  Sometimes they have some built in coverage.

If your credit card company will not offer coverage for loss of use and your deductible (or you do not have physical damage coverage on your auto on your personal auto policy) you may want to consider purchasing that coverage the rental car company offers (and then makes you sign if you decline).  Better to be safe than sorry, but your broker or agent should be able to help you work through the details of what your policy covers and what it does not cover.

Photo courtesy of http://blog.static.consumerbell.com.s3.amazonaws.com/wp-content/uploads/2012/09/Orlando-car-rental1.jpg

It's Natural (Disasters)

If you haven't felt the effects of the recent natural disasters through the country and world, tell me where you live and I'll consider the move.  From flooding rains to wildfires to tornados it's proving to be a rough time for all.  So how can you protect yourself?

First and foremost, it's important to have an emergency plan.  Whether it's an emergency evacuation plan from your home or it's the best way to get to safety inside your home, make sure all your family members are on board.  Remember that once you get to safety you might also need things, like food, blankets, flashlights, water, et cetera so be sure to have an emergency kit that is close to safety or easily accessible as you exit your house.

Now you are prepared to keep your family safe, how do you protect your things?  Simple answer - Insurance.  Make sure your broker or agent is familiar with the area and can help you sift through the risks you're bound to face.  Should we consider flood insurance?  Should you have wildfire protection?  Should you have earthquake insurance?  Should you have a separate deducible for wind or can we find a product without? There are so many things to consider depending on location, you'll never be able to address them all, but if you have a knowledgeable broker, you're ahead of the curve.

Before purchasing that insurance coverage, make sure you know the insurance company that will be paying your claim.  Survey your social media friends, look at reviews online, talk to your broker.  You want to make sure that the company you're working with has a good history of claims adjustment; that's what you're paying for after all, isn't it?

Good luck and be safe!

Photo courtesy of: http://eattomorrow.com/blog/wp-content/uploads/2015/08/natural-disasters.jpg

To Review or Not To Review?

I've been asked so many times over the last couple months, "When do I know I need an insurance review?"

If you're asking the question, the answer is probably "NOW!"

I thought I'd put together a quick list of life events that would cause exposure to change, which should then trigger you to consider having your coverages reviewed.

• Purchasing a new car: Whether it's your first or your 100th, you need to make sure coverage is appropriate.
• Moving: Buying a house? Renting an apartment?  Doesn't matter - check your coverage.  Different locations mean different exposures.
• New Bling: If you're getting engaged or celebrating a milestone anniversary, it's time to have your coverage checked.
• Getting Married: Between receptions and consolidating assets, it's a good time to make sure everything's in line.
• Getting Un-Married: Let's face it, with the divorce rate as it is in the US right now, there's a chance this happens, so let's make sure everyone is properly covered as we go through the process.
• Kiddos: Whether they're learning to drive, heading to college, setting up a Facebook; kids are more exposure than we can ever imagine.
• Liquidation Event: With cash on hand, lawsuits are looking for deep pockets.
• Retirement: A good time to make sure you haven't lost any coverages at work that were part of your property and casualty program.
• Estate Planning: New Trusts & LLC to preserve your wealth for the next generation?  Your insurance policies MUST show these to have proper coverage.
• Home Renovations: Before, during and after - what should you know from an insurance perspective?

While this list is not all inclusive, I hope it gives a good grasp on when to call your broker for a review; NOW.

Let me know your thoughts.  What should be added?