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Monthly Archives: August 2018

Insure Rental Car

If you do need rental insurance, you’ll find there are several different types you can buy. Let’s take a look at the main types of add on insurance:

Collision damage or loss damage waiver: This type covers everything, including the deductible, in the event of a crash. This might not be needed for some private insurance policy holders, but it can be a real money saver in an emergency for those who do need it. This coverage is generally fairly inexpensive. Do remember to check with your company before buying this type. It’s very possible you already have it. If paying by credit card, also check with the credit card company before buying this option as some credit cards cover this, too.

Personal accident coverage: This insurance option covers accidental death and medical situations for the renter and passengers. Many times this coverage is not needed as personal insurance on your own car tends to travel with you. Be safe though and ask before you turn this down. It generally isn’t very expensive, but what it covers can be.

Property coverage: There is an option that will cover all your belongings in a rental car from such things as loss, theft or even destruction in an accident. Again, private auto insurance policies will generally travel to the rental car and cover these things, but do find out before you turn it down. This type of auto coverage is generally pretty cheap, and it can be very welcomed if it’s needed.

Liability: Here and again this type may not be necessary for those who have their own private insurance, but it’s a very important coverage if it’s needed. Liability covers you from claims made by others for injury, death and/or property damage.

Many of the major dollar rent auto insurance coverage types available might not be necessary purchases if you have good private auto insurance, but it pays to find out. Being covered in a rental car can be a very big deal if there’s an accident or theft takes place. Nothing can ruin a vacation quicker than an uncovered accident. Check with your insurance company to be sure, and if you’re not covered, cheap car rental insurance can help.

Factors that Could Affect Auto Insurance Premium

Factor #1: Your Driving Record

It’s probably no surprise to you that insurers look at your driving record. They do so to gauge or estimate the risk to insure you. But what exactly are they looking for? Insurers will scan your driving record for at-fault accidents, traffic violations and claims made, usually within the last three to five years. If you’ve received marks against your driving record, you can bet you’ll be paying more for your auto insurance.

The good news: Marks against your driving record usually fall away in the eyes of your insurer after three years. You can avoid being penalized for a less than stellar driving record by driving as defensively as possible and avoiding filing small claims (such as those for hail damage) and paying for the repairs yourself.

Factor #2: Previous Insurance Coverage

If you’re applying for car insurance under a new insurer, your prospective agent will almost certainly look into your previous insurance coverage. He or she will want to know if you paid your premiums on time, how many claims you filed with your old insurer, as well as any other problematic behavior that would increase your risk to insure.

Any red flags in previous insurance coverage will likely result in an increased insurance rate. And unfortunately, if you’ve not been previously insured, you may pay more car insurance until you establish an insurance history.

The good news: You can avoid these penalties in the future by paying your premiums on time, avoiding filing small claims and maintaining a respectful relationship with your insurers.

Factor #3: Your Credit History

According to a recent study by insurance research firm Conning and Company, 92 percent of the nation’s 100 top insurers are factoring credit history into auto insurance premiums.

And while insurers are looking directly at credit scores, they’re more interested at how you’ve used your credit in the past. Insurers will look at the length of your credit history, the amount of revolving debt you have and any collections or late payments to form an insurance score.

And while critics and consumers alike accuse insurers of using credit-based scoring as an excuse to inflate auto rates, there’s a surprising amount of statistics to back the use of insurance scoring. In fact, studies have found that consumers at the bottom of the credit pool file 40 percent more claims that consumers with good credit. Insurers also use your credit history to judge the likelihood of paying your premiums on time. It’s for these and other reasons that insurance scoring is most likely here to stay.

The good news: You can improve your insurance score by paying your bills on time, paying down high existing balances (such as those on credit cards), and having your car insurance premium automatically withdrawn from your account every month.

Bonus tip: Insurers tend to grant discounts for customers with automatic bill pay!

Breakdown Cover

When you compare this to an average call out fee from a breakdown truck of at least double that for one call out and in some areas in the UK could be many times that, you wonder why it isn’t an automatic purchase. The truth is many of us don’t see the need until we actually breakdown, suffered the costs, the inconvenience and possible the safety risk of being stranded somewhere.

If you have ever been burgled it is probably very unlikely you would not risk not having home contents insurance ever again, the same rules apply to breakdown cover. Another argument is that modern cars are more reliable these days. That is true but when you consider that most call outs are due to flat tyres and flat batteries, which are pretty much the same on every car, that argument becomes weaker.

Also modern cars are harder to work on with electronics replacing mechanical parts, needing specialist equipment. This year I do not expect to have an accident with my modern car but I would not risk driving without motor insurance, I also do not expect to breakdown either, but I will be covered just in case. My final comment is safety. If you are going to breakdown, it could be at anyplace at anytime of day or night. Being stranded on a lonely road by yourself at night is not the most enjoyable experience, knowing you will be attended within the hour can be worth more than money.

Car Insurance Price

(1) Shopping around for reputable companies that offer the best coverage at the
most affordable rates will help you save money on your car insurance price. Find
out if your current insurance company offers multifamily and/or multipolicy
discounts, and try looking for companies that offer insurance to groups or
organizations with which you are affiliated.

(2) Refraining from driving more than necessary will help you save money on your
car insurance price.

(3) Driving carefully to avoid traffic citations and accidents that lead to
higher insurance costs will help you save money on your car insurance price.
(This also goes right along with keeping your driving to a minimum!)

(4) Buying a low profile car, i.e., one that is less likely to be burglarized,
vandalized, and/or stolen, and living in an area that is not considered a high
crime area will both help you save money on your car insurance price. An
insurance company is more likely to give you low cost car insurance if they know
your car is not at a great risk for being burglarized, vandalized, and/or
stolen. If buying a new car and/or moving are not options for you just to get
low cost car insurance, consider adding some safety features to your car, such
as alarms, air bags, automatic seatbelts, etc

(5) Refraining from using your car for business purposes will help you save
money on your car insurance price. For example, if you moonlight as a pizza
delivery man, you will most likely be using your own car, and your insurance
company is more likely to charge higher insurance costs.