1. If I rent a car am I covered?
Yes, in most cases you are. Your coverage from your auto policy will transfer to that rental car. Now remember if you do not have full coverage, also known as collision & other than collision (comp) on your personal auto policy you would not have that on the rental.
Something to consider though. IF you are in an accident there are things NOT covered by your personal auto policy. The biggest of those “things” not covered is when the car is disabled. If the rental facility was collecting $50 per day and the car is in the shop for 6 days because of an accident you caused you could be found liable for the $300. ($50 per day x 6 Days)
I personally do NOT take out the rental coverage when I rent a car. I would speak to the representative at the facility and review what is best for you and your family before deciding. Each of our carriers are a little different but if you have specific questions about renting a car and a specific company let me know!
2. What is an umbrella policy?
An umbrella policy adds $1,000,000 to $5,000,000 of liability coverage to your home(s) and motorized vehicles. This could include a rental property, an ATV, a car, your primary home, or even a golf cart. We live in a very “sue happy” world today and lawsuits are something that do happen. By adding an umbrella to your insurance package, you can really protect your assets, equity in a home, retirement plans, and even your future earnings a lot better.
The best part of an umbrella policy? The great price! You could add five or seven or nine times the coverage for literally $1 per day. The average umbrella at our agency costs around $200 for the year or a little over $15 per month.
Each of our carriers are a little different but if you have specific questions about adding an umbrella to your insurance package with one of our carriers let me know!
3. If I add my child to my auto policy does the rate go up?
Yes. I am not aware of any carrier in the United States that keeps an auto premium the same or lowers it when you add a youthful, inexperienced driver to an auto policy. Statistically they are much more likely to get into an accident compared to someone with more driving experience.
The good news is there is a lot of ways you can offset these increases. Some of our carriers offer discounts for good grades, rewards for safe driving, training classes beyond a driver’s test, and even programs that “grade” how they drive. These programs can save you money but can also help reduce the cost of insurance while keeping our roads safer.
We always recommend sitting down with an agent from our team with your teen driver to discuss the importance of safe driving and how unsafe driving can affect insurance rates but more importantly their safety and the safety of others. If you have questions about adding a youthful driver to your insurance package let me know.