Every year, millions of Americans take to the roads to visit family and friends. Since many will make the trip in a rented car, it’s appropriate to discuss one of the most frequently asked questions of agents all over the country: “Should I buy the insurance from the rental car company?”   While your insurance company may differ on the exact coverage they provide, the following are a few considerations when mulling this important decision. As always, check with your agent for the specific response taken :  

DAMAGE WAIVER & YOUR PERSONAL AUTO POLICY
First, the good news: In many cases, a personal auto insurance policy will cover damage to a rented vehicle. That said—don’t get too comfortable! There are other costs associated with damage to a rented vehicle that the policy will not cover. For this reason, careful consideration should be given to purchasing the damage waiver offered by the rental car company.   

On your personal auto policy, “Collision” insurance covers your vehicle for damage resulting from a collision with another object. “Comprehensive” (sometimes called “Other Than Collision”) covers your vehicle for theft, vandalism, falling objects and other causes not resulting from a collision. If you have a car loan, your lender will require you to purchase both. If you pay the loan off, the choice to purchase collision or comprehensive—and both or neither—is up to you.  

Your personal auto policy will only cover damage to the rental car if you have the appropriate coverage type on at least one vehicle you own. For example, if you damage the rental car in a collision, you must have “collision” coverage on at least one vehicle covered by your personal auto policy. But if the rental car is stolen, vandalized, or damaged in any way not resulting from a collision, you must have “comprehensive” coverage on at least one vehicle covered by your personal auto policy. The key point: If your personal auto policy excludes the coverage type that damages the rental car—and you reject or violate the damage waiver—you will become personally responsible for paying all costs related to the damaged rental car out of your own pocket! In contrast, the damage waiver usually offered at the rental counter will cover the damaged rental car regardless of what’s covered by your personal auto policy.  

LIMITATIONS IN YOUR PERSONAL AUTO POLICY
What else could you possibly owe the rental company following an event or crash? These include administrative fees and the depreciated value of the vehicle after repairs—neither expense is covered by your personal auto policy. In addition, most personal auto policies only pay up to the actual cash value (ACV) of the damaged vehicle. If the contract requires the damaged rental’s replacement, the ACV payout may not be sufficient to cover the entire expense.  

Again, in contrast, the damage waiver will cover all such expenses.
 
Also, the rental contract likely will require you to pay the rental company’s “loss of use.” These are expenses they incur resulting from the inability to earn income from the damaged rental. This cost could be hundreds of dollars or more. Some personal auto policies will pay a limited amount for this expense (such as $20 per day or $600 total). Others will not cover it at all.  

In contrast, the damage waiver will pay the full cost of the rental company’s loss of use.  

NO CLAIM NECESSARY
If something happens to the rental car, purchasing the damage waiver gives the rental agency management of the process. This will allow you to avoid filing a claim and possibly help keep the cost of your insurance from going up. It also will keep your deductible in your pocket.     

LIMITATIONS IN THE DAMAGE WAIVER
Don’t forget that the rental car company’s damage waiver is a contract. It will include a list of restrictions that, if violated, may terminate the waiver and leave you personally responsible for paying the costs associated with the damaged rental car.

Examples of such restrictions may include:
• Damage to rental while driven by someone not specifically named on the contract.
• Damage to rental while driven on unpaved roads.
• Damage to rental while it’s being occupied by more passengers than available seatbelts.
• Damage that occurs while pushing or towing.  

This list is only a sample; the typical damage waiver may include additional restrictions.  

Moreover, the car rental company’s loss damage waiver covers “diminished value,” the economic reduction in value of a repaired auto due to it having been damaged. Almost all auto policies and many credit card coverages exclude diminished value. What’s the impact to you? If you don’t take the damage waiver, you could get hit with a diminished value claim of $1,500 or more, depending on your type of damaged rental car.  

DAMAGE WAIVER COVERS VEHICLE DAMAGE ONLY
Perhaps the most important fact to remember is that the damage waiver only applies to damage to the rented vehicle. It is not a substitute for liability, medical payments, uninsured motorist, personal injury protection, and any other personal auto insurance coverage.    

OTHER PRODUCTS OFFERED BY RENTAL COMPANY
In addition to the damage waiver, most rental car companies offer a few optional insurance-type products. For example, some may offer a liability enhancement that gives you the option to increase the liability limits you already carry on your personal auto insurance policy. Depending on your available auto liability insurance, this option may be worth consideration.  

Others may offer options such as accidental death, trip cancellation, or damaged luggage insurance during the rental period. Such options vary by company and may provide insurance dollars you cannot get elsewhere. However, they should not be purchased without first reviewing your current home, health and auto insurance policies as there may be duplication.  

CONCLUSION
In light of the information above, you should seriously consider—and probably buy—the damage waiver from the rental car company. Deciding whether to purchase other products from the rental firm, however, depends largely on the insurance already available to you from other sources. For assistance in determining coverage you already have and comparing it to the rental company’s options, call Kouri Insurance, your Trusted Choice® independent insurance agent, today.    

Business Travel Note: When you rent a car on a business trip, that’s an entirely different set of decisions, so again please talk with Kouri Insurance, your Trusted Choice® independent insurance agent.

There are over 240 million registered motor vehicles in the U.S., according to the Census Bureau. At a given time, as many as a third of those clutter American roadways, and it is estimated that one-fourth of those are being used in the course of work.

Running errands, making deliveries, visiting customers. Even for those whose employment is not based on driving, it’s fair to say that your vehicle is an essential part of your employment. This presents an important question: If you are involved in an accident in the course of employment, are you covered by your personal auto insurance policy (PAP)?

Like most insurance questions, the answer depends on circumstance. For example, what kind of car are you driving? Does the car belong to you or someone else? What type of business are you in?

Consider the language found in the typical PAP. At a glance, many policyholders are shocked to see that the PAP appears to exclude coverage for the use of any vehicle in the course of business other than farming or ranching. However, a very broad exception to this exclusion allows coverage for the business use of a vehicle provided it is one of three types: 1) a private passenger auto, 2) a pickup or van, or 3) trailer while used with the aforementioned. This exception suggests that as long as the vehicle is one of these three types, coverage remains intact after the accident.

But policyholders should proceed with caution, since some PAPs are not as generous. For example, some versions may be more restrictive towards pickups or vans, possibly including a gross vehicle weight (GVW) limitation or a clause that restricts coverage to owned pickups or vans only. Be sure to consult your policy before driving any pickup or van for work.

Further, policyholders should understand that any coverage permitted for business use of personal vehicles by the PAP is not intended for these three vehicle categories:

Commercial-type vehicles. The PAP restricts business use to private passenger autos, pickups and vans. While they can be purchased personally, box trucks, tractor trailers, shuttle busses and other commercial-type vehicles do not fit this description; such vehicles require a commercial auto policy.

Furnished or available for regular use. Often called the “company car” exclusion, this provision is dangerous and must be remedied if the exposure exists. The reason is that a typical PAP will exclude coverage for a vehicle that is regularly available to the policyholder but is not specifically insured under the PAP. For example, if you are furnished a company car as a benefit to your employment, make certain that you are covered by your employer’s auto insurance policy. If not, specific action is required to extend coverage under your PAP; it will not do so automatically. The good news is that this coverage change is usually inexpensive and can be done easily; just be sure to request the change now, before the accident happens. While the definition of furnished or available for regular use varies by case, err on the side of caution. Don’t assume that because you don’t take it home with you each night or that you only drive it occasionally you’re in the clear. Regardless, a vehicle owned by your employer could be considered available for your regular use. This exclusion presents a potential gap that is too risky to ignore; we can help you take the appropriate steps to close it. 

Vehicles that are the business. A PAP will not cover your vehicle if you use it to carry people for a fee, such as a taxi, limo or shuttle. The only exception is a share-the-expense car pool. And if you’re planning to make a few extra bucks delivering pizzas, auto parts, newspapers or other goods, proceed with caution. Many PAPs also remove coverage for vehicles that are used to deliver food or other types of property for a fee.

While in most cases the PAP will cover you for business use of a personal vehicle, there are situations where it will not. Such situations are not uncommon and, if not remedied, could result in significant financial detriment for you and your family. Consult your Kouri Iinsurance professional for advice on how to close potentially devastating gaps in your PAP today.

Article provided by Trusted Choice.

Be Safe, Be Smart On A Long-Distance Road Trip

Whether you’re traveling alone, with a buddy or with your spouse and a car full of kids, there are few things more “American” than the long-distance road trip. Countless vacation travelers will drive the highways looking for fun and making memories with every mile. If traveling down the “holiday road” is in your plans, take the time to prepare for your trip. You’ll have a more enjoyable vacation if you plan carefully. Here are a few driving tips, courtesy of Kouri Insurance.
1) Maintain your car. Make sure your vehicle is up to date on its maintenance schedule, and be sure to check the battery and tires.

2) Plan your trip and know where you’re going. Call ahead for proper and safe directions to get you to your destination safely and have maps of the area on hand to help you navigate once you are off the main road. You’re more likely to make good decisions, even in dangerous situations, if you’re clearheaded and know where you’re going.

3) Be alert. Seems obvious, but driver inattention is surely the cause of a lot of accidents. If you stay focused behind the wheel and plan carefully, you will have a wonderful summer road trip.

4) Take precaution with a cell phone. Cell phones can be a lifesaver when you need immediate access to emergency services after an accident. Keep your phone within easy reach and get to know its features. However, use it prudently. Reports suggest that driving while talking on the phone increases accident rates.

5) Wear your seat belt. Whether or not it’s required by law in the state through which you’re driving, always wear your seat belt as a safety precaution.

6) Protect your car against theft. Help deter criminals from taking your car with steering wheel locks, switches that disable fuel or ignition systems, and electronic tracking devices.

7) If you’re in an accident. Taking immediate steps if you’ve been in an accident can protect your family and your car from further damage. Stop immediately and make sure your car is not blocking traffic. Turn off your car to keep it from overheating or catching fire. Warn oncoming cars using road flares or orange triangle reflectors. After you have protected yourself and your family, call your insurance company immediately.

8) Make sure your auto insurance is up to date. Before you even leave the driveway, you want to be sure you’re protected when you’re on the road and far from home. An independent insurance agent or broker can provide the personal service and advice you need to travel in confidence.

To learn more about what an independent insurance agency offers you, contact Kouri Insurance.

I ran across the following information on the distraction.gov/cars2 web site. The video that follows is a clever and entertaining lesson from Mater, of Cars 2 fame, on the dangers of distracted driving. First though, the facts:

Here's some statistical info for adult driver types to learn about the dangers of distracted driving:

• 20 percent of injury crashes in 2009 involved reports of distracted driving.

• In 2009, 5,474 people were killed in U.S. roadways and an estimated additional 448,000 were injured in motor vehicle crashes that were reported to have involved distracted driving. (FARS and GES)

• The age group with the greatest proportion of distracted drivers was the under-20 age group – 16 percent of all drivers younger than 20 involved in fatal crashes were reported to have been distracted while driving. (NHTSA)

• Drivers who use hand-held devices are four times as likely to get into crashes serious enough to injure themselves. (Insurance Institute for Highway Safety)