In the insurance world we like to use the term Full Coverage when discussing auto insurance. Maybe you have wondered what that means. Full coverage refers to an insurance policy that includes liability along with comprehensive and collision coverage. While Liability covers damage to another person, Collision and Comprehensive coverage are both designed to cover your own vehicle. Although they seem similar, they cover very different things.
Collision coverage helps to fix up or replace your own car after an accident regardless of who is at fault. It will pay for repairs associated with collision into another object such as:
• Crashing into another Car
• Crashing into another object such as a tree, light post, curb, etc.
• Rolling your vehicle over
Comprehensive insurance is at times referred to as other than collision. It helps pay for damages that are not caused by a collision. Examples of accidents covered would be:
• Falling objects
Both Comprehensive and Collision coverage pay for damages as long as they don’t surpass your car’s actual cash value. Yes it is true that the higher your deductible, the lower your premium will be. However, if you are in an accident you will have enough to pay that high deductible out of your own pocket. If you are questioning what coverage is right for you call Barrick Insurance to speak with an agent.
You finally land at your vacation destination and you are ready to pick up your rental car. As you review the rental agreement you notice part of the agreement is on the loss and damage insurance. What do you do? Should you buy their insurance or is your personal auto enough?
Should You Buy the Coverage?
Our answer to you would be quite simply, yes. We generally advise our clients to purchase the rental company’s insurance. Although your personal auto may extend to a vacation rental there are many things your policy will not cover. Here are a few examples:
- Drivers not listed on your policy. So make sure that your friends are covered under their own insurance.
- Rentals being used for business purposes. Your personal auto does not cover business use unless it is specified in your policy.
- Driving outside of the U.S.
- Renting for long term use (usually more than 28 days)
Loss Damage Waiver
Rental companies also give you the option to purchase the “Loss Damage Waiver”. This is a major thing to consider because it relieves you from having to pay for the loss of use of a vehicle, should an accident occur. If a car is in the shop, the rental company is losing money. They will expect you to pay the losses which can be several hundred to several thousand dollars. (Don’t rely on your credit card to pay losses unless you have researched the issue thoroughly.)
Vacations are supposed to be stress-free and good preparation is key. Reviewing your personal auto coverage is an important task to include in planning your trip.
For any further questions concerning your personal auto give Barrick Insurance a call (717) 632-7270.