Essential Facts About Rental Car Insurance Policies

A car rental agency is naturally protective of its assets. People may not drive as carefully in a car they don’t own, which leads to accidents. Because the agency needs the damage repaired or the car replaced, it generally recommends renters buy its provided insurance policy.

When you rent a car, though, you may wonder if you need to buy this policy or if your existing policy will cover the rental.

“The answer is yes and no,” said State Farm agent Pam Hansen Alfred. “Are you renting in the U.S.? At State Farm, we don’t extend coverage to any country except Canada and 25 miles into Mexico. Otherwise, the way it works is, if you have comprehensive and collision on a vehicle, that coverage will extend to the rental car if you have a claim.”

For instance, Alfred recently had a client whose rental car was stolen, a situation that a comprehensive policy would pay for after a deductible. Similarly, if you were in an accident or your windshield was damaged, the cost of any repairs would be covered after you paid your deductible.

Beyond these situations, though, you should discuss a couple of unique areas of car rental insurance with your agent to ensure you’re covered.

Loss of use

While your insurance will cover damage to your rental car, you may be on the hook for other expenses if a car rental agency experiences loss of use.

“If you wreck a vehicle and they can’t rent it out, they charge you for the amount of time it is in the shop as though you were still renting it,” Alfred said. “This cost would not automatically be covered by your car insurance. But you can add a coverage under your State Farm policy called unowned auto liability and

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UK regions where drivers pay the most for car insurance revealed – where does your area rank?

MOTORISTS are paying drastically different prices for their car insurance depending on where they live in the UK.

New data has revealed that Londoners are forking out nearly double the lowest amount that some Brits pay to be insured on the roads.

The cheapest area to insure yourself on the roads has been revealed

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The cheapest area to insure yourself on the roads has been revealedCredit: Getty

Insurance comparison platform Quotezone shared the huge regional differences in car insurance across the nation.

Premiums in the capital almost top out at £800, nearly double the £400 a year average in the south west of England.

Across the UK as a whole drivers paid an average of £548 for their annual motor insurance policy. 

But regions comprising large rural spaces generally enjoy lower premiums than those that include large cities, where road accidents and car thefts are statistically more likely to occur.

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Drivers in Scotland, Wales and Northern Ireland all paid less than the UK average at just £500 a year for their car insurance.

However, motorists in regions such as the North West and West Midlands, which are largely made up of highly populated urban areas, both paid more than £630 a year on average.

As well as the likelihood of accidents and thefts, cities and densely populated urban areas generally have a younger population – which a factor that drives up premiums for all motorists in the area.

Higher average car values also bumps up insurance costs even further, which is especially true in the capital.

After crunching the numbers on a sample of over 1,000 policies, London came out the clear winner in the race to be the most expensive place in the UK to insure a vehicle.

In second place was the north west of England at just over £634, while the West Midlands came in at

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‘Can all my car’s damages go under one insurance claim?’ [Newbie Guide]

Whatever car you’re driving, you can never be too careful whenever you’re behind the wheel out on the road. But occasionally, despite our best efforts, something untoward happens and the vehicle ends up getting damaged.

Car headlight crash damage

Comprehensive car insurance comes in handy at times like this

Of course, being the responsible motorist that you are, there’s the relative consolation of knowing that your car is protected by comprehensive insurance. But then, rather than having the damage fixed right away, you think of waiting until the car sustains more scratches, dents, or dings before making an insurance claim.

It’s understandably due to your wish to streamline the process, instead of having to repeatedly file multiple claims (and paying multiple participation fees). Just gather everything and file it in one go. But while this sounds good in theory, the reality is that you won’t be able to do so.

Contract signing

A car insurance claim corresponds to a particular incident only 

Why is that? Auto insurance works on a per-incident basis, meaning that you can only file a claim for a particular event. For example, insurance will cover repairs on a warped hood that resulted from your car hitting a wall, but it does not include that dented door you got when another car T-boned you at an intersection three months prior.

Two separate causes resulting in damage to your car will require two separate insurance filings and, yes, two separate payments of the participation fee. It will be up to you to prove through documentation and pictures that all the physical damage on your car came from just one incident. Otherwise, you would be liable for insurance fraud.

Dented car roof

You’ll have to prove that those dents on the roof are connected to the smashed grille your car sustained

There’s also the validity of your policy

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15 practical ways Canadian drivers can lower car insurance premiums

But each province and territory implement different auto insurance systems, which results in varying levels of protection and premium prices for motorists across the nation.

For those living in British Columbia and Manitoba, car insurance is regulated by government-owned organizations, the Insurance Corporation of British Columbia (ICBC) and Manitoba Public Insurance (MPI). Auto insurance in Saskatchewan is also run by a Crown corporation, Saskatchewan Government Insurance (SGI), but motorists can purchase additional coverage through private insurers. 

In Québec, the Société de l’assurance automobile du Québec (SAAQ), another public institution, handles minimum limits for bodily injury, while private companies offer third-party liability, property damage, and additional protection. Drivers in the remaining provinces and territories can purchase car policies from private carriers.

Read more: Where can you find the cheapest car insurance rates in Canada?

What does car insurance cover?

Provinces and territories have their own rules and regulations when it comes to mandatory coverage, but there are similarities. These are:

  • Third-party liability: This covers the cost of lawsuits if a motorist is responsible for an accident that causes bodily injury, death, or property damage. The minimum amount varies depending on the location but is typically pegged at $200,000.
  • Uninsured automobile/motorist: This coverage kicks in if the policyholder or their passenger is injured or killed by an uninsured driver or in a hit-and-run incident. It also covers damages to the vehicle.
  • Accident benefits: This pays out for medical treatment and income replacement if the policyholder is injured in an accident, regardless of who is at fault. It also covers funeral expenses should the driver succumb to their injuries.
  • Direct compensation property damage (DCPD): Applicable in Ontario, Québec, Nova Scotia, New Brunswick, and Prince Edward Island, this policy covers damages to the vehicle and its contents resulting from
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This is Why Your Car Insurance is So High (Plus Tips to Save Money on Your Policy)

If you’re looking at a recent bill and wondering why your car insurance is so high, you’re not alone. Although auto insurance rates naturally tend to increase from year to year (the motor vehicle insurance index recently increased 4.1%), there are other reasons car insurance costs can go up too.

In order to help you wrap your head around the reasoning for these seemingly random changes, we’ve compiled this list of the 16 factors that affect car insurance rates — plus we’ve included details on how to save money on car insurance, including shopping around for the best auto insurance policy.

Because car insurance premiums are mostly based on risk, many of the factors that go into determining the cost of your auto coverage has to do with how risky an insurance provider believes you to be. Surprisingly, this sometimes has less to do with your actual driving record and more to do with your profile — things like how long you’ve been driving, where you live, how much you drive, etc.

So whether you’re a new driver shopping for car insurance or just looking to save money on your car insurance, here are 16 of the top factors insurance companies look at when determining what they charge you.

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1. Age

Unfortunately, age isn’t just a number when it comes to auto insurance companies. Older drivers with more experience tend to get into fewer accidents. So the older you are, the less you’ll likely pay for coverage. The same can be said in reverse. Very young drivers or adults sharing a policy with drivers under the age of 25 can expect to pay higher premiums on their auto coverage.

If you’re a young driver or plan to add one to

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Does a Fender Bender affect car insurance rates? – South African Magazine

Many people would consider car insurance as the necessary evil; no one likes to pay for the expensive premium rates but at the end of the day, you need auto insurance to assure that you won’t have to spend hundreds of thousands of dollars on car accidents.

Car accidents are more common than you think. The chances of you getting in a road accident is higher than any other form of transport (unless you do competitive speed boating). With a high number of accidents, car insurance rates are bound to increase.

We know that getting in a car accident will increase your insurance rates, sometimes even if the accident was not your fault. But what about minor car accidents, like a fender bender? Does a fender bender affect car insurance rates? As with all the other questions about auto insurance, this one needs a little explanation too. 

Car Accidents and Insurance Rates

Auto insurance rates are very sensitive to multiple factors. Your driving record, past insurance claims, age, gender, location, the state you live in, etc affect your car insurance rates. This is because insurance companies assess everything that shows how likely you are to get in a car accident. 

So think about it, if you get in a car accident, you become a high-risk individual to the auto insurance company. Not just that, but many car insurance companies do extensive research about the accident to find out different factors such as:

  • Any tickets you received before the accident
  • Your speed before the accident
  • The type of accident (whether it was reckless driving or a genuine mistake)
  • Your past accident record 

All these things show how likely you are to get into another car accident. Statistically, a person who has been in a car accident (and the accident was

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Drivers warned of common mistakes that could be increasing their car insurance prices

The cost of living is rising with many trying to save money no matter how small the change.



Motorists could be unknownly increasing their insurance.


© Getty 2022.
Motorists could be unknownly increasing their insurance.

With the likes of energy and shopping bills going up, many people are taking to the internet in a bid to read up on the latest information and news about inflation and what it means for them.

However with petrol prices also soaring, motorists are being hit hard and now drivers are being warned that there are things that they could currently be doing which are actually costing them a lot more in the long run.

READ MORE: Edinburgh set for week of rain as city set for summer weather wipeout

So whilst fuel can be costly, so can insurance – two expenses you can’t avoid. But now experts at Goodbye Car have complied the top seven reasons as to why your insurance could be affected and potentially costing you money that could be put towards other things.

Here’s the seven things you could be doing that’s driving up the cost of your insurance:

1. Employment Status – Disabled and retired drivers pay almost double that of those in employment

Collecting data from June of this year, experts said that whilst risk is a factor that goes into setting insurance prices, they found it disappointing the most vulnerable in society are charged more for their car insurance. They said: “A person of retirement age can expect to pay almost double that of a homemaker, while those who are not employed due to a disability or illness will pay over £830 more for their car insurance.”

2. Education – Student nurses are charged the most for car insurance

It’s no surprise to learn that nearly all students have a higher insurance price than

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