Finding the right insurance for you can be a long and complicated process. As the paper pusher at a large auto repair shop, I have been on both ends while talking with insurance companies and clients. Often what you think you have in your coverage, you don’t. It is important to know your policy. Below is a compiled list of specific questions that should be asked when signing with your insurance company (or broker). Instead of asking, what does my policy cover, ask these questions instead:
Rental Coverage
Am I covered for at-fault accidents?
At-fault accidents could mean single vehicle accidents (you hit black ice and ran off the road), deer hits, or you hitting someone else. As well, even if you are hit but you have no proof (trust me, it happened to me) since you didn’t grab the licence plate as you are spinning uncontrollably on a major highway, they could deem it as a one-vehicle (read: at-fault) accident. Not all insurance companies cover you if you are at-fault. Make sure you ask if you are, and how much it is to include it on your policy.
Who is covered for rental insurance under my policy?
Most insurance companies will cover a rental for anyone under your policy. So, if you have a policy with Insurance Company A, your partner or child with Insurance Company B, and your partner gets into an accident, often you cannot drive or pick up the rental under their name as you are not on their policy.My child is under the age of 21 years old. Most rental companies will not rent to youth.
If s/he gets in an accident, will my child get a vehicle?
This is one I saw over and over. People have been paying for their son/daughter’s rental coverage for 5 years and their child was not entitled to a rental vehicle due to their age. This is only really an issue if the child has their own vehicle and/or different insurance company. If you all share a vehicle, you will want to all be under the same policy to ensure that you can pick up the rental vehicle on their behalf (though they still won’t be able to drive it). Why pay something for years if you cannot use it?
Deductible Coverage
What are my two deductible rates?
You can often set two different deductible rates with your insurance company. There are two different coverage points – comprehensive and collision. Collision is a two car collision, whether you cause the accident or not, or one car collision (such as hitting a guard rail). Comprehensive covers the rest – animal hits, trees falling down in storms, theft, and vandalism. The higher your deductible, the lower your monthly premium. However, if you ever need to use your insurance policy, you will be responsible for the deductible depending on the situation. If you have a $1000 deductible in place, you will often be responsible for paying the repairs up to $1000. …
