Summer Tips On Car & Home Insurance From Mercury: Plan Now, Then Relax On Vacation
by Anonymous

June 4, 2004 -- The coverage you have on your own vehicle may insure you while you drive the rental car. First, talk to your insurance agent or broker or with your insurance company. Provided you are not on a business trip, the coverage and deductibles you have on your personal auto may extend to the rental car. But double check with your agent and be clear on exactly what coverage you need. If anyone else intends to drive the rental car, please discuss whether your coverage will transfer to other drivers of your rental car.

If you do not have comprehensive (theft) and/or collision coverage to consider transferring, you will have to purchase this coverage through the rental car agency. If your personal automobile insurance policy will cover you, keep in the rental car your proof of insurance certificate and your agent's or broker's name and phone number.

Being prepared will payoff; at $10 per day, the Damage Waiver sold by rental car companies is a big profit item for the rental car industry that is equal to an annual premium of $3,650 for comprehensive and collision coverage. That's as much as 10 times what your insurance company charges.

Your credit card company may provide coverage at no charge when using their card to pay for the rental car. If so, establish exactly how you will be covered while driving the rental car -and for how much. You may have full coverage, or you may only need to purchase a specific type of coverage from the rental car company to bring your coverage to a level with which you are comfortable.

Once you have established that you are already covered or that you will need to purchase insurance from the rental car company – either way, clarify the following: Establish the status of specific coverage for Collision Damage Waiver (damage you cause to another's vehicle(s) you hit with your rental car), Liability Insurance (damage you cause to other people or property), collision (damage you cause to the vehicle you rented) and comprehensive claims (stolen vehicle, weather-related damage like that caused by hail and flooding and collisions with animals), Personal Accident (medical/ambulance bills), and Personal Effects (theft of personal items in the car). Also, before you even get in the rental car, be sure to take the time to closely inspect it for existing damage. If you find any, note it on the rental form and have an employee of the rental company initial it.

Related: Some rental car companies combine personal accident and personal effects coverage together as one type of insurance, while others sell it individually. In addition, the cost of insurance at the rental car counter will vary depending on the rental car company, its location, and the type of car you rent.

Some auto rental companies may stipulate in their contract when you sign at the counter a "loss of use" clause, which deals with the loss of use of the vehicle you are renting if it is damaged while in your possession. Check with your insurance agent or broker and the rental car company to make sure where you stand on this issue.

Is my home properly insured this summer?

Before you pack for vacation, summer is a good time to review your homeowners insurance and confirm that your home is adequately covered. It is not just land that has gotten more expensive, so has residential construction; your coverage may not be sufficient relative to the current replacement cost of your home. The same may be the case if you have just completed some renovations.

Do you have a new computer, home entertainment center or digital camera? Make sure your current homeowners insurance is adequate to replace each. Also, how much time do you have to file a claim, particularly if you will be on a lengthy vacation?

If you have a vacation rental property, do you have adequate liability insurance? As the owner, be sure you're sufficiently protected against renters' liability claims and potential lawsuits.

When you purchased your boat and trailer, did you get additional coverage? Make sure you have enough protection before setting out to sea. If your boat is over a certain size or horsepower, you may even need to get a special ocean marine policy.

Are you bringing valuable items – like jewelry, a laptop computer, or that fancy new set of golf clubs -- with you on vacation this summer? If the answer is yes, consider adding personal property endorsements, which extend your homeowners coverage while you're "on the road."

A swimming pool can add much to summer fun, but if you have inadequate liability coverage and there is an accident, it could be financially devastating even if you are a very safety-conscious pool-owner.

If you're a dog-owner, do you have adequate liability insurance? Even the friendliest of pooches can accidentally bite someone.

Do you have dependents, kids or parents, which will be living away from your home this summer? To protect against accidents they might have outside the home, be sure your homeowners policy provides liability insurance off premises.



This article courtesy of http://www.car-insurance-guru.com.
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