Should you waive collision coverage on your rented vehicle?

This is a frequent question posed from our clients. Here are a few items to consider prior to waiving the coverage. If you are:

1. Renting a vehicle for personal use:

• If you are renting the vehicle for personal use you will need to check with your insurance agent to verify that you have collision coverage on at least one of your owned vehicles and that the coverage will extend to your rental vehicle. Be sure and verify your deductible too as it will apply.
• You may also want to checks with your credit card company. Many credit card companies offer rental collision coverage. Restrictions apply, please contact your credit card company for details.
• Please keep in mind that there may be a "gap" in both of the above options, such as several rental car agreements require immediate settlement of the loss. As most insurance carriers require time to inspect the damage before paying any damages, you may be responsible for any difference in the immediate settlement amount demanded from your rental car company and the amount your insurance settlement. In addition, some rental agreements also may require you pay the full retail value, while your policy is most likely based on an actual cash value basis, therefore again, you would be responsible for the difference. Finally, rental car agreements may also require you to pay loss of use. This means that you would have to pay for the rental revenue lost while the car is being repaired. There is most likely no coverage afforded for this by either your insurance or credit card coverage, so you would be responsible for the entire amount.

Renting a vehicle for business use:

• If you own your own business and are using the vehicle for business purposes, there is most likely an exclusion for coverage under your personal auto coverage. You should have a Business Auto Policy in force that covers hired and non-owned liability (damages you would owe to the another party if you were at fault) as well as hired and non-owned physical damage coverage to cover the rental vehicle. Please keep in mind that any or all of the "gaps" in coverage listed above for personal use may apply to your Business Auto policy as well. Please contact your agent to clarify.
• If you are working for another company and they are asking you to rent a car, please verify with the rental car company who will be responsible for damages. In most cases it should be your employer, however,  in the event that you will be held personally responsible, it is recommended that you NOT  waive the collision coverage as your personal auto policy will most likely not pay for any damages because of the business use.
• Also, if you are leaving the United States, you will want to ask your insurance agent if coverage will be provided while driving  in that particular country.

We hope this article has been helpful in answering the question of should you waive the collision coverage on your rented vehicle. If so, please let us know.

Safer Cars, Cheaper Premiums

As cars have improved in safety standards, so have insurance premiums in cost.

Here is a IIHS 50th Anniversary video courtesy of You Tube

I recently rated replacing a 2001 Ford Explorer with a 2011 Ford Explorer and was surprised to see that the premium decreased. Perplexed and always ready to solve a puzzle, my nimble fingers moved quickly over the keyboard to type in my browser the Insurance Institute for Highway Safety's (IIHS) website address.The IIHS is an independent, non profit, scientific and educational organization. I was anxious to learn if the Explorer's new safety ratings could be a factor in lowering the premium.

From their home page, the vehicle ratings page was just a click away. The vehicle ratings link listed their Top Safety pics for 2011. I quickly noticed that the Ford Explorer was listed as a top pick. Simply clicking on the Ford Explorer link gave me it's safety rating.   It was very easy to see from their simple rating system that the Ford Explorer's rating had changed over the years and is now receiving a higher safety rating. My puzzle was solved, the safety rating was a factor for the lower premium.

As my client will soon learn, his new and safer Ford Explorer will save him some premium dollars. I would encourage any one who is thinking of purchasing a new or used vehicle to visit the IIHS vehicle ratings page.  In addition to vehicle ratings, their website is packed with helpful information concerning vehicle safety.  

Vehicle safety concerns have been a hot topic of late when Toyota recalled over 12 million vehicles worldwide for safety issues. This was of course, no small concern for the Bluegrass State, as Toyota houses a manufacturing plant in Georgetown. Fortunately, yesterday after a 10 month investigation, the US Transportation Department cleared Toyota of electronic problems in its vehicles. Transportation officials, assisted by NASA engineers, said the study of Toyota vehicles concluded the acceleration cases could have been caused by mechanical defects already covered by recalls and suggested in some cases drivers hit the gas instead of the brakes.

As car manufacturers produce safer vehicles, I believe we will continue to see lower premiums. If your rates are increasing, and you find yourself shopping for a newer vehicle, don't forget to check the safety ratings. You may just find a lower premium awaits you.

To compare vehicle premiums or for more information, please contact your Buckley & Company, Inc. personal lines insurance agent.

Water back-up - safety first!

Picture this: Your sewer lines backed up or your sump pump has overflowed and raw sewage is all over your basement or bottom floor.

Resutling damage to your home and valuables from a mess like the one described above could be disastrous. Not only could your furnishings, electronics, or appliances be in danger, but your health as well. Health risks are considerable when you or your family are exposed to raw sewage, mold, or mildew which could be a biohazard.

ServePro specializes in fire, water damage, and disaster clean up. They recommend the following safety precautions after a biohazard event:

• stay out of affected areas
• call emergency service personnel if the situation is life threatening
• treat all bodily fluids as if they are contaminated
• turn off the HVAC system if there is sewage damage
• don't attempt a clean up of any kind
• don't touch or handle items that may be contaminated with bodily fluids
• don't eat, drink, smoke, apply cosmetics or handle contact lenses in affected areas

In addition OSHA(Occupations Safety and Health Association) recommends a post-exposure medical evaluation. Consult your local health department or physician.

Once you and your family are out of harms way, you will need to contact a Residential Water Cleanup and Restoration Company, such as ServePro, InStar, or PRO4MANCE along with your Insurance Agent. The question now becomes, are you covered or will you have to pay for clean up on your own?

Most Homeowners policies do not automatically include coverage for Sewer Back-up or Sump Pump overflow. However, this coverage may be added by endorsement. The amount of coverage and deductibles vary by company. If you don't have water back-up of sewers and drains coverage, please contact your Personal Lines Buckley & Company Insurance agent for a quote today!

Now picture this: A beautifully cleaned and sanitized basement or lower floor completely restored or replaced possessions.