10.02.08

Auto - Questions and Answers about Insurance

Posted in Insurance Information at 8:30 am by jumpajoe

Again you should check with your credit card provider what they cover, but the bottom line is, if your own insurence covers liability, and your credit card covers the rental car, why pay a couple of hundred dollars for extra insurence when you re already covered? Have you ever wonder why car insurence costs vary from one car insurence company to the other? This is due to the different type of computation factors that car insurence companies use to derive the car insurence cost. Based on the answers that you replied to the car insurence company, they will add or discount the cost before arriving at a final price for your car insurence. Thus, it is important for you to shop around first before you commit yourself to a particular car insurence company as different companies take a different view of the various high risk factors. We will look at some of the factors that car insurence companies take into considerations. It is however, unlikely that full or comprehensive coverage will carry over from your own car insurence. This is because comprehensive insurence is calculated based on the value of your car. Insurers don t want to be in a position where they set your policy based on your say, $15,000 vehicle, and then have to pay out when you crash a $40,000 rental. So your policy will state that only liability insurence is provided when you rent. One of the problems with this information gap is that it can lead to wasted money. Every time you rent a car you are asked what kind of insurence you would like. The options are generally to take none, which costs nothing, or you could cover liability insurence, which should cost about $10 per day. Then you have a variety of options to cover the rental cat itself, prices for which vary from company to company and state to state. The full coverage option, which includes liability, passengers, and the rental car usually, comes to about $25 to $30 a day. Most people genuinely don t know what option they should be taking. Of course, there has never been an easier time to shop for automobile owners insurence, and that is a fact.

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