How to Save on a Rental Car

by California Casualty | Auto Insurance Info | 0 comments

Thinking about renting a car for your next getaway? Much like insurance, rental car contracts can seem complicated, if you don’t know what to look for. Understanding what you need and what you don’t will help you save on your rental—and use that extra savings for vacation fun.

First, let’s take a look at the basics of a rental car contract.

Age: You must be 25 or older to rent a car in the U.S. You can still rent a car if you are aged 21-24, but you will pay an extra fee. Similarly, you may need to pay a surcharge if you are age 70 and above. 

Additional drivers: You may pay a fee for each driver beyond the main driver. However, rental car companies often will let spouses drive for no additional fee.

Classification of car: The daily or weekly rate depends on the type of car that you choose. Choices range from economy, the least expensive, to luxury, and more. Here’s a quick rundown of the basic sizes:

• • Economy generally describes a small sedan with 2-4 doors and seating for 4.
  • Compact is a slightly larger sedan with 4 doors and seating for up to 5.
  • Intermediate/mid-size/standard are 4-door sedans that are more spacious than compacts. They seat up to 5.
  • Full-size/premium cars seat 5 comfortably and have ample room for luggage.

You can also rent luxury cars, convertibles, SUVs, mini-vans, vans, and trucks. Keep in mind that the rate quoted for the car you choose is only the base rate. The actual price you pay may be more because it will include fees and surcharges.

Fees and Surcharges: You might expect to pay state and local taxes. But did you know you also may pay a surcharge to pick up/drop off your car at the airport? There’s a charge if you don’t return the car with the same level of gas. There also are charges for insurance, to protect against damage to the vehicle.

Insurance: Before you purchase rental car insurance, make sure your auto policy doesn’t already cover rental cars. Many policies do. If you’re renting a car out of the country, double-check that your auto policy covers you. For example, when traveling in Mexico, you will need a special Mexico policy.

• • Collision Damage or Loss Damage Waiver – Optional in many states, this type of coverage pays for the rental car if it is damaged or stolen. There usually is a deductible, for which you’re responsible. If your auto policy covers collision damage, make sure that it also covers “loss of use.” For a rental company, getting a car repaired in the shop means it loses the income it could be getting from renting the car. The rental company can charge you the daily rental rate for each day the vehicle is out of service. 
  • Personal Accident Insurance – This optional policy covers you, the driver, in the event of an accident, including ambulance transportation and medical bills.
  • Supplemental/Additional Liability Insurance – This optional policy covers the other driver and passengers whom you may injure in an accident. It also covers any property damage. You likely have liability on your own auto policy. Check to make sure the liability limit is enough. You can purchase supplemental liability insurance with the rental car company or get an umbrella policy from your current insurer.
  • Personal Effects Coverage – This optional policy covers your possessions if they are damaged, lost, or stolen, something your homeowner or renter’s policy may already cover.

Mileage: Some rental contracts come with unlimited mileage. Others require that you pay for mileage beyond a certain daily limit. For example, if the daily limit is 150 miles, and you drive 160 miles, you will owe 10 additional miles at the rate charged by the company.

Now let’s see how you can save some money.

You have a lot of choices in renting a car. That gives you some control over how much you spend. Here are some ways you can keep the bill more reasonable.

1. Choose a slightly smaller vehicle. Not only will this save on the daily rate, but the car will also most likely get better fuel economy and require less gas to fill it up.

2. Book your rental car through your airline. Airlines have arrangements for discounts with rental car companies. That’s why bundling rental cars with flights and hotels can save money.

3. Book through your credit card. Credit cards can include a collision damage waiver. Just make sure you also are covered via your auto policy, as credit cards are usually tapped after your auto policy.

4. Take advantage of membership and group discounts. You may qualify for a discount if you are a member of AAA. There also are sometimes alumni or university discounts. If you rent frequently, you can get discounts via a rental car loyalty program.

5. Shop around. You might find a locally-owned rental company with a better rate. You also can find good rates on travel websites such as Kayak. If you’re using a lesser-known company, do your research with the Better Business Bureau to make sure they’re legitimate. 

6. Check alternate rental locations. It may be cheaper to pick up in town than at the airport.

7. Check your own auto policy coverages so you choose only the coverages you need. Check with your insurer on other potential savings. For example, California Casualty will waive your physical damage deductible if you rent a car while on vacation.

8. Return the car on time. Be aware of the 24-hour time clock. You can be charged for extra hours or even an extra day depending on how late you are.

Renting a car can be stressful, but it doesn’t have to be. For more questions on rental car insurance or ways you can save on your own insurance policy, call a California Casualty agent today at 1.866.704.8614 or visit our website www.calcas.com.

This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.

Liability, Collision, & Comprehensive Coverage 101

by California Casualty | Auto Insurance Info | 0 comments

You got a new car—or a “new” used car. Now you have to figure out your car insurance. Here’s what you need to know about the most common types of auto coverage: liability and coverage for damage to your auto (comprehensive and collision). 

Liability Coverage – What is it?

If you cause an accident, you are liable (responsible) for damages. Liability coverage is used to pay for those damages that you caused. Importantly, it does not cover any damage to your own vehicle; that’s covered by collision. It also does not cover injury to you and your family; it only covers the people in the other car. Liability coverage is required by law in most states.

There are two types of liability coverage: 

• • Bodily injury coverage helps pay for medical expenses, lost wages, and pain and suffering for the driver and passengers in the other vehicle.

• • Property damage coverage helps pay for repairs for the other vehicle or for repair/replacement of property, such as a fence, damaged or destroyed in the collision. 

We say “helps pay” because it depends on how much coverage you choose. The costs of an accident can be more than your insurance policy limit.

You choose a coverage limit. 

Each state sets a minimum amount. The main goal of liability insurance is to protect your assets, and so you may choose a higher limit than the state specifies. You’ll want to take into account the amount of medical expenses that could be incurred in an accident. You could be responsible for lost wages for the driver. Even if he or she dies, you could be providing lost wages for the driver’s family.

 Your insurance will only pay for the amount that you’ve designated. The rest comes from your pocket. 

Example: Let’s say your liability limit is $50,000 per person. The driver of the car you hit has $40,000 in medical expenses. His passenger has $60,000. You would be responsible for paying $10,000 of medical costs for the passenger.

California Casualty offers a Package Discount where you may actually pay a bit less for carrying above state minimums and a discount if you carried 100/300 with your prior carrier.  It doesn’t always cost a lot to bump up your coverage.

Most auto policies have three liability limits: 

• • Bodily injury liability limit per person
  • Bodily injury liability limit per accident
  • Property damage liability limit per accident

Limits are usually listed as follows: 30/60/15 describing $30,000, $60,000, and $15,000 of coverage respectively for bodily injury per person, per accident, and property damage. Some insurers offer a combined single liability limit that covers both bodily injury and property damage.

Liability coverage can protect you in a lawsuit.

The driver of the other car may decide to sue you. If that’s the case, your home and savings could be at risk. Liability insurance could help protect these assets by covering the cost of the lawsuit, lawyer’s fees and court costs.

Collision Coverage – What is it?

Collision coverage helps to pay to repair your vehicle or get one of equivalent cash value if yours is totaled. This applies both to accidents with other drivers and collisions with objects such as a fence or mailbox. It also covers vehicle rollovers. Unlike liability insurance, collision coverage is not usually required—unless you’re leasing a car or paying off a loan on a vehicle. However, it may be good to have.

• • If you’re in a crash with another driver, and they were totally at fault, their property damage liability insurance will pay for your car’s repair or replacement. 
  • Your collision insurance kicks in if the other driver does not have enough property damage insurance—and if you don’t have underinsured (UI) or uninsured motorist (UIM) coverage. 
  • UI and UIM coverages are for injuries that you sustain if hit by an at-fault uninsured or underinsured motorist. You would either need to carry collision or uninsured motorist property damage (UMPD) coverage. This coverage often has a maximum limit (for example, $3,500).  Most people carry one or the other but not both.  
  • If you were at fault in an accident, your collision insurance will cover the costs of your repairs.

Your coverage limit is the value of your car. 

The maximum amount your insurance company will pay is the actual cash value of your car. If you total a used car, you’ll receive a total loss settlement that will go toward replacing your car. 

With collision coverage, you will have a deductible. This is the amount that you have to pay out-of-pocket before your insurance kicks in. Choosing a higher deductible is one way to lower your insurance premiums. In most cases, you can’t buy collision-only coverage; you have to buy comprehensive coverage, too.

Comprehensive Coverage – What is it?

Comprehensive coverage is for damage to your vehicle other than collisions. Therefore, it’s not for accidents. It is for natural disasters, fires, vandalism, theft, and animals that damage your vehicle. Think of it as “bad luck coverage.” Comprehensive coverage is not usually required unless you’re leasing a vehicle or paying a car loan.

As with collision, your coverage limit is the actual cash value of your car.

Comprehensive coverage pays as much as the total value of your car—but not more. It makes sense to cover a new car. If your car is old and has little value, you may opt not to have comprehensive coverage. Just make sure if you do, that you have the funds available to repair or replace your car. With comprehensive coverage, you usually have a deductible. California Casualty does offer a policy with a zero deductible. 

Do I really need comprehensive coverage?

Let’s say you have an old car, paid in full, that isn’t worth much. Car and Driver offers the following formula to determine If you need comprehensive insurance.

• • Calculate your vehicle’s value.
  • Subtract the deductible on your insurance policy.
  • Subtract the cost of a six-month policy for comprehensive coverage.
  • If you get a negative amount, it’s probably not worth it to continue to pay for this coverage.

Where you live may influence your decision.

If you live in a high-crime area, a wooded area with lots of deer, or a place with severe weather or flooding, you will want comprehensive insurance. It offers additional peace of mind for some likely scenarios.

Liability, collision, and comprehensive coverage are the main parts of a vehicle insurance policy. You can check the declarations page of your vehicle policy to see how much you are paying for each. For an overview of the car insurance you need, contact your insurance agent. 

This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.