Recently, a friend was hit by a deer while driving. Though he and family are OK, they will be having a difficult couple of weeks while their car is being repaired.
Why?
They did not have car rental reimbursement.
His insurance company is a top tier company, and pays claims well and in a timely manner. They have very good coverage. However, my friend opted out of the car rental reimbursement.
So I have two bits of advice (and remember, I have a Tennessee Property and Casualty License):
1. Purchase car rental reimbursement. It is around $40 per year through most carriers.
2. Purchase insurance through an agent.
I know many out there think insurance rates are higher when purchased through an agent. By law, this is not permitted (though one major insurer tries to get around it with an "internet discount" - and they are being litigated against for it).
Another point to ponder, with regards to agents and commissions - an insurance agent would have made a whopping $6 more per year (at most) for this particular policy, if it had car rental reimbursement. Most auto insurers pay agents 12% - 15% of the premium.
Insurance agents - like other professionals such as doctors, lawyers, CPA's, etc. - must do significant continuing education to retain their licenses. Additionally, reps for companies (like I used to be) keep agents abreast of industry trends, and policy caveats. This information helps an agent point you toward the type of coverage you need.
For us, it comes to $16 every six months, to be exact.
ReplyDelete$32 per year is very much within the norm. How much does it pay per day, and for how many days?
ReplyDeleteGot the high-end option...$30/day up to $900.
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