Following are a few considerations when mulling this important decision:

DAMAGE WAIVER & YOUR PERSONAL AUTO POLICY
First, the good news: In many cases, a personal auto insurance policy will cover damage to a rented vehicle. That said—don’t get too comfortable! There are other costs associated with damage to a rented vehicle that the policy will not cover. For this reason, careful consideration should be given to purchasing the damage waiver offered by the rental car company.

On your personal auto policy, “Collision” insurance covers your vehicle for damage resulting from a collision with another object. “Comprehensive” (sometimes called “Other Than Collision”) covers your vehicle for theft, vandalism, falling objects and other causes not resulting from a collision. If you have a car loan, your lender will require you to purchase both. If you pay the loan off, the choice to purchase collision or comprehensive—and both or neither—is up to you.

Your personal auto policy will only cover damage to the rental car if you have the appropriate coverage type on at least one vehicle you own. For example, if you damage the rental car in a collision, you must have “collision” coverage on at least one vehicle covered by your personal auto policy. But if the rental car is stolen, vandalized, or damaged in any way not resulting from a collision, you must have “comprehensive” coverage on at least one vehicle covered by your personal auto policy. The key point: If your personal auto policy excludes the coverage type that damages the rental car—and you reject or violate the damage waiver—you will become personally responsible for paying all costs related to the damaged rental car out of your own pocket!
In contrast, the damage waiver usually offered at the rental counter will cover the damaged rental car regardless of what’s covered by your personal auto policy.

LIMITATIONS IN YOUR PERSONAL AUTO POLICY
What else could you possibly owe the rental company following an event or crash? These include administrative fees and the depreciated value of the vehicle after repairs—neither expense is covered by your personal auto policy. In addition, most personal auto policies only pay up to the actual cash value (ACV) of the damaged vehicle. If the contract requires the damaged rental’s replacement, the ACV payout may not be sufficient to cover the entire expense.

Again, in contrast, the damage waiver will cover all such expenses.

Also, the rental contract likely will require you to pay the rental company’s “loss of use.” These are expenses they incur resulting from the inability to earn income from the damaged rental. This cost could be hundreds of dollars or more. Some personal auto policies will pay a limited amount for this expense (such as $20 per day or $600 total). Others will not cover it at all.

In contrast, the damage waiver will pay the full cost of the rental company’s loss of use.

NO CLAIM NECESSARY
If something happens to the rental car, purchasing the damage waiver gives the rental agency management of the process. This will allow you to avoid filing a claim and possibly help keep the cost of your insurance from going up. It also will keep your deductible in your pocket.

LIMITATIONS IN THE DAMAGE WAIVER
Don’t forget that the rental car company’s damage waiver is a contract. It will include a list of restrictions that, if violated, may terminate the waiver and leave you personally responsible for paying the costs associated with the damaged rental car. Examples of such restrictions may include:

• Damage to rental while driven by someone not specifically named on the contract.
• Damage to rental while driven on unpaved roads.
• Damage to rental while it’s being occupied by more passengers than available seatbelts.
• Damage that occurs while pushing or towing.

This list is only a sample; the typical damage waiver may include additional restrictions.

Moreover, the car rental company’s loss damage waiver covers “diminished value,” the economic reduction in value of a repaired auto due to it having been damaged. Almost all auto policies and many credit card coverages exclude diminished value. What’s the impact to you? If you don’t take the damage waiver, you could get hit with a diminished value claim of $1,500 or more, depending on your type of damaged rental car.

DAMAGE WAIVER COVERS VEHICLE DAMAGE ONLY
Perhaps the most important fact to remember is that the damage waiver only applies to damage to the rented vehicle. It is not a substitute for liability, medical payments, uninsured motorist, personal injury protection, and any other personal auto insurance coverage.

OTHER PRODUCTS OFFERED BY RENTAL COMPANY
In addition to the damage waiver, most rental car companies offer a few optional insurance-type products. For example, some may offer a liability enhancement that gives you the option to increase the liability limits you already carry on your personal auto insurance policy. Depending on your available auto liability insurance, this option may be worth consideration.

Others may offer options such as accidental death, trip cancellation, or damaged luggage insurance during the rental period. Such options vary by company and may provide insurance dollars you cannot get elsewhere. However, they should not be purchased without first reviewing your current home, health and auto insurance policies as there may be duplication.

CONCLUSION
In light of the information above, you should seriously consider—and probably buy—the damage waiver from the rental car company. Deciding whether to purchase other products from the rental firm, however, depends largely on the insurance already available to you from other sources. For assistance in determining coverage you already have and comparing it to the rental company’s options, call your Trusted Choice® independent insurance agent today.

Business Travel Note: When you rent a car on a business trip, that’s an entirely different set of decisions, so again please talk with your Trusted Choice® independent insurance agent.

Reprinted from the Trusted Choice website

View this important video to understand why you should consider purchasing international medical insurance while traveling for business or pleasure.

The agents at Hill and Stone Insurance Agency, Inc. are happy to help you select the right policy for your needs.

Teens lack maturity and life experience

Click on the link above to see the best video on teen driving, which is produced by Chubb Insurance.

Insurance Matters

Auto Insurance Made Easy

(NAPS)—Understanding insurance can often be like trying to learn a foreign language. Many find it confusing and intimidating.

Fortunately, there’s help. Here is a quick reference designed to help you understand some of the most common kinds of coverages. The reference was put together by The Progressive Group of Insurance Companies.

Liability covers bodily injury and property damage (BI/PD). This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident. In most states today, liability insurance is mandatory.

Under BI/PD, your insurance company pays for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If your policy covers you in the event you’re sued after an accident, your insurance company will pay for a lawyer to defend you.

Liability limits generally appear as three numbers, for example, 25/50/25 or 100/300/100. The first number refers to the maximum amount, in thousands, that your insurance company is obligated to pay for bodily injury per person. The second number is the maxi-mum that would be paid out for bodily injury per claim and the third number represents the maxi-mum amount your insurance company is obligated to pay for property damage you cause.

Collision. When you buy collision coverage, your insurance company pays for damages if your vehicle collides with another vehicle or object. Collision coverage involves a deductible amount you select when you purchase your policy. This amount is what you are required to pay before your insurance company starts picking up the tab. Remember, the deductible amount is the amount you need to pay in the event of a claim.

Comprehensive covers dam-age caused by events other than a car collision—such as fire, theft, vandalism, hail or flood. It also covers damage caused by your vehicle colliding with an animal. And if your car is stolen, it will cover the cost of a rental, subject to a daily limit. Like collision coverage, a deductible usually applies.

Medical Coverage. Depending on the state in which you live, you may have available to you Medical Payments coverage or Personal Injury Protection (PIP) coverage. While these both work differently, they provide coverage for medical care provided to you as a result of a car accident.

An independent insurance agent can help you determine the price, coverage and service that best meets your needs. To find an agent, go to progressiveagent.com.

Did You Know?

Liability insurance is for bodily injury and property damage. This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident. In most states today, liability insurance is mandatory. To find an agent to help you learn more about car insurance, go to progressiveagent.com.

As compiled by Progressive Insurance

Answer:  “Real estate and insurance teams don’t play on level turf!”

This is a question we hear almost every day.  With regard to the answer, the recent economy places insurance agents and real estate agents in totally different ballparks, sometimes on opposite sides of town.

When assessing a home’s value, a realtor will research the sales activity of a similar home, in a similar area, in a similar time frame. Real estate activity is currently down, and home values have followed.

When assessing a home’s value for insurance purposes, an agent calculates the cost of rebuilding your home under the worst case scenario, a total loss. We cannot underestimate the importance of insuring your home to value. The effects of a major catastrophe are difficult enough, without worrying about unanticipated, out of pocket expense. Moreover, insurance policy wording specifies that homes be insured to value to substantiate a claim. If a homeowner knowingly underinsures a home, a claim could be denied.

How do we figure reconstruction costs? The leading authority regarding construction data is Marshall & Swift, a company of MacDonald, Dettwiler and Associates Ltd.  Marshall & Swift boasts more than 75 years of market research, appraisal excellence, and cost trend analysis for the construction industry. Insurance companies have relied on this important data for decades.

A Marshall and Swift Replacement Cost Estimation includes corner to corner evaluation of the total cost of reconstructing your home. It includes numerous variables including:

• Square footage
• Year built
• Number of baths and kitchens
• Style of home
• Type of garage
• Features such as central air and fireplaces

The replacement cost estimation does not include your driveway, split rail fence, garden trellis, custom mailbox, or brick patio complete with firepit.

It is important to note that your building coverage amount increases a little each year to keep pace with inflation. Consequently, it may increase your annual premium. However, built in inflation guard protectors may be skewed over time, causing the replacement cost to be higher or lower than true replacement costs. If it’s been awhile since we’ve done one for you, feel free to give us a call at (847) 295-3030 and one of our agents will be happy to calculate a current replacement cost.

Homes over $500,000 may require a professional appraisal. Companies may be willing to provide this service if one has not been done in several years. Just beware that if the replacement cost comes in higher than your current coverage amount, you will be required to increase it and will incur a higher premium.

While insurance agents and realtors realize disparity in our individual markets, consumers in both worlds can recognize that they are currently very different markets. In the interim, don’t over or under insure your home.  Call us for an accurate replacement cost, so that the true winner of the game is you.

Authored by Toni Hoy, CISR

* increased costs to meet current building codes

* increases in building costs and building materials

* costs associated with debris removal and clean up

Reconstruction cost follows the fluctuating cost of building materials and labor costs. Real estate values follow the buyer’s market. When real estates values increase 30-50%, the reconstruction costs will be relatively less. When the real estate market is depraved and property values are going down, the real estate value can be equal to or less than the reconstruction cost.

What could go wrong on your special day?

• Cancellation due to severe weather
• Photographer, videographer, or DJ no show
• Bridal gown shop closes
• Rings are lost
• Florist closes or cancels
• Your venue requires liability insurance

For a little more than a hundren dollars, you have one less thing to worry about.

Insure the most special day of your life. Then call an agent at Hill and Stone Insurance Agency, Inc. to help you decide on the best coverages for your new home insurance and to combine your auto insurance policies.  We can also help with tenant insurance.

• No texting
• No web surfing
• No checking or reading email or Facebook
• No use of handheld phones while in construction or school zones
• School bus drivers are prohibited from talking on phones while driving a bus
• Using a handheld phone while driving in the Chicago city limits
• Using a cell phone while driving under a learner’s permit
• Persons under the age of 18 using a cell phone while driving

There are exceptions to every rule.  Here’s what you can do:

• Use your GPS while driving
• Text while stuck in a traffic jam if the car is in park or neutral
• Text if you parked on the shoulder of the road

Still another important law this year is in relation to state mandated auto insuranc requirements.  Uninsured drivers can expect to receive a misdemeanor if they injure someone while driving without auto insurance.  Violators face a $2,500 fine or up to a year in jail. 

Concentrating on your driving should be your first priority.  Remember that first rule from driver’s education.  Keep your eyes moving and keep them on the road.  Resist the temptation to break the new laws.  Within the law, use common sense.