Should I Purchase the Coverage offered by the Rental Car Company?
Purchasing a Collision Damage Waiver on Your Rental Car Can Make Sense
Although the fees can be considerable, it may be a good idea to purchase a collision damage waiver the next time you rent a car. You may believe you have enough protection from your Personal Auto Policy (PAP); however, that's just not the case.
Gaps in Coverage
Your PAP typically covers the lesser of the actual cash value of the car or the minimum amount to repair or replace it. Your contract with the rental car company may require you to reimburse them for the full value of the vehicle in which case you would have to make up the difference out-of-pocket. The PAP also does not pay for any increased value of new parts replacing old ones, or any diminution of value, meaning if the market value of the vehicle after repairs is less than that before the accident, you would have to make up the shortfall.
Another area where the waiver can be of great importance is in the settlement process. Your insurance company has the right to inspect and appraise the damaged car before repair or disposal. However, the rental company is not bound by the terms of your policy, and it may opt to complete the repairs immediately. This would possibly result in your not being covered because you didn't comply with the terms of the policy.
Immediate Reimbursement for Damages
Additionally, the rental agreement may require immediate reimbursement for damages. Without the waiver, they could put these charges on your credit card which can create unexpected cash flow issues.
Rental agreements often make the renter responsible for any loss in value beyond normal wear and tear, regardless of the cause or who's at fault. Your PAP doesn’t cover this contingency unless you insure at least one vehicle for both collision and other-than-collision coverage.
Loss of Use
You could also be responsible for the rental company’s loss of income on the damaged car. Your policy has limited coverage for these charges. The same is true for any administrative or loss-related expenses such as towing, appraisal, claims adjustment, and storage fees you may be charged.
Confusion as to who pays
Another issue to consider is that your PAP is considered excess coverage if any coverage is provided by the owner of the auto or there is any other applicable physical damage insurance; or there is any other source of recovery applicable to the loss, such as travel policies, credit card coverage, etc. This can create a controversy over who pays, which can result in messy litigation.
If you have additional questions or would like a coverage review, get in touch with Chris Baumli, CIC at cbaumli@sbcia.com or call 512-338-0100 and ask to speak to one of our licensed counselors.Labels: Austin, Auto, Car Insurance, Rental
Where's the Insurance? Beware of Uninsured DriversAbout twenty years ago, a famous hamburger chain ran a series of commercials featuring a cute octogenarian named Clara Peller. This feisty little old lady claimed her fifteen minutes of fame asking that now famous question, "Where's the beef?" While it may have been funny to watch her put fast food restaurant owners on the spot, it is not at all funny if you're in a car accident and you ask the other driver for their insurance card only to find out they have none.The Risk
Unfortunately that's a scenario that happens all too frequently. As the cost of living rises and paychecks don't meet needs, people start making decisions about where to cut expenses. One of those decisions may be to eliminate or greatly reduce the amount of their car insurance. They need the car and take the calculated risk that they won't get into an accident, but invariably, they are wrong. In fact, the possibility of an uninsured motorist hitting you is greater than you may realize. There are some states in which almost 32 percent of all drivers do not carry automobile insurance. The national average is 14 percent.
Uninsured Motorists Coverage
You can protect yourself from an uninsured driver, or even an underinsured driver, whose negligence causes you to be involved in an accident. The first way is with uninsured motorists (UM) coverage. It provides insurance protection for bodily injury, and in some states, property damage, caused by an uninsured driver. This type of policy permits you to collect from your own insurance carrier just as if it provided liability coverage for the uninsured driver.
Uninsured motorist bodily injury coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver without car insurance. Uninsured motorist coverage also pays for injuries that result from a hit-and-run accident. Policy owners choose the coverage limit when they buy their policy.
Uninsured motorist property damage coverage protects you if your vehicle is damaged in an accident caused by a driver without car insurance. Other protection provided by this type of policy varies from state to state. If available, the deductible for uninsured motorist property damage is usually $250. This is often substantially less than the collision coverage deductible found in your auto insurance policy.
Underinsured Motorists Coverage
The other policy alternative is underinsured motorists (UIM) coverage. This provides insurance protection for bodily injury, and in some states, property damage, caused by a negligent motorist who is not sufficiently insured and whose negligence results in an accident. The bodily injury portion of this kind of coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured. It usually pays the difference between the coverage limit you select and the other driver's bodily injury coverage limit.
Underinsured motorist property damage coverage protects you if your car is damaged in an accident caused by a driver with insufficient auto insurance coverage. Other specific protection provided by this type of coverage varies by state. As with bodily injury, property damage coverage pays the difference between your policy's coverage limit and the other driver's property damage coverage limit.
When you are deciding whether or not to buy either of these coverages, keep two very important points in mind. Both UM and UIM coverage are broad in scope because they provide benefits for you and your family members' injuries that occur in your own covered car, in cars you don't own, and as pedestrians. Despite all of this protection, the cost for this coverage is reasonable compared to liability coverage and physical damage coverage for your own car.
If you have additonal questions or would like for Southwest Business Insurance to review your coverage email Chris Baumli at cbaumli@sbcia.com or call us at 512-338-0100 and ask to speak to one of our insurance counselors. Labels: Austin, auto insurance, Car Insurance, uninsured motorist
So you don't have Workers Comp?
It's true that you are not required by law to carry Workers Comp and Employers Liability coverage in Texas. Of course, you are not required to eat either, but that doesn't mean that it's not a wise decision.
So then the question becomes, "Do I really need to carry Workers Comp & Employer's Liability?" Well, if you have employees the answer lies in part B of the coverage called Employers Liability.
Employers Liability prevents an employee from suing an employer for on the job injuries or illness in most cases. This affords a great protection to an employer.
What are the risks of not having Employers liability?
If you as an employer don't have Employer's Liability coverage then you frankly have a huge exposure... Without this protection, you not only have the legal responsibility to provide medical and disability payments for an injured employee, but in Texas, if you do not subscribe to the workers comp system you also forego your right to use certain common law defenses that are normally allowed in negligence lawsuits.
But my employees work in an office!
OK, I hear you say that "my employees work in an office. If they get a paper cut, I can pay for them to go to the doctor, right?" This is true, but do you really know everything that can happen?
Do you ever have an employee run a business errand? Or drive to the bank to do a deposit or go to the office supply store in their own vehicle? What happens if they get in a serious at fault accident? Who pays for their medical and disability payments? You might think that your company's group health insurance would cover it. Rarely does group health provide coverage for on the job accidents. What about your business auto insurance? Nope. That's a 3rd party liability coverage and the PIP is typically limited to $2500. What about General Liability? No, sorry, that specifically excludes injuries to employees, but thanks for playing...
So who covers it? Hopefully your workers comp carrier and hopefully your workers comp carrier is not your balance sheet! Check into this important coverage today. Click here for a free quote.
__________________________________ Chris J. Baumli Certified Insurance Counselor Austin, Texas
Labels: Austin, Car Insurance, Chris Baumli Austin, employers liability, workers comp
The Protector
Health insurance scams are going past the point of Fraud and bordering on point of epidemic. Unlicensed health insurance companies lure as many people as possible with cheap rates and keep them paying premiums for as long as possible. When claims get substantial or regulators catch on, they shut their doors and skip town, leaving the unsuspecting consumer with a pile of unpaid medical bills.
"We are at the beginning of a real crisis: an unprecedented influx in unauthorized insurers selling phony health insurance," says Mila Kofman, a researcher at the Georgetown University Health Policy Institute. For example the four biggest unauthorized insurers have left at least 100,000 victims with over $85 Million in unpaid medical bills. Hopefully you've never heard of or written a check to American Benefit Plans, Employers Mutual, or TRG marketing.
SO HOW DO I PROTECT MY EMPLOYEES?
First of all, do business with an reputable insurance agent. You can check out status of an agent's license by going to the Texas Department of Insurance website (See TDI Agent Search Link). Additionally, go by their office to see that they are indeed an established company. Ask to see a copy of their Errors & Omissions coverage which can provide you with financial recourse in the event that an agent's misrepresentation causes you financial harm
But don't stop there. Even licensed agents have sold unauthorized health plans. TDI maintains very relevant information about a carrier including licensing status, financial information, complaint ratios, as well as information on fines or violations a company might have been slapped with. (See TDI Carrier Profile Link). You should also check the financial ratings of the company by going to sites such as AM Best and Standard & Poors.
Taking a few minutes to check out who your dealing with can make the difference between sleeping soundly at night and being stuck with a handful of unpaid medical bills. As always, if you have questions or comments, or would like a free risk assessment for your business feel free to contact me at 512-338-0100 or cbaumli@sbcia.com.
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