Automotive Blog

Owning a car means convenience in most cases, but there are just those instances when you cannot bring your own car with you and you would need to rent.

More often than not, you would get the sales pitch for collision damage waiver (CDW) and various other insurance products, and it is in such cases that the question arises:

Do you really need auto insurance for your rental car?
The answer, in two words, is it depends.

On what?
Your personal auto policy, your credit card company, and/or your company travel policy.

The collision damage waiver (CDW), otherwise known as loss damage waiver or optional vehicle protection, is not really an insurance product but only serves to shift the liability for collision damage from you, the car renter, to the rental company.

It also covers for the time your car, when damaged, becomes unavailable for renting because it is under repair. If you don’t own a car at all but are a frequent car renter, you can avoid repetitive insurance fees by buying a non-owner liability policy which can cost $200 to $500 per year.

If you have an insured car though, chances are you’re already covered by your insurance company even when renting so you’d better check with them first.

If you paid for your car rental with your credit card, then your credit card company might provide you coverage despite it only being secondary to your personal auto policy. Also, your credit card company can only cover damage to the rented car, not any liability claims against you. Still, you should give them a call.

If you’re renting a car for company business, you might be provided with full coverage by your company travel policy.

Aside from the CDW, you might get offered supplemental liability insurance (SLI) which you can purchase if you find that your coverage is inadequate. It costs around $7 to $9 a day and provides excess liability coverage of up to $1 million.

Personal accident waiver (PAI) covers you and your passengers for medical expenses although this might already be covered by your travel policies or personal health policies.

Personal effects coverage (PEC) covers for stolen or damaged personal items inside your rented car, although again this might already be covered by your personal insurance policies.

Teenagers have some of the highest auto insurance rates as they are relatively inexperienced and new drivers.

The increased risk profile is associated with teens driving is a common ailment to teens that are paying for insurance for the first time, especially if the teens are experiencing higher rates than usual.

Here are some tips that teens can take into account when trying to find ways to lower their auto insurance premiums.

1. Teens can enroll into a driving course that includes a combination of classroom instruction and driving time. Through the length of the course, teens can learn common mistakes and how to avoid these mistakes when driving.

This type of class has been effective in reducing auto insurance rates upwards of fifteen percent and therefore can save several hundred dollars from the price of the policy when it comes time to ensure the vehicle. As well as lowering the auto insurance rates, teens can also become safer drivers on the road.

2. Consider bundling policies within the family and allowing the teen to use the policy which has been established by the parents. By bundling these policies, teens can have access to cheaper car insurance rates and parents can also pay less.

By having more than one vehicle through the insurance company, parents can save up to ten and even fifteen percent through the auto insurance policy.

3. Teens can choose a vehicle that has a low risk factor for insurance claims and therefore this will be taken into the equation when pricing the insurance rates. Through these insurance rates, teens can ensure that the lowest possible premiums will be obtained.

4. Teens should take advantage of programs that offer loyalty discounts, as well as programs that offer teens lower insurance rates for optimal performance within school programs, as well as optimal insurance rates for taking part in community activities.

There are many insurance companies that offer programs like these to students for well-performance within the community and therefore students can take advantage of cheap car insurance for maintaining a good standing in the community in which they live.

5. Compare rates for car insurance to ensure that you are able to get the best quote while shopping for auto insurance.

I am an international student studying business management in New Jersey. When I came here, I had to find a home for myself because I did not know anybody here and could not find a good hostel facility. I had to spend a lot on renting a house.

Then I had to pay for my food bills, medical expenses, college fees, stationery fees and other expenses on clothing etc. All this had taken a toll on my bank balance. The local transportation is not efficient in New Jersey.

I was also not aware of which train or bus goes where and was really confused. I then decided that I will buy a car and a map of the road routes and drive wherever I want on my own. Since I had to buy a car, I also needed to get car insurance for it.

With already so much expenses in my account, I could not afford to pay the high insurance that some companies needed.

Another student friend of mine suggested that I log on to the Internet to find auto insurance quotes for my car. He said that I will be able to find the cheapest quotes online. I found some really good quotes online and now my car has been insured affordably.

Cars are now available in second hand i.e. after one’s use and the cost of that car ranges according to its previous use. It is better to buy used car as it is cheap and it is available at the amount what you expect.

Nowadays people are opting to buy used cars only as it comes under the budget. The advantage of buying a used car is that all models are available and you can get the car immediately but this is not the case in new cars.

Before buying a used car one should look for all these things such as number of previous owners, any accidents involved with that car, mechanical problems and even you can put it like the total history of the car.
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The cube’s quirky design disguises some nice features. The car is easy to drive and has lots of interior room for its small exterior size. Like the other “box” cars (Scion xB, Kia Soul), you have to get past the styling before you can appreciate its good features.

“Box cars” are all the rage these days. First it was the Scion xB, now in its second generation. Now Kia’s Soul and Nissan’s cube have joined the party.

Box cars are efficient transporters. They’ll carry four passengers in relative comfort as well as a good amount of cargo. Don’t look for outstanding power, but expect economy.
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