Do You Need Collision Damage Waiver Rental Car Insurance

Reader’s Question:

I’m told I still need to purchase a “Collision damage Waiver” since I will be renting a car here in Brookhaven, New York, for about a month or so. What if I already have car Insurance?

Dennis

Brookhaven, NY

Collision Damage Waiver (Also known as Optional Vehicle Protection) is a policy that is sold by a car rental company to their customers who do not have personal auto insurance coverage. Although the agreements you get from each car company may be different, they are required by the state of New York, under its Financial Responsibility laws, to provide sufficient auto insurance coverage towards their vehicles whenever it is rented.

Since you will be renting a car there in Brookhaven for about a month and you already have a personal car insurance policy under your name then you are no longer required to purchase this policy in order to rent a car. You do want to make sure though that your auto insurance policy does have enough comprehensive and collision coverage to pay for any loss or damages to the rented vehicle in case of an accident, which can otherwise be charged to you directly by the car rental service. The price of a Collision Damage Waiver policy usually falls around $12 a day but still depends on the actual cash value of the vehicle being rented.

You may also be interested to know that a lot of credit card companies already provide cardholders with some level of auto coverage if they use the credit card to rent vehicles. This means that you may get additional protection towards your rented vehicle aside from your current car insurance policy.

 

Will Turning 18 Reduce My Car Insurance Rate

Reader’s Question:

I am turning 18 this December. Since, I’ll be an adult, would this mean I’ll get lower auto insurance rate. Because I heard from a friend that age is one of the factors that affect auto insurance rates. Am I correct?

Ramon

Huntington, WV

Unfortunately, you are getting it wrongly.

It is true that among car insurance companies, age is one of the factors that they consider in setting car insurance rates. However, turning 18 does not mean you are safer to be insured.

In fact, you are still considered a teen driver, thus you are riskier to be insured as compared to adult drivers. But in general, once you have reached the age of 25, car insurance companies will consider you safer to be insured. Because according to studies, drivers who are 25 years old and above are less likely to be involved in car accidents as compared to younger drivers.

So once you reached the age of 25, I would say you inform your insurer in West Virginia, to see if they offer a discount for this age bracket. However, before you do that, make sure that you maintain a clean driving record. Because being 25 is useless if you have under your driving records several traffic violations.

 

How To Save Money OnTeen Driver Auto Insurance

Reader’s Question:

I am a mother of two. Both my teen sons are under my auto insurance policy. And honestly, it is very expensive to have them both under my policy. Can anyone help me and share their ideas on how they save on car insurance with teen drivers?

Raquel

East Orange, NJ

I understand what you feel Raquel. I am a mother of three too. And it is really expensive to have teens under your policy. I could share you some things I did that greatly help me in reducing my car insurance premium in New Jersey.

First, study each policy you have. If you have an existing health insurance, then there’s no need for you to get additional medical insurance from your auto insurance company;

Second, if you are buying a car, NEVER buy an expensive car, it is a fact that it’s more expensive to be insured;

Third, increase your deductible. Doing this will decrease you car insurance premium;

Lastly, shop, shop, and shop for car insurance quotes. There are so many auto insurance companies in New Jersey with competitive quotes. All you need to do is to compare car insurance rates and you’ll be amazed on how rates differ form every car insurance company. And the good thing is you can start doing that by using this website and entering your zip code.

 

 

 

 

Auto Insurance Laws In Hawaii – What You Should Know

Reader’s Question:

My boyfriend will be moving to Honolulu, Hawaii this month. He is a very careful driver and has been maintaining a very clean driving record from the time we’ve met. He’s asking me so many questions about car insurance law in my home state since he would like to keep his clean driving record as it is. I know so little about car insurance here. Can anyone help me?

Jasmine

Honolulu, HI

Hawaii is one of the 13 states which is considered a no-fault state. Meaning, if a person is involved in an accident, regardless of whose fault it is, that person’s auto insurance company automatically pays for the damages incurred depending on the person’s policy limits.

Since your boyfriend will be moving here, his car must be registered, licensed, and insured for him to be able to legally drive his car. In addition, he is required to have a Personal Injury Protection policy on his auto insurance, with minimum required limits of $10,000/ person. This covers him for his own medical expenses incurred from the accident. Also, this usually covers the policyholder’s funeral expenses. Similarly, the policyholder’s relatives living in the same house and other authorized drivers on the policyholder’s car would also be covered.

For additional information, you can check the websites for available auto insurance quotes in Hawaii or ask you car insurance agent.

 

Will Car Insurance Rates Go Down When I Turn 25

Reader’s Question:

I am turning 25 this December. I heard from a co-worker that once I’ve reached that age, I would see a change on my car insurance premium. I was told it would go down. Is this really true?

Ruth

Dubuque, IA

It is a general practice among car insurance companies that once their policy holders reached 25 years of age, their auto insurance premium also decreases. The explanation behind this is because studies revealed that drivers who are 25 years of age and older are less involved in vehicular accidents as compared to drivers who are 25 years old and below. In addition, people belonging to the age range of 25 years old and above are found to be more responsible as compared to younger drivers.

For some cases, once the policy holder reaches the age of 25, his or her auto insurance premium decreases by as much as 20%. However, you must remember that age is not the only factor that affects your car insurance rates. To name a few, gender, marital status, and driving records are also being considered by auto insurance companies in setting their rates.

To find more information about this, I would suggest that you check with your auto insurance agent in Dubuque.  It’s also best to inform your insurer once you have reached the age of 25, to see if they will offer you lower car insurance rates.