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Am I covered for this?

By Jerry Barron – Owner, Barron Insurance 

It is amazing how the time flies isn’t it..don’t know if this is to late but here is my attempt for our next issue.  If time and space allow let me know and I can finish the article now instead of next time:

It’s Easter weekend and the family is thrilled to be going to Disney World for spring break.  You have your airline tickets, car rental is all lined up, the hotel and theme park reservations are made..time to get out of here!  You arrive at the airport in Orlando and rush to get your rental car.  The clerk behind the counter turns the rental car contract around so you can read it, initial it, and sign it so you can be on your way to Florida fun!

The clerk asks if you would like to purchase collision waiver for $20 per day so you don’t have to worry about being responsible for any scratches, dings, or accidents while renting their car.  Your memory goes back 20 years ago when you rented a car and you asked your insurance agent if you need to take out this waiver thing..and you remember them telling you it was not necessary because your full coverage you currently carry follows the rental vehicle so you are all you think.

Two days later you go to leave for Universal Studio’s and you notice a hit and run driver has backed into the front of your car which damages the radiator and causes 6,000 in damage.  The car will be out of commission for 30 days.  You report the damage to your insurance agency and they pay the full amount minus your $500 deductible.  60 days later you receive a bill from the rental car company for $4,500!  The first $1,500 was for LOSS OF USE (because the rental car company could not rent that vehicle for 30 days and lost $50 per day in rental fees) and the next $3,000 was for DIMINISHED VALUE (the rental car company was supposed to get $25,000 from Ford when they turned that 2017 Ford Taurus SHO back in on May 1st and because of the damage the value went down $3,000).  What!! AM I COVERED FOR THIS??

In next month’s issue I will dive into this further.  In the meantime..if you are planning on renting a car within the next 30 days you better contact your agent to see how your auto policy responds or most likely does not!

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