Use Coupons for Car Rental Discounts But Read the Fine Print Carefully and Exceptions

Full coverage auto insurance is most commonly defined as an insurance policy that exceeds the state minimum requirements and includes comprehensive, collision, property damage and medical overages.

Car Rental insurance is usually a daily charge and can drive the cost of your car rental way up. Most people turn it down and assume they are covered by their personal auto policy and additionally by credit cards but few take the time to call and verify the coverage.

Many money saving blogs caution that you may not be covered for everything even if you have full coverage auto insurance.
The quickest way to find out is to call your agent and credit card company and ask.

The car rental company will pressure you to buy the insurance and chances are you will be in a hurry. So it is best to know the answers in advance. Just so you know what is going on when you get to the car rental counter let us look at what rental car companies are actually selling you in terms of insurance:

1. Collision Damage Waiver (aka Loss Damage waiver) : This is not an actual insurance. It waives the right for a rental car company to get money from you if the vehicle is damaged or stolen as long as you don’t violate any of the terms of your rental agreement. If you have collision and comprehensive coverage in your auto policy, you should be covered so you really shouldn’t buy this one.

2. Liability Insurance : Covers any liabilities you may have in case of an accident. Your auto liability insurance should cover you here.

3. Personal Accident Insurance (PAI) : This provides coverage for accidental death and medical expenses for the renter and passengers. If you have accident coverage in your personal policy you are covered plus your medical insurance may cover the gap if your auto policy limit is low.

4. Personal Effects Coverage (PEC) : This covers the your personal belongings. This coverage is either in your auto or homeowners policy.

Secondary coverage from Credit Cards : Most of the major credit cards offer the Collision Damage waiver. It is a usually a secondary coverage meaning they will pay what your insurance won’t (ex. deductible) The credit cards may also pay some fees that are not usually paid by the auto insurance.

Be careful if you use coupons because you might not be covered at all. For instance, American Express says unless you use American Express discount coupons your coverage is void!

If you actually have an accident the car rental company may charge additional fees that will not be covered by your auto insurance. Here are the categories of fees:

Loss of use fees – They charge for the lost revenue while the rental car is in the shop being fixed.

Administrative fees – They charge you a fee just because it takes employee time to do the paperwork.

Diminution of values fees – Because the car has been in an accident its value will decrease.

According to money blogger these 3 fees themselves can range from $1000 to $10000. Your auto insurance policy may or may not cover these.

Roadside Assistance is another area where you are usually under pressure to make a decision and that pressure can cause you to spend more money than you should. See our post Roadside Assistance for Paying Reasonable Towing Charges if Your Car is Disabled to find out what you need to know before your car is disabled.

Retire at 30?

One of the big expenses that early retirees need to concern themselves with is health insurance. Most people time their retirement to coincide with Medicare eligibility at the age of 65. Early retirees have to consider other options until Medicare begins.

Consolidated Omnibus Budget Reconciliation Act (COBRA), which passed by Congress in 1986, provides healthcare coverage for retired employees, spouses, former spouses and dependent children for 18 months. The cost is less than what you would pay on your own but more than your rate as an employee.

Early retirees qualify for COBRA benefits under the following conditions:

Individuals who must reduce their hours are also eligible, since health insurance usually drops if an employee does not work a certain amount of hours.

Once COBRA runs out though you are back in the marketplace looking for health insurance. Here are some possibilities to consider given your situation:

No insurance – Some people actually choose this option thinking they will save a lot of money. It is not a good financial strategy because as you age your likelihood of health problems increases. One major problem could wipe out your savings.

Get covered under spouse’s employer-provided health plans – if your spouse is still working and has insurance this is an excellent option.

Check if your employer extends health insurance coverage as a fringe benefit for early retirees - It really depends on your employer how good of an option this will be for you. Different employers have different eligibility requirements (e.g., age or tenure rules) and while some cover the whole premium others may only cover a portion.

Find part time work that offers health insurance – Starbucks, UPS, Walmart, JC Penneys, COSTOC, Sams, Barnes and Nobles, LOWES, Home Depot, Safeway, Kroger, MACY’s, JP Morgan Chase,REI, Nordstrom, Target, Whole Foods, Walgreens, Trader Joes, UHaul, Wegmans, Kaplan, Land’s End, Aerotek (a temporary agency) all offer health insurance to part time employees.

These companies also offer other benefits to part time employees such as: dental and vision insurance, life insurance and 401K, discounted stock purchase plan, tuition assistance and adoption assistance, paid time off, in store discounts for employee and immediate family members, profit sharing (“Gainsharing”), , accident and life insurance coverage even for temporary and seasonal employees, or those who work less than 20 hours per week, short term disability and life insurance, Flexible Spending Account for out of pocket medical and dependent care expenses

Take a part time municipal or county government job – Many county and local governments provide benefits to part-time employees.

Get coverage through associations – Check for trade, fraternal or professional associations such as AARP, AAA, your alumni association or the local chamber of commerce. Check with groups you’re involved with or join one to take advantage of the plan. Your state insurance department can help you find a plan. But be cautious — some of these so-called associations are nothing more than scams.

Early retirees are also helped by the 1996 Health Insurance Portability and Accountability Act (HIPAA) allows workers with COBRA benefits to purchase private individual policies with no preexisting-condition exclusions after the 18 months of COBRA coverage.

Even if you work for a small firms (fewer than 20 workers) you have guaranteed purchase privileges into the individual market when you retire.

The only problem here is “sticker shock.” Rates will most likely be higher than you experienced with COBRA.

Want more information on how to make early retirement possible? See our post Frugal Retirement Living

Is Long Term Nusring Home Insurance a Frugal Choice?

Planning For Nursing Care

Long term care insurance (LTCi) may not be a cheap choice, but is it a frugal one?  Experts predict that half of Americans will need some sort of long term nursing care in their lives. This could come from a nursing home, assisted living center, or it could be delivered in the home.

The actual cost will depend upon the type and level of care that is needed, but none of it is going to be free. There will be a price attached to any method of getting long term care, and sometimes that price can be thousands of dollars a month. That cost could quickly deplete retirement savings.

Many people are hoping there is another way to pay for nursing care. Does Medicare or Medicaid pay for nursing home care? Medicare only pays for short term stays in nursing homes. Medicaid does pay for long term care, but in order to qualify, you may have to deplete your assets first. Neither of these are great solutions for most people.

Nursing Home Insurance

There are long term care insurance policies on the market. They come in a variety of forms and coverage levels. Some are tax qualified which means you can deduct your premiums now. This is one solution. If this interests you, explore the costs of long term care insurance policies.

However the solution has not been that popular because of the cost, people not seeing an urgent need for this type of coverage, and the fact that the policy choices can be confusing. One big objection that many LTCi shoppers have is spending money on a product they may never need.  Learn more about the pros and cons of long term care insurance policies.

Alternatives to Long Term (Nursing) Care Insurance

Are there some viable alternative ways to plan for the cost of nursing homes? There are annuities and life insurance policies with nursing care riders. These riders will kick in if they are needed, but if they are not needed, the product will still keep its value for the insured person, owner, and beneficiary. These alternatives to long term care insurance may be more attractive to you.

Of course, you could always save money in an emergency fund that could be used to pay the bills. But this just may not be possible for many people.

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How Much Is Rental Car Insurance

Whenever you rent a car, you always encouraged to purchase the collision damage waiver to eliminate your liability for the deductible or any uninsured losses to which the rental car agency is exposed. The usual fee is $9.00 a day.

In most instances, your personal auto policy or family auto  policy will provide coverage to secure you against payment of any of these deductibles. The only problem you have with using your own policy is that if your rental car is damaged at a time when your insurance agency is closed.

For example, say you return your rental car on a Sunday night and you have damage. You may have a hard time proving you have coverage and the rental car company may demand immediate payment for that damage.  How do you avoid this problem without paying that extra $9.00 a day?

Many credit card company have included automatic coverage in their package of benefits, saying that if you rent a car using their credit card, they will assume this liability. In most situations, rental car agencies have accepted the “credit card insurance” and not demanded immediate payment.

Make sure you check with your credit card company to see if you have car rental insurance option and check with your insurance company to find out how much your policy covers when you rent a car.

There are two reasons you may want to purchase the rental car insurance from your car rental agency:

1. Your auto insurance policy does not cover you for amounts the rental company charges you for the money it loses while the car you damaged is out of service.

2. Your insurance company may not reimburse the rental car agency quickly enough to satisfy them and the rental agency will insist on immediate payment from you if you did not buy the agency’s insurance.

For more information on saving money on auto car insurance policy quote see our site free insurance policy quotes

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If you want to check it out click on banner above or just CLICK HERE

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