The Top 10 Reasons to Purchase the Rental Car CDW / LDW
(Collision Damage Waiver / Loss Damage Waiver)
To paraphrase Shakespeare, “To purchase the CDW or not to purchase the CDW, that is the question.” It has been debated for years whether or not a person renting a vehicle should purchase the Collision (or Loss) Damage Waiver from the rental company. Our recommendation is that consumers, in general, SHOULD purchase the CDW / LDW, at least for short-term rentals. Our reasons are given below.

1.)Loss Valuation – The personal Auto Policy (PAP) covers the lesser of the “actual cash value” of the vehicle or the amount “necessary” to repair or replace the damaged property. The rental agreement may very well contractually obligate you to reimburse the rental company for the “full value” of the vehicle. The PAP also does not pay for any “betterment” (increased value of new parts replacing old ones) of the vehicle, nor any “diminution” of value (if the market value of the vehicle after repairs is less than that before the accident).

2.) Loss Settlement – As implied above, there may very well be disagreement over the value of the vehicle or the amount charged for labor and materials to repair it. You auto policy’s Appraisal clause may be invoked with its accompanying costs. More importantly, the insurance company has the right to “…inspect and appraise the damaged property before its repair or disposal.” However, the rental company, unlike you, is not contractually obligated to the insurer . . . it may choose to make the repairs immediately, potentially resulting in a lack of PAP coverage because of failure to comply with this contractual condition. In any case, purchase of the CDW usually allows the renter to “walk away” without the headaches involved in adjusting an auto claim.
3.) Loss Payment – The rental agreement may require immediate reimbursement for damages, and it is customary practice for the rental company to charge your credit card. This can create a significant debt, “max” out the card’s credit limit (perhaps shortening a vacation or business trip), result in litigation, etc.

4.) Loss Damage Waivers (LDW) – Rental agreements often make the renter responsible for any loss in value beyond normal wear and tear, regardless of the cause and regardless of fault. In order for your PAP to respond, you must insure at least one vehicle for both collision and other-than-collision (often called “comprehensive”) coverage. If not, your policy will not respond to rental car damage and loss of use claims.

5.) Indirect Losses -  You will most likely be responsible for the rental company’s loss of rental income on the damaged unit. Your policy has limited coverage for these charges.

6.) Administrative Expenses -  The rental contract may make the insured liable for various “administrative” or loss-related expenses such as towing (e.g., one
insured was charged for a 230-mile tow), appraisal, claims adjustment, storage, etc. Some of these expenses may not be covered by the PAP.

7.) Other Insurance -  The PAP says that it is excess over: (1) any coverage provided by the owner of the auto, (2) any other applicable physical damage insurance, and (3) any other source of recovery applicable to the loss – travel policies, credit card coverages, etc. The potential controversy over who pays what is obvious and can result in litigation. In addition, keep in mind that many states have statutes, proprietary policy forms, and/or case law precedents that may govern this and other rental car exposures.

8.) Excluded Vehicles & Territories – The PAP normally does not provide physical damage coverage for motorcycles, mopeds, motor homes, or other vehicles that are not private passenger autos, pickups, vans, or trailers. In addition, use of covered vehicles is limited to the U.S., its territories and possessions, Puerto Rico, and Canada (the rental agreement may also exclude operation outside a specific geographical area). If you rent a trailer (U-Haul, camper trailer, etc.), coverage is limited to $500.

9.) Excluded Uses & Drivers -  The PAP may have limitations on use of vehicles that are not otherwise excluded by the rental agreement CDW or LDW. Also, the PAP may include an exclusionary endorsement for certain drivers or may apply only to designated individuals – the CDW will probably also only apply to certain individuals, but operators for which no PAP coverage is available may be afforded protection under the rental agreement by adding them as designated drivers.

10.) Additional and/or Future Costs – The PAP will most certainly include a deductible in the range of $100 – $500 or more. In addition, payment for damage to a rental car may result in a significant premium increase (if not nonrenewal) via surcharges or loss of credits.
Although most CDW/LDW fees are considered outrageous, if not unconscionable, we advise you to purchase the CDW/LDW for short-term rentals. If anything, this will give you peace of mind while on vacation or business, and it could save you from a lot on inconvenience and lost time and money.
Other Tips:
When you rent a vehicle, ask for an advance copy of the rental agreement in order to determine your contractual obligations for damage … a few rental car companies post this information on their web sites.

Copyright 1999 by Independent Insurance Agents of America. All rights reserved. Reprinted with permission.

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Here is a  screenshot of the app:

5 Insurance Policies That You Should Have

Protecting your assets is an integral part in creating a successful financial plan.  the right insurance policies will go a long way in helping you to safeguard not only your possessions, but also your earning power.  We will show you 5 of the most important policies that you should have to accomplish these goals.

1. Long-Term Disability Insurance

The prospect of long-term disability is without a doubt a frightening scenario.  So much so, that some people tend to avoid thinking about it at all. While we all hope that, “Nothing will happen to me,” relying on hope to protect your future earning power is simply not a good idea. Instead, choose a disability policy that provides enough coverage to enable you to continue your current lifestyle even if you can no longer continue working.

2. Life Insurance

Westcott Insurance will be having a booth at the 2011 Adams County Fair.  The booth will be located in the middle quanset building.  Stop by  and sign up for a free $25 Gas gift card and other promotions.  Quoting will be available on the spot, so stop by and get a free quote and let us see if we can save you money on your insurance!  If you don’t already have a Westcott Insurance T-shirt, we’ll have those available for free as well! Hope to see you at the 2011 Adams County Fair.

We offer competitively priced insurance that will protect you during your college career.  Contact Westcott Insurance today and we can quickly you with   free auto insurance quote.

But how small is the risk? If you had to replace all the contents of your apartment, how much would it cost you; your entire wardrobe, all your furniture, your music collection, everything in your kitchen, your computer, camera and other electronic items? $7,000.00? $15,000.00? Probably much more than you think.

What could a renters insurance policy provide for you?

1. Content Replacement.  If every single item in your apartment was destroyed by fire, it is unlikely that you would have enough money in your savings to replace it all. With renters insurance you have both of the same options that homeowner’s do. You can insure for current value or replacement value. The first one will pay you the current value of your 5 year old television, in other words, what you could sell it for. The replacement value policy would pay for a brand new television of similar quality. Make sure you know which type of renters policy you have.
2. Liabilities.  If one of your visitors slips and gets hurt in the lobby of your apartment building, they can sue the owner for damages, but you have no liability for their damages. If they slip and get hurt in the bathroom of your apartment, then, you are the person liable, and you are the one they could sue for damages. If you have renters insurance, you’ll have protection against these types of suits.
3. Living expenses. If your apartment is damaged by water, smoke or fire, you will likely need to find another place to live, at least temporarily. Do you have money to setup house in another location, or to stay in a motel? This is another instance where you would be very thankful to have an insurance policy in place that would cover these expenses for you.
4. Medical expenses. This item fits in with the liability section. If a person does get injured in your rental space, even in a small way, you may be liable for their medical bills. Rental insurance would pay for the stitches in his head when he tripped and cut in open on your coffee table.
5. Fire and smoke. If there is a fire in the building, the damage to your personal property can be immense, even if it is quickly extinguished. Smoke and water damage can expand far beyond the area of the fire itself. The building insurance will replace or clean your ruined carpet but everything else will be your responsibility.
6. Theft. Rental units are becoming targets for theft, much more often than they used to be. Even in a ‘secure’ building, this type of loss remains a possibility.
7. Water damage. If there is a water issue in the apartment above you and it comes through your ceiling and ruins your computer, the landlord has to pay for it right? Wrong! Even it was due to his negligence, the only way you might get him to pay for it would be to take him to court. Court takes time and has no guarantees of a decision in your favor.
8. Vandalism. Renters insurance won’t alleviate your anger at having your possessions destroyed for no good reason, but at least it would help you with replacement costs and cleanup of the mess.
9. Flood. If you live in an area where flood water damage is a possibility, you’ll want to have renter’s insurance that specifically covers that type of damage. Water can destroy just as totally as fire.
10. Joint tenants. If you’re sharing your apartment with another tenant, you might want to get joint tenant coverage with your rental insurance. You may be buddies to start with, but sharing close quarters for a length of time, sometimes turns friends into enemies. A little preventative protection, can’t hurt.

To live without renters insurance is a big gamble. If you lose the gamble, the costs could put you in the poor house.  Avoid this by contacting Westcott Insurance today and getting the coverage you need.

Those interested in a new GM vehicle may have an extra incentive to make that purchase. GM has introduced that in two states, Oregon and Washington, that they will include one year of free insurance with the purchase of a new GM vehicle.

Sound like a sweet deal? It should certainly save new car shoppers a bundle of cash over the course of that first year of ownership. If you’re lucky enough to live in one of those two states, you have until September 6 to pick up a new insurance-paid ride

After several years of relatively stable premiums, the nations largest insurers plan to take a signifigant rate increase. State Farm has reported an increase of 7.3%.

For homeowners, the increases may seem counter-intuitive. Why must they now pay even more for a house that may have decreased in property value? Insurers say premiums are partly based on rebuilding costs, not on a home’s appraised market value. When energy and building-material costs rise, insurers sometimes increase rates, said Mike LaRocco, chief executive of Fireman’s Fund Insurance. Even with the recent decline in commodities prices, gasoline is up 37% in the past year, copper is up about 20% and plywood is up around 8%.

There also may be increasing rates for the com ing years, experts say, given the rising toll of natural disasters, including recent tornadoes and extreme weather in the U.S.

There may be little home owners can do, beyond the usual shopping around. Jack Powers, an independent agent at Gulfshore Insurance in Naples, Fla., says some of his customers face rate increases of 20% or more. Still, he advises many of them to swallow the increases. The alternatives, he says, are smaller, unrated insurers that may not withstand a storm financially.