Memorial Day Weekend

I just found out that my wife planned a trip to San Diego so we're taking our kids to Sea World and the Zoo. I wanted to post one more blog before leaving for the weekend and cover a few questions you may have this weekend. I also want to take a moment to express my gratitude for the men and women serving our country, and all those who served in the past. Thank you, we appreciate your service and sacrifice.

It looks like I am not the only one jumping on an airplane and heading out of town this weekend. I have already recieved a number of calls from my insurance clients asking me if they need to buy insurance from the car rental company when using a rental. I can't speak for all insurance companies or policies, but in general most will be very similar. You should always check with your agent, but if you carry comprehensive and collision coverages on your policy (sometimes referred to as "full coverage") than you probably don't need to get the insurance from the car rental company.

The one reason you might want to buy coverage from the rental company is because most insuracne policies will pay for the value of the car only. This means if you total the car or it is stolen, your insurance company will pay what the car is worth, not necessarily what the rental company thinks it is worth. Here's an example: You rent a 2007 Dodge Charger and someone steals it from the parking lot of your hotel. Your insurance company will see what that car is worth in that particular market, let's say $14,750, and write you a check for that amount (They use many sources to get that value such as the blue book, local classifieds and car lots.) So now that you have your check you just give that to the rental company and your done right? No, I'm afraid it's never that easy. Most rental companies have a clause that stipulates they get a new car or the value of a new car if you total theirs. That means you owe them $17,751(according to edmunds.com) but you only have a check for $14,750, that's a difference of $3,001 that you owe.

As I said before you want to speak with your agent before making any decisions, but hopefully this will help you understand the process and the reasoning behind the advice your agent gives you. Lastly, I want to remind everyone to please drive safely as there will be 2 to 3 times more traffic on the roads this weekend than normal. Everyone from Provo to Salt Lake City will be heading out.

Everyone on the road is going to be in a hurry to get to their holiday destination. Drivers will be stressed out, impatient, and to top it all off gas prices just rose an average of 4 cents a gallon across the nation this morning, so people may not be too happy. Just remember that you will get to your destination even if you need to go a little slower. Also remember that the highway patrol will be out looking for speeders and road rage more than normal because of the increase in traffic. Keep your family safe and your insurance premium low. Drive Carefully!