Whether you are headed to the tropics or the slopes, the goal of every vacation is to get away, see new things, relax, and ignore all the worries and problems that accompany your everyday life. With all the excitement that goes into planning your dream vacation, it is easy to forget that unpleasant things can still happen no matter where you are in the world.
Do yourself a favor and invest an hour of your time into setting up a plan that can give you peace of mind while on vacation. Make sure that if something were to happen, you would be covered. Then you can enjoy your time away at a whole new level.
Here are some questions you may have as you prepare for the unexpected in your vacation planning.
• Should I get the Rental Car Insurance?
• What if my things are lost or stolen?
• What if I get hurt?
Rental Car
We have all been there, at the rental car counter. You are just off of the plane, ready to get as far away as you can from airport food, strangers, and public bathrooms. You can’t wait to go out and finally experience this vacation you have been planning for so long. The only thing between you and this new adventure is a signature or two and you are on your way.
Then the agent asks, “Would you like to purchase the insurance for your rental car?” Do you play it safe and pay for the overpriced insurance they offer or take the gamble? You can’t remember if your auto insurance covers rental cars or not. Plus you are in a new place with unfamiliar roads and fast, furious drivers. What is the smart thing to do?
Start your vacation off right and make the decision ahead of time. We recommend that you get the insurance offered by the rental company. You will be given the option to purchase a “Loss Damage Waiver” (LDW), which will relieve you from any financial liability in the case of loss or damage to the rental car.
We recommend that you purchase the LDW for several reasons:
• When you have an accident with your rental car, the rental company will usually require immediate reimbursement for the damages. They won’t wait for you to file a claim with your insurance meaning you will likely need to put the charge on your credit card, costing you extra interest. With the LDW, this will not be an issue.
• The rental company may charge you for “loss of use” while the rental car is in the shop. They can’t make money while it is sitting in a garage so they will get what money they can from you. An LDW will cover this whereas your personal insurance won’t.
• If you are to file a claim on your personal insurance for a collision in a rental car, your rate will likely go up and you will still have to pay a large deductible. In addition, the coverage you have on your personal car carries over to the rental car so if you don’t have collision/comprehensive coverage, then your rental car will not be covered either. With and LDW, you don’t have to worry about the deductible or rate increase and you can rest assured that any damage will be covered.
• It is important to remember that your personal insurance will only cover a rental car in the United States or Canada. If you are traveling abroad to Europe, Asia or South America, you will need to purchase and LDW because your personal insurance will not cover any damage.
No matter where you get your rental car insurance, either through your personal auto policy or and LDW through the rental company, some exclusions will likely apply. For example, coverage will only apply to listed drivers, you will not be covered if intoxicated or in on certain sections of road (or off-road). Be sure to take a moment to read the fine print of any policy that you purchase.
One more matter of note is that some credits cards offer rental car coverage. While this is the case, you need to remember that contracts vary from card to card and company to company. Your card may only provide secondary or excess coverage which will require you to file a claim with your primary insurance first. Be sure to discuss the matter with your credit card company first, before you definitively use them as your source of insurance.
Homeowner’s and Rental Insurance
When you go on vacation, you go all out. You go skiing with the nicest skis you can afford or golf with a fully outfitted set of clubs. You are sure to bring your professional grade camera and accessories to document the vacation you have been planning for so long. Of course you want to have all your things with you, but what happens if something happens to them?
Luggage and other personal items are lost in airports every day and even more commonly, things are stolen. But there is no need to worry if you have a quality homeowner’s or rental insurance policy.
Your homeowner’s or rental insurance policy protects all your possessions in your home and even when you are away from home. So if your skis are stolen from the porch of the lodge, or your camera slips out of your pocket without you noticing, you are covered. Even items that are stolen from your car are covered under your homeowner’s or rental insurance policy.
Equally as important, your homeowner’s or rental insurance policy will cover you for liability. So if you are windsurfing, lose control and run into a woman on the beach, you are covered for any injuries that you or she may sustain.
Your homeowner’s or rental insurance policy can help you in ways that you may not think of right away, so contact your agent today to discuss what is covered and what isn’t. Make sure you leave on your vacation with the peace of mind that comes from knowing that you are covered, no matter what happens while you are away from home.
Health Insurance
Whether you like the adventurous vacations like skiing in the Swiss Alps and Scuba Diving in the Great Barrier Reef, or the tranquility that comes from soaking up the sun on a tropical beach, you don’t want to find yourself sick or injured in a strange country.
Many people make the mistake of assuming that their health insurance will cover them no matter where they are and, unfortunately, that isn’t always true. Most health insurance plans do not extend coverage if you are injured or sick abroad.
Before you leave the country, call your health insurance provider to determine exactly what will be covered while you are away. Some carriers will cover basic medical costs or emergency expenses but not your evacuation back to the United States. Other providers will not cover in the event of an injury from a high-risk activity such as mountain climbing, skiing, scuba-diving, or paragliding.
If your plan does not cover you as completely as you would like, you may consider purchasing a medical travel insurance plan that many providers offer. There are many varieties available that are quite affordable so you can be sure to find the right fit for you and your family.
Peace of Mind When You Travel
This is your vacation that you have worked and saved for. You deserve time to relax, have fun and re-charge. Don’t let life’s unexpected events derail all that you have planned and hoped for. Contact your insurance provider and your Auburn Insurance agent to determine the options that are available to you as you head out on your adventure.