Substitute Transportation Coverage – Why You Need It

It is easy to say no to additional auto coverage when you are signing up for a policy.  Who doesn’t want to save money?  But at what cost?  If you get in an accident you will be relieved that you have rental car reimbursement/substitute transportation coverage.  You will not be left without a car when you need to get to work.  It is peace of mind to know your insurance will reimburse you or will directly bill the insurance company the rental car cost.  The limit of coverage for a rental car is selected by you when you add the coverage to your policy.  We recommend at least $30/day for this coverage. 

It is important to know that with most companies you need to have collision and comprehensive coverage in order to have substitute transportation coverage.  Also, if you have AAA your rental car reimbursement amount is bumped up to the next tier automatically.  This means you get more money for a rental car.  Substitute transportation coverage is helpful in various scenarios when your vehicle needs to be repaired: if you are at fault in an accident or if you are in an accident that the other driver caused and they don’t have enough insurance.

All too often we hear our clients disappointed that they didn’t add substitute transportation coverage to their policy.  It is not an expensive line item on a policy and is worth it in the end.  If you have any questions about rental car coverage, please call us

The Right of Way and Insurance Fraud

There are numerous accounts of insurance fraud, but usually the insurance company suffers.  Recently there have been some incidents of individuals committing insurance fraud and both the other driver and the insurance company have to pay for it.  Please watch out for drivers that may not have the best of intentions.

Let’s preface this example with a rule of the road: if you have the right of way on the road, follow that rule, do not let others go in front of you. Rule also is true for the opposite, don’t go if someone who has the right of way is letting you go. Some drivers who have the right of way have been letting others go in front of them, only to hit them on purpose. This allows them to total their car and have the other driver at fault.  With this type of insurance fraud both the driver has to pay for having an at fault accident on their driving record and therefore, increasing their auto premium and the insurance company has to pay out on this loss that was done on purpose.  Everyone loses.

Following the rules of the road will help prevent this type of insurance fraud.  Be smart, know the rules and know that not everyone has the same good intentions you do while driving.  Stay smart and stay safe!