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If you rely on your car, rental reimbursement is an inexpensive and invaluable option that you’ll want to consider adding to your auto insurance policy.
On average, a car is in the repair shop for two weeks after an accident and renting a replacement vehicle for that amount of time can be costly. Many insured drivers are surprised to find out that their auto insurance does not automatically cover the cost of their rental because they’ve overlooked the policy option known as rental reimbursement.
Rental reimbursement coverage is available for a nominal extra amount with almost every auto insurance policy, although the option is often bypassed by those who are shopping for the lowest cost premium.
But there are a number of other ways to save money on auto insurance and, if your car is in the shop for an extended period, rental reimbursement can be a bargain. Even if your accident is another driver’s fault, the details of a claim may take time and you may have to wait get his or her insurance company to agree to pay for your rental car. With your own replacement rental coverage, there’s no waiting.

Collision is commonly confused with comprehensive. They’re both optional coverages and pay to repair or replace your car (if it’s totaled). But they cover separate events. In short, collision covers accidents (other than with animals) and comprehensive covers events that are beyond your control such as theft, vandalism, hitting an animal, fire, glass breakage or an act of nature.
Think of it this way: Collision is colliding with another vehicle or object (other than animals). Comprehensive is all other events. Accidents with animals are covered by comprehensive (and not collision) because these accidents are considered out of your control. Also, you can’t add only collision. You have to add comprehensive first and then collision.

People leave stuff in their cars every day. We drop our cell phones in the cup holder, leave a bag on the floor, and throw our golf clubs in the back seat. We’re human, so we forget about this stuff, park, and go inside. It happens. The thing is, sometimes when we come back to our cars, the things we left aren’t where we left them.
Does insurance cover this type of claim? If so, is it your homeowners insurance policy or auto insurance policy?
Some homeowners’ insurance policies treat your car as an extension of your house. That means your personal property coverage would protect almost anything (purses, luggage, camera equipment, electronics…all kinds of things) stolen from your car. This coverage may even be better than what’s offered by comprehensive car insurance! For instance, did you know comprehensive coverage usually doesn’t cover jewelry, clothing, and accessories kept in your car?
Keep in mind, though, that any claim would be subject to a deductible (most likely $500 or $1,000).
If you have additional questions, please feel free to contact our office.

Most insurance companies offer some sort of roadside assistance coverage as part of their personal auto insurance policies.  What does this coverage actually provide, though?  And, is it worth the cost?
Advantages of Roadside Assistance Coverage
By purchasing roadside assistance, most insurance customers can expect most of the following items to be included.  For specifics, we recommend looking at your policy or contact our office.
  • Towing — If your car breaks down, Roadside Assistance pays to tow it anywhere usually within like a 15-mile radius. It also pays to tow your car to the nearest qualified repair facility, even if it’s farther than 15 miles away.
  • Flat Tire Change — We’ll send a professional to you who can change your tire and put the spare on while you wait.
  • Locksmith Service — If your keys are lost, stolen or locked in the car, Roadside Assistance covers you. We’ll send a qualified service provider to help recover them. If the keys need replacing, you simply pay for the cost of the keys.
  • Battery Jump-Start — When your battery dies, we’ll come to you and jump-start it.
  • Emergency Fuel and Fluid Delivery — If you run out of gas, you can have fuel delivered to you. You simply pay for the cost of the fuel; delivery and service are free. Same goes if your car overheats: We’ll deliver the necessary fluids to get you running again, and you pay only the cost of the fluids.
Is Roadside Assistance a Good Value?
You could pay less than $15 for an entire six months of coverage when you choose Roadside Assistance for your car insurance policy. With just one emergency response, the coverage could easily pay for itself. You might pay around $200 to have your car towed to the nearest shop, but with Roadside Assistance, you pay nothing but your premium. Consider it financial protection from unforeseen out-of-pocket expenses.
If your car’s totaled, most car insurance companies reimburse you for the actual cash value of your car, not the replacement cost. Let’s review the difference.
Actual cash value vs. replacement cost
Actual cash value (or ACV) is calculated by determining an item’s original value minus the amount it has depreciated after you bought it . Replacement cost, on the other hand, is the amount of money necessary to replace damaged, destroyed, or stolen property with a new item.
We’ll use an example scenario* to help explain the difference. Imagine you buy a car for $25,000. You drive it without incident for 5 years when suddenly bam! A disoriented deer runs out into traffic and into your path. Don’t worry, you and the deer are okay. Unfortunately, your car is totaled.
You file a claim with your insurance company and are relieved to learn that deer run-ins fall under comprehensive coverage. That coverage, however, will pay for the car you have now, not the car you had 5 years ago. And after 5 years of standard wear and tear alone, your car’s probably worth around $9,000.
How actual cash value is determined
Of course, all cars lose value as they age, but not all cars age equally. If your car is totaled, the insurance company considers the condition the car was in just before the accident, including mileage, option packages, and overall physical condition (think peeling paint, torn seats, rust … anything that’s not a direct result of the accident).
In some cases, you may be reimbursed for things like title fees, registration fees, and sales tax. But this varies by situation and state, so it’s best to get the details from your insurer. Once your insurance company determines a settlement amount, they’ll subtract your deductible before paying out your claim.
But what if your car’s leased or financed? Sometimes what you owe on the lease is more than the car’s ACV. Good thing there’s a coverage for that!
Loan/lease coverage
Let’s go back to your shiny, new $25,000 car. This time, rather than buying it outright, you decide to lease it. You put $1,000 down, leaving you with $24,000 to pay off.
Several months later, that same distracted deer dashes onto the highway and totals your car.
Your car insurance company will pay the actual cash value of your car, which has a new value after standard wear and tear depreciation of $20,000. That’s a nice chunk of change under normal circumstances, except, according to your last loan statement, you still owe $23,000 on your car! That leaves $3,000 — plus your $500 deductible — for you to cover out of pocket.
Loan/lease gap helps cover some of the difference between what you owe on your car and what your car insurance covers. It’s common for insurance companies to cover 90 percent of the difference. If you’re an Esurance policyholder and you purchase this coverage, it’ll pay up to 25 percent of the car’s ACV.** In the scenario above, 25 percent of $20,000 is $5,000 (but, of course, you’d receive only $3,000 since that’s what you owe).
Gap coverage doesn’t include expenses like unpaid finance charges or excess mileage charges, but it can help rescue you from dipping into that vacation fund to cover the rest of your lease.
If you’re considering adding this coverage to your car insurance policy, check your loan agreement first. Many finance companies automatically include it as part of your lease contract, which means you may already be covered.

If you lease a car in Colorado, you still need to buy your own auto insurance policy. The auto dealer or bank that is financing the car will require you to buy collision and comprehensive coverage in addition to other state-mandated coverages like liability insurance.

  • Collision covers the damage to the car from an accident with another automobile or object.
  • Comprehensive covers a loss that is caused by something other than a collision with another car or object, such as a fire or theft or collision with a deer.

The leasing company may also require “gap” insurance. If you have an accident and your leased car is damaged beyond repair, there could be a difference between the amount that you still owe the auto dealer and the check you’ll get from your insurance company. That’s because the insurance company’s check is based on the car’s actual cash value which takes into account depreciation. The difference between the two amounts is known as the “gap.”
On a leased car, the cost of gap insurance is generally rolled into the lease payments. You don’t actually buy a gap policy. Generally, the auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges you for a “gap waiver.” This means that if your leased car is totaled, you won’t have to pay the dealer the gap amount. Check with the auto dealer when leasing your car.
If you have an auto loan rather than a lease, you may want to buy gap insurance to protect yourself from having to come up with the gap amount if your car is totaled before you’ve finished paying for it.  If you have questions about this coverage, please give our office a call.

There are a number of key factors most insurance companies use to calculate how much you’ll end up paying for your car insurance.
The coverages you choose, where you live, the kind of car you drive, how your car is used, how far it is driven, and who drives the car impact the cost of your car insurance. Below is a look seven key factors that affect your car insurance premiums, as well as some suggestions for keeping the costs down:

1. Your Coverage And Deductibles

Car insurance providers allow you to choose your deductible and decide whether to add additional coverage that isn’t necessarily required by the laws in your state. The specifics of your coverage and deductibles play a major role in your monthly payment.
Additional coverage gives you added financial protection, depending on the claim, but will also add to your monthly costs. Remember that while adjusting your deductible will affect your premiums, the differences in premiums are usually very small.

2. What You Drive

Some insurers increase premiums for cars more susceptible to damage, occupant injury, or theft, and lower rates for those that fare better than the norm.
Some SUVs, for example, rate highly in terms of driver protection and passenger protection, which means discounts on insurance. While some small cars will cost more because of their lower-than-average safety ratings and desirability to car thieves make them more expensive to insure.

3. How Often, And How Far, You Drive

People who use their car for business and long-distance commuting normally pay more than those who drive less. The more miles you drive in a year, the higher the chances of an accident – regardless of how safe a driver you are. If you reduce your total annual driving mileage enough, you may lower your premiums.

4. Where You Live

Generally, due to higher rates of vandalism, theft, and accidents, urban drivers pay more for car insurance than do those in small towns or rural areas.

5. Your Driving Record

Drivers who cause accidents generally must pay more than those who are accident-free for several years.
And even though you can’t rewrite your driving history, having an accident on your record can be an important reminder always to drive with caution and care. As time goes on, the effect of past accidents on your premiums will decrease.

6. Your Credit History

It has been shown certain credit information helps predict future insurance claims. Where applicable, many insurance companies use credit history to help determine the cost of car insurance. Maintaining good credit can have a positive impact on the cost of your car insurance.

7. Your Age, Sex, And Marital Status

Accident rates are higher for all drivers under age 25, especially young males and single males. Insurance prices in most states reflect these differences.
If you’re a student, you might also be in line for a discount. Most car insurers provide discounts to student-drivers who maintain good grades. In some states, younger drivers are also able to take driver safety courses that will lower premiums.

Will my insurance cover renting a car after an accident?

Most drivers don’t ever really think about their auto insurance policy until they are involved in an accident and to begin filing a claim with their insurance company to help pay for the vehicle’s repairs, and even a rental car.
Unfortunately, many drivers are surprised to find out that their auto insurance policy doesn’t cover the cost of a rental car while their vehicle is being repaired.   And since cars are in the repair shop an average of two weeks after an accident, it can cost as much as $500 to rent a vehicle during that timeframe.  However, for drivers with rental reimbursement insurance coverage, the cost of renting the vehicle is little or nothing.
Rental reimbursement coverage is one of the cheapest coverage options you can select for your insurance policy.  At a cost of only $15 to $30 per year, we recommend that all of our clients add this coverage to their auto insurance policy.
This becomes especially handy in situations where you were not at fault in an accident, but the other party’s auto insurance company is still working out the claim details.   Rather than wait for the rental car approval, you can rent a vehicle on your policy and have the other party’s insurance

Denver Auto Insurance Quotes
If you are looking for Denver auto insurance quotes that will save you money on your premiums without losing any of the important insurance coverages, then The Holste Agency is your best choice.   Our team of expert agents will provide you with multiple money-saving insurance quotes from a variety of top-rated insurance companies.
We know all of the available insurance discounts that will maximize your potential insurance premium savings and we will show you how to take advantage of each one of them.
Additionally, we take great pride in our customer service.  So you if you have a question or concern with your monthly bill, coverage, or a claim, we will be here to guide you along the way.
Please feel free to give our office a call for your FREE Insurance quotes, or you can visit our ‘Get a Quote’ page here.