The Lombardo Insurance Agency Inc.

Accuracy is the foundation of everything else

2096-B Silas Deane Hwy
Rocky Hill, CT 06067

Phone: 860-236-6064

Archive for the ‘Insurance Tips’ Category

Attention:Parents of New College Students

Monday, July 22nd, 2013

The summer is unfortunately winding down. In less than one month, college freshman will be reporting to class. Did you know, if you’re new freshmen is away at school over 100 miles, without your vehicle you are entitled to a credit on your automobile policy.  We understand this is a busy and emotional time, however a two minute phone call could save you premium dollars. Good luck with your new scholar!

Parents with youthful drivers

Saturday, September 1st, 2012

Parents with youthful collage students. Did you know if your collage student is away greater than 100 miles you may be eligible for a credit on your auto Insurance?

TOP 10 REASONS TO PURCHASE THE RENTAL CAR CDW/LDW

Wednesday, June 13th, 2012

 

 

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.

  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. Your 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 US and 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 of 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. Here is a listing of several national rental car company websites:

Advantage – www.advantage.com
Alamo – www.alamo.com
Avis – www.avis.com
Budget – www.budget.com
Dollar – www.dollar.com
Hertz – www.hertz.com
National – www.nationalcar.com
Payless – www.paylesscar.com
Thrifty – www.thrifty.com

In addition, if you will be traveling abroad, check out www.auto-europe.com for information about driving requirements and rental car programs in Europe and other countries around the world.

  • Be sure to inspect the rental vehicle for existing damage to the interior and exterior and get their acknowledgement of such damage in writing before leaving the premises.
  • Be sure to take proof of insurance with you on your trip.

I would like to give credit to Rick Dinger at Crescenta Valley Insurance for this great article. Link back to check them out http://cvins.com

Hurricane Season is upon us!

Friday, June 1st, 2012

Here are some great tips provided by the Hartford Insurance group.

Teen Driving Tips to Keep Prom and Graduation Safe

Wednesday, May 23rd, 2012

High school is full of defining moments for West Hartford teens and two of the highlights for most are prom and graduation.

However, this time of year often sees other, more tragic defining moments – serious car accidents involving teens who are distracted or even under the influence of alcohol or drugs.

Our friends at Resurgence California addiction treatment, want to help make this season one to celebrate for you and your teen. So, with the help of the National Highway Traffic Safety Administration, here are some tips that can keep your teen safe.

First, encourage your teen to follow these general safe-driving rules:

  • Absolutely no alcohol
  • Always use seat belts
  • No cell phone use (including texting) while driving

Special circumstances

Of course, special events such as prom and graduation often present special circumstances. There may be dinner with dates before the dance, and parties before or after either event. It’s a good idea to discuss your expectations well before each event, putting some guidelines into place before your teen heads out for the night. Here are some ideas:

  • Make sure you know the itinerary of the evening, as well as who else will be with your teen. You should have contact information for everyone.
  • Have a way to contact your teen at all times. You may want to require them to check in with you once or twice over the course of the evening.
  • Set a curfew, whether they are coming back to your home or staying with a friend. If they are staying elsewhere, make sure the curfew will be enforced by a responsible adult.
  • Discuss with your teen how to handle difficult situations, such as facing pressure to drink, or accepting a ride with someone who shouldn’t be driving. It’s a good idea to provide your child with money for a taxi just in case.
  • Offer a “no-questions-asked” ride home, should they need one during the evening.
  • If you’re worried about your teen driving, consider alternate transportation. The Ultimate Town Car service or limousine will provide a responsible, experienced adult driver. You also will be able to limit changes to the itinerary and contact the driver.

Prom and graduation in Connecticut are special times in a teen’s life. And just a little common sense will go a long way toward making sure your young adult is around to enjoy the other milestones that are sure to come.

Call Hornsby, Watson & Hornsby today and get your personal tips!

Source: https://itsaboutjustice.law/personal-injury-attorney/

Better Coverage Basics

Tuesday, May 22nd, 2012

This interactive tool, will help you understand the basics of insurance coverage. It has been provided by the Travelers. Take a look, you may save a few dollars. Follow this link

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