Rental reimbursement coverage is not often discussed when your policy is reviewed. As a result it is often misunderstood. It is also one of the coverages people assume they have on their policy. Then, are very upset after an accident and realize they are not carrying it on their policy. The primary purpose of the coverage is to provide funds to help pay for a rental car if your vehicle is in the process of repairs due to a covered loss, such as theft or an automobile accident. That does not mean if your car breaks down due to a maintenance issue that your insurance company will cover a rental car. The cost is fairly cheap at about $2 to $3 a month for the base coverage. You can generally purchase varying levels covering you for $15-$20 of reimbursement a day. Rarely have I seen policies with much more than the minimum, however the options are there with most companies for reimbursement rates up to around $100 a day. That would be for someone who is used to driving a high end vehicle and does not want to lose that luxury when renting a car. A few companies provide a percentage of reimbursement off your daily rental cost. For example, the company might pay 80% of the rental fee leaving you to cover the remaining cost. How long the coverage lasts is the next aspect of the coverage. Most companies provide the rental funds for up to 30 days. Your policy might have a different wording with the same implication. For example, $30 a day for up to 30 days is basically the same as $30 a day with a maximum payout of $900. Another rarely known advantage regarding rental reimbursement coverage is the payment for loss of use for the rental car company. If you were to get in an accident while renting a car, some rental car companies charge the daily rate while it is in the shop being fixed. Having rental reimbursement coverage can pay your daily coverage amount for that loss of use for the rental car, subject to your rental reimbursement coverage amount. Every company is different, and some might not offer that extended feature. Contact your insurance agent or company to have them review your policy and answer any specific questions you have.

By: Robert Lefebvre

Step 1 Get Insurance Quotes

According to the state of Florida it is recommended that you obtain your drivers license first. However, if you get auto insurance first then you can potentially avoid making two trips to the tax collector/ DMV office. Not every insurance company will write an insurance policy without a Florida license. So just start getting quotes first. If the company you want to use will write a policy then do that first. According to Florida you have 30 days to get insurance after becoming a resident of Florida. Florida residency is established with any of the following have occurred:

•       You Enrolled your children in a Florida public school
  
•       Accepted employment
  
•       Registered to Vote
  
•       Filed for a homestead exemption
  
•       You Reside in Florida for more than six consecutive months

Step 2 Obtain Your license

Pick an office location here:http://www.flhsmv.gov/offices/
Bring the right identification and know your SSN. Currently Florida doesn't recognize drivers licenses from the 20 states listed below:

Where you live in the state of Florida is one of the most influential factors in determining your auto insurance rates. You should not expect to pay the same when living in these different locations. I have a general rule I like to use when thinking of the relationship of your residence and car insurance rate. The higher the population of a zip code the more you will likely pay. Someone in central Tampa, or Miami will probably twice what they would have in a more rural part of Florida like Ocala. The reasoning insurance companies use is that more people on the road leads to higher likelihood of an accident. The higher population can also lead to higher theft. Within the last few years what has drastically had an impact on your auto insurance rate is the rampant amount of insurance fraud. Tampa and Miami have been considered the worst areas for this behavior. However, recent legislation that requires more immediate medical attention might lead to a lowering of fraud cases.

Many of the factors that determine your automobile insurance rate are upsetting to some individuals, especially to those that are not considered be in the “preferred” category. For example, in our previous topic I discussed how your age can negatively effect your premium at the beginning and end of your driving carrier. Older individuals tend to get upset at the fact that their “excess experience” is leading to higher rates. However, that is not the case with gender. Males tend to be more accepting of their higher rates. Young males just starting to drive have historically had almost twice the premium cost of the same aged female. The main reason a male would see a higher rate is due to aggressive driving. The aggressive behaviors include: speeding, not wearing seat belts, and driving under the influence of drugs or alcohol. Men also tend to drive more miles per year than do women. This increase in miles driven per year is generally job related. The idea is that with more time on the road the more likely you are to be involved in an auto accident. However, with time and age men and womens rates tend to level out with most companies and the cost disparity lessens until there is very little difference.

Throughout my many years working for a major insurance company in Florida, one of the questions I hear the most from customers is "Why does (fill in the blank) pay less than I do?". Many times the individual will have a followup argument that compares only one factor that is similar. For example, the two people have the same car, or they both have the same insurance company. The answer to this question is not simple. Many factors go into determining your insurance rate with a company and no two companies use that information exactly the same. Understanding what is used to determine your insurance rates is the first step in reducing your premiums over the long run. Over a series of articles, I will explain the factors most insurance companies take into account when determining your rate and how you can use that to lower you insurance rate.