Monthly Archives: April 2014

Do I need to have rental car coverage while I’m on vacation?

Planning a vacation is always exciting, but it does require some consideration for the possible situations that you may face. If you are planning to use a rental vehicle during your trip, it may be important to review your insurance policy to identify the amount of coverage that you already have available before determining if you need additional protection.

Applying Your Policy to the Rental Car

A rental car company may allow you to apply your current auto insurance policy to the vehicle that you are renting, but the details of the situation may vary. Some insurers may only allow you to cover a portion of the rental vehicle under your policy.

Review your plan to identify if you are able to apply the policy to the vehicle or if you must purchase a new plan. Insurers have different options available based on your goals.

Buying Additional Coverage

If you discover that your insurer will not allow you to apply the plan to the vehicle that you are renting, then you may need to purchase a policy that is designed for rental vehicles.

Many companies that offer rental vehicles will have a policy that you can purchase on a per-day basis. Otherwise, you may have options available through your insurer or through policies that are designed to address the needs of men and women who are going on a vacation. The best plan will depend on where you are visiting and the type of vehicle you intend to drive.

Renting a car during your vacation will require some coverage to protect the vehicle and other drivers. Depending on your current policy, it may or may not be possible to apply the plan to the rental vehicle. Contact us to speak to an agent for more details.

Why are auto insurance rates higher for younger drivers?

Colorado drivers who are under 25 may find that they will have to pay a higher premium on their auto policies than older drivers. It may not seem very fair that you are penalized in the form of higher insurance rates because you are a young driver. If you are 22 and have never been in an accident or had a speeding ticket, why should you pay more than a driver who is 35 or 45?

This is not a case of discrimination. Age plays a factor in many of the things we buy. Parents pay full price while their young children are charged less to go into the movies. Kids eat for less in many restaurants. If you are a senior citizen, you get discounts just for reaching a certain age. Young drivers may be charged more for car insurance because they fall into a higher risk group because of their age.

Age is just one factor that helps determine the amount of your premium. It makes sense that someone who has five accidents on their record, no matter their age, may be classified as a high-risk driver. It does not seem so obvious that you should automatically pay more just because you happen to be young.

Age is a factor because it is an indicator of maturity. It has been shown in numerous studies that younger people, as a group, drive more aggressively and engage in riskier driving habits than older, more mature, drivers. Only time can give you the experience you need to be a better driver. Distracted driving and using poor judgment are probably the two issues that cause most accidents.

As a young driver, you probably do not have too much experience behind the wheel. If you drive safely, avoid accidents, and don’t get any tickets, you will build a good driving record. While you may have to pay a higher premium for a year or two, that will change when you move into the next age group.

What do I need to do with my home insurance policy if the house is sold?

When you sell your home in Colorado, it is important to inform your home insurance provider so that you can cancel your policy. Depending on your plan and the details that are described in your policy, the process of canceling the plan may vary.

Contact Your Insurer Before Selling

Before you sell your property, contact your home insurance provider and inform them that you are planning to sell the house. The insurer can take steps to make the cancellation process a little easier so that you can move forward as soon as the property sells.

If you have already sold the property, then contact your insurer and tell them that the property is sold. It takes a little time for the final paperwork on a property to go through, but you do not need to maintain coverage on a house that you no longer own.

Cancel the Plan

You may be asked to provide a copy of any documentation regarding the sale of your property. That is proof that you are no longer the owner so that your insurer can then take steps to cancel the plan.

When you cancel an insurance policy, you may be able to get a refund on some of the premiums that you have paid. For example, if you paid for several months or a year in advance, then the extra premium that you paid may be returned after subtracting any administration fees.

The appropriate solution after you sell a house is canceling your coverage. Even if you intend to buy a new property, you will need a new insurance plan that is appropriate for the new house. Contact us to speak to an agent for more details about your options.

In what cases is necessary to get a police report in an home insurance claim?

Making claims on your home insurance policy in Colorado does not always mean that you can avoid making a police report. In some cases, a formal police report is a necessary part of the claims process because the insurer will not always be able to start the claim unless you have told the police about the situation.

Burglary and Theft

In the case of a break-in and theft, you must report the crime to the police and ask for a copy of the report before you turn to your insurance provider for assistance. The claim will not start until you have made a formal report because the insurer cannot guarantee that a crime took place unless you have talked to the police. The report is made after you have made your statement, any other statements are provided and the physical evidence is evaluated if there is any damage to the property.


Vandalism is similar to a burglary because the claim will not start until after you have contacted the police and made a report. Even though your personal belongings may not be stolen, the property can be damaged and may require repairs. The police will make a note of the damages in the report and you can send a copy to your insurer.


Even though a fire does not necessarily need a report from the police since you may have a report from the fire department, if you suspect arson then you may need to file a report.

Damages that are caused by a third party and are not related to an accident will usually require a police report or other formal documentation from authorities before you can make a claim. Contact us to speak to an agent to learn more about your options.