COUNTRY Financial Blog — Financial Security No Matter Where You're Starting From

As a production assistant for a COUNTRY financial representative, my phone rings countless times each day. After six years, you can imagine that I’ve heard just about every question or wild tale (related to insurance at least)!

There’s one about a skunk invading a home and a kid who “borrowed” his parents’ car. However, I also get recurring calls from people asking the same question over and over again.

So, here’s the first in a series of posts, which will document these frequently asked questions and my typical answers to them.

Do I have coverage on a rental car?

If I had to count, this is easily the most-asked question, and the short answer is…yes. However, as you can guess, there’s very little in insurance that’s solved with a one-word answer. There are contingencies.

On most policies, you have coverage for “non-owned autos,” which includes rental cars. The caveat is a rental usually gets the coverage of the vehicle on your policy with the best coverage. For example, if you have two vehicles, one with full coverage and one with liability only, a rental car has the same deductible and coverage as the full-coverage vehicle.

On the other hand, if both of your vehicles had liability-only coverage, so would a rental. Therefore, you wouldn’t have insurance to cover rental car repairs if needed.

Is it okay to let a friend borrow my car?

It’s an insurance myth that you can’t loan your car to someone who doesn’t have their own insurance. The truth is your policy follows your vehicle. As long as you give another driver permission, your car may still be covered by your policy.

However, if your friend has an accident, this claim is tied to your vehicle. The same rule applies to drivers on a learner’s permit. Teenagers, for example, can’t be added to a parent’s policy until they have a driver’s license.

A better question might be, is your friend a good driver?

Why does my older car cost more to insure than my new one?

Another myth is that a premium will decrease as a vehicle increases in age because of its declining Blue Book value.

However, premium values are based on a multitude of factors, not just a vehicle’s age. If your car’s quite old, its parts might be harder to find or more expensive than a newer vehicle!

Again, even in that circumstance, the rate depends on many other factors, such as the rating of the driver. As always, be sure to consult a professional for advice tailored to your particular situation.

These Q&A’s are just the beginning! In my next post, I’ll be dispelling more insurance myths and tackling more of our clients’ most popular questions. If you have insurance-related questions you’d like answered, feel free to leave them in the comments!

Carrie is the newest COUNTRY blogger. Check out her profile. She’s a licensed production assistant for Scott Jackson in Champaign, Illinois. Carrie also has her own blog about couponing and saving money at www.simplyadorabledeals.com.