Complicated questions about auto insurance - YouTube

I'm Ben Gonzalez, and this is TDI. Well,  usually we're talking about the most frequent  

questions we get about auto insurance, but  today we're going to change it up a little  

bit and talk about those things that don't  come up all that often. But when they do,  

we always have to look them up, or get one of  our experts, like Nicole Bealle, to help us out  

from our property and casualty area.  Hi, Nicole. How you doing today?

Hi, Ben. I'm doing good. How are you doing?

Alright. Thank you. So, let's just  jump into it. These are questions,  

like I said that don't come  up every day, but do pose some  

confusion for consumers. Like, when you  rent a car should you accept the insurance  

from the rental car business, or is that  something that you're already covered for?

It's a good question. And the  answer is, it depends. Of course, it  

depends. All policies are different out there,  so you just never know without talking to your  

insurance company and talking to your agent.  I will say, if you're looking for a little  

bit of extra peace of mind, getting that  rental car coverage might be worth it.  

You should ask your agent some specific questions  about whether or not that rental car is covered,  

and it's based on how you are using that car.  So, if you are using that rental car…you're on  

vacation, and you're needing a car, that's  different and might be covered different  

than if you're getting a rental car,  because say maybe your car's in the shop.  

So, you need to ask and find out if you're covered  for both of those. Or if you're covered even for  

using a rental car for work. All those can  be different coverages and different limits.

And what about programs, like loyalty  programs from credit cards or maybe even that  

rental facility? Are those real  coverage that you may have, as well?

So, those are options for coverage,  they're not technically insurance. So,  

we can't help you at the Texas Department of  Insurance with those, but they are available.

OK. So, maybe start with a call to your regular  auto insurance, and ask them what kind of coverage  

you have. In a similar vein, if you're borrowing  a neighbor's car or maybe a family member's car,  

whose insurance covers you there?

So, usually if you borrow a car, the owner's  policy - the owner of that vehicle - their  

policy is going to pay if you get in an accident -  as long as you have permission to use the vehicle,  

of course. Your policy also might kick  in. You might have some coverage there,  

especially if you're hurt. You can look into  an “uninsured motorists” policy, which usually  

follows you and personal injury protection, which  also follows you if you're in someone else's car.

Now, when we were talking before we got started,  you said if this is something that you're  

doing more than just occasionally, you might want  to talk to an agent about that, as well, right?

If you're frequently borrowing a car, you want  to ask your agent about “non-owners” coverage  

that can cover you when  you're borrowing cars often.

You said it's called “not owner's?”

“Non-owners.”

Oh, “non-owners” coverage. OK, very good. Hadn't  heard about that one. Another kind of unusual  

situation that comes up, I would say, infrequently  or maybe never, for me - when you buy a new car,  

do you need something called “gap insurance?”  And secondly, what is “gap insurance?”

Sure. So, you know, that new car, they always say,  “As soon as you drive off the lot, it's dropping  

in value, by a lot.” So, at that point in time and  maybe for a little while after, you're going to  

end up having a loan that's more than your car's  worth. And, so, if you have an accident, if you  

total that car, the insurance is going to pay what  your car is worth, not what you owe on it. So,  

you might have a “gap” there. And that's what  they call it “gap coverage.” So, “gap coverage”  

is protecting you from that hole, it'll pay the  extra. Companies call it different things but ask  

your agent. I'm sure they can point you in the  right direction, how to get protection on that.

OK. So, again, ask your agent for  details on whether or not you need that.  

And, again, so that's something while the car is  very new, your loan could be larger than what the  

vehicle is worth. Is there a point in time where  you may want to talk about dropping that coverage?

Yes, definitely. It's usually about two years, but  it's whenever you owe less than your car is worth.

OK. So, the value of the car is important there?

Yes, and you can check that on your own online.  Different websites can help you find the value  

of your vehicle. And talk to your agent, again,  because they're familiar with these situations  

more than the consumer side, which deals with  it infrequently, that's their business there.

Well, thanks Nicole. I know we're just  kind of scratching the surface here,  

but we wanted to kind of hit on these, because,  frankly, I didn't know the answers to them.  

So, if you have other questions about  auto insurance that we didn't cover today,  

do check out some of our other  videos and visit our website:

tdi.texas.gov

You can also call our helpline  if you have a specific question:

800-252-3439

So, for Nicole Bealle, I'm  Ben Gonzalez. This is TDI.