When you rent a car, you will be offered additional coverage by the rental car company. It may be their last attempt to get more money from you. They may or not offer real rental car insurance. If you rent a car frequently, you already know how to say no. But if you rent a car for the first time, you better knowing what kind of coverage which they offer.

It May Not Be an Insurance

In some states, the coverage serve as an agreement between you as the renter and the rental car company. The agreement says that you will not responsible if you make damages to the car. It will protect you when you are involved in an accident. This coverage is called collision damage waiver. In case you get into an accident with your rental car, the coverage will pay the repair cost. In addition, it will covers the cost of not being able to rent out the car due to repair. Moreover, it also cover if your rental car is stolen. When you are offered the collision damage waiver, ask the rental car company about it, what will be covered and what amount of dollar it will cover up to. Despite the coverage may sound like rental car insurance, it may not technically be a car insurance.

Between Your Car and the Rental Car

Your insurance company will cover you when you are driving a rental car, of course it depends on your plan. However, the extent of coverage will be different when compared with driving your own car. Your insurance company will pay for all damage to the rental car if you're involved in an accident, but you will pay the loss since the rental car company can not rent out the car. Your insurance company typically will not cover for these kind of costs. 

Remember, your car insurance's rates may go higher if you are in an accident with the rental car using your insurance plan. You have to pay higher deductible before your insurance company pay their share, since the insurance company may not cover the rented car with the same deductible as your own car. If you choose the collision damage waiver, your rates may not increase but the company may not have to make any payments. 

Get Additional Coverage

How to get additional coverage if you don't want to purchase rental car insurance? Renting a car with your credit card. Several credit card companies have extension rental car insurance coverage in your policy. It will be different from what your insurance company offer, so you need to find out what your credit card covers. 

If you travel abroad, don't be surprised if several countries require you to buy the additional coverage. Some of them even require you to purchase theft coverage. Before your travel, it will be better to consult your insurance company about the collision damage waiver regarding your rental car. With those information, you might save some extra money for your trip.

Many said that being insurance agent means large paycheck. Well, it's not entirely true but hard-working insurance agent can earn more than $100,000 in their first year of sales. However, become an insurance agent does not mean 100% of success. Being rejected, ignored and obscenities are something they're familiar with. Among many kinds of insurance, from auto insurance to health insurance), selling life insurance provide the best bonus for agent. Life insurance company typically gives 30-90% of the premium from the client to agent in first year. And later agent will receive 3-10% renewals or trailing commissions from each year's premium.

There are two different types of agents: captive and non-captive. Captive means an agent only sell insurance from one company, while non-captive mean they selling insurance from multiple insurance companies. Both of them have same objective which is persuading people to sign a new insurance contract. Both also have same duty like formulate marketing types, identify potential people, providing quotes and so on. 

If you are interested in become an insurance agent, here are the things you have to take a note:

1. Insurance Agent Qualifications

Insurance agent must possess fighting and indomitable spirit. People who love the thrill of the hunt and hard working are suitable for this career.  Beside mental capability, they need education and experience. Majority of insurance companies do not require formal education for an agent since almost all insurance companies provide internal training program for their salesperson about their products and company. State licensing also become one of insurance agent requirement. Insurance agents need to be licensed by single state or states in which they'll be selling insurance. Generally, they need to pass state-administered licensing exam and taking licensing class.

2. Getting Hired

First thing you need to do if you want insurance agent career is highlight your entrepreneurial spirit in your resume. Include anything that shows your initiative to make things happen. You need to polished your resume, it will help you to get attention from the company. Next, find a good reputation and well-known company. It is important to get high rating insurance agencies that will be huge support for your career. 

3. Keep Trying

Looking up each one of your listed companies in search engine. Most companies usually post their job listings by geographical area. When you find your desired company, apply for the position on their company's site. After that, you need to do follow up calls on weekly basis until you hear answer from them. Many insurance company take follow up call as a hint that the applicant has tenacity, they won't interview applicant who doesn't make first follow up call. During interview, you need to accentuate your determination and persistence personality as well as your entrepreneurial.

If you land the job, don't expect you will get client or someone who will purchase your product at the first try. You will busy handing out a lot of business card and making phone calls. Your manager will asking how many phone calls you make repeatedly. Don't be surprised if you struggle financially for first few months until your first sales because many insurance companies apply "commission-only" term in salary.

4. Tips

Be careful if you want to persuade your family and friends to buy your products. Sure it sounds like a great idea for starting but sometimes it could distant your relationship and make everything awkward. You need to visit your state insurance commissioner's website to check complaint history before you apply for a company. Don't get stuck on company that sell insurance using multilevel marketing and high complaints.

Good Luck!

The first thing, probably the most important thing, an insurance company have to do in underwriting process is determining the insurance risk profile. Insurance companies make "groups" or categorize individuals that have similar characteristics. These groups or category will be used to determine the risk when the company writing a new policy and determine the premium that will be charged for insured's coverage. It is true that no individuals are having exact same characteristics, but some people showing similarities in particular category. This is not apply only to individuals or person but also companies or business venture. Why the insurance company need to categorize their applicant? The reason is company's profit, underwriting new policy determine company's profit. If the company make a right calculation, they can gain profit from the policyholder's premium. Even if insured file a claim, it won't hurt the company's financial state. However, it is not good idea in taking several hundred dollars a year as premium but the policyholder end up creating thousand of dollars in claims because insurance company make miscalculation. 

I take auto insurance as example because the case is common and the risk class is easier to classified than any other insurance. As explained in previous article, insurance company use several measurement in examine their applicants. The age of the vehicle, driver's age, history of driver, the amount of coverage requested and the area that the vehicle operated are the basic information they need. These information will create a profile of driver's type which can determine how the drivers act on the road. This actuarial analysis can determine actual risk of the drivers might have. The amount of coverage needed and how much the coverage should cost also are determined by the insurance risk profile. Insurance company then make risk classes for individuals and companies with the similar characteristics. The risk classes are preferred, standard and substandard.  

Many Insurance companies will combine their premium earnings by balancing the low premiums (which means low revenue) with policyholder which have bigger premiums (most likely preferred risk classes) associated with more risky drivers. They take this measurement to limit the risk between 

policies' portfolio and the amount of premiums from all the policies they bring in. 

Deductibles, premiums and limits are the most frequently terms that appear in insurance policy. These concepts determine your payment for your insurance and how much you receive after a covered loss. You need to understand the meaning of each terms.

Deductible

Deductible is the amount you pay out of pocket before insurer pay for the expense. The amount of coverage depends on the limit you choose. For example, you have $400 deductible and have $10,000 of expense after damage caused in your home, car or something else, you have to pay for $400 before the insurer pay the remaining $9,600. Deductible for any types of insurance generally apply each time you have a claim, except for health insurance. Health insurance mostly have a single deductible for a full year. 

Insurance companies usually set deductibles for certain policies, however many insurance companies also let the insured choose their deductible. If you want a lower premium, you need to set your deductible higher. You have to understand your need in order to adjust your amount of deductible. Check your policies and talk with your insurance agent, if needed.

Premium

Premium is the amount you pay regularly to your insurer. Premium can be paid monthly, quarterly, every six months or annually depend on the insurance company and specific policy. 

Insurance Limit

Limit is the maximum amount of cover that your insurance company will pay for claims. Typically, the higher your coverage limit, the higher your premium will be. On auto insurance, insurance company will apply separate limits for different types of coverage. The state might require minimum limits for certain coverage. 

It is important to talk with your insurance agent before you purchase any coverage. Make sure your insurance suitable with your financial state. Purchase insurance which make sense for you.