Eventually, there comes a time when you need to rent a car. Whether it's on vacation or when your car's in the shop for repairs. No matter reason, there is always the question -

“Do you want to purchase insurance coverage on the vehicle?”

What do you do??

Well, there isn't one answer that fits everyone. What we can say is there's a few important things you should consider when making your decision.

Does my current car insurance extend to cover a rental car?
In general yes. The coverage's from your personal auto policy will extend to cover a replacement vehicle, such as a rental car, with the same coverage as the broadest or “best” covered car on your policy.

Will my credit card cover damage to a rental car?
There's a possibility that you have a credit card that does offer some coverage for rental cars. However there are many conditions to this coverage so I wouldn't count on it, especially without reviewing the credit card contract.

Does my current car insurance cover "everything" if the rental car is damaged?
There are two big items that are not covered by your car insurance policy that are important when dealing with a rental car- Loss of Use and Diminution in Value.

• Loss of Use: If you're in an accident with the rental vehicle, your car insurance will pay for the cost of the repairs to the vehicle. However while the rental car is out of the company's rental fleet getting repaired, you will be charged the daily rental rate for the rental car. This "loss of use" is not covered under a personal auto policy.
• Diminution in Value: Many rental contracts allow the rental company the option to not allow a significantly damaged rental vehicle to be repaired. Rather the vehicle is taken out of their fleet and sold “as is” and the client is responsible for paying the difference in the before & after value of the rental car

If I buy the insurance from the rental company does it cover everything?
No insurance policy covers “everything” but the rental car company's policy is the most comprehensive coverage you can carry on a rental car. Purchasing the car rental company's insurance greatly simplifies the process in the event the rental car sustains damage.

How to Proceed:
If you weigh the benefits gained by purchasing insurance from the car rental company against the cost of the coverage, many people feel that buying the additional coverage is the best way to go.

This is especially true when you rent a car in a different city than your home area. Without the insurance from the rental company your future travel plans could be at risk. If there's an accident you may be forced to remain in the city where you rented the car to deal with repairs to the rental car. This can put airline tickets, hotel reservations or cruise plans in jeopardy, not to mention the additional cost of accommodations, food or other fees you may incur.

If you are considering not purchasing the offered rental insurance you may want to do some additional homework before selecting the rental company to do business with.

1. Investigate the rental contract online to understand what responsibilities the contract contains.
2. Review the rental company's car insurance contract online.
3. Calculate what your potential “out of pocket cost” could be if the rental vehicle was out of service for 7-12 days for repairs.
4. Confirm with your insurance agent what coverages would extend from your car insurance policy to the rental car.
5. Finally weigh all of the items above against the cost of the rental insurance.

In the event that you have questions regarding rental car insurance please feel free to give us a call and we will be happy to discuss the topic further.

It is understood that any contractual or insurance terms, descriptions and definitions are meant for general informational purposes. For a complete description of coverage and/or terms the actual contract language or policy contract language should be reviewed. This document is for a demonstrative example only and does not extend or supersede any other contract in any way.

Re-posted from article by JC Reindl, Detroit Free Press- February 5, 2020

LANSING — Michigan's insurance director said Tuesday that a new consumer-focused website and hotline are now live to help prepare for the revamped auto insurance system that begins in July and will offer drivers new choices—and potentially cheaper rates.
In anticipation of the new system, more insurance carriers are applying to offer auto policies in Michigan, which increases competition and grows the total number of authorized auto carriers to more than 100, said Anita Fox, director of the Department of Insurance and Financial Services.
Starting July 2, Michigan drivers will have a first-ever option to buy less no-fault medical coverage with their auto policies or continue with the potentially unlimited, lifetime medical benefits that are currently mandatory.
The new website www.michigan.gov/autoinsurance offers explanations of the coverage options, shopping tips and details on the new system. The new hotline number is 833-ASK-DIFS or 833-275-3437 and consumers can email questions about auto insurance to [email protected]

"This system has been in place for a long time and none of us have had to think about this at all," Fox said in an interview with reporters. “Because we have choices now, It’s going to require a level of education.”
Many drivers are expected to see lower auto insurance rates under the new system, particularly those in urban areas such as Detroit where no-fault's medical benefits, known as PIP or personal injury protection, can represent as much as 50% or more of a policy's price.
Drivers who have private health insurance will want to learn whether that health policy covers auto accident injuries. If so, they will have the choice of opting out of PIP and relying completely on their health insurance after a crash.
Most health insurance plans no longer have lifetime limits. However, no-fault medical benefits cover things that even the best health insurance plans don't, such as extensive in-home attendant care, lost wages replacement, home and vehicle modifications and long-term custodial care in specialized rehabilitation centers.
“Unlimited lifetime benefits (for auto) may be great for some families," Fox said. "There are many families who couldn’t afford that, were going without (insurance) or were making economic choices to comply with the law and having to forgo other maybe necessary things for their families."
Fox said that her office has hired outside actuaries to help ensure that insurance companies are complying with the new system's rules and giving consumers the mandatory eight years of guaranteed savings of between 10% and 100% off the PIP portion of their polices.
The new system will also forbid insurance companies from using some non-driving factors when setting rates, such as a driver's occupation, education credentials and whether they own a home.
Fox said that a half-dozen or so auto insurers have applied to start selling policies in Michigan in time for the new system's July start. There are more than 100 authorized auto carriers."The more the merrier," Fox said.
Choices to make
Starting July 2, Michigan drivers who are on Medicare or have commercial health insurance that covers car crashes (and with a per-person deductible no higher than $6,000) can choose to completely opt out of no-fault medical benefits.
Other drivers will be required to purchase some no-fault medical coverage, known as personal injury protection or PIP, with their auto insurance. They can pick from several options:

• $250,000 in no-fault medical benefits.
• $500,000 in no-fault medical benefits.
• Unlimited no-fault medical benefits.
• $50,000 in no-fault medical benefits — but only for those on Medicaid.

Snowmobiling is a wonderful way to enjoy winter in Northern Michigan, however without proper precautions it can also be very dangerous. To help keep you safe we've compiled a list of important snowmobile safety tips. Be sure to also have a conversation with Frankfort Insurance on snowmobiles and insurance. If you haven't specifically purchased snowmobile coverage you're probably riding uninsured!

1. Take a snowmobile safety course.
2. Know the weather and trail conditions before leaving.
3. Wear appropriate clothes and protective gear.
4. Be sure your snowmobile is mechanically sound.
5. Leave a route plan with friends or family.
6. Ride with a buddy.
7. Carry an emergency kit including a phone.
8. Stay alert at all times and do not speed.
9. Never drink and snowmobile.
10. Know what insurance coverage you would have if there was snowmobile accident?

Source Material:
“Snowmobile safety tips” https://www.markelinsurance.com/snowmobile/resources/snowmobile-safety-tips
Web. February 2018.

Northern Michigan has been a summer getaway for many years. Back in the early days trains, passenger ships and carferries brought vacationers from Chicago, St. Louis and Detroit to our doorstep. Rooming houses and hotels, like the grand Frontenanc Hotel were built to hold the visitors and local entrepreneurs began renting out their homes in downtown Frankfort for the summer. As the area around Crystal Lake became developed simple cottages sprung up and those former visitors put down seasonal roots. The vacation paradise we now know was born.

Now, many decades later, the homes in town and cottages around the lake have been remodeled, rebuilt and expanded. Many of these properties have been passed down through the family or have grown to be jointly owned by many relatives. As back in the early years families are renting their homes or cottages to visitors on a short term basis.

What does this history lesson have to do with insurance? It's the intro to a scary insurance issue that is hiding just below the surface of Northern Michigan. The insurance polices that these families have to protect their properties actually provides no protection for rental!!

Most homes or cottages in Northern Michigan are protected by a homeowners policy. These insurance contracts are specifically designed for owner occupied homes. In the event of a major claim, such as a fatal fire, the fact that the home is occupied by a short-term renter would most likely negate the policy coverage in full! Not only would there be no coverage to repair or rebuild the home but there would be no liability coverage to protect the owners from a lawsuit over the fatality in their home.

A scenario such as this could destroy an individual family financially, permanently fracture the extended family and end in the loss of and extremely valuable and cherished family asset.

Don't allow your family history to be put in jeopardy. If you ever rent out your home or cottage you need to discuss this fact with your agent immediately and put into place coverage specifically designed to protect your family. Your ancestors had the foresight to put down roots here, be sure this generation has the foresight to strengthen those roots rather then to allow them to disappear.

Author: Andrew Johnson, Frankfort Insurance

Have you heard of Lifestyle Insurance?  I'm sure your answer two this question is no. But in reality we've all heard of “Lifestyle Insurance”, just under a less descriptive name- life insurance.

So why call it Lifestyle Insurance?
Because in buying a life insurance policy it's your family's “Lifestyle” that you're really trying to protect. You want to ensure that the style of life your family is accustomed to is not interrupted if you were gone. The passing of a family member is difficult enough for a spouse or children to live through, but add in the negative effects of a financial crunch and lives could be forever impacted. The loss of the family home, the need to relocate to take a job or the loss of family vacations are all major changes in Lifestyle.

So lets look at your Life(style) Insurance needs in a different way. Frankfort Insurance and our partner Houlmont & Associates have the experience to help you select the life insurance product that can ease your mind and protect your family going forward. Visit our website for more information or use the button below to start the process to protect your family's lifestyle!

For many Americans the "Memorial" part of Memorial Day is not revered as it should be.  Not because we intend to ignore the sacrifices of those who came before us but because we haven't learned how to observe the day.

• Educating your children, family and friends about Memorial Day and how to observe the day.

• Wear a Memorial Day or American Flag button during the month of May.
• Visit a cemetery and commemorate the heroes who served and those who fell in our defense.
  
• Fly the U.S. Flag at half-staff until noon on Memorial day as it is a day of “National Mourning”.
  
• Participate in the “National Moment of Remembrance” at 3:00pm local time, to pause and think upon the meaning of the day.
  
• Donate to a worthy cause to help assist the widows and orphans of our fallen heroes and to aid our disabled veterans.
  
  

By participating in these action you will educate other Americans and increase the reverence for this day. We are the beneficiaries of those who sacrificed their lives for our freedom and liberty and they deserve to be memorialized appropriately.

God Bless America

More information can be found at the Memorial Day Foundation

By: Robert W. Parker, Attorney

Robert is a seasoned attorney with over 30 years of experience representing landowners, developers, business owners, lenders, municipalities, and individuals throughout Michigan.


How to handle the disposition of the family cottage upon mom and dad’s death has become a cottage industry.   Parents discover that, while their children may have expressed an interest in keeping the cottage in the family after their parents’ deaths, not all of the children have the same level of interest.   Some live far away and thus aren’t able to use the property as often as their siblings and still other children may not have the financial ability to shoulder their share of expenses.

Unless carefully planned, the outright gift of the family cottage to the children can, unintentionally, create strife and discord amongst family, especially when mom and dad aren’t around to referee.

Swirl into this issue the possible “uncapping” of the property’s taxable value when it is transferred to the next generation. The “uncapping” of the property’s taxable value poses a challenge due to the fact that if the property taxes suddenly increase, the family may discover that they aren’t able to afford the taxes, let alone the cost of maintenance.

The process of passing down the family cottage, which seems fairly straight forward at first, can become quite complicated, very quickly.  

We have found that this process can be easily facilitated and many problems avoided if the parents leave a blue print as to how the family cottage should be owned, transferred and how future decisions should be made through the creation of cottage trusts or cottage limited liability companies. 

The issues to consider when creating a cottage trust or cottage limited liability company are:

• Do the parents have exclusive rights to possession while alive?
• Upon mom and dad’s death does each child need to contribute equally to the cost of maintenance, insurance and taxes?  Or should each child’s contribution be a product of their usage?
• What if a child doesn’t pay their share of expenses?  What mechanism is there for collection?   
• Should there be “rules” regarding usage?  Pets?  Guests?   Do parents need to be present when young adults use the property?
• Is a child’s interest in the property considered an asset for purposes of divorce or bankruptcy?
• What happens to a child’s share of the cottage when he or she dies?  Does it go to whom they designate, i.e. their spouse or children?  Or does their share go to their siblings?
• How do we avoid the uncapping of the property’s taxable value upon the death of mom and dad?  What about when a child dies?
• What if a child wants or needs to sell their share?  How is that accomplished?

As demonstrated above, each case poses issues specific to your family’s current circumstances, and plans that work for one family may not be appropriate for your family. Attorneys can assist in guiding you through the various options available and choose the plan that works best for you and your family.

© 2014 Smith Haughey Rice & Roegge

Smith Haughey Rice & Roegge
101 N. Park St.
Ste. 100
Traverse City, MI 49684
231.929.4878

Michigan College Planning  is a company out of Traverse City MI.  Vicki and Matt have been assisting and educating individuals and families with retirement planning, insurance planning and other financial goals. Their interest in College Planning began when they noticed that students and parents were struggling to find a way to pay for a college education without taking on a great deal of debt or dipping into their retirement resources. Their goal of helping families plan for a secure and debt free future, which was not possible with the student loan debt that so many clients were taking on, led them the specialty of College Planning and Funding. They have undergone extensive training and are Registered Licensees of College Planning Relief, a College Planning Relief Specialist.

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