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NFL great Tom Brady has finally offloaded his Massachusetts mansion. The quarterback and his wife, supermodel Gisele BÃ¼ndchen, have sold their luxeÂ Brookline estate, according to the Boston Globe.
The transaction appears to have been an off-market deal, with no price information disclosed for the transaction. Sources told the Globe that the property was offered for $32.5 million.
The custom-built,12,000-square-foot estate outside of Boston initially debuted at $39.5 million in 2019, then quickly dropped to $33.9 million.
The mansion built in 2015 came off the market in May, when luxury home sales were stalled by the coronavirus pandemic. But a buyer surfaced at the end of 2020.
In 2013, the couple picked up a prime 5-acre plot from the local cash-strapped Pine Manor College for $4.5 million.
They tapped architect Richard Landry, of Landry Design Group, to create their East Coast estate. Landry has also worked on the couple’s Los Angeles mansion, which was featured in Architectural Digest.
Landry’s design sits adjacent to the ninth hole of the Country Club in Brookline, with serene views and plenty of privacy.
The five-bedroom main house features a dining room, living room, home office, chef’s eat-in kitchen, and family room. A grand stairwell leads to the bedrooms on the second floor.
The lower level includes a rec room, playroom, wine room, gym, and spa.
Watch: QB Drew Brees Looks to Unload His Amazing Kauai Condo
The sprawling grounds include gardens, a pool, and a âbarn-inspiredâ guesthouse with a yoga studio, full bathroom, and sleeping loft. The property comes with a three-car garage, carport, and circular drive with ample parking.
Brady’s mansion sits just down the road from Reebok founder Paul Fireman‘s lavish property, which was finally sold in 2020 after four years on the market. That 27,000-square-foot mansion had been priced at as much as $90 million, before finally selling for $23 million. George and Manny Sarkis of Douglas Elliman represented Fireman.
The agents also sold Fireman’s adjacent 7 acres for $18 million to developer C. Stumpo Development, which plans to build luxury homes on the land.
âAfter closing on both 150 Woodland Road [the Fireman home] and the five adjacent lots, we are very excited about the current and future Brookline market,” says Manny. “Buyers continue to trend to the suburbs, seeking more land and bigger homes.”
The jet-setting duo received another Christmas gift of good news in 2020, with a reported sale of their Tribeca loft. The two had made the penthouse available forÂ just under $40 million last November. If they got their asking price, they’ll stroll away with a large profit.
The couple had picked up the place in 2018 for $25.46 million. The five-bedroom, 5.5-bath unit features a 1,900-square-foot terrace and Hudson River views. Building amenities include an 82-foot lap pool and a private drive-in entrance.
The couple still own a lower-floor unit in the same 14-floor building.
New year, new homes
Brady left Brookline after he signed with the Buccaneers. The QB has since put roots down in South Florida. In October, Brady and Bundchen were reportedly circling a waterfront property in Clearwater.
And then Brady made a move on Florida’s other coast in December, with a reported $17 million purchase of a home on Miamiâs Indian Creek Island, known as the Billionaires Bunker.
The couple plan to raze the current house on the land in Miami and build anew. They’re reportedly looking to emulate the L.A. home theyÂ sold to Dr. Dre for $40 million in 2014. Sounds like the services of their favorite architect may once again be required.
The post Tom Brady and Gisele Bundchen Finally Sell Their Massachusetts Mansion appeared first on Real Estate News & Insights | realtor.comÂ®.
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Economic fallout from the COVID-19 crisis and civil unrest could cause many rental real estate properties to run up tax losses in 2020 and maybe beyond. This column covers the most important federal income tax questions and answers for rental property owners. Here goes.
What can I write off?
Nothing new here. You can deduct mortgage interest and real estate taxes on rental properties. You can also write off all standard operating expenses that go along with owning rental property: utilities, insurance, repairs and maintenance, care and maintenance of outdoor areas, and so forth.
What about depreciation write-offs?
For many rental property owners, the tax-saving bonus is the fact that you can depreciate the cost of residential buildings over 27.5 years, even while they are (you hope) increasing in value. You can generally depreciate the cost of commercial buildings over 39 years.
Example: You own a small apartment building that cost $1.5 million not including the land. The annual depreciation deduction is $54,545 ($1.5 million/27.5). The deduction can shelter that much annual positive cashflow from income taxes. So, depreciation write-offs are nice tax-savers, especially if you own an expensive property or several properties.
Variation: As stated earlier, commercial buildings must be depreciated over a much-longer 39-year period. Even so, the annual depreciation write-off for a $1.5 million commercial building is $38,462. The deduction can shelter that much annual cash flow from income taxes.
Can I claim 100% first-year bonus depreciation?
Yes, for qualified improvement property (QIP) expenditures on a nonresidential building. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) included a retroactive correction to the statutory language of the Tax Cuts and Jobs Act (TCJA). The correction allows much faster depreciation for commercial real estate qualified improvement property (QIP) thatâs placed in service in 2018-2022. QIP is defined as an improvement to an interior portion of a nonresidential building thatâs placed in service after the building was placed in service. However, QIP doesnât include any expenditures attributable to: (1) enlarging the building, (2) any elevator or escalator, or (3) the internal structural framework of the building. Thanks to the CARES Act correction, you can write off the entire cost of QIP in Year 1, because it qualifies for 100% first-year bonus depreciation.
Alternatively, you can choose to depreciate QIP over 15 years using the straight-line method. That alternative might make sense if you expect higher tax rates in future years. Discuss your QIP depreciation options with your tax pro.
What else do I need to know about depreciation write-offs?
You ask such good questions. Thereâs more. The TCJA increased the maximum Section 179 first-year depreciation deduction for qualifying real property expenditures to $1 million, with annual inflation adjustments. The inflation-adjusted maximum for tax years beginning in 2020 is $1.04 million. The Section 179 deduction privilege potentially allows you to deduct the entire cost of qualifying real property expenditures in Year 1. I say potentially, because Section 179 deductions are subject to several limitations. Ask your tax pro for details.
The TCJA also expanded the definition of qualifying property to include expenditures for nonresidential building roofs, HVAC equipment, fire protection and alarm systems, and security systems.
Finally, the TCJA further expanded the definition of qualifying property to include depreciable tangible personal property used predominantly to furnish lodging. Examples of such property include beds, other furniture, and appliances used in the living quarters of an apartment house.
Can I claim the qualified business income (QBI) deduction base on my net rental income?
Maybe. For 2018-2025, the TCJA established a new personal deduction based on qualified business income (QBI) passed through to your personal Form 1040 from a pass-through business entity (meaning a sole proprietorship, LLC treated as a sole proprietorship for tax purposes, partnership, LLC treated as a partnership for tax purposes, or S corporation). The deduction can be up to 20% of QBI, subject to restrictions that kick in at higher income levels. For a while, it was unclear if you could claim QBI deductions based on net rental income passed through to you from one of the aforementioned pass-through entities. The IRS eventually issued taxpayer-friendly guidance that allows QBI deductions in most such cases, but you must follow complicated rules to collect the tax-saving benefit. As your tax pro for details.
What about the passive loss rules?
Ugh. If your rental property throws off tax losses (most properties do, at least during the early years and during years when the economy is suffering â like now), things can get complicated. The so-called passive activity loss (PAL) rules may come into play. Losses from rental properties will usually be classified as passive losses.
In general, the PAL rules only allow you to currently deduct passive losses to the extent you have current passive income from other sources, like positive income from other rental properties or gains from selling them. Passive losses in excess of passive income are suspended until you either have enough passive income or you sell the property that produced the losses. Bottom line: the PAL rules can postpone any tax-saving benefit from rental property losses, sometimes for years. Fortunately, there are several exceptions to the PAL rules that can allow you to deduct rental property losses sooner rather than later. Your tax pro can explain the exceptions and help you plan to become eligible, if possible.
Is that the end of the bad news?
Not exactly. Say you manage to successfully clear the hurdles imposed by the PAL rules for your rental property losses. So far, so good. But the TCJA established another hurdle that you must also clear to currently deduct those losses. For tax years beginning in 2018-2025, you cannot deduct an excess business loss in the current year. An excess business loss is one that exceeds $250,000 or $500,000 for a married joint-filing couple. Any excess business loss is carried over to the following tax year and can be deducted under the rules for net operating loss (NOL) carry-forwards. This loss disallowance rule applies after applying the PAL rules. So, if the PAL rules disallow your rental losses, this rule is a nonfactor.
COVID-19 Relief: Thankfully, the CARES Act suspends the excess business loss disallowance rule for losses that arise in tax years beginning in 2018-2020. Thatâs good news.
Whatâs the deal with net operation losses (NOLs)?
Say you manage to successfully clear both of the preceding hurdles for your rental property losses. Now we are talking, because you can generally use those losses currently to offset taxable income from other sources. If losses for the year exceed income from other sources, you may have a net operating loss (NOL) for the year.
COVID-19 Relief: The CARES Act allows a five-year carryback privilege for an NOL that arises in a tax year beginning in 2018-2020. So, you can carry an NOL from one of those years back to an earlier year, deduct it, and recover some or all of the federal income tax paid for the carryback year. Because federal income tax rates were generally higher in years before the TCJA took effect, NOLs carried back to those years can be especially beneficial. The TCJA kicked in starting with tax years beginning in 2018.
What if I have positive taxable income?
Eventually your rental property should start throwing off positive taxable income instead of losses, because escalating rents will surpass your deductible expenses. Of course, you must pay income taxes on those profits. But if you piled up suspended passive losses in earlier years, you can now use them to offset your passive profits.
Another nice thing: positive taxable income from rental real estate is not hit with the dreaded self-employment (SE) tax, which applies to most other unincorporated profit-making ventures. The SE tax rate can be up to 15.3%. Something to avoid when possible.
One bad thing: positive passive income from rental real estate owned by a higher-income individual can get socked with the 3.8% net investment income tax (NIIT), and gains from selling properties can also get hit with the NIIT. Ask your tax pro for details.
The bottom line
There you have it: most of what you need to know about the federal income tax issues that can come into play for rental property owners. The economic fallout from the COVID-19 crisis and recent civil unrest increase the odds that rental properties will suffer losses in 2020, but tax relief provisions may soften the blow.
The post 2020 Could Be an Unprofitable Year for Rental Properties. Hereâs How to Handle the Taxes appeared first on Real Estate News & Insights | realtor.comÂ®.
Credit cards, interest rates, loans, even where you liveâthese all depend on your credit score. If you have a good credit score, youâre more likely to get better financial offers. But if you have a low or nonexistent score, the chances of getting prime financial offers are pretty slim.
If you have low or nonexistent credit, improving your credit can seem almost impossible. Because you donât qualify for the best financial offers, you canât get the opportunities you need to bump up your credit. Plus, youâll probably find yourself paying a lot more interest than youâd like.
This might feel like a no-win situation. But thereâs good newsâthere are alternatives to building credit besides credit cards. Those with poor or nonexistent credit can have the opportunity to build up their scores. Learn about good credit scores and how you can work to get your rating in that range.
What Is a Good Credit Score?
If youâre completely unfamiliar with credit, itâs time to learn where your credit score stands. Hereâs the breakdownâcredit scores range between 300 and 850. According to Experian, an average credit score for Americans is around 675.
Credit scores are ranked as bad, poor, fair, good or excellent. Experianâs numbers are based on a model called VantageScore. The VantageScore model is broken down to the following:
- Excellent: 750-850
- Good: 700-749
- Fair: 650-699
- Poor: 600-649
- Bad: 300-599
FICO scores are based on a slightly different model with a range of 300 to 850. The average FICO score in 2018 was 704. For FICO ratings, a good or excellent score is above 740. Hereâs the breakdown of FICO Score ratings:
- Exceptional: 800-850
- Very good: 740-799
- Good: 670-739
- Fair: 580-669
- Very Poor: 300-579
How to Build Low or Nonexistent Credit
It is possible to get a credit card for bad credit. But youâll find that theyâll either have no rewards, higher interest rates or both. These are worth looking into, but you might want to consider other methods before you commit to a credit card. Here are some great options for building your credit scoreâthat arenât getting a credit card.
1. Get a CreditStrong Account
In a frustrating turn of events, building or rebuilding credit often requires that you have some credit to begin with. Thatâs where credit builder loans, such as the ones provided by CreditStrong, come in handy. Credit builder loans allow you to take out a loan without a hard credit pull. The money is placed in a locked savings account to secure the loan.
Once you make the required payments, the savings account is unlocked and you gain access to the funds. In the meantime, you get up to 24 months of positive payment reports to the credit bureaus, helping to build your score.
Each loan payment you make will be reported to all three credit bureaus each month, which will help build your credit history. Because 35% of your credit score is based on payment history, making on-time payments towards a CreditStrong account can improve your score.
2. Try Experian Boost
You already know that payment history makes up 35% of your credit score. Experian knows that, too. Thatâs why they launched Experian Boost earlier this year. This program allows you to include both your cell phone and utility payments in the calculation of your credit score.
Worried that youâll miss a payment or two? Missed payments will typically harm your credit score, but Experian only counts the payments youâve made on time. That means that any bill you donât pay on time wonât harm your score. While you should try to pay your bills on time, this is a life-saver if you accidentally slip up on a payment or two.
3. Improve Your Credit with Rent Track
When you have a low credit score, any payment you continually make on time helps. RentTrack is a great rent reporting tool that will track your rent payments, therefore helping you build your score. RentTrack is often used by property management companies, letting their tenants pay rent online.
How does this help your credit score? When you pay your rent, RentTrack offers to report your payments to all three major credit bureaus. If you choose to do, every payment you make will show up on your credit report. Make your payments on time, and youâll watch your credit score increase over time.
The post 3 Ways to Build Credit if You Can’t Get a Credit Card appeared first on Credit.com.
When it comes to getting a secure, well-paying job, itâs not always necessary to get a college degree first.
Some students may choose a career training program to learn the necessary skills for a specific job, often more quickly and for less money than a four-year college degree. These programs may also be referred to as career certificate programs, usually certifying the students to work in a particular role once the course is completed.
These programs can be completed after college, but many are designed to train people who havenât attended college. Recent high school graduates or those who have attained their GED can often attend career training programs and get started on their careers after receiving their certificate.
Why Do People Choose Career Training Programs?
Two big factors in choosing to go through a career training program before or instead of going to college are time and money.
Career training programs typically can be completed in less time than it generally takes to complete an undergraduate degree. Some programs can be completed in as little as four months, a staggering difference from the four years it might take to earn a bachelorâs degree.
average cost of in-state tuition at a public two-year institution is $3,412, and at a public four-year institution the in-state tuition averages $9,308.
At Minnesota State University, certificate programs consist of nine to 30 credits, which can be completed in one year or less of full-time study. If these programs cost the average $100 per credit, they would cost between $900 and $3,000. This is fairly affordable compared to the cost of tuition at either a two-year or a four-year institution.
Another reason some people choose a career training program is that they need to, or would like to, start earning money relatively soon after graduating high school.
A career training program could be a more direct route to employment than getting an associate or bachelorâs degree for people who are sure about their career path. This could also be a beneficial route for students who want to save money to attend college later in life.
Choosing a Program
The most important thing to look for when choosing a career training program, whether itâs in-person or an online career training program, is accreditation. Accreditation verifies that an institution is meeting a certain level of quality. Usually, a certificate will need to come from an accredited institution for it to be considered legitimate.
Accreditation is done by private agencies, and most programs or institutions will list accreditations on their website.
The most up-to-date accreditation information can be found in the database of postsecondary institutions and programs compiled by the US Department of Education or with the specific accrediting agencyâs website.
Once itâs clear that the potential programs are accredited, students can begin to narrow down which one will be best for them. This will be a highly personal choice, but there are a few factors worthy of attention, including cost, course length, and type of instruction (online vs. in-person).
Job search assistanceâwhich might include resume writing workshops, job fairs, or interview prepâis another element that may help set students up for success.
Top Paying Jobs For Certificate Holders
In addition to career training programs having the potential to save students time and money, people want to know that theyâll be able to make a good living with those jobs.
Right now, these are the highest paying jobs for those opting to go through a career training program:
1. Web Designer
According to the US Bureau of Labor Statistics, the average annual income for a web designer is $73,760, with the educational requirements ranging from a high school diploma to a bachelorâs degree. This job is growing faster than average, so it has a promising future.
2. Paralegals and Legal Assistants
Paralegals and legal assistants make, on average, $51,740 per year. The required education for an entry-level job as a paralegal is a certificate or an associate degree. This job is also growing at a rate much faster than average, showing great potential for a long-term career.
3. Solar Photovoltaic Installer
Solar panel installation is a growing field with decent pay and a lot of projected growth for the future. The median annual pay is $44,890, with only a high school degree or a certificate required to begin working.
4. Licensed practical and licensed vocational nurses
Training to become a licensed practical or licensed vocational nurse typically takes only one year of full-time study, and the median annual salary is $47,480. This job is growing faster than average and is in a field that will certainly always exist. This could be a good choice for someone who wants to be in the medical field without the time and financial commitment it takes to become a doctor.
5. Medical Records Technician
Working as a medical records technician usually only requires a certificate, and sometimes an associate degree. This job has a median annual pay of $42,630 and the potential to work from home.
6. Pharmacy Technician
The median pay for a pharmacy technician is $33,950 per year. This job is growing at an average rate and typically requires on-the-job training or a formal training program, most of which last one year. Some longer pharmacy tech training programs culminate in an associate degree.
7. Computer Support Specialist
The role of a computer support specialist can vary widely, which means the educational requirements may, also. Some jobs in this field may require a bachelorâs degree, but others may only require an associate degree or a certificate. The median annual pay for a computer support specialist is $54,760, and the field is growing faster than average.
Professional certification, which can be gained after completing a phlebotomy training program, is the credential generally preferred by employers. This job has a median annual pay of $35,510 and itâs growing much faster than average.
9. Medical Assistants
Medical assistants have a median annual pay of $34,800, and the job only requires a certificate or on-the-job training. This job is growing much faster than average.
10. Wind Turbine Technician
The median pay for this job is $52,910 per year and the only education required is a training certificate through a technical program. This job is growing at a rate much faster than average, which could make it a great choice for students who are ready to start their career shortly after graduating high school.
Paying for a Career Training Program
Just because career training programs are typically less expensive than college doesnât mean theyâll be easy to pay for. Some programs last longer than others and will still end up costing a fair chunk of money.
One way to pay for a career training program is to save the amount of money needed before starting it. If the program is short or has a lower cost per unit, it may be possible to simply save up the necessary amount before beginning the course of study.
Free Application for Federal Student Aid (FAFSA) Â® is the first step to applying for federal student financial aid. After submitting the FAFSAÂ®, students will find out if theyâre eligible for federal student aid, which could include federal student loans and/or work-study.
Students who arenât eligible for federal financial aid or students who canât cover tuition costs without financial aid may want to look for scholarships. There may be fewer scholarships available for certificate programs than there are for degree programs, but theyâre out there!
The best place to start looking for scholarships is with the school the student is attending. Some schools set up their own scholarships. Alternatively, students can search for scholarships offered by professional organizations in their related fields.
A private student loan may be another option to cover the cost of a career training program. Loan terms will vary from lender to lender, and applicants are encouraged to understand the terms of the loan before accepting one. Students should exhaust all federal student aid options before considering private student loans.
Students can be under a lot of pressure to go right into a four-year college or university after graduating high school, but career training programs provide an alternative that can also set students up for success, typically in less time and for less money.
Learn more about private student loans at SoFi.
SoFi Loan Products
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SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFiâs eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFiâs eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. SoFi Lending Corp. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
The post 10 Top Career Training Programs appeared first on SoFi.
You’re involved in an accident, your car is wrecked, and your insurer has stepped in to cover the damages. All is well, and you only have the deductible to worry about, but what happens before the car is fixed? How do you continue to get to work every day and take the kids to school when your car is in theÂ repair shopÂ for the next few days or weeks?
That’s whereÂ rental carÂ reimbursementÂ coverageÂ steps in. If you have thisÂ optional coverageÂ on yourÂ carÂ insuranceÂ policy, you won’t need to worry.
Keep reading to learn how this coverage option works.
Rental CarÂ ReimbursementÂ vsÂ RentalÂ CarÂ Insurance
Before we go any further, it’s worth clarifying the potential confusion surroundingÂ rental carÂ coverageÂ andÂ rental carÂ reimbursementÂ coverage. The former includes damage waivers, property insurance, and liability coverage and protects you when you are driving aÂ rental car.
You will be offered this type of insurance when you rent a car and can also get it through your currentÂ insurance policyÂ or through yourÂ credit card, bank account or travel insurance.
As forÂ rental carÂ reimbursement, it is designed to cover the costs of renting a vehicle when your car is in the shop or has been stolen.
Rental carÂ reimbursementÂ only applies if yourÂ insurance companyÂ is paying for the repairs and those repairs are covered by yourÂ insurance policy. It is a coverage option that is typically only available to policyholders who haveÂ collision coverageÂ or comprehensive coverage insurance.
What DoesÂ Rental CarÂ ReimbursementÂ Cover?
Rental carÂ reimbursementÂ is designed to cover theÂ cost of aÂ rental car, but there are limits. MostÂ insurance companiesÂ will only cover you for 30 days and many also set aÂ daily limit, often between $50 and $100. This means that you can’t claim for costs above this or for a rental period that extends beyond it.
In some states and in some situations, you may not even need toÂ addÂ rental reimbursement coverageÂ to your policy as theÂ at-fault driverÂ could be responsible for yourÂ rental costs. In the event of aÂ car accidentÂ caused by a fully-insured driver, their liability insurance may cover you for transportation costs, while also paying for the damage done to you and your vehicle.
However, there is aÂ coverage limitÂ that means they may not be liable for all the costs you pay to theÂ rental carÂ company. In such cases, havingÂ rental carÂ reimbursementÂ coverageÂ on your policy will cover the difference and ensure you’re not out of pocket.
How Much Does it Cost?
The cost ofÂ rental reimbursement insuranceÂ differs from state to state and provider to provider. Your costs will also be higher if you are deemed to be a high-risk driver and have a history of at-fault accidents andÂ insurance claims. Generally, however, you can expect to pay anywhere from $3 or $4 a month extra to $15 or $20 a month extra.
It’s not a huge amount because the cover provided is very limited. For instance, at $50 a day over 30 days, the insurer’s liability is just $1,500, which is a fraction of the amount they can expect to lose with other coverage options.
How Does the Process Work?
You’re involved in a minor accident and your car is taken to theÂ body shop, now what? If you haveÂ rental coverage, you can do one of the following:
1. Pay for it Yourself
When you pay for the vehicle yourself, you have more choice about what car you rent and from where you rent it, and you can also get it as soon as you need it. If you choose this option, just make sure you keep a record of all the costs so you can report these to the insurer and get your money back.
By choosing this method, you have more control and providing you have cover, you shouldn’t encounter any issues when seeking reimbursement. Get theÂ rental vehicleÂ you want, drive it off the lot, and wait for your car to be fixed and your expenses to be covered.
2. Let YourÂ Insurance CompanyÂ Do It
The second option, and the best option, is to go through yourÂ insurance company. They will contact theÂ rental companyÂ on your behalf and deal with all of the red tape, ensuring you only get a car that you are fully covered for and providing you with all the necessary details at the same time.
By going through your insurer, you can avoid the hassle and they may even help you to get a better deal.Â
It’s worth noting, however, that your insurer will not pay for additionalÂ rental carÂ coverageÂ like damage waivers. But as noted already, yourÂ auto policyÂ may already provide you with the cover that you need.
Should You Get AdditionalÂ CarÂ RentalÂ Reimbursement Coverage?
On average, you will useÂ rental carÂ coverageÂ just once in a 10-year period, and you may only need it for a few days at a time. To determine whether thisÂ additional coverageÂ option is right for you, simply calculate how much it will cost you on a monthly basis and then compare this to how much it is likely to offer you.
For instance, let’s assume that you are charged $10 a month for this additional option. This means you will pay $120 a year or $1,200 over ten years. Assuming you’re being offered a maximum of $50 per day for 30 days, this means the benefits are capped at $1,500.
If you’re paying $15 a month instead, that’s $180 a year, $1,800 a decade, and more than you will get back. And, in both cases, we’re assuming that you rent a car for the full 30 days at the maximum allowed price, which is somewhat rare. As a result, you can probably overlook thisÂ additional coverageÂ option when those are the prices quoted.
Bottom Line: ChoosingÂ Insurance Coverage
FromÂ carÂ rentalÂ coverageÂ andÂ rental carÂ reimbursementÂ toÂ roadside assistance, new car replacement and more, there is no shortage of options for the average driver.Â
But as tempting as it is to add all of these options to yourÂ autoÂ insuranceÂ policyÂ in the knowledge that you’ll be fully covered, the costs can spiral out of control very quickly. You could find yourself spending an excessive amount of money unnecessarily, and at a time when everyone is watching their budgets, that’s never a good thing.
Think aboutÂ rental carÂ reimbursementÂ carefully and reject it if you don’t need it, even if it is only $10 or $20 extra a month.Â
A Guide to Rental Reimbursement Coverage is a post from Pocket Your Dollars.