Hopson Warns Tourists on Auto Coverage Gaps

Why Tourist Season Drives Up Claims

The roads are crowded.

Data shows a significant surge in traffic volume during August.

This creates a hazardous environment for tourists.

Drivers unfamiliar with local traffic patterns cause accidents.

Distracted driving adds to the danger.

Tourists often look at GPS or scenery instead of the road.

This leads to rear-end collisions and intersection crashes.

Insurance claims spike during this period.

Industry reports indicate a 14% jump in accident claims during tourist season compared to off-peak months.

The cost of these claims is also rising.

Vehicle repair costs have climbed steadily through 2026.

Modern cars are expensive to fix.

Sensors and cameras are located in bumpers.

A minor fender bender can cost thousands of dollars.

Hopson highlighted this trend.

He noted that a tourist's liability limit might not cover the damage to a luxury vehicle in a major city.

If a tourist hits a new electric SUV, the repair bill could easily exceed minimum coverage levels.

The tourist becomes personally liable for the difference.

This can wipe out savings.

It can lead to lawsuits.

Hopson stressed that geographical factors play a role too.

Driving in mountainous regions or congested urban centers carries different risks than suburban driving.

Insurance premiums are calculated based on where the car is garaged.

They do not automatically adjust for a trip to a high-risk area.

This leaves a gap in protection.

Hopson advises drivers to notify their insurer of long-distance travel.

This ensures coverage remains valid during the trip.

Some policies have territorial limits.

Crossing into Canada or Mexico requires specific endorsements.

Driving without them can invalidate the policy entirely.

Hopson warned that ignorance of these terms is not an excuse insurers accept.

The Rental Car Coverage Trap

Rental cars present the biggest confusion for travelers.

Hopson dedicated a large part of his advice to this topic.

The rental counter is a place of high-pressure sales.

Agents push expensive add-on policies.

Drivers often buy them out of fear.

Or they decline everything relying on their personal auto insurance.

Hopson says both approaches carry risk.

Personal auto insurance typically extends to rental cars.

But it might not cover everything.

Loss of use fees are a common exclusion.

Rental companies charge for the income lost while a damaged car is in the shop.

Personal policies often refuse to pay this.

The driver gets stuck with the bill.

It can amount to hundreds of dollars.

Credit cards offer another layer of protection.

Many cards promise rental car insurance.

Hopson warned that these promises have fine print.

Secondary coverage is common.

This means the credit card only pays what the primary insurance does not.

If the driver has no insurance, the credit card might become primary.

But the coverage is often limited to collision damage.

It rarely covers liability for injuring others.

It does not cover personal belongings stolen from the car.

Hopson advised travelers to read their credit card benefits carefully before leaving home.

He suggested calling the card issuer.

Ask specific questions about coverage in the destination region.

Some cards exclude coverage in certain countries or for specific types of vehicles like trucks or luxury cars.

The expert also discussed the value of the rental company's Loss Damage Waiver.

It acts as a waiver of liability for damage to the car.

It eliminates the need to file a claim with personal insurance.

This prevents premium hikes after an accident.

For a short trip, Hopson noted this might be worth the extra daily cost.

It provides peace of mind.

It allows the traveler to walk away from a damaged car without financial hassle.

Liability Limits and Financial Ruin

Liability coverage is the most critical part of an auto policy.

It pays for damage and injuries the driver causes to others.

Hopson urged tourists to review their limits.

Many drivers carry the state minimum required coverage.

These limits were set decades ago.

They have not kept pace with medical costs or vehicle prices.

A serious accident can exhaust these limits in minutes.

If a tourist causes a multi-car pileup, the costs skyrocket.

Hospital bills for injured parties can exceed $100,000 quickly.

Property damage adds to the total.

If the policy limit is $50,000, the driver owes the rest.

Courts can garnish wages.

They can seize assets.

Hopson described this as a avoidable catastrophe.

He recommended carrying higher liability limits.

100/300/100 is a standard recommendation.

This means $100,000 for injury per person, $300,000 total per accident, and $100,000 for property damage.

This provides a much stronger safety net.

The cost to increase limits is often modest compared to the risk.

Hopson also pointed out the risk of Uninsured Motorist coverage.

Tourists driving in unfamiliar areas may encounter uninsured drivers.

If an uninsured driver hits the tourist, the tourist's own policy must cover the gap.

Without Uninsured Motorist coverage, the tourist is left paying for their own injuries.

This is especially important in states with high rates of uninsured drivers.

Hopson advised checking this specific line item.

It is often overlooked but vital for traveler safety.

Medical payments coverage is another area of focus.

It pays for medical bills for the driver and passengers regardless of fault.

Health insurance might cover this, but deductibles and co-pays apply.

Auto medical payments coverage usually has a lower deductible.

It acts as a bridge for immediate medical needs following an accident far from home.

2026 Market Pressures on Premiums

The insurance market in 2026 is tougher than in previous years.

Hopson contextualized his advice within the current economic climate.

Inflation has impacted the auto industry severely.

The cost of parts and labor has surged.

Insurers are raising rates to compensate.

Some carriers are tightening underwriting standards.

They are dropping high-risk drivers.

Hopson noted that a tourist might find themselves non-renewed after a claim.

This makes prevention even more important.

Technology also plays a role.

Many insurers now use telematics.

Apps track driving behavior.

Speeding and hard braking can increase premiums.

Tourists driving unfamiliar routes might drive erratically.

This could trigger rate hikes if their policy uses telematics.

Hopson suggested being mindful of driving habits.

Use cruise control on highways to avoid speeding tickets.

Tickets impact insurance rates for years.

A rental car ticket can follow the driver home.

The expert also discussed the impact of electric vehicles.

More EVs are on the road in 2026.

Repairing an EV is expensive.

Battery damage can total a car.

If a tourist hits an EV, the property damage claim will be high.

Standard property damage limits might not be enough.

Hopson advised adding an umbrella policy for extra protection.

An umbrella policy sits on top of auto insurance.

It kicks in when auto limits are exhausted.

It provides $1 million or more in extra liability coverage.

It costs a few hundred dollars a year.

Hopson called it the best investment for high-net-worth individuals or anyone with assets to protect.

Tourists should consider this before a long road trip.

The exposure to risk is higher when traveling long distances.

Hopson's Checklist for Road Safety

Scott Hopson concluded his HelloNation feature with a practical checklist.

He wants drivers to take action immediately.

Do not wait until the suitcase is packed.

Insurance changes take time to process.

First, call your insurance agent.

Confirm coverage extends to the destination.

Ask about rental car specifics.

Second, check liability limits.

Increase them if they are at the state minimum.

Third, review credit card benefits.

Understand what is covered and what is not.

Fourth, keep insurance cards accessible.

Digital copies on a phone are usually accepted.

But keep a paper copy as a backup.

Fifth, document the vehicle condition before driving a rental.

Photos and videos prevent disputes over damage.

Hopson emphasized preparation.

Tourist season is exciting.

It should not be ruined by a financial disaster.

Accidents happen.

Being prepared makes them manageable.

Hopson's advice serves as a shield for the millions of travelers currently on the road.

His insights through HelloNation provide a roadmap for safer travel.

As the summer winds down, the roads remain busy.

Vigilance is key.

Proper insurance is the foundation of that vigilance.

Drivers who follow