08.11.25 Get Wise To Your Retirement Plan / Getting More For Your Money

Summary

The Clark Howard Podcast – Episode Summary Release Date: August 11, 2025

---

Introduction

In this engaging episode of The Clark Howard Podcast, host Clark Howard delves into critical financial topics, offering listeners valuable insights and actionable advice. From scrutinizing retirement plans for teachers to guiding small business owners through expansion challenges, Clark addresses a range of issues aimed at empowering individuals to make informed financial decisions.

---

1. Evaluating Retirement Plans: 403B vs. 401K for Teachers

Clark opens the discussion by highlighting the disparities between 403B and 401K retirement plans, particularly focusing on the impact on teachers.

• Key Points:

  • 403B Plans Undermining Teachers' Retirement: Clark criticizes 403B plans offered to teachers, citing high commissions, exorbitant ongoing expenses, and punitive surrender charges that trap educators in unfavorable conditions.
  • Comparison with 401K Plans: Referencing a Barron's article, Clark illustrates that teachers contributing $250 monthly to a 403B end up with approximately $185,000 at retirement, compared to nearly $350,000 for individuals with private-sector 401K contributions.

• Notable Quote:

  “The teacher ends up with $185,000 while the private sector worker ends up with just under $350,000.” – Clark Howard [04:35]

• Advice for Teachers:

  • Opt for Roth IRAs: Clark encourages teachers to establish their own Roth IRAs or explore resources like 403BWise.org, which advocates for better retirement options tailored for educators.

---

2. Small Business Expansion: Navigating Growth Responsibly

A listener from Idaho, Scott, seeks advice on expanding a small business while managing administrative and tax complexities.

• Key Points:

  • Start with Contractors: Clark advises hiring contractors (1099 workers) instead of full-time employees initially to minimize complexity and administrative burdens.
  • Utilize Payroll Services: For handling payroll and tax filings, Clark recommends leveraging automated payroll services tailored for small businesses.
  • Transition to Employees: As the business grows, transitioning to full-time employees and possibly consulting professionals becomes necessary.

• Notable Quote:

  “Build your business with contractors for now. It will become clear later when it's time to hire actual employees.” – Clark Howard [10:47]

---

3. Insurance Insights: Fidelity’s Dual Role

An anonymous caller discusses experiences with Fidelity, prompting Clark to address concerns about the company's fiduciary practices.

• Key Points:

  • Fiduciary vs. Sales Roles: Clark explains that Fidelity operates under a "two-hat" approach—acting as a fiduciary in some areas while selling proprietary financial products in others.
  • Customer Vigilance: He advises customers to be cautious of aggressive sales tactics for products like annuities and to prioritize fiduciary responsibilities.

• Notable Quote:

  “Fidelity is playing some of this two-hat game...saying yes here they’re fiduciaries, but not there.” – Clark Howard [14:05]

---

4. Mortgage Strategy: To Pay Off or Invest?

Listener B from Ohio poses a question about whether to pay off a fixed 2.85% mortgage before retirement.

• Key Points:

  • Financial Wisdom Over Psychological Satisfaction: Clark argues against paying off the mortgage early, emphasizing that the low fixed rate is advantageous compared to current inflation rates and potential investment returns.
  • Opportunity Cost: He suggests investing the funds instead, as the mortgage rate is lower than what could be earned through investments.

• Notable Quote:

  “With a fixed 2.85% rate, you’re trailing the inflation rate. It’s more efficient to keep the mortgage and invest your money elsewhere.” – Clark Howard [15:31]

---

5. Enhancing Customer Value: The Coffee Shop Trend

Clark transitions to a lighter topic, discussing a trend in coffee shops offering oversized beverages to provide perceived value amidst inflationary pressures.

• Key Points:

  • Giant Coffee Cups: Coffee shops are introducing "bucket" sized drinks, which cost more but offer significant volume, countering the trend of shrinkflation in other markets.
  • Business Adaptation: This strategy exemplifies how businesses adapt to maintain customer satisfaction and perceived value during economic disruptions.

• Notable Quote:

  “Giving somebody that big bucket gives them enhanced value while keeping your variable costs relatively stable.” – Clark Howard [20:44]

---

6. Listener Questions: Practical Financial Guidance

a. Buying a Car for a College Student

Dave from California seeks advice on purchasing a used car for his son, who splits time between Indiana and Atlanta.

• Key Points:

  • Opt for Used Electric Vehicles (EVs): Clark recommends considering used EVs due to their lower resale values and potential cost savings.
  • Charging Infrastructure: Emphasizes the importance of available charging stations, particularly if the college offers free charging.
  • Technology Utilization: Suggests using tools like ABRP (A Better Route Planner) to manage long-distance travel with EVs.

• Notable Quote:

  “The best deal in the marketplace right now by far is used electric vehicles.” – Clark Howard [25:00]

b. Home Insurance and Roof Condition

Jason from Oregon shares his ordeal with his insurance company regarding roof condition and cancellation notices.

• Key Points:

  • State Insurance Regulations: Clark advises contacting the state insurance department to address unfair cancellation practices.
  • Documentation: Recommends providing timestamped evidence of roof replacements to contest unjustified claims.
  • Legal Recourse: Suggests seeking legal advice if the insurer continues to act in bad faith.

• Notable Quote:

  “Contact the state insurance department in Oregon and see what’s reasonable that you should receive because the insurer is behaving unreasonably.” – Clark Howard [28:04]

c. Insuring Rental Cars in Iceland

Brandon from Florida asks about insuring rental cars while traveling to Iceland, noting his insurance doesn't cover international rentals.

• Key Points:

  • Local Insurance Providers: Clark recommends using local Icelandic rental companies that include comprehensive coverage, as U.S. insurers typically exclude such international rentals.
  • Credit Card Coverage: Notes that some credit cards offer primary coverage for international rentals, but emphasizes verifying specific terms.
  • Conditions and Coverage: Highlights the importance of understanding the specific risks in Iceland, such as gravel and ash protection.

• Notable Quote:

  “In Iceland, renting from local companies includes coverage for conditions like gravel and ash, which U.S. insurers generally do not cover.” – Clark Howard [29:50]

---

7. Upcoming Topics Teaser

Clark hints at an upcoming discussion on a crucial yet often overlooked type of insurance necessary for travelers, piquing listeners' interest.

• Notable Quote:

  “On Wednesday, we’re going to talk about a type of insurance we all need to buy when we’re traveling. And it’s not regular trip insurance.” – Clark Howard [33:05]

---

8. Conclusion

Wrapping up the episode, Clark and co-host Krista Wesson engage in light-hearted banter, reinforcing the show's commitment to providing free advice and financial empowerment to listeners.

• Call to Action:

  • One-on-One Advice: Listeners are encouraged to access personalized financial advice through Clark.com.
  • Free Reading Resources: Highlighting opportunities to read for free via library apps like Libby.

• Notable Quote:

  “We want you to save more, spend less, and avoid getting ripped off.” – Clark Howard [34:19]

---

Final Thoughts

This episode of The Clark Howard Podcast offers a comprehensive exploration of financial strategies tailored to various audiences, from educators and entrepreneurs to everyday consumers. Clark's passionate advocacy for fair financial practices and his practical advice ensure that listeners are well-equipped to navigate their financial journeys with confidence.

---

Transcript

[Sponsor]

This message is brought to you by Apple Card. Apple Card takes privacy seriously. It's your card, your info, your business. So if your credit card is an Apple card, maybe it should be subject to credit approval. Apple Card issued by Goldman Sachs Bank USA Salt Lake City Branch terms and [e-mail] this podcast is brought to you by Progressive Insurance. Do you ever find yourself playing the budgeting game? Well, with the Name youe Price Tool from Progressive, you can find options that fit your budget and potentially lower your bills. Try [e-mail] Progressive Casualty Insurance Company and affiliates Price and coverage match Limited by state law not available in all states.

[Clark Howard]

It'S great to have you here on the Clark Howard Show. You know, our mission is to serve you with advice and information that empowers you so you make better financial decisions in your life. We talk a lot on this show about saving for your future and retirement plans. You know, not all of them are created equal. So how do you decide if your employer plan is worthy of your money? I'm going to tell you what to look for. Also, retailers and restaurants, they're trying all kinds of methods to get you in the door. And I've always been a sucker for a super mega monster soft drink. Go ahead, go ahead. Clark Stinks is where you're right. If you're unhappy that I drink soft drinks. But what would you think for getting a Gut Buster giant soft drink? Having a coffee bucket, an individual coffee bucket that won't even fit in your drink holder in your vehicle? That's a trend right now. I'm going to talk about that later. All right, here's something that is a trend I can't stand. What is the deal with the US Congress deciding yet again to do nothing to fix this problem with teachers, people who work for nonprofits being offered absolutely horrendous, terrible, awful retirement plans called 403BS when the rest of us who have an employer provided plan are offered a 401K. The 403B is so hideously awful and it's happening to particularly it's much worse tends to be much worse for teachers than is for people working a lot of other non profits like hospitals or university campuses. But here's what's going on. The lobbyists from the insurance industry got Congress to put in place a system that purposely gives teachers these terrible retirement plan choices that have gigantic commissions, humongous ongoing expenses, and on top of them, a hideous thing known as surrender charges that if you realize, oops, I'm getting cheated that you have no Way out easily, because they charge you these giant fees to leave. The terrible plan to force you to stay in it is just awful. Well, I saw data recently about how badly teachers are being hurt by these hideous plans that they're in. And of all people, you wouldn't expect to write about this. Barron's magazine that writes to the wealthiest people in the country wrote a story about how teachers are being cheated and that teachers are being so ripped off in fees in these plans that a teacher putting the same money in a 403 as you or I who have access to a 401k or putting in the typical 401k are ending up with just a little bit more than half the money in retirement of somebody working for a private employer. I mean, it's unbelievable how bad the ripoff is. So they give an example here of a teacher contributing $250 a month to a 403B plan versus somebody at a private employer putting $250 in. The expenses are so high. And the hideous garbage that the insurance companies cheat the teachers with that. Remember, they put in the same amount of money. The teacher ends up with 185,000. The private sector worker ends up with just under 350,000. So one ends up with almost double the money when they want to retire, the other contributing the same money all through the years. Here's what you need to know. If you have a teacher in the family or you're one, yourself or friends a teacher, the insurance companies hide how they're cheating you. They hide all the information on the fees and the school districts. In some cases, the unions and others are leaving the teachers with these awful, hideous, terrible options. So what should a teacher do instead? Do your own Roth ira. Do your own Roth ira. Unless you happen to be that rare needle in a haystack who's in a school district or has a union that's actually offering good plans for you, if you are a teacher, go to 403B wise.org go to 403B wise, which is the nation's only advocate specifically focused on teachers not being cheated in 4 or 3 Bs. 403bwise.org why does this mean so much to me? We have a hard time attracting and retaining awesome teachers. If you think back through your life, your formative years as a kid, there's likely some teachers who had impact on you that made a difference for you the rest of your life. I know I had that. You did. Christa, Ms.

[Krista Wesson]

Hunting's mom, she listens to the show.

[Clark Howard]

The point is, why is it that teachers are treated as fodder to fill the pockets of insurers that cheat them? Cheat them. Do you know the expenses on these 403 tend to be 30 times what they are in a 401k? 30 times the math is wrong. And what is wrong with our individual members of the U.S. house and our two U.S. senators from our state that they don't care about these teachers, that they put them in a position like this? Now I'm on this topic. There are some employers that offer not the best 401ks. Very rare they're ever going to be as bad as these four or three bs. And you have a right to see what expenses you're having to pay, what administrative costs and investment expenses. By the way, you should be in index funds and a plan more often an index version of a target retirement fund. Unless you're really into investing and want to do your own allocation. And when you change jobs, Congress left another bad thing in the rules. Do you know that when you leave a job if you leave your 401k behind at your old employer, that there are employers that then gouge you with expenses just as somebody who's no longer working there? That's not a common one, but it's something you need to be aware of. Enough said about this. Can you tell I'm fired up. I don't understand what happens in the minds of these politicians that they are so willing everything they do to get elected that they're then in a position where instead of helping their constituents, they specifically are part of conspiring to hurt them. And I'm sure not one of them would say that they don't value teachers, but they value the money from the insurance industry more.

[Krista Wesson]

Yeah, the. And the 401k that you were talking about. Like whenever somebody tells me they have their 401k through an insurance company, you know, their work chooses an insurance company.

[Clark Howard]

I'm like the insurance industry has actual reasons to exist that are great for sure. This is not an area Investments. Investments is not when you should be at an insurance company period. Individually employer nothing.

[Krista Wesson]

All right. Scott in Idaho has a question for you. Clark, I'm 23 and currently a college student. About a year ago I started a small business with a friend and it's been a great experience so far. I've actually received helpful advice from you in the past and I'm very grateful for that. I recently heard you talk about how much you admire entrepreneurs and the positive impact of growing a team that really resonated with me because my business partner and I are now at a point where we're considering expanding and potentially hiring employees. So far our taxes have been relatively simple since we're co owners, but even then I've had to turn to resources like ChatGPT for help. As we think about growing, I'm concerned about staying compliant with government regulations and managing the added complexity. Especially since hiring a professional help can be costly, something that's tough to budget for while I'm still in school. Do you have any advice for small business owners like me who want to expand responsibly without getting overwhelmed by administrative and tax related challenges?

[Clark Howard]

Scott, first of all, congratulations at every level. And you've reached this point where you and your friend have seen success way beyond your imagination. At this point I want you to quit. Crawl before you walk, walk before you run and run before you marathon. What do I mean by that? I don't want you hiring employees just yet. I want you to hire contractors. At this point, there's way too much complexity for you with a business that's gelling to right at this point, start hiring traditional employees. You have so much paperwork you have to deal with. I don't even want to get started. Everything that's involved. When you go from just the two of you running this to having people to help you, it would be completely common and normal with a startup that you would hire people, what's known as 1099, you pay them to do work for you. There's rules about how much you can control their schedule, but you come up with what you pay them per job or per hour or whatever and you pay them as a contractor. And if things keep growing with your business and you get to the point where there are people who you got to make sure you retain them, you keep them, you get to a size, then you get into the complexity of hiring actual employees w two employees. And then you are going to need professionals along the way. Doesn't have to be like you think about going to somebody who sit there and you hand them a stack of papers. A lot of it is now more automated. There are a lot of payroll services that are geared towards small businesses that handle a lot of the filings for you that have to be done for tax purposes and things like that. But then you also start getting to things with workers comp and unemployment insurance and all that. So for now, build your business, but build it with contractors. It will become clear later when it's time for you to move to the next step which would be hiring your first actual employees instead of contractors and continued success to you and your friend. All right.

[Krista Wesson]

Anonymous In California says recently you said Fidelity is your kid. You put in time out. I just switched to them this year after listening to you. I'm not as upset as I agree with you. All you said about what they're doing and acting as a fiduciary in some instances and then selling bogus financial products to people. It's really infuriating. I have an account at Charles Schwab that it's a checking account I use for international travel benefits attached to the ATM card. Do I switch again and move things to Schwab? Well this hurt me much. Ironically I moved things a few years ago from Schwab to Vanguard but was so frustrated with Vanguard's customer service.

[Clark Howard]

Customer no service. Yeah.

[Krista Wesson]

I ended up hearing you rave about Fidelity at one point so I switched to them this year. I don't mind switching again but want to know your thoughts. Thank you for all you do. All three of you. Krista Wesson Clark, I love you guys. Love you too. Anonymous thank you very much.

[Clark Howard]

Anonymous okay, so no, don't bail on Fidelity. Just be aware of what I talked about. Why I put them in time out is that Fidelity is doing this thing that I despise, the two hat kind of thing where they say yeah, over here we're a fiduciary doing what's in what's best for you. But over here we're not a fiduciary, we're selling you fill in the blank insurance products. So know that Fidelity is playing some of this two hat game and somebody starts doing the hard sell on you on some kind of annuity or something like that. You know, thanks but no thanks. Fidelity is a great organization. There's a moral and ethical blind spot here with Fidelity. I hope they fix it.

[Krista Wesson]

B in Ohio says I can see how having a paid off home in retirement would bring a great sense of peace. However, is it financially wise to pay off a mortgage with a fixed 2.85% interest rate?

[Clark Howard]

No way.

[Krista Wesson]

We're only three years into a 30 year loan and plan to retire in the next two to four years. Upon retirement we plan to sell a business and the proceeds, along with a portion of a Roth IRA could be used to pay off the remaining mortgage balance of about 560k. Even after doing so, we'd still have enough in our nest egg to cover other expenses. Should we pay off the low interest mortgage for peace of mind or invest the business proceeds and continue making monthly payments for the remaining 27 years.

[Clark Howard]

So B, psychologically it's fantastic to blow through that mortgage when the time comes that you could do that. I wouldn't. You know, with you being fixed at 2.85%, you're trailing the inflation rate. Obviously it's lower than what you can even earn on simple savings. So keep paying on this mortgage, the money you have is going to be more than enough to service. Is an efficient use of your money to keep that mortgage in place at 2.85%. Wow. What a great deal. And you think about people today, they go to take out mortgage money, they're at 7% plus or minus. So yeah, you, you keep that there. Make sure you have money that you know you can use to service that mortgage debt every month and you're good to go. And congratulations to you on being in a position that your finances are going to be so great from the sale of your business as you're negotiating the sale of your business, if you don't have already, I want you to find an experienced CPA who handles tax matters. There will be things that an accountant will say, well, I wish you would ask me first. When it comes time to sell your business, you want to have the kind of advice up front that you do things to the best you can for taxes on the proceeds of the sale of your business, I. E. Things you can do that will help reduce the amount of tax you'll owe on the sale of your business. Coming up ahead, I want to talk about joy for unalloyed joy. Incredible unlimited joy for coffee addicts.

[Krista Wesson]

We all have moments when we could have done better. Like cutting your own hair. Yikes. Or forgetting sunscreen so now you look like a tomato. Ouch. Could have done better. Same goes for where you invest. Level up and invest smarter with Schwab. Get market insight, education and human help when you need it. Learn [e-mail].

[Sponsor]

This message is brought to you by Apple Card. Did you know Apple Card is designed to help you pay off your balance faster with smart payment suggestions? And because fees don't help you, Apple Card doesn't have any. So if your credit card isn't Apple Card, maybe it should be subject to credit approval. Apple Card issued by Goldman Sachs Bank USA, Salt Lake City Branch. Variable APRs range from 18.24% to 28.49% based on creditworthiness rates as of July 1, 2025. Terms and more at applecard.com Hiring shouldn't be a hassle or a drain on your budget. Upwork is your one stop shop to find, hire and pay top freelance talent, saving you time and keeping costs in check. Companies at every stage turn to Upwork to get things done and find more flexibility in the way they staff key projects and initiatives. Upwork's global marketplace is filled with top level talent in it, web dev, AI, design, admin, support, marketing and more. Posting a job on Upwork is easy with no cost to join. You can register, browse freelancer profiles, get help drafting a job post, or even book a consultation. From there you can connect with freelancers and easily hire them. Upwork makes the entire process simpler and more affordable with industry low fees. Post a job today and hire tomorrow. With Upwork, visit Upwork.com right now and post your job for free. That is Upwork.com to post your job for free and connect with top talent ready to help your business grow. That's upwork.com upwork.com we all have moments.

[Krista Wesson]

When we could have done better. Like cutting your own hair. Yikes. Or forgetting sunscreen so now you look like a tomato. Ouch. Could have done better. Same goes for where you invest. Level up and invest smarter with Schwab. Get market insights, education and human help when you need it. Learn [e-mail].

[Clark Howard]

So I've had coffee ice cream. I've never had coffee. Not my thing. Well, you know, we've had so much inflation over the last six years and people are really feeling pressed and pressured and a lot of people are indulging less and eating out. You see the results in so many price points of restaurants and people are complaining about how much it costs if you go to a coffee place. So I read a story in the New York Times that there's a counter trend for coffee shops that's actually working for them. And I forget where it started, but they give you this jumbo giant cup of coffee. It could be coffee or it could be some kind of Frou Frou coffee drink, but it's massively large and like a bucket.

[Krista Wesson]

Right?

[Clark Howard]

A bucket of coffee. And so people, if you hear them suddenly sounding like they're really wound up, it could be because they had one of these buckets of coffee.

[Krista Wesson]

Wow.

[Clark Howard]

And they tend to be 10, 11, 12 bucks this big coffee drink. But the whole idea is it's the opposite of what's infuriating people in the supermarket with shrinkflation where you go pick up the box and it feels like there's nothing in it because the the food manufacturer put less and less and less in the box. This is going the other direction. Yeah, coffee costs more than it used to, but look how much of it we're giving you. I'm not even a coffee drinker. Why did this trigger so much interest in me?

[Krista Wesson]

Well, first of all, you're always interested in anything having to do with food and cost, for sure. And so many people do drink coffee, right?

[Clark Howard]

Well, I mean, the reason for me is that it shows that, you know, in a time of disruption like we've had with inflation and whatever ends up the effects of tariffs over the next couple years, that business owners either adapt or they lose trust with their customers, they may not survive. This is an example that what do you do to make your day special for your customer? What thing can you do? You might not be able to give away your product, but maybe you come up with something or your service that makes them feel like they're getting more value. You know, the reality is a lot of what happens when you go to a coffee place, it's labor, not the actual materials, the coffee beans, whatever. And so giving somebody that big bucket gives them enhanced value. At the same time, your variable costs are not that much higher than they are from, like, a regular coffee. So how do you do that in your business? How do you give that customer the feeling they're getting real value? You know, there are some restaurants that have been really successful at that, coming up with ways of giving people meals that feel like better value. We talked about that chain, Chili's, that has been booming because they have such a perceived value right now in the marketplace. How do you do that? Whatever works in your business. What I'm looking for from you is I'm looking for more value at a time that my dollar feels like it doesn't go as far.

[Krista Wesson]

Okay, we're gonna go to questions now. Dave in California says, my son, who finished his second year in college, needs to buy and use a car for the last two years of school and for an internship he got. He has saved around $5,000 for a used car, and we as parents are deciding whether to supplement a little. His home state is California. His college is in Indiana, and his four month internship is in Atlanta. It's unclear where he would be after two years, but he definitely use it in Atlanta and Indiana until he graduates college. What factors should he consider and whether to buy the car in Atlanta versus Indiana? Or should he just look for the most appropriate used car based on cost and reliability? Also, is there some definitive answer as to whether he should get his own insurance Policy or be on the parents insurance. Well, we did answer that recently. From a tax standpoint, he will be our dependent through the time that he graduates college. Yeah.

[Clark Howard]

So the insurance question, just very briefly, it's all over the board. Whether it's cheaper to be on a parent's policy or cheaper to have your own. Usually it's cheaper to be on the parents policy. Okay, so we've got this puzzle. 4 month internship in Atlanta college in Indiana. You don't say if, when he goes back to California, if he flies or this would be something. If he had a car, he would be driving. Let's say he's flying when he goes back home to visit. The internship is a temporary thing in Atlanta. He's going to have the vehicle a couple years in Indiana. So first I'm going to take the question where you didn't ask. And that is the best deal in the marketplace right now by far is used electric vehicles. A lot of them with very low miles on them as the technologies change with electric vehicles, a lot of used ones are unloved in the marketplace and are having the lowest resale values of equivalent age used vehicles you could buy, particularly when you're talking about you saved the five grand, you may supplement some. You're going to be able to be within reach potentially with an electric vehicle right now, a used one where you wouldn't be with a gas engine. Living at a college campus. Odds are the school may well offer free vehicle charging. Particularly if the school he's at in Indiana offers free charging. That would seal the deal because then he doesn't have to buy gasoline. The range problem of getting to Atlanta at first or buying in Atlanta and getting it back to Indiana, that's a different hassle for a different day.

[Krista Wesson]

Yeah.

[Clark Howard]

Depending on the range that that electric vehicle has.

[Krista Wesson]

There's a website Charge point that will. No, not charge point. A better road. It's a better road trip planner. A B rp which you can put in what electric car you have. And you put the, you put the place you're driving to and from and it tells you all the charging and how you would charge and stop and how long it would take you.

[Clark Howard]

That's fantastic.

[Krista Wesson]

They have an app too. Okay. Jason in Oregon says I received a cancellation notice from my home insurance company for roof condition. My roof was 18 years old and fine. No missing shingles, virtually no moss, etc. So I reluctantly got roof quotes and committed to the roof replacement. Days after the roof was replaced, I received another letter from my insurance company stating to ignore the cancellation letter because it was sent in error. Can you.

[Clark Howard]

No, no, no.

[Krista Wesson]

In other words, my roof was fine. What should I do? I'm very unhappy. I called the insurance company, they just told me, sorry, maybe we can give you a discount on your next premium. I appreciate your feedback. That is Jason brutal.

[Clark Howard]

Jason, we keep hearing from people about the roof thing. Insurers saying, replace your roof or you're out. Insurers are using roof condition as a way to get rid of somebody. I have a different situation with the roof and I'm coming back to this. I replace the roof on our home in 2018. The insurer said, no, the roof was from 2005. So I provided them a picture of the new roof being installed, timestamped. So then they sent a revised thing saying, okay, so the roof was 2018. Then I just got a new letter from them saying that they'd taken it back to 2005.

[Krista Wesson]

Oh my gosh.

[Clark Howard]

I mean, this is. This roof thing is big with the insurance companies. At least they're not trying to cancel me over the roof. So I think what you do right now is insurance is regulated by the states. There's a big spotlight on homeowners insurers now all over the country. Contact the state insurance department in oregon, tell them what happened and see what's reasonable that you should receive because the insurer. And we may hear from lawyers on this as well. The insurer threatened you with cancellation. You replaced a roof that still had more years in front of it because you didn't want to lose your insurance. And then they say, oops, just kidding. And they say, maybe we'll do something for you. That's ridiculous.

[Krista Wesson]

It's crazy.

[Clark Howard]

It is, isn't it?

[Krista Wesson]

Oh, my gosh. Okay. Brandon in florida says, I'm planning a family trip to iceland next summer.

[Clark Howard]

That makes you brilliant.

[Krista Wesson]

I thought you'd appreciate this, Clark, since you went to iceland for your birthday. After my research, I found out that my insurance company doesn't cover vehicle rentals in iceland. In fact, this is common with u. S. Auto insurance companies. Do you have any suggestions for how I should insure myself? Is there a short term vacation rental company in the states that would be cheaper than adding insurance through this icelandic rental car company? Furthermore, the icelandic rental company suggests gravel protection and sand and ash protection. Do you think that's really worth upgrading in these areas? I plan on doing the ring road, But I don't expect to be on roads that need four by four vehicles, of which there are many.

[Clark Howard]

Okay, so iceland Is its own thing.

[Krista Wesson]

I remember you talking about the car rental before you went.

[Clark Howard]

Oh, yeah. We were in this huge gale force windstorm, rainstorm one day. And they tell you when you rent a car in Iceland that you always open the car door with two hands because the wind can take the door and rip it off the car. Sure enough, that day that happened to somebody right near us at the place. We were along the south coast and ripped their door and they had to buy it, damaged the fender. They had to buy a new door. The whole thing, I mean, it's crazy. Insurers have no interest in insuring rentals in Iceland. Your auto insurer in the US for the most part, they put a big k bosh on Iceland because the conditions are so crazy harsh. It's also one of the most beautiful places I've ever been in my life. And the day we were leaving, I was so sad. I wanted another 10 days to two weeks there. It's great. I'm going back on the car. Iceland has an unusual circumstance. They have a lot of local auto insurers that when you land at Keflavic, you can rent from these companies no one's ever heard of in the United States. And they, when you rent from them, it covers all this stuff because if you try to put it together, if you do happen to have a US auto insurer that will cover you, they're surprising. But that's great. You can use that. If you use one of the credit cards, you look on Reddit, people are complaining every which way about that now. We only went south coast. If you're going to do the full ring road all the way around, you stand more danger of all these different things that you talked about with the sand, the ash, the gravel, on and on and on. As somebody who always depends on having a credit card for primary, knowing that my auto insurance is in line behind that, I would say that Iceland is one place and we had no damage there because of where we went. But if you go into F road territory going to Iceland, you'll know what F roads are. You go on the far east coast of Iceland, parts of the north. You want to rent from one of these Icelandic renters. That includes everything. It expects the car to get damaged. Not your problem then. There, I said it. It's hard for me to spit it out that there is one case that it makes sense to have coverage from a car rental company because of where we were going. They offer collision damage coverage with a high deductible automatically included with rentals. In Iceland. So I was willing to risk that. But if you're doing extensive travel, wouldn't do it there. So there's my exception to my rules about insuring a rental car.

[Krista Wesson]

Speaking of travel, on Wednesday, you're going to talk about a type of insurance we all need to buy when we're traveling. And it's not regular trip insurance.

[Clark Howard]

Yeah, that almost nobody buys. That will be coming up for you on Wednesday.

[Krista Wesson]

That's an important one. I was surprised.

[Clark Howard]

Clark Howard Podcast and YouTube show. What were you surprised about?

[Krista Wesson]

I was surprised when you said that, like, everyone should be buying. Like, I've never heard you say that about this.

[Clark Howard]

Well, I'll say who should buy it.

[Krista Wesson]

Okay.

[Clark Howard]

But everybody needs to know if they need to buy it.

[Krista Wesson]

Okay. I mean, I feel like we all should, but okay.

[Clark Howard]

Not necessarily. Okay, I'm gonna explain. That's coming up Wednesday, but anyway, what day is it today?

[Krista Wesson]

Today's Monday.

[Clark Howard]

Very good.

[Krista Wesson]

It's Monday.

[Clark Howard]

You must have wild weekends that you can't remember.

[Krista Wesson]

Oh, they're crazy. I read a whole book.

[Clark Howard]

Did you really?

[Krista Wesson]

Yeah, I did.

[Clark Howard]

Oh, wow. Mystery or.

[Krista Wesson]

No, no, no, no, no. Just a like summer read. I'll call it.

[Clark Howard]

Oh, a trashy book.

[Krista Wesson]

Not too trashy.

[Clark Howard]

Okay.

[Krista Wesson]

Mid.

[Clark Howard]

Mid trash.

[Krista Wesson]

Yeah, a mid trash easy read. An easy predictable read. Kind of knew what was going to happen in the first few chapters.

[Clark Howard]

That's funny.

[Krista Wesson]

Mindless, you know.

[Clark Howard]

All right, well enough mindless.

[Krista Wesson]

And I got it for free through the Libby app on my Kindle.

[Clark Howard]

Now that's important information through my library. And if you love to read, you got to look at our [e-mail] that tells you all the ways you can read for free. Because that's a great thing to do. And that's what we're about is every which way we put information into your hands to improve your personal situation financially, otherwise. And remember, all week long, we've got one on one free advice for you [e-mail] cac something. We've been doing one on one free advice since 1993. That's a long time. Long time. Anyway, have a great one. Know that we want you to save more, spend less, and avoid getting ripped off.

[Krista Wesson]

And Wes and I will be here tomorrow and then Wednesday we will be back.

[Clark Howard]

That sounds great. And why do you sit when you're with Wes and you?

[Krista Wesson]

You're gonna give away a trade secret? Wes is so much taller than I am.

[Clark Howard]

Wes is. He's only 7:1, right?

[Krista Wesson]

He's so tall that when we try to stand it, you can't even see his head. It's terrible. So we have to sit and adjust our chairs. He's tall. He's not 7 foot 1, but he's tall.

[Clark Howard]

Very tall. Okay. Anyway, west tomorrow, me on Wednesday. Have a great day.