Does my auto insurance policy provide coverage when I rent a vehicle?
Most insurance companies extended coverage to a rental vehicle if you carry comprehensive and collision coverage on at least one vehicle on your insurance policy.
Therefore, always ask your insurance agent BEFORE renting a vehicle.
The coverage that typically extends to a rental vehicle is:
- Liability Coverage- To help protect you in the event you injure someone or damage their property.
- Medical Payments- To help you and your family members should you be injured.
- Physical Damage- To help repair damages to the rental vehicle.
Why should you consider the rental car coverage?
There can always be potential gaps between what your policy covers and what the rental car agreement states you must cover.
All rental contracts are different, therefore it is in your best interest to carefully read the agreement prior to signing. If your company extends rental car coverage, your insurance policy will pay the cost to repair the vehicle, or if the vehicle is total loss, they will pay the Actual Cash Value (ACV) of the vehicle. Some rental contracts hold you responsible for the difference between the actual cash value of the vehicle and the retail market value or the manufacture's buyback program value.
Also, if you rented a vehicle because your vehicle was disabled due to an accident, you will have to check with your claims adjuster to ensure you still have Loss Of Use coverage to pay for another rental vehicle.
Purchasing the Loss Damage Waiver from the Rental Company can protect you from these potential gaps in coverage.
Generally the loss damage waiver you are not responsible for the costs associated with the damages to a rental vehicle. However, be sure to know the provisions to the loss damage waiver. They are things that can void coverage.
Most common gaps are:
- Permitting an unauthorized person to drive the vehicle
- Permitting someone under 21 years old to drive the vehicle
- Drinking and Driving
- Some even prohibit driving on unpaved roads
Be sure to know the KNOW what your contract does or does not allow.