Call Us CALL US TODAY | (419)732-3171
Auto Insurance AUTO

Auto insurance protects you against financial loss if you have an accident.

Read More
Homeowners Insurance HOME

A standard policy insures the home itself and the things you keep in it.

Read More
Business Insurance BUSINESS

Discover the perfect insurance options to meet your specific and unique needs.

Read More
Life Insurance LIFE

Browse a variety of insurance options in order to find the right one for you.

Read More
Condo Insurance CONDO

Learn about different condominium coverage options that fit your needs.

Read More
Boat Insurance BOAT

Finding insurance doesn't have to be difficult. We do the work for you.

Read More

If you have ever been on vacation and rented a car, you have probably been asked if you wanted to purchase insurance from the rental car company.  Did you?  Should you?  What are your options?  Let’s take a look at the coverage options for rental cars and what’s the best fit for your situation.

Most automobile insurance policies will provide liability coverage for you, the insured, regardless of what vehicle you are driving.  This includes rental cars.  Therefore, you are typically covered for any damages you might cause while driving the vehicle.  However, what if you damage the vehicle that you rented?  Your policy also offers coverage for a vehicle that is not available for your regular use, such as, a rental car.  However, your other vehicles must have physical damage coverage (comprehensive and collision) for the coverage on your policy to apply and you will still owe your deductible.  All policies are different so check with your agent on the details of your policy.

So the question becomes “If I’m covered under my auto insurance, do I need to buy insurance from the rental car company?  You don’t need to but you might want to.  Your insurance coverage will likely cover you if you are involved in an accident while driving a rental car.  However, if you submit a claim on your insurance, your premium may increase due to the loss of discounts and loss surcharges that insurance companies regularly use.

If you are responsible for an accident while driving a rental car, there are additional charges that the rental company may charge you.  Loss of Use and Diminution of Value (Reduction in Market Value) are two of the more common charges.  Some policies will cover these types of charges, some will need an endorsement and others will not cover these types of damages.  Contact your agent for specifics on your policy before you rent a car.

Another important aspect to keep in mind is that everything I’ve mentioned so far only comes into play if you are renting the vehicle for recreational not commercial purposes.  If you rent the vehicle on a business trip, you’ll need to look to your employer and/or their insurance for coverage for the rental vehicle.

Yet another piece of the puzzle is whether you are renting a vehicle in the US/Canada or another country.  Most personal insurance policies only provide coverage in the US, its territories and Canada.  If you are traveling, you’ll need to look to the rental car company or another source (such as your credit card company believe it or not!) for coverage.  Some carriers will provide worldwide coverage on an umbrella.  Ask your agent if you have any coverage that would apply overseas.

If you have questions on how best to insure your car, a rental car or any other car, contact the Frederick Agency today at 419-732-3171.

Brennan Madison

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Facebook
Twitter
LinkedIn
Google+
Carriers
Carriers
Carriers
Carriers
Carriers
© Copyright. All rights reserved.
Powered by Insurance Website Builder