You’re on a trip and rent a car, does your auto policy cover you?

You’re on a trip and rent a car does your auto policy cover you

You’re on a trip and rent a car, does your auto policy cover you?

The answer is yes and no.  We often get calls from clients at the rental car counter asking if they should purchase or waive the coverage offered by the rental car company.  So what is the correct answer and what is the cheapest way to get insured?  Personal Auto Insurance coverage extends to vehicles you borrow and rent.  The Insurance extended to you by your carrier is the coverage listed on your policy declarations page.  Liability, PIP and Uninsured Motorist will extend to the rental vehicle as may the Physical Damage, remember that you will be responsible for any deductibles on the policy.  The issue with renting a car is in your policy limitations.  If you do not have certain coverage or have low limits you may be left with a shortfall.  Another problem in renting a vehicle is the “loss of use”.  If you are involved in an accident with a rental vehicle that company is entitled to the daily rental rate while that vehicle is being repaired.  Loss of use is not covered by any auto policy.  Fortunately, some credit card companies do offer “loss of use” coverage if you use their credit card to rent the vehicle (always check with your credit card companies first).

Thus the cheapest way overall to rent a vehicle is to ask your credit card company what Insurance they include and make sure your primary auto policy covers you for Liability and physical damage.  If you have all these bases covered you can consider waiving coverage.  Always check with a licensed agent first before waiving any Insurance.

Safe travels.