As Summer gets into full swing you might find yourself renting a car while on vacation or for a road trip. When renting a car, the question will be asked do you want to purchase rental insurance. Your first instinct may be to say no. However, there’s a few things to consider before making that decision. Not being properly covered could cost you in the long run if the vehicle you rent is involved in a crash.
Did you know that rental car companies can charge customers for diminished value, loss of use and administrative fees when the crash a rented car? Your auto insurance policy may not cover these charges.
If you don’t own a car or if you only have liability with no collision or comprehensive coverage your policy won’t cover a rented car. Even if you do have collision and comprehensive coverage, check with your insurance carrier to make sure that that coverage extends to a rented car.
Most cases with collision and comprehensive coverage on your owned vehicle you will get some coverage extended to a rented vehicle. The question to ask is how much coverage and what won’t they cover. Diminished value, loss of use, administrative fees and deductibles will come into play if you crash a rented car. If your auto insurance policy doesn’t cover these things buying the “loss damage waiver” will limit or eliminate your financial responsibility for damage to a vehicle you rent.
Whether or not I’m your Insurance Agent If you have questions about rental car coverage on your policy please feel free to contact me to review your policy. I’m happy to help you translate insurance to English.