Are you planning on renting a car? Have you checked your auto insurance policy before proceeding to rent? As the spring and summer approaches, many of us will be renting a car as part of our vacation or business travel. It’s quite tempting to grab insurance that will cater to the security of your upcoming trip. Since it will earn a plus commission, the rental service would be so encouraging and they will stress out the importance of insurance to your planned vacation.
It will be important to consider a few items before you decide whether or not to purchase rental car insurance. Below are some of the questions we’ve answered to enlighten you regarding this type of insurance. If you have any questions about your auto insurance coverage, call our office and we can help you through the process.
Do You Have Auto Insurance Now?
In most cases, if you have the right personal auto insurance you may have the coverage you need without buying the rental coverage. If you do not have auto insurance, you may want to purchase the rental coverage. Or, if you have personal auto but do not have Comprehensive/Collision coverage, you may want to consider paying for rental car insurance. Reviewing your auto policy once is worth a glimpse if it will save your money in the end.
Looking back, here are the different coverages auto insurance offers that you may have skipped purchasing from the past.
- Liability coverage. This coverage pays for the damage or injuries that you have caused to a person’s property as well as his medical bills while driving a rented car. It will be based on the limits of your policy.
- Comprehensive coverage. This one pays for the repair of your car or the rented car caused by perils like fire, theft, and disasters that are specified in your policy. It will protect you from uncontrollable events like hitting an animal or other people. Your deductible will apply before it kicks in.
- Collision coverage. It pays for the repair of your car or the rental car from the damage caused by colliding against another vehicle or object. Also, your deductible will apply here.
Does Your Credit Card Provide Extra Coverage?
Many credit card companies offer coverage if you use their card to pay for the car rental. This coverage often applies over any other valid insurance. Call your credit card company to inquire about the validity period of that insurance and its benefits.
But you must know that not because you have used their card before, the same protection plans apply. It may change its benefits over time and you may not be aware of it. It’s a risky move to assume you’re covered by your card’s insurance when you go for a trip. Ask for explanations for the options and details of their offered insurance.
- Coverage. Credit card mostly covers loss damage waiver or collision damage waiver where it is sold expensively by rental counters. It also covers expenses for towing and loss of the rental company to compensate while the car is in repair after being damaged and cannot be used for service.
- Factors of non-coverage. It doesn’t cover damages to other’s property aside from the rental car, injuries to other people, and lawsuits. In addition to this, the loss of personal stuff inside the car and medical bills from the accident is not covered. Anyway, these are all covered by your personal or homeowner’s insurance.
- Insurance validity. Usually, if it’s primary insurance, your credit card company covers 31 days for rental cars. Visa cards cover 15 days if you’re inside your country and 31 days if you’re abroad.
- Excluded rental cars. Certain rental vehicles are not included in your card’s insurance coverage such as large vans, RV, trucks, motorcycles, and other expensive cars. It only goes for traditional rentals of cars that will allow 9 or fewer passengers.
Are You Traveling On Business?
Always double-check the details of your auto insurance policy if it covers car rental for business travel. If it’s not, some employers provide a commercial auto insurance policy to cover your travel. However, there are some instances where your company will wait for your insurance to pay first up to your maximum limit before they pay the remaining claim. Or it may be that your insurance would ask for reimbursement from your employer’s insurance provider after paying for the claim.
Talk to your company about some details of whom you should call if you’ve been caught in an accident. Tell your insurance company that before the reservation, you are on business travel and mention the name of your employer’s company.
In some cases, if you will travel for business outside of the state you are currently in, you may rent a car but you can still use your personal policy and your company’s commercial policy. However, the coverage limits might be different when you enter another state. They have their own required limits that your policy needs to adjust to. It will be raised depending on the minimum policy of their state.
Now, if you always rent a car while doing business because you don’t own a car yourself, you may opt to buy a non-owner policy for your insurance. This way, you’re still covered whatever happens to you and to the rental car.
Driving without protection is as good as going to a war unshielded. But buying a rental car’s insurance is another addition to spend in securing your protection against unfortunate events. Before you decide on doing so, take a look at your insurance policies if you are already covered or grab the opportunity your credit card has offered. Speak with the insurance agent or call the credit card company to ensure the details before renting a car.
At Advantage Insurance Solutions we believe our greatest asset is the relationships we build with our clients and we are dedicated to being the right choice for all of your insurance and financial needs. We take pride in our ability to tailor a comprehensive package that maximizes your insurance protection while minimizing money out of your pocket.