Planning on Renting a Car?

Jul 6, 2022 | Business Insurance

Are you planning on renting a car? Have you checked your auto insurance policy before proceeding to rent? As spring and summer approach, many of us will rent a car for our vacation or business travel. It’s quite tempting to grab insurance that will cater to the security of your upcoming trip. The rental service would be so encouraging since it will earn a plus commission. And they will stress the importance of insurance to your planned vacation. 

It will be essential to consider a few items before deciding whether to purchase rental car insurance. Below are some of the questions we’ve answered regarding this type of insurance to enlighten you.

Do You Have Auto Insurance Now When Renting a Car?

If you have the right personal auto insurance, you may have the coverage you need without buying the rental coverage. You may want to purchase rental coverage if you do not have auto insurance. 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 ultimately save you money.

Looking back, here are the different coverages auto insurance offers that you may have skipped purchasing. 

  • Liability coverage. This coverage pays for the damage or injuries you have caused to a person’s property and 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 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 repairing your car or the rental car for the damage caused by colliding with 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 them 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 risky to assume you’re covered by your card’s insurance when you go for a trip. Ask for explanations of the options and details of their offered insurance. 

  • Coverage. Credit cards mostly cover loss or collision damage waivers 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. This is after being damaged and cannot be used for service.  
  • Factors of non-coverage.  It doesn’t cover damages to others’ property besides the rental car, injuries to other people, or lawsuits. Also, the loss of personal stuff inside the vehicle 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,, such as large vans, RVs, trucks, motorcycles, and other expensive cars, are not included in your card’s insurance coverage. 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 to see if it covers car rental for business travel. If 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 you are on business travel before the reservation. And mention the name of your employer’s company.

In some cases, if you 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.

More about Traveling on Business

Now, if you always rent a car while doing business because you don’t own a car, you may buy a non-owner policy for your insurance. This way, you’re still covered in whatever happens to you and 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 securing protection against unfortunate events. Before you decide on doing so, look at your insurance policies to see if you are already covered or grab the opportunity your credit card offers. Speak with the insurance agent or call the credit card company to ensure the details before renting a car. 

At Advantage Insurance Solutions in Denver, CO, our greatest asset is the relationships we build with our clients. We are dedicated to being the right choice for all 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. Contact us today!

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