Insurance Coverage on your Rental Car

By: William Forbes

I wanted to note this Huffington Post article (link here), titled: "No, Car Rental Insurance Is Not Mandatory," as this is a confusing topic for many of my insureds. When you rent a car from a company like Avis, for example, the insurance you carry on your personal vehicle will cover you on your rental car.

Though this is true, there still can be benefits to purchasing an additional insurance plan through the rental company.

It's also important to note that if an accident occurs involving the rental vehicle, you would be subject to current deductibles on your personal auto insurance.

Here are a few reasons why you may want to purchase additional rental insurance:

  1.  If you're involved in an accident, the rental company may waive your deductible.
  2. If you are traveling outside the United States, purchase additional insurance, as your personal policy will not afford coverage overseas. Canada is the only other country where your personal coverages will transfer.
  3. The rental company may provide coverage for "loss of use" incurred on one of its vehicles. Loss of use covers you If you're in an accident involving the rental company's vehicle and it is unable to rent that car out to other customers until the damage is repaired. Without this coverage, you would be required to pay the rental company a specified amount based on how many days the vehicle is out of commission.

One other thing to remember, when purchasing a rental, the company may require you to provide proof of insurance when you pick up your rental car. Therefore, it's a good idea to bring your insurance declarations page with you to the rental counter when you pick up your vehicle in order to avoid any hassles.

Check out the Huffington Post article for more information on this topic: