Will my auto policy cover my rental car?

You book your flights, hotel and have a fun itinerary ready to go for a nice relaxing vacation. You add a rental car and start to wonder about all the questions they always ask you at the rental car counter. Do you want to add this coverage for more money? Or this coverage for more money and oh yea you can add this additional coverage for more money. Lets clear that up for you and allow you to answer the person behind the counter with confidence. Renting a car in the United States, its territories and Canada with most insurance carriers if your current car has liability, comprehensive and collision coverage that is extended to the rental car. Renting in Mexico and any other countries you will not be covered by your personal auto policy. The liability covers property damage and bodily injury of other people. Comprehensive coverage takes care of the other than collision incidents like vandalism and theft. Checking with your insurance agent to confirm your coverage is a good idea. You can also check with your credit card provider to see what coverage they provide for being a cardholder. Usually if they do you must use that card to purchase the rental car. You can also check with your homeowners/renters insurance to see if your personal property is covered. 

The parts many people might not understand are the ones not covered by your personal auto policy. These are those questions you will want to consider and purchase from the rental company. First is loss of use; this is the rental value for the time the car rental company cannot rent the car. The next is diminished value which is the difference in the car's resale value after it has been repaired. Lastly, any other reasonable fees and/or expenses the rental company experiences processing the claim for which you are liable. These are probably not be covered by your personal auto policy and you want to consider the options of finding a supplemental coverage that you feel comfortable paying. You would be purchasing a Damage Waiver. These prices can vary from approximately $8.99-$29.99 a day depend on vehicle. Purchasing the Damage Waiver is not actually an insurance policy, but a waiver of responsibility. The rental company would give up its rights to charge you for damage to the car, except in significant circumstances. Each car rental company has different supplemental coverage to purchase so before you plan all the excitement of a trip make sure you check what coverage you already have. Don’t waste money that you don’t have to spend but you will want to spend money wisely and cover yourself. 

If you do end up filing a claim against your personal auto insurance policy it will be charged as a claim just like if the it was our own car. So you can always purchase the rental cars insurance coverage to not have any claims charged against your insurance policy. Remember it is always safest to contact your Insurance agent and discuss if your current personal auto will cover your rental car for your next vacation or trip.

If you would like to discuss any of your insurance needs and questions, please contact one of associates by calling 517-337-6000 or visiting our website www.hksagency.com.