If you have ever had to rent another vehicle, then you may have been asked the question, “Would you like to purchase insurance for the vehicle?” Every time a person rents a car they are faced with that question. Some of them will stand and gaze at the agent wondering what they should do. The agent is trained to sell the insurance so they make claims that their insurance is the only way to protect the car from damage. These claims are designed to pressure you into buying their insurance product. In order to make an informed decision it will be vital that you have a good understanding of your own auto policy and what the car rental company is offering you.
Your Personal Auto Insurance Policy
If you have a full coverage auto policy, there is a good chance that you have some kind of rental protection on the policy. But the question of what does it cover comes into mind when faced with a choice to use it or not. Some of the things that the rental car limits cover include:
- Rental car coverage will provide you with another vehicle in the event you are not able to drive your car. This may include while your vehicle is in the shop because of accident related damages or if your vehicle is broken down on the side of the road and you need a car to get to your next stop.
- The coverage may be limited to a set dollar amount. The coverage amount can be listed in a set dollar amount such as 50, 75 or even 120. This means that the insurance company will pay a set dollar amount per day usually up to 30 days for you to drive a rental car.
Your rental car coverage will not cover the cost to drive another vehicle that is rented from a car rental place. This is an important thing to know. The actual rental car coverage amount is designed to provide you with a car while your car is being fixed. However, if you have full coverage, your policy may cover the liability and or the physical damage coverage to the car that you rent for vacation or some other need. You will need to specifically check with your agent to find out if your personal auto policy coverage transfers to a rented vehicle. If your agent tells you that it does cover the other car, then your deductibles may apply to any damages.
A Rental Car Companies Auto Coverage Policy
Each time you rent a car for vacation, work related duties or for some other need you will be offered a basic auto policy that is designed to cover the car that you are renting. You will have to answer the question of whether or not you need the extra coverage or not. Here are some of the things that their policy will cover if something were to happen to the vehicle.
- You may be covered for liability exposures. Liability exposure can be anything from someone getting hurt by the car or law suit related charges.
- Another coverage that comes with the policy is physical damage coverage. There are usually different levels of coverage that you can pick from. The best coverage will cover the rental car from just about any type of damage.
- Of course if the car has been wrecked, then the rental company can no longer rent the car to others so the policy will most likely have a loss of use coverage. If you find that there is not coverage, then you could end up paying for that part out of your own pocket.
A Few Comparison Points
There is a difference between your auto policy and the rental cars policy.
- With the rental cars policy you will not have to pay a deductible to use the protection. If you decide to let your own policy cover the car, then your deductibles will apply.
- With your own policy every claim stays on your record for over three years. If you file a claim with the rental cars policy, your record stays clean since the claim follows the rental car company.
- Your own auto policy will keep you from having to pay the extra charges that the rental company charges for its policy.
There are advantages and disadvantages to using your own policy or the rental company’s policy. It is important to check with your agent about coverage before making a decision.