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NEWS you can use

Do You Need Car Rental Insurance?

6/19/2018

5 Comments

 
Picture
Many people who fly to a vacation destination reserve a rental car online. At the airport car rental pick-up counter, the agent offers insurance to cover the vehicle during the rental. They will say the renter of a car is fully responsible for any loss (theft) of the vehicle as well as any damage that occurs to the vehicle during your rental period. They will also tell you it's likely loss-of-use costs are NOT included in your personal auto policy.
 
And they may be correct.
 
Car rental companies are now asking for reimbursement of the lost revenue (loss of use) that vehicle would have generated had it not been in a repair shop.
 
So, what options do you have?
What you need to know before you sign that rental car agreement…

First things first.
  • Before your trip, it’s a good idea to check with your insurance agent to review your personal auto insurance policy.
  • Most insurance companies consider a rental car a “replacement vehicle,” so the same coverage an insured has for their own vehicle would apply to the rental.

EXAMPLE: If the insured DOES NOT have Collision, Other Than Collision (Comprehensive) coverage on their own vehicle, then they DO NOT have it on the rental vehicle. That means the insured would be responsible to pay for any damage to that rental vehicle.
  • Bodily injury or damage caused to others’ vehicles would be covered under the insured's personal auto liability coverage, up to the limits of the policy. But the deductible would apply.
Credit Cards and Car Rental Protection.
Many — but not all — credit card issuers cover damage to rental cars when their credit card is used to rent the car. Some even include protection for loss-of-use claims.

This is great, right?

Well, there is a down side — credit card issuers rarely provide liability coverage and dealing with a credit card company for a claim can be a difficult and long process.
  • Check with the credit card company for a complete description of the coverage they offer and if there are any restrictions or exclusions.
  • Be aware that some credit issuers refuse coverage if you rent a vehicle in certain countries outside the United States.
  • If you opt for this protection, make sure to have the credit card used to book the rental with you (in your purse or wallet) in the event of a claim.

Educate yourself.
 
Understanding your insurance options before planning a trip is the best way to protect yourself from any unpleasant surprises if you happen to be involved in an accident with a vehicle you rent. 
 
Contact a Connecticut Insurance Exchange agent today at 860 666-5443 or info@cieltd.us. Our agents will be happy to review your policy and discuss cost-effective coverage options.

Related links: Auto Insurance
5 Comments
Shaylee Packer link
4/6/2020 10:25:03 am

As you mentioned, it is a good idea to check your auto insurance policy to see if you have rental car coverage on there already. This way you do not need to get the rental car insurance suggested when renting the car, but you will still be covered in the case that anything does happen. I will have to check to see if I have this on my policy.

Reply
Stefan Robert link
11/18/2020 04:22:36 am

This is good idea to you sign that rental car agreement. I also agree with you. I also agree with you. It’s a good idea to check with your insurance agent to review your personal auto insurance policy.

Reply
limo service taunton ma link
2/4/2021 11:01:57 pm

Wonderful information, thanks a lot for sharing kind of content with us. Your blog gives the best and the most interesting information on do you need car rental insurance. I wonder if we can gather such practical information about it, a great post definitely to come across.

Reply
car rentals near me link
1/28/2022 01:59:34 pm

If there are 2 people travelling small sized car is a good option, and if someone is travelling with family than some what bigger size of car is good. Nice blog thank you!

Reply
Rent Limo link
5/27/2022 10:31:21 am

Limousine is a great choice to enjoy your time in a city. Best for small stay, and very affordable.

Reply



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    Melanie Thomson-Tregoning is a Licensed Insurance Agent and VP of Marketing for Connecticut Insurance Exchange, Ltd.

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