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?
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.
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.
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.
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 [email protected]. Our agents will be happy to review your policy and discuss cost-effective coverage options.
Related links: Auto Insurance
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 [email protected]. Our agents will be happy to review your policy and discuss cost-effective coverage options.
Related links: Auto Insurance
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