Are you planning on renting a car soon for a trip or vacation?
Are you wondering if you need to purchase additional insurance for this rental vehicle?
Are you wondering what will happen if you have an accident or claim with a rented vehicle?
When it’s time to rent a vehicle, you will be offered an option to purchase insurance coverage from the rental car company. Do I need to purchase this coverage?
This is a decision that you need to make, and a friendly team member at McCollum Insurance would be happy to offer professional and friendly advice. Contact us at our Newtown Square location (484.420.7800) or Philadelphia location (215.508.9000) for more information.
A few things to consider are
Who will be driving the vehicle?
Does your personal auto policy extend coverage to a rented vehicle?
Where are you renting a vehicle. Are you renting in the United States or in another country?
Does your personal auto policy have physical damage coverage?
What is the cost to purchase coverage from the Rental Car Company?
Do I already have coverage for rented vehicles?
Typically, your personal auto insurance will extend coverage for Liability Claims.
If you also have Physical Damage Coverage (Collision and Comprehensive Coverage) on your auto policy, your coverage should also extend for damage to the rental car.
For example, Erie Insurance’s Auto Coverage is designed to suitably protect you and your family for incidental use of a car that’s not your own, such as a short-term rental of less than 45 days. The coverage extends to cars in the U.S. or Canada. Please remember, we recommend contacting your Agent to confirm coverage before renting a car.
What McCollum Insurance Recommends
Every situation is different, but our Agency will recommend purchasing the coverage from the Rental Car Company for a few reasons:
- The Rental Car Company will examine the car in detail, and will hold you accountable for even the smallest scratches and dents
- If the cost to purchase the coverage is minimal, it will be worth it, when compared to using your own deductible for damage to the rented vehicle
- Peace of mind – If you purchase the coverage from the Rental Car Company, you will have peace of mind knowing that any damage to the car, will be handled by the Rental Car Company. You will not have to worry about reporting a claim to your own Insurance Company
Did You Know?
- Some rental companies will charge for loss-of-use. This charge is meant to cover the loss of revenue, for not being able to rent the vehicle, while it’s in the shop being repaired after you have damaged it. Loss-of-use is not typically covered by a personal auto policy, so make sure you ask the rental car company if they charge for loss-of-use.
- Some rental companies will charge for diminished value and other administrative fees. This means that should you damage a rental car, the rental company may insist that the repaired vehicle is less valuable because it was wrecked. They’ll then charge you diminished value fees as well as other administrative fees, such as a fee to open claim, which your personal auto policy does not charge. To find out if this applies to you, make sure to carefully read over the rental agreement obligations.
For more information, contact us