Does your insurance cover a rental car?
In short, the answer is yes, but it really isn’t that simple. There are a few things to consider if you are going to rent a car…
Firstly, you must make sure your current liability coverage is adequate. As long as you’re renting a vehicle similar in performance and price to your own you should be just fine. If you’re renting a Ferrari for the weekend, you may want to double check with your current auto insurance liability limits. The easiest way of doing this is to contact your Steffey Insurance Agency representative. We will be able to help identify any potential gaps in coverage.
One common question our clients ask is in reference to the CDW, or Collision Damage Waiver. This coverage can help protect you from additional fees if you happen to be involved in an accident while driving the rental car. Additional fees can result due to diminished value charges or “loss of use”. A rental car company may charge you “loss of use” fees for every day the vehicle is in the repair shop and unable to be rented. Some insurance companies will cover your CDW but there are many credit card companies that do as well. Check with your insurance agent or credit card companies to see if you are covered for any of these potential hazards.
Another thing to remember is that having rental car coverage on your policy, in most cases, is not protecting you while renting a car for business or pleasure. This coverage is meant to help you in the case of your car going into the shop due to a covered claim. Having this coverage will provide you with a rental car on behalf of the insurance company while your covered vehicle is in the shop. In most cases there is a limit to this coverage. The client usually has choices but the most common is 30/900, which means up to $30 per day, or $900 aggregate. So, in this scenario coverage would max out at $30 per day times 30 days.
Surely, this doesn’t answer every question someone could have regarding rental car coverage but this blog does seek to provide answers to some of the more commonly asked questions. If you have further questions, please feel free to contact our agency whether or not you’re a client and we will be happy to try and steer you in the right direction. Safe Travels!