Will My Auto Insurance Cover My Car Rental?
Will your auto insurance cover your rental car? Should you take or turn down the coverage a car rental agency usually tries to sell you? It depends on what your own auto insurance covers. Some companies will provide rental car coverage only if you are renting a car on vacation. This is why you should call your auto insurance company or your agent to find out.Several states require that your insurance company provide coverage when you are renting a vehicle. As mentioned, some insurance companies will only cover rental cars if you are specifically on vacation – the coverage is not extended for rentals on a business trip.
The car rental agency offers insurance to you to help to cover any accidents that might happen while you are on your trip. Generally, it is okay for you to turn down the coverage, but only if you have the same or better protection from your personal auto insurance company. Also, you may already have rental-car insurance provided by your credit card. Both options can give you big savings over what the car rental agency offers. Before you say no to the coverage, though, make sure that your auto insurance or credit-card coverage protects you – otherwise you could be driving your rental uninsured. Also note that the rental agency’s coverage can include things like “loss of use” and “diminution of value” coverages that are almost never found in personal auto policies.
Keep in mind that since auto insurance is state regulated, the cost and coverage will vary from state to state. You should check with your auto insurance company to be sure which coverage you either have or need.
NOTE: The purpose of this article is to provide general information on the law, which is subject to change. If you have a specific legal problem, you may want to consult your lawyer. For any auto insurance related questions, you may wish to consult your insurance company or insurance agent.