Does my auto insurance cover rental cars?

Additional Does my auto insurance cover rental cars purchased from rental companies would seem inevitable to many people when renting vehicles. The payment of rental insurance involves an important detail because your existing coverage might extend to rental cars. Several car owners fall victim to needless rental insurance payments because their personal car insurance policies extend rental car protection.

Is My Auto Insurance Valid for Rent A Car? Let’s Break It Down

1. Insurance types that your personal auto insurance covers include the following:

• Third Party Insurance – These policies cover harms that you in some way cause to the third party while operating the hire vehicle. Liability only insurance does not cover self-damages and; therefore, it may not cover damage to the rented house.
• Collision Damage – This covers the costs related to repaying for a rental car after an accident in the event that your policy covers collision for the rented organization.
• First Party – This covers everything from the policy holder’s part, including events such as theft, vandalism or natural disasters not resulting from a road accident. If you have the comprehensive insurance rental cars, you are protected not only in case of car crashes.
• Rental Reimbursement Coverage – This is not the Insurance on a rented car but actually an insurance company’s provision of additional coverage from the rental car company. It comes in handy in bearing the costs of rental in cases where your own car is under repair following an accident.

2. According to the extent of auto insurance there may be circumstances when it covers the rental car as explained below:

There are several situations when your personal auto insurance rental car coverage is valid and they include:

• The car rentals is for own use and within the United States or Canada.
• Its insurance policy entails a full insurance package that embraces the liability, collision, and comprehensive.
• The rental car cannot be considered as special car such as luxury cars to drive and transport sports equipment or moving trucks.

3. There are some scenarios, however, where auto insurance will not cover rental cars.

• Even if you have taken only a liability insurance that does not protect the rented car in case of an accident.
• In case you have your car hire outside the US and Canada, as many policies do exclude coverage for such regions.
• For business use of the rented car, the business person is expected to provide the insurance.
• If there are restrictions to your policy that exclude covering specific rental car types, particularly, moving van or sports car.

4. Will Your Insurance Cover the Full Cost of a Rental Car Accident?

• Rental Car Loss of Use – This one is pretty self-explanatory, the company might charge daily rate for the car that is in the shop.
• Diminished Value Fees – The fees may be incurred when the rented car in question has diminished value due to the accident.
• Administrative Fees – Apart from the above charges, some rental companies charge their clients for processing of the accident.

5. Believe one component missing here is smith like: ‘What if you’re Not Sure about Your Coverage?’

Let’s Break It Down

• Franchise & Excess – these concerns contains responsibility for the hire company to assume liability for pre-painstaking compressed while driving the rental car. However, if you have a liability-only policy, it is most probably not going to cover the rental and the damage on it.
• Collision Damage Waiver – This helps pay for the damages for the rented car if there is an accident just like how collision coverage pays if you have this in your policy.
• Third Party – This covers damages of the vehicle caused by a third party due to an accident or otherwise.
• Rental Reimbursement Coverage – This is not your rental car insurance another difference that need not be mentioned.

• You are taking the rental car for local use in the United States or Canada.
• Currently, the insurance policy that I have is totalled at three kinds, which includes liability, collision, and comprehensive.
• The rental car is not unique that is it is not a luxury car or a car for moving cars.

The question remains if you truly need to buy rental car insurance.

• The insurance plan covers both accidents you cause to others and damages you inflict to other automobiles while operating the rented vehicle. Rental vehicles are not protected by liability-only insurance despite the fact that the policy exists.
• The collision insurance benefit only pays for rental car repairs after accidents when the policy includes rental car collision coverage.
• The policy provides complete coverage that safeguards your rental car from both accidental and non-accidental causes such as theft and natural disasters. Rental car policies which include comprehensive insurance protection provide coverage exceeding normal crash incidents.
• Rental Reimbursement Coverage operates differently than rental car insurance coverage.

Your personal auto insurance rental car coverage takes effect under these three conditions:

• Your rental of a personal vehicle stands inside United States territory or Canada.
• A full policy (containing liability and collision and comprehensive coverage) exists under your current plan.

Should You Get The Rental Car Insurance Through Your Credit Card Company?

Most credit card companies provide rental car insurance as an additional benefit. However, does it substitute your personal auto insurance rental car provision? Not always. Here’s what you need to know:

Most primary cards that offer rental car insurance will reimburse you only when you have first filed a claim with your personal auto insurance. However, some of the premium cards offer primary insurances on rental cars under which you will not have to make a claim on your personal policy.

It is usually possible to use the credit card rental car insurance in the following ways:

• Lastly, do not leave any additional costs behind, especially the rental fees, pay for the car with the credit card.
• Refuse the rental company’s collision damage waiver (CDW) or loss damage waiver (LDW).
• Would also prefer getting the car hired in your very own name and be the main driver.