Is my rental car covered?

Nothing can ruin your family vacation quite like getting into a wreck with a rental car. As you look at the damage, you can’t help but think about how much this is going to cost you? Since you choose not to  purchase insurance from the rental car company which can be costly depending on the vehicle type.     

But you’re in luck!  If you are insured with some of our premier companies like Auto-Owners, Hanover, the same coverages carried on your personal automobile may extend to your rental car for accidents occurring within the U.S., its territories or possessions, and Canada. Rental car contracts vary depending on the company, potentially leaving you with a large bill if your auto policy does not pay.

Most personals auto insurance policies will provide you coverage for comprehensive and collision coverage provided you have coverage on your policy, but your deductibles will apply.  There are also
2 major potential losses 
you may be responsible for and they are usually not covered unless added and many companies are unable to offer the coverage. 

One of the common items you may be responsible for under the contract is the rental fee the rental company would have received had the vehicle not been damaged and could have been rented again.  This is called "Loss of Use" and it is something you may be  responsible for if the auto you wrecked is in for repairs and can not be rented out during that time.

Some rental car contracts also make you responsible for the reduction in market value of the rental car after being repaired or sold in a damaged state.  This is called "Diminished value" and this coverage is not automatically provided and is harder to get but we do have companies that provide it.  It is potentially the larger problem of most rental car coverages provided by personal auto insurance.  Rental car agencies do not want the liability of renting out a damaged car, so after it is repaired they sell it but at a lower value since it's been in an accident.  This reduced value is what you might be responsible for and can run from hundreds to thousands of dollars. 

We can help you navigate thru the coverages and what you have available to you under your policy or looking at coverage that might be better-suited to you. Call or stop by our office to find out if your automobile insurance policy covers you fully for rental car mishaps.

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