Rental Car: Am I Covered or Not

Now ‘tis the time, here is the place.  Vacationers, start your rented engines!!

 We are receiving a lot of calls from our wonderful clients asking if rental cars are covered by their insurance and if they should buy the rental companies collision coverage.  Our answer is yes to both:

 

  •  Yes, your auto policy forwards the same coverage to a rental car as is currently on your policy.
  • If you don’t purchase their collision coverage, at time of claim we have found the following to happen:
  1.  They charge administrative fees
  2. They charge you for loss of rents (they need to be recompensed for the rent they would have received if they could have rented out the now damaged car).
  3. Some companies require you stay in the state in which the accident happened until the car is fixed.  That could be an unwanted extended stay if the parts need to be shipped in.   Might be good news if you are in Hawaii, but if you get a boo-boo in North Dakota………….
  4. Some companies don’t wait for the repair check from your insurance company.  They charge the damage to your credit card and reimburse you when they receive the insurance payout.  Definitely could put a crimp in the whole vacation.

 Because of the above items 1-4, we advise you purchase the coverage so you have no unpleasant “hiccups” during an otherwise perfect vacation.

 DRIVE SAFE OUT THERE!

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