Wednesday, December 11, 2013

Rental Car Coverage

Should I buy rental car insurance?

Does my auto insurance provide coverage for a rental car? We get this question a lot at Mason Insurance Agency. Unfortunately, this question is not followed by a simple yes or no answer.

Typically, a personal auto policy will extend coverage equal to what you have on your vehicle. For instance, if you have collision coverage on one of your vehicles then collision coverage is extended to the rental car. However, there are some significant gaps in coverage that you should take into consideration:
  •  Loss of use: should you damage your rental car, you could be left responsible for the income lost while the rental car was in the shop and could not be rented out.
  • Diminutive value: you could also be responsible for the difference in value of the vehicle pre-accident, and the diminished value after you damaged it. 
Some insurance carriers offer endorsements to cover these gaps in coverage. The best answer is to speak with your insurance agent before making a decision not to purchase insurance from the rental car agency.