Last month, I arrived at the LAX airport in California and proceeded to the rental car area. While waiting in the ridiculously long line for my rental, I couldn’t help but overhear the questions the customers were asking the clerk. It seemed that every car rental customer was trying to decide if they needed the auto insurance offered by the rental company or if their current auto insurance policy would cover them.
This is a very common and confusing question. So we decided to address this question during our latest video installment of “Frequently Asked Insurance Questions”. This week we sit down with Brenda and Melanie, and ask the question, “If I am going to rent a car, do I need to purchase insurance through the rental car company or am I covered under my auto policy?”
See below for some of the most important factors that determine whether or not your auto insurance policy covers you during a car rental. Keep in mind that even if your auto policy will provide coverage, it will typically not cover the loss of use of the rental car if it is involved in an accident. Rental car companies can charge you for any days that their car is out of service because of an accident. In order to be sure you are properly protected, it is best to always call your insurance agent prior to renting a vehicle!
Type of Insurance Coverage you currently have:
a) Commercial or Personal Policy?
b) “Full Coverage” or just liability?
- State you reside in or the state your policy was issued in
- Reason for renting:
b) Was your car involved in an accident?
- Length of time you are renting the vehicle
- Rental Contract Signed?
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