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How Your Car Insurance Can Protect Rented Vehicles
August 30th, 2010
There are many situations in which it might be convenient to rent a vehicle, but many drivers worry about car insurance. Car rental lots often offer special deals on insurance, but these are optional, and there's a great deal of confusion as to whether they're necessary and whether they provide the legal protection that a driver needs for a rented car. There's good news, though, for drivers who operate rented vehicles-in most situations, a standard car insurance policy will also cover rentals.
Most car insurance policies contain special language that extends the coverage that a driver buys to rented or "non-owned" vehicles. A non-owned vehicle may be rented or borrowed, and cars from rental agencies certainly fall into the former category. It's important to check whether you have this coverage before you rent a car, but in most cases, your existing car insurance policy will be all that you need.
As for the extra insurance offered by car insurance companies, there are a few things to think about when deciding whether or not to opt into their insurance. First of all, as insurance from rental agencies is quite inexpensive, it may be worthwhile if you don't have a large amount of comprehensive coverage on your current car insurance policy. Comprehensive coverage takes care of damages to the vehicle that you're driving, and it's a good idea to avoid driving a rented car unless you have a decent amount of coverage in this area. This is particularly true if you're driving a rented car that's far more expensive than the car that you normally drive. You should also consider your current policy's deductible. You'll have to pay the deductible if you make a claim, and if your deductible is set especially high, a minor accident with a rented car can set you back quite a bit. You should also know that if you have rental car insurance and your own personal car insurance policy, your personal policy's coverage will only kick in after the rental car insurance coverage is fully expended. Therefore, you'll never have two forms of insurance paying for the same repair.
The bottom line is that drivers with low amounts of insurance coverage should probably opt for the additional insurance offered by rental car agencies, as it can be a real lifesaver after an accident. However, drivers who are already paying for a significant amount of car insurance usually don't need to bother with rental car insurance. Always check with your insurance agent to make sure, but you'll usually be covered sufficiently by your personal car insurance policy.
