Rental Car Insurance, Is It Necessary?

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car rentalAt vacation time, do you dread approaching the rental car counter because you’re unsure about whether or not to purchase the waiver/supplemental insurance?

A seemingly simple decision can become overwhelming as you consider conflicting advice from credit card companies, the warnings of rental counter personnel and a simple lack of awareness on what coverage, if any, is already available under your personal auto policy.

Let us suggest a better approach — gather the necessary information to make a great decision before you leave on your trip. First, decide what type of vehicle will best fit your vacation needs. Then, check with the rental car company to determine your contractual responsibilities under the rental car contract. (HINT: Their website is a great place to start.)

Next, talk to your insurance agent about what coverages would be provided for the vehicle you want to rent under your current personal auto insurance, being sure to discuss any applicable deductibles and coverage limits. Also, discuss how your policy will respond if the rental car contract requires payment of expenses that typically are not included or are limited if the claim were to happen to your own vehicle rather than the rental. Some examples include:

  • Indirect losses, such as diminution of value (even if the rental car is fully repaired, the rental company may argue that the vehicle may have lower resale value due to having been in an accident)
  • Administrative fees, such as towing or storage
  • “Loss of use” charges for time the rental car is out of service due to repairs

Only after gathering additional information can you make the well informed decision on whether or not purchasing further coverage is necessary. At Shorewest Insurance we are committed to making sure that our clients are covered for life, auto, home or recreational vehicles. Contact us today at 262.797.6297!

Sources: IRMI Personal Lines Pilot newsletter, 10/9/15, Issue 47

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