Does My Car Insurance Cover Rental Cars? In the summer, the car rental agencies usually have the busiest season because it is the vacation time. And when it comes to car rental, there is one important question you need to ask yourself before renting. Does my car insurance cover rental cars? Why is this very important? Well, no one knows what will happen during the driving on the road so protection is very much needed especially when you drive cars that don’t belong to you. If you are unprotected and bad thing happens like accident. The chance is you will need to pay lots of money for the damage. The case is different if you are protected by your car insurance. The insurance will pay for the damage and nothing should make you worry.
Coverage from Car and Credit Card Insurance
Some people who are in need of protection even have double protection from both auto insurance and credit card. It often applies for young drivers who according to the research, have bigger chances of getting into car accidents. Double protection is a good thing to have because the customer will probably not have to pay for any damages occur in case of accident and theft. It is a smart way to get protected on the road.
In the case of rental car customer without any protection, the car rental usually offers insurance before the customer proceeds to pay for the car rental. This insurance costs less than $20 per day. As a smart customer, it is a good deal because already gives good enough protection for car accident that can cost beyond $23K without coverage from insurance. However, the insurance may not be as good as car rental insurance from credit card. Auto insurance because it sometimes covers for liability.
Does My Car Insurance Cover Rental Cars? Rental Cars Coverage from Auto Insurance
What you should know as insurance holder is not every auto insurance covers rental cars. You have to read the fine prints of the insurance policy to find out. For instance, some policies of full auto insurance transfer to rental cars only if the cars used to replace the regular cars. However, there are still some exceptions. Some other companies offer insurance policies that entirely exclude rental cars and provide coverage in case of lower liability limits or higher deductibles only. But some policies may also provide comprehensive coverage.
Therefore, you should find out about how much damage the insurance policies cover and when it will be paying. For instance, some insurance offer coverage using the reimbursing system so you have to pay the cost upfront before you get reimbursing by the company.
Here is another tip. Sometimes, you may also need to consider the supplemental coverage that is process through rental car agency or using the credit card. This coverage is a great choice to have even if you already have personal auto insurance. Some conditions that require you to get this coverage include when your personal auto policy only has state minimum liability limit. This happen when you only carry only liability but not comprehensive or collision coverage. Or when you do not have active personal auto insurance policy.