Many people have the misconception that their Auto Policy covers them fully when renting a car. This may not be the case. Liability, collision and comprehensive coverage from your Auto Policy does follow when renting but only in the United States territories or Canada.

 

Don’t let your dream vacation turn into a nightmare. Imagine that you just landed in Florida for a much-anticipated vacation and you rent a car.  You opt not to take the extra insurance offered by the rental company because, after all, you do have an automobile policy.

 

The next day, on your way to a popular theme park, you are involved in an accident in which the rental vehicle sustains damages making it un-drivable. This is where that nightmare may start: The Rental Company may charge your credit card up front for the damages.  They may also charge for the loss of use of the vehicle for the time it cannot be rented while in the shop for repairs.  In most cases the rental is a new car which requires the replacement parts be new, not after-market-parts which may be all that your policy will cover.

 

To recap, items you may be personally responsible for:

 

  • Loss of Use
  • Actual Cash Value versus Replacement Value
  • After-market-parts versus new parts

 

So, our Peace of Mind recommendations to you are as follows:

 

  • Bring your magnifying glass and read the rental contract.
  • Don’t forget to list ALL possible drivers on your agreement.
  • Buy the insurance offered by the rental company.
  • Check with your credit card company, they may offer some coverage when renting a vehicle.  Some questions to ask them:
  1. Do they cover loss of use?
  2. Do they cover full replacement?
  3. Is the coverage primary or secondary insurance?

And in any event, call Deland, Gibson if you have any more questions:  781-237-1515