“Am I covered by Insurance if I rent a car?” I was asked this question recently and thought I should definitely discuss this as it can be a complicated issue. I am not going to tell you what my company does or what most companies do as things change all the time, as do insurance policies. So if it was done one way before, there is no guarantee that it will be done that way forever. However I will tell you what I know about this issue so you can check for yourself and probably get the answers you need if you did rent a car and get in an accident.
bestcarwreckinfo.com
Promote Your Page Too
There are three types of rentals: business, leisure and insurance/shop replacement. Leisure rentals are when you rent for vacations or when you rent a car for pleasure (basically when you are not renting for business or when your car is not working). Business rentals are when you have to rent a car for a business trip, or better yet, when your company rents one for you. Insurance/shop replacement rentals are when you have to rent a car because your car is in the shop because it broke-down, or it was in a car accident. So if it was damaged in a car accident, there is a chance that an insurance company is paying for the rental car, but they usually do not pay for extra insurance coverage(s) that the rental company offers.
Hertz and Enterprise are the main rental companies I know about and have the most experience with in my claims adjusting experience. I have also rented cars from National, Avis and Alamo.
The Liability supplement is liability coverage that is usually primary over your own auto liability policy for a certain amount like $1 million. An example of this is if you accidently run a red light, slam into one car that gets pushed into another 2 vehicles and everyone in the other cars (not you and not usually your passengers if you are related and live with them) are injured. This would be good coverage for that because you can use the rental company’s insurance before you have to get your own auto insurance involved.
Personal Accident/Personal Effects coverage is if you want extra medical coverage or personal belongings coverage for items you have in the vehicle. This coverage is usually secondary in addition to the coverage you already have. Most of the time you have to exhaust your coverage’s limits before this coverage kicks-in.
Now, if you get these coverage(s) from the rental company when you rent the vehicle, then you should be “covered” by the rental company for an accident depending on which coverage(s) you buy. Please ask the rental representative what each coverage does for you when you are renting the car. If you do not get these coverage(s), and you get in an accident, then I would ask you four questions.
What type of rental was it? Business, Leisure or Insurance/Shop replacement. If your company paid for a business rental, then ask your company and/or the rental company what coverage(s) your company offers if they have a contract with the rental company. Most of the big rental companies have contracted rates and discount programs with certain companies that also include some insurance coverage embedded in these contracts.
Do you have Auto Insurance? If you do, then call your insurance company and report the claim. They will ask you what type of rental it was and they will also want a copy of the rental contract to see if you accepted or declined any coverage offered by the rental company. They will also ask you if it was a business rental or a rental while your car was in the shop for repairs. Here is where it gets tricky. If it was a leisure or business rental, it depends on how your insurance policy reads. Actually all of this does, but how the collision/comprehensive and liability coverage is spelled out in the insurance policy for “your insured auto” dictates whether or not they consider the rental car a substitute for your car or not. If they don’t, then you may not be covered. Oh, also they’ll want to know who actually rented the car and who was driving it when the accident happened. They may not cover you if they don’t like the answer to those questions. Remember your auto policy covers you and the vehicle you pay premiums for, and a lot of times, that is it. However most major insurance companies know that you may go on vacation and have to rent a car when you do. So you always want to check with your insurance agent or customer service before you rent a car for vacation if your covered, and who is allowed to drive for coverage to be applied for a car accident.
Was your car in the shop or disabled because of an accident? If this is the case, then a lot of times the insurance company will apply your auto coverage on your car to the rental vehicle for which it is substituting. Again, check with your insurance agent. I recommend that if you are not sure while you are renting the car, tell the rental agent to hold on while you call your insurance agent or claims adjuster if your car was in an accident, and they should be able to tell you if you are covered or not.
What kind of credit card did you rent the car with? You usually have to have a credit card to rent the car. If you have a Gold or Platinum credit card, they usually have specific rental car coverage as an added benefit for you. You can check on their website or call the number on the back of your card and the representative will tell you the specific coverage that comes with your card. Usually this coverage is secondary to the coverage you have on your auto insurance, but it’s a good contingency plan to have if you need it. However I think they do deny coverage if you are rental a car because your car is in the shop or disabled. So check with them and be sure.
Now, if you are denied for coverage by all of the means above, and you’re liable for damage or injury to other parties from the car accident, then check to see if you live in a state where the rental company has to provide you secondary coverage by law up to the state minimum coverage. For example, if you rented a car in California, and you do not have insurance coverage but are liable for the accident, the rental company should provide secondary coverage for bodily injury up to $15,000 per person or $30,000 per claim, and up to $5000 property damage claim (yeah, California has low limits!)
I cannot give you advice,but I can tell you that I always rent with my platinum credit card (that has a low limit so don’t get excited because I have a platinum credit card) that has rental coverage, I have good auto coverage on my own cars and I will get the extra insurance the rental car company offers sometimes. It depends on where I rent the car. Like when I am in New York City, I’ll get the coverage. When I am in Venice, Florida, I don’t. It’s a judgment call I make at the rental counter.
If you have more questions, I cannot stress enough that you should ask your insurance agent, your credit card representative and the rental car agent. They all try to sell you things, so take the information they tell you and make an informed decision to lead to good choices that keep you safe and covered if an accident happens.
*I am not an attorney. The information on this site is not legal advice and should not be taken as such by the reader. What I post on here are my opinions based on my experience as an auto claims adjuster.