Using Rental Coverage From Your Auto Policy
Driving a vehicle that you’re unfamiliar with in a place that you’re unfamiliar with can feel like a gamble, it’s no wonder that so many drivers opt to purchase additional rental car coverage at the rental counter. In many cases, however, this type of auto insurance coverage is redundant, and you can save your money by skipping it.
Types of Auto Insurance Coverage Options
When you’re renting a car, you’ll generally be offered four different types of auto insurance coverage.
These include:
♦ Collision damage waiver, which ensures that you won’t be held financially responsible if the rental car is stolen or damaged
♦ Liability coverage, which will help to cover any injuries or property damage sustained by the other driver if you are at fault for an accident
♦ Personal accident insurance, which would help pay for medical bills if you’re injured in an accident
♦ Personal effects coverage, which would help you replace personal items that are stolen from your rental
Why Additional Rental Coverage May Be Redundant
Most drivers who have an auto insurance policy with collision and comprehensive coverage, decent health insurance, and homeowners or renters’ insurance can save their money by foregoing additional rental coverage.
In most cases, if you are using the rental car strictly for personal use, your auto insurance policy will cover the rental if you are the at-fault driver in a collision. Your health insurance would cover your medical bills if you were injured in an accident, and if your belongings are stolen from a rental car, your homeowners or renters’ insurance would cover you (assuming you have off-premises coverage).
On top of all that, if you’re using a major credit card to pay for your rental, then purchasing rental coverage at the counter may be redundant. Many credit card companies offer rental car coverage as a perk, so before paying for rental coverage at the counter, make a quick call to the number on the back of your card and ask if this is a benefit you have as a cardholder.
When Does Auto Insurance Not Cover a Rental
Just as your personal auto insurance policy wouldn’t cover you if you were using your vehicle for business purposes, it also won’t cover you if you’re using a rental for business. Additionally, your policy may expressly state that your insurance does not extend to rentals. If that’s the case, then you’ll want to make sure that you have some form of coverage if the unexpected happens.
When Rental Coverage Makes Sense
In most cases, your existing insurance policies probably provide adequate coverage when you’re in a rental. However, there are a few cases in which purchasing additional coverage makes sense. Some situations in which you should consider paying for rental coverage include:
♦ Your coverage has a very high deductible, or you only carry liability insurance
♦ You don’t own a vehicle and therefore don’t have an auto insurance policy, and you’re not using a credit card to pay for the rental
♦ When concerned about how filing a claim would affect your insurance rates if you’re at fault for an accident while driving the rental
♦ If you’re traveling for business purposes and your personal auto insurance policy wouldn’t cover you in the event of an accident
♦ If you will be renting a car, talk to your auto insurance agent to find out if you need to purchase additional coverage or if your current policy will meet your needs
The Best Auto Insurance Coverage Through Nevada Insurance Enrollment
When it comes to creating a good auto insurance policy, there’s no one-size-fits-all approach, and what’s good for one driver may be too much or not enough for another. At Nevada Insurance Enrollment, we specialize in helping drivers find the best insurance for their needs at the best price available. Speak to one of our licensed auto insurance agents today!
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