Are you confused by the insurance policy offered when acquiring a rental car? At Parks Insurance Group, we take the time to explain coverages to our clients so they can make a well-informed decision the next time they are renting a vehicle.
Some rental car companies contractually hold renters responsible for collision losses that may happen during that rental time period. These companies typically include an option to purchase a collision damage waiver. We also recommend to our clients to purchase this waiver so it doesn’t come back to your personal auto coverage as a claim which could result in higher premiums in the case of an at-fault loss. It could also result in having to leave your vacation early which we all know is a major pain.
With a personal auto policy, there are typically provisions that cover damage to non-owned automobiles which could include a rental car. If your policy has these provisions under your personal auto insurance, your carrier would cover excess costs up to the policy limits, over what the owner or rental company would cover. But you have to remember, any claims against your personal auto policy may increase premiums.
On the bright side, with most carriers, your rental car is covered under your personal auto policy which is great news when you have the entire family on a long vacation.