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Rent Cars and Auto Insurance
Automobile insurance is vital if you drive a vehicle, in fact a certain level of liability car insurance is likely required in the state the car is registered. How about if you are driving a rent car? The business you are renting the car from will require insurance on the rental and will be more than happy to sell you coverage for the duration of your car rental contract, but you might already be covered. It pays to make a couple of phone calls before you pick up your rent car.
Check your coverage before renting a car
Your first call should be to your auto insurance agent. In almost all cases the level of auto insurance coverage and deductibles you have on your insured car also apply to any rent car you are driving for personal reasons. This will most likely not be the case if the rent car is being used for business and other insurance accommodations should be considered.
Do ask your auto insurance agent about any extra fees or costs involved with a claim on your policy from an accident involving a rent car because many car insurance providers charge administrative fees for processing rent car claims. Also check into whether your auto insurance policy covers “diminished value.” Car rental firms typically consider this cost part of any accident involving a rent car and your auto insurance most likely won’t cover this additional fee.
Your second call should be to the company issuing the card you intend to use when renting the car. It is likely your credit card will cover at least the car you are driving, but typically won’t cover your possessions or any other vehicles or property. This is one place where it pays to shop around if you carry more than one credit card. Different cards and different companies offer varying levels of rent car insurance coverage.
Auto insurance can protect you and the car you are driving whether it’s your own car or even a rental. It’s also a great place to save money because car insurance comes in so many types and levels of coverage, including liability, collision, comprehensive, uninsured motorist and more.
Did You Know? Only one-fourth of people already covered by auto insurance check to see if their policy covers rentals before renting a car.
Takeaways:
- Your auto insurance policy likely covers your rent car to some extent.
- The credit card you use when renting the car also likely provides some level of rent car insurance.
- If you are renting the car for business purposes your personal auto insurance will not cover the rented vehicle.
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