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Rental Car Coverage, Do You Have It?

People often don’t think of rental car coverage until their personal vehicle is in for service or they are making plans for a vacation. It’s a good idea to know what kind of coverage you have and what kind you may need. Let’s take a moment and clarify what this means.  

Insurance companies offer “additional expense” coverage as an option that can be purchased on your auto policy. This provides coverage for you to rent a vehicle for a certain period of time while your vehicle is out of service due to a comprehensive or collision loss. The additional premium for this coverage varies between companies. One thing to keep in mind though – in this tough economy most body shops really want your business. In some cases will provide you with a loaner car. It never hurts to ask! 

 The other side of rental car coverage is renting a vehicle to use while on vacation. In this situation the insurance company will not pay for the cost of renting a vehicle. The rental companies always strongly encourage you to purchase physical damage coverage through their offers, but please know that it is not required. If you carry physical damage coverage (comprehensive AND collision) on at least one of your own personal vehicles, you have coverage and can waive other insurance. This means that when you rent a car it’s basically like driving your own vehicle. The only limitation to this is that you must be operating the rental car within the United States of America or its territories. In the event of an accident, it’s your own auto insurance that will pay for the damages to the rental car.

 If you have any questions or aren’t sure what your coverage is, please call your friends in the insurance business!