It’s Vacation Time: Does Your Insurance Cover Rental Cars?

So you’re going on vacation. Great! But don’t forget, if you’re renting a car, you still need insurance protection. Don’t wait to get to the checkout counter to think about coverage; you may be pressured into purchasing unnecessary rental insurance.

If you have comprehensive auto insurance, you might already have car rental coverage, but there could be stipulations. Play it safe; check your personal policy first.

Insurance companies may provide rental coverage only up to a certain amount. If the rental car is totaled, your policy may only reimburse the rental company for actual cash value. Many rental car contracts state that reimbursement should be for the full retail value.

While you’re reviewing contracts, ask your insurance agent if possible loss of use is covered. If your insurance policy includes a Use of Non-Owned Cars endorsement, you should be covered, but it’s important to know the coverage limits. If the rental company makes a claim for diminished value, your personal policy will not cover this.

Driver coverage is an important consideration, especially if you’re traveling out of town. Anyone listed on your policy should be covered, but for others be sure to check first.

If you’re traveling abroad and don’t have a comprehensive policy or a high deductible plan, you may need additional coverage. Many agencies require a credit card for purchase and, depending on the card, your rental may be covered. If not, bite the bullet and purchase the rental insurance.

It’s better to be safe than sorry, especially on vacation.