Heading On Vacation . . .
Does Your Auto Insurance Extend
Coverage To A Rental Car?
IMT Auto Insurance – Insured would need to ADD the 'Diamond
Coverage' endorsement prior to renting the vehicle for them to have
coverage extended to a rental car.
(IMT PERSONAL AUTO DIAMOND COVERAGE ENDORSEMENT (PA 08
28) Rental Car Coverage – we will pay all the reasonable expenses resulting
from a loss to a rental car, including physical damage, loss of use and
diminution in value. – copied from IMT Insurance Manual).
Wadena Auto Insurance – Coverage is automatically extended to the rental car.
(WADENA – manual page 21 – K-10 Advantage Personal Auto Coverage Endorsement
Included in all Wadena Personal Auto Policies is the PA 08 26 – "Advantage Personal Auto Coverage" endorsement. This endorsement provides the following enhanced coverages to a covered auto at no additional cost: 10) Rental Car Coverage – we will pay all the reasonable expenses resulting from a loss to a rental car, including physical damage, loss of use and diminution in value. At least one vehicle on the policy must carry Part D Comprehensive or Collision Coverage before this coverage will apply. -- copied from the Wadena Insurance Manual).
Rockford Mutual Insurance – Coverage is automatically extended to the rental car. IF the rental company will provide records proving all their vehicles were booked, Rockford Mutual will cover the "loss of rental income" to the rental car company. Rockford Mutual will only cover the rental for what the insured is “Legally Liable” for – this is determined by the Department of Insurance for each individual state – underwriter warned “this opens a big grey area to what is covered”.
Pekin Insurance -- Coverage is automatically extended to the rental car. Add "Auto Guard" endorsement, prior to renting the vehicle, which covers the ‘loss of use’ charges of the rental car.
MetLife Insurance – MetLife has included in all auto policies "Enhanced Rental Car Coverage". If you must have at least one vehicle listed on your personal auto policy insured with full coverage, MetLife will extend the rented automobile for the same limits. Also, the policy will cover the loss of rental income, for the rental car company, for the time that the vehicle would be out of use due to the accident.
Progressive – Coverage is extended to the rental car, but only to drivers listed on the Progressive auto policy. Roadside assistance, towing, administration fees, and loss of rental income are not provided/covered by Progressive Insurance.
Other Facts –
- Check with you credit card company to see what coverages they will provide towards renting a vehicle and their guidelines. Each credit card has different rules and provides different coverages.
- Full coverage must be on one vehicle listed on the personal auto policy and your auto policy must be inforce.
- Only drivers listed on the auto policy will be covered.
- Only drivers listed on the rental car contract will be covered by the insurance auto policy. Even if drivers are listed on the auto policy, they will not have coverage if they are not listed on the rental car contract.
- Read and follow the rental car contractguidelines. For example, if the contract states that the vehicle must be driven only in the state from which it’s rented and the insured drives the vehicle across the state line it automatically removes all auto insurance coverage on the rented vehicle.
- Most auto insurance coverage will transfer to rental car if it is driven in the policies territory – US, Puerto Rico, Canada. Check with your insurance company for their territory.
- If in an accident using rental car, the rental car company can ‘freeze’ your credit card until claim is closed and until all parties have settled.
- Insurance companies limit the types of vehicles they will extend coverage too. Call your insurance company prior to renting a high end sports car, truck, or trailer. It's always better to double check with your insurance company.
Do Your Homework –
It is strongly recommended that the insured do their homework before deciding to decline rental car insurance. You need to understand coverage extended to the rental vehicle is not exactly the same coverage as you have on your personal vehicle. Rental car companies do tack on administration fees which can run hundreds of $$. Rental car companies will charge for ‘loss of use’ on the rental car if it is in an accident and not all rental car companies will provide their rental records to the insurance company.
Other sources of credit card information can be found at www.creditcard.com or call the credit card company which your are charging the rental vehicle on.
Insurance companies suggest accepting the insurance offered by the rental car company; this way there are no hidden surprises and you properly insured.
Should you buy the extra coverage?
So does all this mean you should take the $15 to $25 a day collision damage waiver offered by the rental agency? Not necessarily, but it does depend on what level of risk you're willing to take. Do your homework and find out what coverage your insurance company and credit company are extending to you.
