How Is Your Rental Car Covered?
Rental Cars- Are you covered?
Whether a rental car is covered like your regular car depends on the specifics of your personal auto insurance policy and the coverage you have. Here’s how it generally works:
1. Liability Coverage: If you have liability coverage on your personal car insurance, it usually extends to your rental car. This means if you cause damage to another vehicle or property while driving the rental, your insurance will cover the costs up to your policy limits.
2. Collision and Comprehensive Coverage: If your personal auto insurance includes collision and comprehensive coverage, these may also extend to the rental car. Collision covers damage to the rental car from an accident, while comprehensive covers non-accident-related damages like theft or weather-related damage. However, there may be a deductible that applies.
3. Personal Injury Protection (PIP) or Medical Payments Coverage: If you have these coverages on your personal policy, they generally extend to a rental car, covering medical expenses for you and your passengers in the event of an accident.
4. Rental Car Coverage: Some insurance companies offer specific coverage for rental cars as an add-on to your existing policy. This coverage may offer more protection than your standard policy.
5. Credit Card Coverage: Many credit cards offer rental car insurance as a perk when you use the card to pay for the rental. This coverage may be secondary to your personal insurance or may act as primary coverage if you decline the rental car company’s insurance.
6. Rental Car Company Insurance: The rental car company will typically offer additional insurance options, including collision damage waivers (CDW) or loss damage waivers (LDW). These waivers can cover damages to the rental car, often without a deductible, but they come at an additional cost. You'll want to ask your rental car about their loss of rental car use or "loss of use" rules in their contract to determine whether you need their insurance.
It's important to check with your insurance provider and read the details of your policy to understand exactly what is covered when you rent a car.
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