Thursday, June 30, 2016

Do I Have Insurance Coverage For My Rental Car?

The first official day of summer has passed and we are getting well into vacation season. Many travelers opt for using a rental car for their road trip vacation, either to get better gas mileage or to avoid putting a bunch of miles on their personal vehicle. When it comes to insurance, how do you know if you have proper coverage on that rental car? Keep reading to learn about rental car coverage from your Lake of the Ozarks insurance agent.

Standard Auto Insurance Policies

In general, if you have comprehensive and collision coverage on at least one car on your personal auto policy, you most likely have damage coverage on your rental car. However, if the rental car contract makes you responsible for the reduction in market value of the rental car after being repaired, you may not be covered under your personal Lake of the Ozarks auto insurance policy.

There are other coverage gaps to be aware of as well, including the rental car company's loss of business income while their vehicle is being repaired.  This loss of income is not like likely covered under your personal auto policy.

Please also keep in mind that if you are in an accident, your rental contract may allow the rental car company to max out or place a hold on your credit card until they are reimbursed, which could be very troublesome while away from home.  You may want to rent the vehicle on a credit card with a lower limit or at least have an additional card or cash available in the event you can not use your card. Read the contract and your policy to understand these types of potential problems or gaps in coverage.  In some cases it may be best to purchase the physical damage coverage available.

If you don't own a car and don't have any insurance coverage of your own, you will need to at least purchase supplemental liability protection from the rental car company and the physical damage waiver.

Credit Card Providers

One thing many people don't know is that some credit card companies will offer some insurance coverage when it comes to rental cars. If you use your card to pay for the rental car charges, check with your credit card company to see if they offer any coverage as part of your credit card agreement. This type of coverage is secondary, meaning that your own auto insurance policy will pay out first. If you don't have auto insurance, you'll want to call your credit card provider to check the details of your coverage before you rely on this coverage solely. 

The best way to make sure you're covered for anything unexpected that might happen to your rental car while you're on vacation is to talk to your favorite insurance agent at the Lake of the Ozarks. We can take a look at your current policy and let you know what coverage you have under your personal auto policy. Enjoy your vacation with peace of mind knowing that Insure the Lake has you covered!  

Request a Free Quote Online! Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 

About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral