Before taking a trip, it is important to understand what insurance coverage applies in the case of an accident while driving a rental car. We at Vargas & Vargas Insurance are often asked how claims will be handled in these situations. To be prepared, it is essential to research the extent of coverage provided by rental car companies and if additional insurance needs to be purchased.
What Is The Insurance Coverage For Rental Car Accidents?
In most states, if you have your own auto insurance policy, the coverage will apply to you and the rental car you are using. This means that if there is an accident involving your rented vehicle, your existing auto policy would still provide coverage. However, keep in mind that this type of protection only applies within the United States and its territories – it does not extend to international rentals. In Massachusetts, it is mandated by law that rental car companies must carry a certain amount of liability protection for any accidents involving their vehicles. For example, they must be able to cover up to $5,000 worth of damage claims concerning their cars. After the required liability limits are reached by the rental company, any remaining costs will come out of the renter’s personal auto or named non-owner policy.
Renters of long-term leases have restrictions on the amount of coverage they can get.
Loss Of Use
If you have an accident and damage a rental car, the rental company may charge you for not being able to use it while it is being repaired. Typically, your auto policy will not cover this fee, however, if you have Safety Shield Plus added as an endorsement to your policy, it may be covered. Also, many credit cards provide coverage for loss of use when renting a car if used to pay for the rental.
What Is Rental Automobile Insurance?
In some situations, you may need to obtain rental car insurance in order to be covered for any accidents you are involved in while driving a rental car. It is important not to confuse this with rental reimbursement coverage. Rental car insurance is a distinct policy provided by the car rental company that provides protection for the rented vehicle. This kind of coverage typically includes:
- Liability coverage: This covers you for any medical bills or damage to another person’s property if you cause an accident while driving a rented vehicle.
- Loss/collision damage waiver: A collision or loss-damage waiver protects you in the event of damages that occur to the rental car, including vandalism and theft.
- Personal accident insurance: This offers coverage against injuries to you and your passengers while driving a rented vehicle.
Personal effects coverage: Provides protection for your belongings if they are taken or ruined while in a car you have hired.
Do I Need Rental Car Coverage?
Typically, you won’t need to purchase a separate rental car policy. If you have an auto insurance plan already, it will extend protection to any rented vehicles. If your auto policy includes comprehensive coverage, collision coverage, liability insurance and medical payments/personal injury protection, then buying an additional rental car policy is likely unnecessary. Additionally, any personal possessions in the rented vehicle would be safeguarded if you have a homeowners’, renters’ or condo insurance plan.
When Should I Purchase Rental Car Insurance?
In some cases, having a rental car policy may still be advantageous even if you already have car insurance. Examples of such situations include when you wish to avoid making claims on your auto policy; don’t have collision or comprehensive coverage; travelling somewhere that isn’t covered by your plan; having high deductibles on the auto insurance; having low liability limits under the policy; or renting a moving truck or vehicle (auto insurance won’t cover this).
What Should I Do After A Rental Car Accident?
If you are in an accident with a rental car, or if another driver has a rental car, the steps to take afterwards are similar to those after any other auto accident. However, there are some extra considerations that must be kept in mind. To deal with an accident involving a rental car, do the following: move yourself and the vehicle out of harm’s way; assess if anyone is injured; call emergency services; swap contact information and document details about the crash; take pictures of any damages and road conditions/obstacles; let your rental company know what happened (they may require you to fill out their own report); and notify your insurance carrier even if it was not your fault so you can decide whether to file a claim.
Covering rental Cars:
Now that you are aware of the different insurance coverage options for rentals and what to do in the event of an accident, you can confidently get behind the wheel of your next rental car. Even with full coverage, it is understandable for someone to feel confused after a collision. That is why Vargas & Vargas Insurance is available to help guide you through any claims process that may arise from a minor or major accident.
Dealing With An Independent Insurance Broker
Vargas & Vargas Insurance has been helping Families, individuals and businesses for over 40 years, you can reach our team at 617-298-0655
