Auto Insurance and Rental Car Extension - A Few Things You Need to Know About Rental Car and Insurance.
Will my rental reimbursement cover the full cost of a rental car?
First off, rental reimbursement is generally an option that you must take and pay an additional premium for. So, if you haven't opted in, and paid an additional premium, then chances are you're not going to have any reimbursement for the charges you incur. Also, keep in mind, rental reimbursement is payable for covered losses only. For example, a covered accident would trigger collision coverage allowing for rental reimbursement. Conversely, if your vehicle simply broke down or needed routine maintenance this would not be a covered incident - so no reimbursement would be paid.
Assuming you have rental car reimbursement on your policy. how much rental reimbursement coverage you have influences the type of rental vehicle you can select without incurring out-of-pocket expenses. For example, even if you drive an SUV, that doesn’t mean your rental coverage will pay for a replacement SUV. Depending on your coverage, you may only have enough coverage for a compact car. This could make it difficult to carry on with your normal activities while you wait on your repairs. For example, imagine if you had to squeeze yourself, your spouse, three kids, and two dogs in a compact car for more than a week.
Even if you can manage with a compact, you auto policy may not cover its full cost. In many auto policies, the base coverage for rental car expenses in the event of a covered loss is $20 a day. However, the average compact rental costs more than $30 a day. This means that you could face out-of-pocket expenses to cover the additional costs when renting a vehicle after an accident. If you’d like to avoid this type of out-of-pocket expense, consider adjusting your coverage.
How do I adjust my rental car reimbursement?
Simply call Harvest Insurance Agency @ 805.496.9646, and your trusted advisor will be happy to review and make the appropriate changes.
Am I covered by my auto policy's insurance when I either rent a car on vacation or while it's in the repair shop?
Whether the rental car you are driving on vacation is covered by your car insurance policy depends on a few key questions: “What type of car insurance coverages are included on your policy?” "What type of policy are you protected by - is it a standard or non-standard provider?" and “Where are you going on vacation?”
In most cases, you’ll need a standard provider including collision coverage–for damage to your vehicle caused by contact with another object–on at least one vehicle on your policy. Also, typically, you’ll need to be traveling within the United States, and its territories, to qualify for rental coverage through your standard auto policy. Non-standard companies generally insure higher risk drivers and typically do not provide an extension of protection - check your policy definitions for further clarification.
If you meet these conditions, comprehensive and collision coverages may be extended to your rental vehicle subject to your deductible. Check with Harvest Insurance Agency @ 805.496.9646 to understand your specific policy coverages.
Should I reject the waiver at the rental counter?
It may make sense to reject the Collision Damage Waiver (CDW) offered at the rental car counter if you already have coverage. But before you do, you’ll want to be aware of a few additional details.
Even though damage to your rental car may be covered under your auto policy, the rental car company may require payment for those damages at the time you return the vehicle. You should consider whether you can afford such a payment, even in the short term, before you reject the waiver. Ask the rental agent for more details as you may have to pay from $1,000 to the full value of the car if it is damaged.
If you don’t have collision coverage on your auto policy, purchasing the collision damage waiver is strongly recommended. You wouldn’t want to risk having to pay for a new rental vehicle if the one you’re driving is destroyed in an accident.
If you’re planning to rent a vehicle while traveling abroad, you can contact the U.S. consulate in advance regarding the particulars of renting a car in the country you’re planning to visit. You can also ask the rental car company about coverage options.
Harvest Insurance Agency, Inc. - Located in Westlake Village / Thousand Oaks - We offer all lines of insurance; Auto, Home, Life, and Commercial - PLEASE CALL US @ 805.496.9646
Disclaimer: This material is for informational use only. The coverages described above are specific to your particular policy and its policy language.