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Rental Car Caveats

Rental Car Caveats

 

With coming back from summer vacation and getting back into the routine of school, the one thing on everyone’s mind is – “When do we go on vacation again?”

Many people will be traveling for the coming holidays, some flying out to visit family & friends. In these cases, a rental car will be involved to transport them around while on holiday. Your Personal Auto Policy offers some coverage, but is it enough?

There is coverage that your Personal Auto Policy may not offer in regards to covering a rental car:

  • The Personal Auto Policy does not cover commercial vehicles such as U-Haul (or similar) trucks or 15-passenger vans. You will need to purchase the insurance from them.
  • The Personal Auto Policy does not cover vehicles outside the United States, it’s possessions/territories, or Canada. Renting a vehicle in another country, you need to purchase liability/medical/physical damage coverage from the rental car company.
  • The Personal Auto Policy does not settle total losses on vehicles based on Replacement Value (as some rental car agreements require), the loss is settled on an Actual Cash Value basis.
  • The Personal Auto Policy may not pay for Diminished Value, even if a rental car is repaired to pre-accident condition – Diminished Value means that there is a perceived value drop due to it having been involved in a claim.
  • The Personal Auto Policy may not pay for Loss of Use on a rental car. Loss of Use would be daily rental charges while the rental car is being repaired.

What can you do to protect yourself? Well, you can purchase insurance from the rental car company. They offer coverage for the vehicle itself as well as liability & medical coverage if you do not have a Personal Auto Policy. You many also have coverage for rental vehicles as a benefit with your credit card. This article from Lifehacker shares what coverage you may have and how it would work. Of course you need to check your credit card agreement to see what they offer.

As always, check with your hometown insurance agent to see what coverage is afforded for you and your family while renting a car.

Contact Us!

At Marsilje & Vander Plow Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 616-396-1497 or send us a note at marsiljeins@gmail.com. We want to help you meet your goals, and make sure what’s important to you is protected!

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