There you are at the rental counter ready to start your vacation and your faced with the decision on whether to spend another couple hundred dollars to get the insurance. Enter stage left, the age old question… should you purchase the insurance that the rental car company offers you? Here is your definitive, once and for all answer, the answer you’ve been waiting for…wait for it…maybe. I know, I know, not cool, but it’s reality. It depends on a lot of factors, like what company are you insured with, what coverage do you have on your vehicle(s), are you renting in the U.S. or abroad, and what is the purpose of the rental? These are just a few of the factors.
So unfortunately there is no one perfect answer to this. But, here are 3 questions I ask the company I am insured with.
1. Are the full limits of my liability extended to rental vehicle?
In other words, if I cause damage to someone else and they sue me, will my existing insurance protect me in the rental car up to my full limits.
2. Is physical damage coverage extended to the rental vehicle at the same deductible that we carry on our policy?
In other words, if I return the rental car with a missing bumper and tire, will my policy pay for the rental car to be repaired minus my normal deductible?
3. In the event of and accident, will my policy address any loss of use claim that the rental car company would potentially file?
Here is one many people don’t think about but can get hit with a large bill after the fact. The rental car that is damaged will be in the shop if it’s repairable, the rental company can’t rent it, so they are out revenue.
They come after you for that lost revenue, will your company pay for it?