Is Rental Car Insurance Actually an Asset?
In today’s current landscape, several features are involved with renting a vehicle. You have to consider upgrades and possible add-ons to your rental car insurance. Here are some key factors to consider.
Insurance or Reimbursement Coverage
While looking over your auto insurance Redlands CA policy, research the differences between rental car insurance and reimbursement coverage. Rental car insurance covers the vehicle while you are driving it. The rental company will offer different policies that you can purchase to protect you during the rental period. Rental reimbursement is a popular add-on to traditional auto insurance policies. If your regular vehicle suffers damage, your agent will compensate you for finding a temporary vehicle until your car is repaired.
Rental Car Agreement
Before driving away, most rental agencies will ask you to sign a contract that says you have to return the vehicle in the same condition once the rental period is over. You are responsible for covering the repairs if the vehicle is damaged. You will also be responsible for the diminished value of the vehicle. Rental companies miss out on rental fees while the car is being repaired.
To avoid potential fees, it’s recommended that you purchase a loss damage waiver or a collision damage waiver. These waivers can prevent you from potentially paying thousands of dollars worth of fees if the rental car is damaged. The waivers also protect you from potential fees if the rental car is damaged by inclement weather or stolen. However, keep in mind that purchasing one of these waivers can be expensive.
Insurers may alter your coverage based on whether you’re using the rental car to go on vacation or driving it because your vehicle is in the repair shop. If you’re renting a vehicle to go on vacation, you and your loved ones should be covered through the policy. Speak with your insurance agent for further clarification.
If someone damages your rental car in a collision, their liability coverage should cover the damages. However, you would be responsible for the damages if you caused the collision. If you only have minimum liability coverage on your personal insurance policy, things may become complicated. If you are concerned about a possible gap in coverage, you can speak with your insurer to see if you can increase your liability coverage. Purchasing supplemental liability coverage through the rental agency is another option to consider.
Other Variables to Consider
The rental company may offer personal effects coverage, protecting your belongings inside the rental car. You can consult with your insurer to see if your personal items are covered through your home or renters insurance policy. Personal Injury Protection covers your medical treatment if you are injured in a collision. If you plan to rent a large truck or RV, you may need to purchase a separate policy as most auto insurance policies don’t cover those vehicles as rentals.
Consult With Little & Sons Insurance Services
Talk with your insurer before deciding which rental coverages to add. In most cases, it’s recommended that you have some coverage to fully protect you against damages to the rental car. If you have any questions, our team at Little & Sons Insurance Services can assist you.