Rental Car Insurance FAQ

Should I purchase car rental insurance when renting?

• Generally, yes, you should purchase the rental insurance from the rental company. However, there there are multiple factors that can effect how much coverage you already have for a rental.

What will my personal auto policy cover?

• Most of the time, if you have at least one vehicle on your policy with physical damage coverage, which includes comprehensive and collision coverage, then this coverage along with your liability coverage would extend to a rental car.
• It will not cover for loss of use or diminished value of the rental car unless you purchase additional coverage on your auto policy.
• When you rent a vehicle for a business trip, you are renting the vehicle in your name, and not the name of your employer. You are personally responsible for the vehicle and damages to it.

What is loss of use?

• Loss-of-use is a fee imposed by the rental car company on the customer to cover its lost income while the vehicle is out of commission from an accident, even if the accident may not have been the customer’s fault.

What is diminished value?

•  Diminished value applies if you get into an accident and the rental car company wants to put the vehicle up for auction. If the car is sold for less than the actual value you can be held liable for the difference in price.

What is a damage waiver?

• Damage waiver or, as it is often referred to, collision damage waiver (CDW) or loss damage waiver (LDW), is optional damage insurance coverage that is available to you when you rent a car. Car rental companies treat the CDW as a waiver of their right to make the renter pay for damages to the car.

Contact us to see what your auto policy will cover when you rent a vehicle!