Our team is often approached with an important question regarding rental car coverage: "Does my auto policy cover my rental car, or should I purchase the rental company's insurance at the counter?"
It's a common concern that many people have when planning their trips. On one hand, you want to avoid unnecessary expenses and feeling like you're being taken advantage of. On the other hand, you want to ensure that you're adequately protected.
The damage waiver from the rental company is additional coverage designed to protect you from financial responsibility in the event of damage to the rental car. But are you already protected with your personal auto insurance? That's the question!
This question is particularly relevant for anyone going on vacation or traveling in general. Unfortunately, the answer isn't as straightforward as we would like it to be. It depends on various factors that need to be taken into consideration.
The first factor to consider is your destination. Your Pennsylvania auto policy only provides coverage for accidents or losses that occur within the United States, its territories and possessions, Puerto Rico, and Canada. If you find yourself driving anywhere else, your auto policy won't protect your rental car or yourself while driving it. In such cases, it's essential to purchase insurance from the rental company.
Another factor to consider is how you plan to use the rental vehicle. Generally, there are two categories: personal use and business use. If you intend to use the rental car for business purposes, you must ensure that your own vehicle is also insured for business use in order to receive coverage from your policy for the rental car. This can be done by either adding business use coverage to your personal auto policy or having a separate business auto policy.
Now let's assume you are traveling within the United States and won't be using the rental car for business purposes. In this scenario, will your personal auto policy protect your rental car? The answer is yes, but there's a catch. Your rental car will only be protected if you have purchased the necessary coverage for yourself. For example, if one of your cars is insured for collision claims, then your rental car will also be covered in the event of a collision. Similarly, if one of your cars is insured for comprehensive claims, your rental car will be protected against damage other than collision. However, it's important to note that your deductible will still apply, just as it would when driving your own car.
Situations When You Might Want to Purchase Additional Coverage From the Rental Company:
1. If you want coverage with a low deductible (or even no deductible).
2. If you have no claims on your personal auto policy and don't want to use your personal insurance if you got into an accident while using a rental.
3. The person who will be driving the rental car is not listed on your personal auto policy.
So, when it comes to rental car coverage, there are several factors to consider. It's crucial to understand the limitations of your auto policy and evaluate your options accordingly. By doing so, you can make an informed decision and ensure that you have the necessary protection while traveling.
At Blue Marsh Insurance, we understand the complexities of rental car coverage and are here to help. If you have any questions or need further assistance, please don't hesitate to contact our office at (610) 590-0152. Our knowledgeable team is always ready to provide guidance and ensure you have the necessary protection while traveling.
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A little more about Blue Marsh Insurance...
When he founded Blue Marsh, Tom Davenport wanted to create a different kind of insurance company. One that’s built on personal relationships and a local presence. One where you, the customer, feel more like a friend.
As an independent insurance agency, Blue Marsh Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price.
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