If you are planning a long summer road trip, odds are good you will opt for a rental car. The convenience of rental vehicles revolutionized the travel industry. Unfortunately, it caused confusion in the insurance industry.
When renting a vehicle, consumers are asked to purchase additional insurance through the rental agency. Many people decline this coverage thinking that they already have coverage through their personal auto insurance. However, as some (weary delete) drivers discover, they aren’t always fully covered.
While many insurance policies do cover rental vehicles, they don’t always do it automatically. Sometimes you must specifically ask your agent to add this coverage to your policy. If you are covered, there may be fees charged by the rental agency that aren’t covered by your insurance policy. For example, if you damage the vehicle, the rental agency may charge you a fee for the rental income they lose while it is being repaired. This fee, called “loss of use”, is not payable by your personal insurance policy. Also of note, is that rental car coverage on your personal auto is ONLY available in the United States and Canada, not overseas or in Mexico. We recommend you secure auto insurance coverage when you pick up your car in the country you are visiting.
The bottom line is that you must know what your current insurance policy covers and does not cover. And, we recommend you read the rental car contract thoroughly. Once you know what your personal policy covers , you can purchase the additional rental company insurance for the “loss of use” coverage.
For more information about rental car insurance in California, contact Randy Jones Insurance Services, located in Pleasanton.