by Brad Chambers, CPCU
Whether you’re heading down south from Marion County for a weekend trip or taking a scenic drive over to Carmel, renting a car seems like a simple enough task. But when you’re standing at the counter and the worker asks if you want to add their coverage, it helps to know what your personal auto policy actually covers. Here are a few tips to help answer your questions before the next time you need to rent a car.
Rental Companies Look to Your Insurance First
A common misconception is that rental car companies will absorb damages if you get in an accident in one of their cars. In reality, rental agencies are typically treated as not-at-fault, becoming a mostly irrelevant party in any claim. Regardless of who caused the accident, if you return the car damaged, they will usually turn the claim directly over to your personal insurance and won’t offer any compensation themselves.
Look for “Loss of Use” Policies
Most standard personal auto insurance policies do not cover loss of use charges from a rental company. If the rental car is in the repair shop for a week, for example, the rental company can bill you for whatever loss of compensation results from their vehicle being out of commission. Often, that money will come right out of your own pocket, so keeping to the agency’s schedule is key when renting.
Look for International Driving Exclusions
Planning a vacation outside of the United States? Make sure to brush up on what your auto policy says about international travel. Standard domestic auto insurance policies rarely cover vehicles rented outside the United States and Canada, meaning that you may be financially responsible for vehicles rented in any other country and under their legal codes.
Should You Add Rental Coverage?
Like most things in life, there is no simple, definitive answer, and whether you should add coverage depends on the trip. Depending on what vehicle you’re renting and where you’re driving, adding rental coverage or opting for the counter waiver can give you complete peace of mind.
Before you take off on your next trip, give our team a call. We’re proud to serve drivers across every county in Indiana, and we’ll help you double-check your policy so you can hit the road with confidence!
