Dear Clients and Prospects,

Welcome to Part 1 of our newsletter series on rental vehicles and how insurance applies! In this edition, we will address some frequently asked questions (FAQs) regarding how rental cars are covered under personal auto insurance policies. Understanding these details can help you make informed decisions when renting a vehicle.

FAQs on Rental Cars and Personal Auto Insurance Coverage

1. Are rental cars covered under my personal auto insurance policy?

Yes, in most cases, rental cars are covered under your personal auto insurance policy. If you have comprehensive and collision coverage on your personal vehicle, this coverage typically extends to rental cars as well. However, the specifics can vary based on your insurance provider and policy details.

2. What types of coverage apply to rental cars?

When renting a car, the following types of coverage from your personal auto insurance policy may apply:

– Liability Coverage: This covers damages to other vehicles or property if you are at fault in an accident.

– Collision Coverage: This covers damages to the rental car resulting from a collision, subject to your deductible.

– Comprehensive Coverage: This covers damages to the rental car from non-collision incidents, such as theft or vandalism.

3. What should I check with my insurance provider?

Before renting a car, it’s important to check the following with your insurance provider:

– Coverage Limits: Confirm the limits of your coverage and whether they apply to rental vehicles.

– Deductibles: Understand your deductible amounts for collision and comprehensive coverage.

– Exclusions: Ask about any exclusions that may apply to rental cars.

4. Why should I consider purchasing Collision Damage Waiver (CDW) coverage?

While your personal auto insurance may cover rental cars, purchasing Collision Damage Waiver (CDW) coverage from the rental company can provide additional peace of mind. Here are some reasons to consider CDW:

– Avoiding Deductibles: If you have an accident while driving a rental car, your personal insurance may require you to pay a deductible before coverage kicks in. CDW typically waives this deductible, meaning you won’t have to pay out of pocket for damages.

– Streamlined Claims Process: Dealing with claims through your personal insurance can be time-consuming and complicated. With CDW, the rental company handles the claims process directly, making it easier for you.

– Coverage for Additional Costs: CDW may cover additional costs that your personal insurance does not, such as loss of use fees (charges for the rental company while the car is being repaired) and administrative fees.

– Peace of Mind: Having CDW can provide peace of mind, knowing that you are fully covered in case of an accident or damage to the rental vehicle.

5. Are there any situations where my personal auto insurance might not cover a rental car?

Yes, there are certain situations where your personal auto insurance may not cover a rental car, including:

– Driving Outside of the U.S.: Some policies may not cover rentals in foreign countries.

– Using the Rental for Commercial Purposes: If you are using the rental car for business purposes (e.g., ridesharing), your personal auto insurance may not apply.

– Exceeding Rental Period: If you keep the rental car beyond the agreed rental period, coverage may be voided.

– Commercial Vehicles: Rental of commercial vehicles, such as moving vans or trucks, is typically not covered under a personal auto insurance policy. If you need to rent a commercial vehicle, you should look into specific commercial vehicle insurance options.

6. What should I do if I have an accident in a rental car?

If you have an accident in a rental car, follow these steps:

1. Ensure everyone is safe and call emergency services if needed.

2. Document the accident by taking photos and gathering information from other parties involved.

3. Notify the rental company as soon as possible.

4. Contact your personal auto insurance provider to report the incident and understand your coverage options.

5. If you purchased CDW, inform the rental company about your coverage.

Conclusion

Understanding how your personal auto insurance policy covers rental cars is essential for a smooth rental experience. While your policy may provide coverage, purchasing Collision Damage Waiver (CDW) can offer additional protection and peace of mind. Always check with your insurance provider for specific details regarding your coverage before renting a vehicle.

Stay tuned for Part 2 of our newsletter, where we will discuss rental reimbursement coverage and how it can benefit you when your vehicle is out of commission.

Thank you for reading! If you have any questions about rental vehicles and insurance, or if you would like to discuss your coverage options, please feel free to reach out.

Best regards,

The Team at Page Insurance

(203) 453-5258

service@pageins.com

www.pageins.com

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