With the month of June finally here, so is the official start of summer. Now that a majority of schools are out for the summer and working adults are getting ready to use their vacation time, many families and individuals will be traveling to vacation spots all over the country. If you intend on renting a vehicle for your upcoming vacation, you may want to understand the insurance perspective of renting. Many people wonder how a rental car is insured. Should insurance from the rental company be purchased? Or, is their existing auto insurance policy enough to cover the rental? It is always crucial to have the correct amount of insurance for all that you own or rent. Below is a brief description of what you should know before renting a car.
Existing Car Insurance Policy - In most cases, if you rent a car for pleasure and not business, your personal coverage for car insurance will cover your rental when traveling in the United States. Something to consider is your collision or comprehensive insurance. Failure to have these on your auto insurance policy won't have you covered if your rental car is stolen or damaged in an accident.The biggest mistake that individuals make is allowing someone who is not included on their personal auto policy to drive the rental car. Making this mistake can be extremely expensive in the event of an accident.
Insurance Provided by Rental Agency - Each state has a different set of coverage requirements for auto insurance. If you find yourself traveling/renting a car out of state, you may need the coverage offered by the rental car company or your credit card to protect yourself from risks above the limits of your personal insurance policy. It is always best to check with the rental car agency along with your insurance provider as to what the best approach is.
The Importance of a Credit Card - Some credit card companies will offer insurance for rental cars. Make sure to check with your credit card provider for all sorts of coverage and special rates. This method could save you a lot of money!
Planning Ahead - Do your research! It is best to spend as much time exploring rental car insurance as it is planning the vacation. Renting a car can be a very strenuous process. With so many choices and so much at stake, it's important to explore your options before you walk up to the rental car counter. Doing your research in advance can save you a lot of time, stress and money.
Questions Questions Questions! Make sure to talk to us here at Mid-State Insurance if you have any questions. We are always available to answer questions and encourage questions to be asked! It is much better to be correctly insured than to be facing fees and expenses due to the lack of coverage!