We frequently gets calls from customers wondering if their rental vehicle is covered by their auto insurance policy while on vacation. Some personal auto policies have specific coverage provisions that address whether an accident in a rental vehicle is covered. Let's look at a common example:
You take a vacation to Las Vegas and rent a car. How does coverage extend from your car to a rented car while on vacation? Under some personal auto policies, if you have comprehensive and collision coverage, it carries over to a rental vehicle.
Liability coverage (coverage for another person's medical bills or damage to another person's property) extends only to the insured(s), a spouse, relatives who live with the insured, and anyone the insured gives permission to use the rental vehicle. Physical damage coverage (coverage for the rental car if it is dam-aged or stolen) applies only to the insured(s), spouse and relatives who live with the insured.
The broadest or best coverage from any vehicle on your policy extends to the rented vehicle. In other words, as long as one of the vehicles on your policy has both liability and physical damage coverage, the car rented on vacation will have those same cover-ages. If coverage can be extended to the rental vehicle it is not necessary to purchase the damage waiver from the rental car company.
Some policies are broader than the industry forms when it comes to rented vehicles regarding what is covered. If you have questions on this coverage please contact us.
Keep in mind that it will be important to understand why the vehicle is being rented and who will be driving it as these facts are important in determining if coverage will apply for a potential claim.
Finally, since we aren’t lawyers and haven’t read the contract you will be signing, you may be better off purchasing the coverage they offer you just for the peace of mind.