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How to Cover Your Rental Cars

Insurance for rental cars.

When you reserve a rental car, the rental company will ask if you want to secure insurance through them.  Many drivers do not know what to do and end up securing this coverage.  However, this might be an unnecessary step to take.  This is because all personal auto insurance policies written in New York State extend coverage to rental vehicles.  Here’s what you need to know about rental car insurance and your personal auto policy.

Personal Auto Insurance

Whether or not you need to secure coverage through the car rental company depends on the specifics of your personal auto policy.  If your policy was written in New York State, then you will be covered for any personal rental vehicle damages that are incurred within the contract period of the rental car if you rent for less than a 30-day continuous period.  If you rent for more than 30 days, you should consult your insurance agent to verify coverage applies.

In many cases, rental car insurance policies will have the state’s minimum liability coverage as dictated by law.  This is the state’s requirements for insurance to be able to register a vehicle.  Typically, this coverage would be applied first in case of an accident that you become liable for.  After the minimum liability limit is exhausted then your personal auto liability insurance could be applied as excess.

Rental Car Insurance

If you want to secure additional coverage through the rental car company, then it’s important that you understand the types of coverage that they offer.  Typically, you would need to secure these coverage if traveling abroad since your personal auto policy would extend outside the continental United States.  Car rental companies offer four main types of coverage: liability, personal accident insurance, Collision Damage Waiver (CDW)/Loss Damage Waiver, and personal effects coverage.  If your personal policy offers liability and medical payments coverage, then you do not need to secure liability or personal accident insurance through the car rental company.  However, you might want to consider the Waiver and the personal effects coverage.

  • Collision Damage Waiver (CDW)/Loss Damage Waiver– Rather than an insurance product, this waiver transfers financial responsibility from you to the car rental company in the event that the rental car is damaged or stolen. If you are renting a car, then it’s recommended to secure this waiver.
  • Personal effects coverage– Covers the personal items that are stolen out of your rental car. Before you secure this coverage from your car rental company, review your homeowners, renters, or condo insurance policy.  In some cases, these policies will offer coverage for items stolen out of your rental car.

This is what you need to know about auto insurance and rental cars.  Do you have additional questions regarding your car coverage?  If so, then contact the experts at Scautub Agency in Scotia, New York.  We are ready to assist you with all your coverage needs today.

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