Rental cars are a great asset. Perhaps you are traveling out of town for an extended vacation. Maybe your car is getting repaired, and you decide to get a rental car until it’s fixed. You still have to be safe while you’re on the road in your rental car, which is where insurance steps in.
Insuring Your Rental Car
You don’t need to purchase insurance for your rental car because it is already insured. However, adding another layer of coverage is recommended to be fully covered if you are involved in an accident. If you rent a car without having the necessary protection, you may have to cover the damages out of pocket. You may also be held responsible if the car is stolen or vandalized. While researching rental cars, check with your insurer or credit card company to see if they offer coverage.
Complying with State Laws
Most rental car companies offer liability coverage on their vehicles. However, you are expected to add as much personal insurance coverage as possible. Check with your insurer about exceptions. In New York, liability coverage is included in your rental rate. The amount of coverage you can add is based on the Financial Responsibility Limits. Texas, Missouri, and Utah are some of the states where liability coverage may not be available through the rental car provider.
Available Coverage Options for Rental Cars
Personal Effects Protection (PEP)
Personal Effects Protection covers you if your personal items inside the rental car are damaged or stolen. The policy also covers the belongings of any loved ones who are traveling with you.
Loss Damage Waiver
Adding a loss damage waiver will decrease the amount you would be responsible for paying if the rental car suffers damage. While you may have to cover a deductible due to the damages, the waiver will cover the rest. You can adjust the amount of the waiver based on the type of vehicle you have and your location.
Personal Accident Insurance (PAI)
Personal Accident Insurance provides accidental death benefits and emergency medical treatment to you and your passengers. You can amend the policy to cover foreign visitors.
Additional Liability Insurance (ALI)
You can add Additional Liability Insurance to cover yourself against claims filed against you. The ALI policy includes limits for personal injuries, property damage, and accidental deaths.
Rental car insurance can save you from paying out of pocket for significant expenses. However, you still need to be cautious on the road to avoid being involved in an accident. You can add multiple types of coverage to protect your rental car. To learn more about auto insurance and how it can address your coverage needs, contact our team at Scautub Agency today!