Should you accept a rental auto insurance?

Should you accept a rental auto insurance?


The question that always arises when you rent a vehicle is: should buy the exemption of liability for damages, limiting or eliminating your financial responsibility for damage to the vehicle you rent? This protection is not cheap, can cost between $63 and $210 a week, depending on where you rent the vehicle selected and with which company sign the contract.

In the past, we recommended not to acquire this additional cost if your personal vehicle insurance included coverage for shock and/or comprehensive coverage, or if your credit card provided you credit. However, today’s decision has “complicated considerably due to the fact that many companies are charging customers for the depreciated value and administrative positions when they clash the rental car”, mentions Kip Diggs, spokesman for State Farm, the largest auto insurance company in United States. In general, State Farm does not cover these charges. Then, present the three steps to making you more easy this decision.

1 check your auto policy

Insurance that covers your auto is the first line of protection to cover a rental vehicle. Which of course gives you a coverage of basic liability for damages you could cause to other people with the rental car and other vehicles and properties. If not have a vehicle and, therefore, not have a safe vehicle, can and must buy a “policy of beneficiary non-proprietary of safe vehicular” temporary or annual of a company of safe. A policy should thus have a reasonable price.

In order to protect a rental vehicle, your personal insurance must also have coverage by shock (which covers damage to your own vehicle caused by an accident with another vehicle or object or by upset) and/or comprehensive coverage (which covers damage to your vehicle caused by causes other than a collision, such as fire, theft (, vandalism, flood, fallen trees, etc. branches). If you own any of these coverages, well check the text in small print to find out exactly what encompasses the coverage, or better still, call one of the representatives of the service of attention to the client of your insurance company and ask whether your policy:

It extends coverage for rental vehicles? Usually, your coverage, deductibles and other terms are the same for an auto rented that for your own vehicle.

It includes coverage for business trip? Here there may be a hidden trap. Perhaps your policy does not cover this. However, your employer insurance can cover it if you go on a business trip; Therefore, you must find out if that is the case and if your employer want you accept or reject the disclaimer. Be sure to review the rules and coverage if you plan to use a few days of business as a personal holiday trip.

Do you pay rental costs? Vehicle policies can or do not cover administrative charges, towing and loss of use of the vehicle while it is in service, and the depreciated value.

Do you pay the “total value” by the car rental? If it is not, ask if you can add a “supplemental insurance” to your policy, which replaces the total loss of the vehicle with a new one.

If you are planning to reject the waiver and your personal vehicle insurance provides you a good basis of protection, it could still have deficiencies. To fill those gaps, use your credit card.

2 analyze your credit card benefits

Given the benefits of protection for vehicle rental different credit cards instead of the bank issuing the card and may vary depending on the type of card. For example, American Express, MasterCard, and Visa assume charges for loss of use, provided that the rental company to back them with evidence of the loss. Discover card explicitly excludes loss of use.

Not any card, provides protection against loss of vehicle rentals so before purchase or reserve the rental car, contact your card customer service to make sure that the card you are using has such protection, and inform you of the specific details of coverage on all your cards. Then, make your reservation with the card that will provide you the best coverage.

Coverage of a credit card, is usually a secondary insurance; Therefore, your personal vehicle policy will assume the payment of damage or theft of the vehicle (if you suffer a collision and comprehensive coverage) while the credit card company will pick up all or most of the remainder, subject to their own limits. Some losses are not covered by the cards, as the depreciated value.

Some vehicles may not be covered, such as pickup trucks, some SUV, and especially cars expensive or exotic; therefore plan well if you’re going to walk in a rented vehicle, Chevy Corvette, Dodge Viper, Cadillac Allante, BMW M3, Mercedes SLK, Porsche, Ferrari or Lamborghini.

This coverage is applied only if reject the exemption of responsibility by damages and damages of the Agency of rental and, reserves and pay by the rental with a card of credit specific. The holder of the card must be the same person that rent the vehicle.

There are many details that you must consider, therefore requests the service representative customer credit cards that you explain and confirm by phone and send you a copy of the terms of insurance so you have them in writing. Also, you can find the terms on the web site of the card, but it’s better if you get directly in contact with a representative.

If your credit card and your personal insurance provide you solid protection, then you will be fully prepared and ready to consider rejecting the LDW (exemption of liability for damages). But there is still one more step.

3 read the car rental contract

Unfortunately, it is likely that you can not do until you get to the counter of the car rental, where you can feel pressured to hurry by people who are behind you in line. (For example, we could not find rental contracts online). But keep you firm despite the looks and complaints, and reads the letter small of your contract of rent.

Look for sections that express your responsibility under State law, if an accident, and details of the exemption from liability of the rental agency. If the State law limits your exposure to liability and your policy vehicle and credit card are sufficient to cover your liability, you can skip without increased risk the LDW, which is actually, in the strict sense, an exemption from your responsibility rather than a true vehicle insurance.

For example, a lease of Hertz that we saw in California limited the responsibility of the tenant to the real value in the vehicle market, more towing and storage charges, as well as administrative charges and loading. For loss or damage to the vehicle against vandalism that has no relationship with theft, the liability limit was $500, and tenants were not responsible for the loss or damage related to theft unless it would have been as a result of carelessness out of the ordinary.

On the other hand, a rental in Texas budget agreement, stipulated that the client was responsible for “all” loss or damage, which included the loss of use, subject to all the limits imposed by the law.

You must pay by the exemption of responsibility if rent an auto in the overseas or in Mexico (where is could call exemption of liability by damage of collision), since your safe personal vehicular usually is valid only in USA, in their territories and in Canada.

But still not are completely out of danger, since even the exemption of liability might not be valid in certain circumstances. These are listed on your rental contract and include leaving someone who is not an authorized user to drive the vehicle, damage caused by driving on unpaved roads and, of course, driving drunk or in clandestine races.

Now yes, fun fully on your vacation, and with affordable prices, without worrying about accidents!

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