CAR RENTAL INSURANCE TRAPS AND PITFALLS

READ ALL INSTRUCTIONS BELOW AND IF YOU HAVE ANY QUESTIONS, CALL YOUR INSURANCE AGENT

1-800-541-5710

          

1.  Your lease says that the vehicle must be brought back undamaged.   In other words you are always responsible to pay even if the vehicle is hit while parked or vandalized at night.  Verify there is no damage on the vehicle before taking it - report any scratches etc to rental  agency.  If you sustain any damage, call in advance and advise them determine if you will be delayed  when you return the vehicle.    You do not want to miss any flight.
2.  Do not travel outside the US or Canada with a rental vehicle
3.  You must have a credit card to rent a car.  Even travelers checks will not be adequate.  The rental agency requires the ability to make a substantial charge against your card - as much as $2,500 or more. 
4.  The rental agency may make a charge against your credit card by as much as $2,500 at the time you rent your car and they may not tell you.    They don't actually take your money, just reduce your card limit as protection should the vehicle be returned with damage.   If it is returned damaged they then may make the charge against your credit card to the limit of the damage.   You may not be able to use your credit card after you pick up your rental car if they are holding your card limits as reserve.  Ask them if they are going to make a charge or hold in reserve any equity from your card.
5.  Your personal auto policy covers private passengers cars for car rental and does not cover trucks or cargo vans.  If you rent a truck or cargo van then purchase the extra coverage at the rental agency.   A mini van with all the seats is considered a private passenger auto.   
6. If you rent a vehicle in your business name, call your agent to see if your personal auto policy will still cover you.
7. When you rent a private passenger auto there is only coverage form your personal auto polciy for the following people.  T he named insured on the personal auto policy.  The spouse of the named insured if they live with the named insured and the children of the named insured who live with the named insured.    No one else will have coverage when they drive the rental car.    Note,  if the other driver has a personal auto insurance policy of their own, then they might have coverage like your policy does.
8.  One of your vehicles insured on your personal auto policy must have the following coverage,   liability Protection including bodily injury and property damage,   medical payments coverage,  uninsured and underinsured motorists coverage,  othe than collision -comprehensive  and collision coverage.  
9. If you rent a trailer, call your agent.   If you pull a trailer behind your car or the rental car, call your agent.  In most situations there will be no coverage from your personal auto policy for the trailer.   There will be no coverage for the contents of the trailer from your private passenger auto policy.    You will need to purchase extra coverage from the rental agency.
10. If you purchase insurance coverage for any accidents from the rental agency watch out for the following exclusions in the insurance agreement.   Usually there is no coverage for any accident or damage if you have had even one alcoholic drink.   Usually there is no coverage if you have taken any medication or drug that is known to have an effect on driving.    Usually there is no coverage if you pull off any hard surface road.    Even pulling onto a shoulder of the road excludes coverage.  Even traveling through a construction zone that is graveled results in an exclusion of coverage if the surface is not paved. 
11. Car rental agreements are changing constantly.  Please read the agreement you are signing to see what your responsibilities are.  Some rental agencies have better agreements than others.   We  recommend that you use a major name brand rental company.
12. Some people rely on the crdit card for protection if they rent a vehicle.  This does work in some situations.  Please read the agreement carefully.   In many cases the credit card is only covering damage to the vehicle you rent.  In many cases the coverage is suspended if you have had any alcohol or have taken any medication or drugs that could affect driving.