Understand how your auto insurance helps you when renting a vehicle.
Despite the rise of ridesharing services such as Uber and Lyft, the demand for rental cars continues to soar. The most common scenarios for needing a rental vehicle are replacing your primary vehicle after an accident and driving a car while traveling away from home. Learn how your car insurance supports you with renting a vehicle after an accident or while sightseeing on holiday!
After an Accident
While a breakdown or auto incident isn’t ideal, you can prepare yourself for the unexpected. An accident shouldn’t hinder your day-to-day life. You’ll need a vehicle to go to work, run errands, and keep scheduled appointments. A rental car steps in to help you carry on your life as normal when your car is out of commission.
If you have Collision and Comprehensive coverage on your vehicle, your Transportation Expense (or Rental Reimbursement) Coverage will help to cover the price of a rental car after a comprehensive or collision loss. Although, if you only carry Comprehensive coverage, your Rental Reimbursement coverage will only kick in for a comprehensive loss, not for a collision loss. Furthermore, your Rental Reimbursement coverage may not provide the total amount of the cost of the rental vehicle. Even though you drive an SUV, your coverage may limit you to rent a compact car. If a smaller car would hinder your daily activities, take a look at your insurance policy to decide whether to increase coverage!
Renting on Vacation
Depending on where you travel and what type of car insurance coverage you have, your auto policy may cover your rental vehicle. Typically, you’ll need to be traveling within the United States, its territories, Puerto Rice or Canada to qualify for rental coverage through your auto policy. If you have collision coverage too, then your holiday travels may be protected by your current policy. Talk to your agent to find out more!