One of the questions we get a lot is, “Do we need to take out the extra insurance with the rental agency when I rent a car or moving truck?” Here is how the coverage works.
Your personal auto policy has coverages that will extend to rented vehicles. The same deductibles and liability limits apply. If you have comprehensive and collision on at least one vehicle on your policy, that same coverage would be assigned to the rented vehicle. For example, if you live in Connecticut and rent a car in Florida, your Connecticut auto policy limits would be in effect. If you carry a $500 deductible in CT and damage the rental car in FL, you would be responsible for the $500 deductible. Your insurance company would settle the claim for the other damages up to the book value of the car. FYI, check with your credit card company, as they sometimes will cover the deductible if you use their card to pay for the rental.
A good piece of advice is to thoroughly inspect your rental car before you drive off the lot. You want to check for any pre-existing damages. Take some photos of the vehicle before you rent it. The photos should be time-stamped as proof if you would need to use them.
There are times when you should purchase the insurance with the rental agency. If you rent outside of the United States, coverage does not extend, so take the insurance. Most companies cannot adjust a claim outside of the U.S.
If you rent something other than a private passenger vehicle, take the insurance. For example, if you rent a van or truck for moving purposes, the coverage from your auto policy will not apply. Purchase the rental facility insurance.
If you have any questions or are uncertain about whether you should take the rental insurance, call us at (203) 740-9838.