What You Should Know About Rental Car Insurance

Winston-Salem, NC 8/1/2017

There are some very serious contractual gaps in coverage for rental vehicles. Even if you purchase their Collision Damage or Physical/ Loss Damage Waivers, many rental car contracts exclude the following:

Theft of the Vehicle
Tolling, or Turning the Vehicle Over
Lease Gap coverage
Loss of Use
Glass, Tire and Undercarriage Damage
Animal Collision
Flood and Hail Damage
Damage above the Windshield
Individuals who rent personal vehicles for extended periods and do not have a Personal Auto policy in force
Drivers who rent, and do not own another vehicle insured elsewhere, need to be especially careful here
 

Incredibly, some rental car contracts, or Waivers of Liability, even include a contractual shift of liability to the customer.  Each car rental company, for their own reasons, provide certain coverages and exclude others. The above list is not complete and it is not intended to reflect the exact coverage terms of any particular car rental company.  It is mentioned here to alert renters of possible shortcomings in their rental contract insurance coverage.

If you own your own vehicle, we suggest that your best strategy is to contact us and purchase the Rented Vehicles Coverage Rider available on your NC Personal Auto policy.  If you are covered under a business policy, and the business owner has agreed to provide coverage for you, please contact us to determine the best course of action. There are several scenarios that require different steps to properly cover this exposure. The riders available will normally extend your coverage on the same basis provided by your standard automobile policy.

Our advice when you rent a car is to read the rental contract carefully. Do not assume you are fully covered by purchasing the rental company's Physical/Loss Damage Waiver. For your peace of mind, talk to us about including this coverage on your own auto policy.  It is usually the most convenient and inexpensive way to ensure that you are properly covered. 

Please contact our agency with further questions.

Wilson Insurance Services - Our Knowledge is Your Best Assurance™.

 

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What Our Customers Say!
Several months ago we had a flood in our home due to a defective valve in our guest bathroom. Needless to say we came home to a disaster. We immediately contacted our agent, Linda Welborn. Right on the spot she gave us the name and phone number of a company to call (Disaster One). They came out that evening (around 11:30pm) and worked through the following morning around 6:30am. They did an outstanding job! We were so impressed with their "sense of urgency" and "expertise" we assigned all of our repairs to their company. The insurance adjuster(Erie Insurance) cut no corners when it came to replacing damaged items. They issued repair orders on things we weren't even aware we needed to look for. They too did a great job in getting everything processed quickly. It's great to have such a Professional agent who treats us like we are her only customer. I have been so impressed with her outstanding customer service that I refer many people to your agency because of the great care and attention she gives to her customers. Thank you Linda for your outstanding service! We look forward to working with you in the years to come.
Linda Martinez, Merfin Systems, LLC

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What You Should Know About Rental Car Insurance
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There are some very serious contractual gaps in coverage for rental vehicles. Even if you purchase their Collision Damage or Physical/ Loss Damage Waivers, many rental car contracts exclude the following:
  • Theft of the Vehicle
  • Tolling, or Turning the Vehicle Over
  • Lease Gap coverage
  • Loss of Use
  • Glass, Tire and Undercarriage Damage
  • Animal Collision
  • Flood and Hail Damage
  • Damage above the Windshield
  • Individuals who rent personal vehicles for extended periods and do not have a Personal Auto policy in force
  • Drivers who rent, and do not own another vehicle insured elsewhere, need to be expecially careful here
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