Rental Car Insurance
Warning !

Some of our Customers have been telling us horror stories of what happened when they thought their regular automobile insurance would cover their rental car.  We are passing on the information in hopes that more of our customers won't be hit with unexpected bills.

While some insurance companies' coverage extends to rental cars of those who have insurance with them, the coverage may not be all you think it is.  Of course you will never be covered on a rental car for collision or comprehensive if you carry only liability coverage on your personal car and, but even if you have collision and comprehensive insurance on your personal car the coverage may not be enough to cover the rental car.  Some companies only insure rental cars up to the value of your personal car.  If your car is worth about $10,000 and your insurance premiums are based on the value of your car, some companies will only cover a rental car up to your car's value or $10,000.  If you rent a car worth $20,000 and wreck it, you may owe $10,000. 

Some insurance companies insure the total value of the rental car even if your personal car is worth less, but they rarely if ever cover the charge that the rental car company charges you for the rental car for as long as it's in the shop.  The rental car company would lose the income from the car for as long as it's in the shop and under the contract they will continue to charge you the car rental fee for as long as the car is out of commission.  No insurance company we know of covers the rental car fees while the car is in the shop.

The bottom line is:  Check with your insurance company and get in writing, if possible, just what they will cover if you wreck a rental car.   The rental insurance seems high, but it covers all the bills for a damaged vehicle, so it may not be as bad a deal as you may have thought.