If you are starting to plan your road trip, you should know about exactly what your auto insurance covers, and what the rental agency is offering. So before heading out on your vacation, it’s a good idea to check every policy, which is issued with coverage. Besides, such coverage can come with restrictions, so be prepared next time you’re renting. Here’s how to sort out the specifics.
Know what your insurance covers
Read the policy thoroughly before agreeing to coverage. It is incredibly important, as buying hire car insurance may duplicate the coverage you already pay for. Check if the insurance coverage of your car hire provides collision coverage, personal effects coverage and rental liability coverage. In addition, don’t forget to check your policy for possible limitations, as insurance rules vary by state. Be sure to ask if your auto insurance policies cover loss of use, given the fact most policies abroad may cover a loss to a rental. Do check with your insurance provider to avoid extra policies such as loss damage waiver insurance or supplemental rental insurance. On the other hand, if you have personal car insurance with comprehensive and liability, sometimes it covers your luxury rental vehicle.
How about hiring a vehicle using your credit card?
The rules may be different when you are using your credit card for your rental car, and vary from company to company. Many credit cards include some level of collision and theft protection, so you should see with your credit card issuer about auto insurance benefits before anything else. Moreover, most major credit cards provide you with secondary collision insurance at no charge. However, be careful as in most cases, these benefits are secondary to the car rental company’s insurance. Meaning it may pay your expenses and the deductible that exceed what your car rental agency will pay.
Coverage options when using a rental car for business
When hiring a car for business, coverage from your existing policy may not apply. As a matter of fact, if a car is used exclusively for business purposes, the amount of money you spend on fuel is 100 per cent deductible. Depending on your company, a write-off may be available for rental car costs. Therefore, check with your employer before you reserve your car.
What to consider when opting for a long term car rental?
If you are interested in monthly rental car or more, maybe there are mileage restrictions and some other things you should know. There might be limitations on the coverage of your insurance. For instance, if you keep the car for less than a month, you will be charged a higher rate. Apart from that, make sure to know if your car rental agent can break the contract into smaller portions. Find out if you have comprehensive coverage on your vehicle. But if you’re not sure of what to do, consider a short-term-car lease. Some car rental agencies offer short-term auto rental policies, which provide coverage if a car hire is damaged.
All in all, make sure you know the options of your car insurance before you sign the dotted line to avoid extra fees.