Does your auto insurance cover you while renting a car???

This month let’s talk about a very common question often posed to my staff, from our clients that are traveling or find themselves in need of renting a car for a few days or more. Many of our clients ask…”do I need to buy that rental car damage waiver when I rent a car?” By far, the safest answer is a resounding YES! Here are the top 5 reasons to purchase the Collision Damage Waiver option….

1) Loss Valuation..the value of a rental car is determined solely at the discretion of the rental company and may be totally different that the ACV or actual cash value your auto policy is based upon! The rental car companies agreement may very well contractually obligate the client to pay for more than your insurance will pay, and often those agreements are completely lopsided and unfair.
2) Loss Payment…The rental agreement usually requires full payment at the time of a loss, and since your insurance company doesn’t ride in the backseat, they can’t be there fast enough to inspect the loss, and get you to the airport in time. That won’t make for a good family vacation or successful business trip.
3) Excessive charges….Rental car companies can charge you whatever they want, and if you can’t combat their argument with enough facts and figures to catch that airplane, you might have to put the entire amount of the damage on your Credit Card until such time your insurance company can follow their contract and start dealing with the rental car company, which again can sure put the crunch on available credit cards while traveling.
4) Loss of use charges…..since the rental car company charges for use of that rental car, any loss of use due to damage will be the responsibility of the driver too! These charges can often times be nothing short of ridiculous, but again, they aren’t regulated by any governmental agency so you find yourself a little fish in a big pond. Not a comfortable place to go for a swim indeed!
5) Excluded uses and drivers….Your personal auto policy may have limitations on use and driver, and if those same uses and those same drivers are NOT covered under your car insurance policy, then you are really gonna have some issues if you ask your insurance company to get involved in a rental car loss, especially if you are not the sole driver and the named insured on your car insurance contract!

End result is, it is the recommendation of every agent at Heuer Insurance Agency, that you purchase the rental car companies CDW each and every time you rent a car! Its your best chance, to have a safe and successful trip when you have to rent a car. Good luck, travel safe, and if you have any questions, I invite you to call your agent, or me personally, at 775 358 5554. See you next time…..Larry Heuer


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