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A good question that comes up often is “Do I need to pay for the Rental Car Companies Auto Insurance?”   If you have an auto Insured for Liability and Comp. and Collision, your coverage will extended to the Rental Car.  However, the issue is in the fine print of the Rental Agreement.  If you have accident with the vehicle, in addition to expecting vehicle repairs the Rental Car Company will also likely require you to pay

  • Loss of Use while the vehicle is being repaired (e.g. replace the income that would have been earned if there had been no accident) 
  • Depreciation (since the vehicle value is now diminished due to the accident) and
  • Administrative Costs


The Personal Auto Policy is not designed to address any of these costs.
 

For most of us weighing the cost of the Rental Company’s Insurance, the Collision Damage Waiver (CDW)  vs. the risk, may come down to a coin toss.  For those of us that want peace of mind while on vacation (since we can turn a wrecked car back in without additional involvement) then paying for the CDW is the way to go. 

If you do purchase their coverage, note a common exclusion that will not provide coverage while using the vehicle off paved Streets/Roads/Lots (obviously designed to keep individuals from off-roading with the vehicle).  But if you go to sporting events or if you have kids that travel for Soccer, Baseball, Softball etc. tournaments, often parking lot overflow will be directed to an open field.  If you back into something or worse, someone, will you be covered? My guess is no, they will likely exercise this exclusion.  However if you have a well written full coverage auto policy you should be fine. 


posted by: Dan Hebbeln 
dan@hebbeln-ins.com



Posted 1:38 PM  View Comments

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744 Spirit of St Louis Blvd, Suite H
Chesterfield, MO 63005
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