Rental Car Coverage

 Warm weather is just around the corner, and for many of us, so is our summer vacation. Some of you will use your own vehicle and drive to your destination, while others will choose a rental vehicle for the trip, or take some other form of transportation to the destination and rent a vehicle for use while there. Whatever your situation, you need to be aware of how coverage might extend to that rental car from your personal auto policy.

Car rental companies used to provide their own physical damage coverage with very large deductibles of $2,500 up to $5,000. They would make the renter responsible for that large deductible. If the renter had physical damage coverage on at least one of his own cars, and was involved in an accident in the rental car, the renter would limit his responsibility to his own deductible, probably less than $500. The personal auto policy would pay the amount up to the rental car company’s deductible, and then the rental car company’s own insurance would pay the balance.

To save money, most rental car companies stopped buying physical damage coverage on their large fleets. The rental contracts changed to make the renter responsible for the total value of the auto, including other indirect costs, such as their administrative fees and loss of rental use of the auto. This amount could easily move into the tens of thousands of dollars.

Rental car companies like for you to take out their collision damage waiver insurance. You should be aware that most rental car companies’ contracts for collision damage waiver will not pay if the renter violates any restrictions regarding the use of the rental car. Some of these restrictions might include use by an underage driver, failure to buckle up or engaging in risky behavior with the vehicle, such as racing or driving under the influence.

You don't have to navigate this issue on your own.  We're here to help.  Contact us to find out more about how your personal auto policy may or may not extend coverage to rental vehicles.

Reichley Insurance Agency is committed to excellence. We pride ourselves on offering our clients reliable coverage and great service. As an independent Ohio insurance agency, we can provide you with all types of insurance coverage from the top carriers in the country. Our team of trusted agents will work with you to find a policy that meets your needs – and falls within your budget.

Our dedication makes the difference...

    

 

Toll Free: 87-REICHLEY (877-342-4539)

Email: info@reichleyins.com

The information in this article is meant as a guideline only. There is nothing in this publication that alters the coverage or interpretation of any specific policy. Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy. Call our office before making any judgments or decisions concerning your particular situation and coverage that may or may not apply.

When Is Your Auto Covered by Your Homeowner Policy?

  Most people would say never, and they would be right, with one little exception.  For obvious reasons, the homeowner policy was never meant to insure vehicles.  It would seem that this concept is pretty simple, but there are times when you are dealing with parts or pieces of the vehicles.  When the snow tires are removed from the vehicle, do they still fall into the definition of vehicle?

Upon reviewing the homeowner policy, we see that while there is clearly no intention on the insurer’s part to cover your vehicle for property or liability coverage, insurers have thought of everything.  They recognize that not all things fit into a tidy little package.  What if you are restoring a classic car?  This labor of love has already taken you two years with no end in sight.  The interior is lying in one corner of your garage and you just installed fancy new wheels and tires.  You haven’t considered insurance on this vehicle because of its state of deconstruction, and you felt that since you didn’t drive this vehicle, and it was simply stored in your garage, that you should have coverage.

After you have a fire in your garage, you are surprised when your adjuster tells you that the car’s interior stored in the garage is covered, but those new wheels and tires you just installed and the vehicle itself are not covered.  The homeowner policy excludes vehicles, including their equipment or their parts, while in or upon the vehicle or conveyance.  Since the car’s interior was not in or on the vehicle, there was coverage for those parts of the car. 

Every insurance policy is unique.  If you have questions about your insurance coverage, contact us today.  Our experts will help you understand exactly what is and isn't covered by your policy. 

Reichley Insurance Agency is committed to excellence. We pride ourselves on offering our clients reliable coverage and great service. As an independent Ohio insurance agency, we can provide you with all types of insurance coverage from the top carriers in the country. Our team of trusted agents will work with you to find a policy that meets your needs – and falls within your budget.

 

Our dedication makes the difference...

    

 

 

Toll Free: 87-REICHLEY (877-342-4539)

Email: info@reichleyins.com

 

The information in this article is meant as a guideline only. There is nothing in this publication that alters the coverage or interpretation of any specific policy. Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy. Call our office before making any judgments or decisions concerning your particular situation and coverage that may or may not apply.