While many people believed that ride-sharing apps like Lyft and Uber would put an end to the need for rental cars, more people are renting cars than ever before! Most people rent cars while they are traveling or to temporarily replace a vehicle after an accident or during a long repair. Knowing how your insurance is going to react to either of this situations will help you know what to expect should you ever need to rent a car:
1. Does my insurance cover transportation expenses?
Some insurance plans will include what is called “Transportation Expense” coverage. The extent of this coverage depends on whether you have collision or comprehensive coverage or both.
2. Does my insurance cover the full cost of renting a car?
This all depends on how much Transportation Expense coverage you have. Even if your original car is a truck, your insurance might only cover renting a sedan.
3. Can I increase or decrease my coverage?
Most plans make it easy to adjust your Transportation Expense coverage. If you need more or less, you should be able to contact your insurance company and discuss how to change it.
4. Does my car insurance cover cars rented on vacation?
It depends on your policy itself and where you are vacationing. If you have collision coverage and are vacationing somewhere in the US, its territories or in Canada, you are probably covered.
5. Can I reject the waiver when I rent?
You will likely be offered a Collision Damage Waiver when you rent your car. If you already have insurance that you know covers a rental car, you do not need that waiver, depending on whether or not you are prepared to pay for any damages before your insurance company can reimburse you.
