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Summer is one of the busiest times for rental car companies. Many Americans hit the open road in a rental car, but some may not realize what coverage they have, or don’t have, for their rented vehicle. Because rental car coverage can be confusing, here is a guide to help you determine what coverage you do have, and what you might need:

• In the United States and Canada, your auto policy will pay damages to a rental car, pickup, or van if you carry Collision on at least one vehicle. The deductible would still be paid by you, and your credit card might cover damage to the rental car as well. However, buying the optional Collision or Loss Damage Waiver is still recommended. Your policy or credit card may pay for damages, but rental companies often find niches that aren’t covered by either, and end up being paid by you. One example: if someone’s auto policy paid $7,000 to fix a rental car, the rental company could sue them for $10,000 to cover the car’s reduced value.  You could also be charged for loss of rental income while the car is being repaired. A credit card might cover this cost, but auto policies do not.  Additionally, purchasing the optional Liability protection is a good idea if you don’t want to turn in a claim on your policy.
• One important thing to note is when renting a truck larger than a pickup, damages to the truck aren’t covered by your policy or your credit card. Purchasing the extra coverage offered, especially the portion covering damage to the truck, protects you. “Cargo” coverage is another coverage that protects against damage to anything you may be hauling. Liability coverage is provided by most truck rental companies –paying for damage and injury you may do to other people—but be sure to inquire.
•  Traveling outside the U.S. and Canada, your policy won’t cover you or your rental car. The optional coverage for damage to a rental car, usually called “Collision Damage Waiver” (CDW) or Loss Damage Waiver (LDW), is a must-have in order to be protected. Liability coverage is provided by some foreign countries automatically, but if the amount provided is minimal or optional, be sure to take it.
• Rental companies offer “Personal Accident” coverage for death and medical expenses caused by an accident. This coverage isn’t needed if you have adequate medical and life coverage. Also, loss to luggage and personal property in an accident is offered by rental companies as “Personal Effects” coverage. This coverage, however, is extremely limited and even duplicates coverage provided by a homeowners policy. It’s an unnecessary expense.
• For business-related purposes, check with your employer when renting a vehicle to see if they will cover you. If not, let your agent know what you will be renting. Some vehicles, especially vans and pickups, aren’t covered when rented for business use.

To discuss rental car coverage with an agent, contact Homer Smith Insurance. An independent insurance agency, we are licensed in Washington, Oregon, California, Arizona, and Nevada. Visit our website, e-mail, or call directly: 888-433-0031. Our agents are dedicated to helping you find the coverage you need.

Homer Smith Insurance