Photos Credit: http://globalroadtrips.com/Roadtrip.jpg
Looking to rent a l car for a road trip and wondering if you should purchase insurance from the rental car company? Here a few things to think about when making your decision.
YOUR PERSONAL AUTO POLICY AND THE DAMAGE WAIVER
Even though in many case a
Kentucky auto insurance policy will cover the damage to a rented car, there are still other costs that the policy won't cover. This is why you should carefully consider whether or not to purchase the damage waiver that is offered by the rental car company.
In your personal auto policy, “collision” insurance covers your car for damage associated with a collision with another object. “Comprehensive” (sometimes called “Other Than Collision”) covers your vehicle for vandalism, falling objects, theft and other causes not caused by a collision. If you have a car loan, your lender requires you to purchase both. If you pay the loan off, the choice to purchase collision or comprehensive is yours.
Your personal auto policy only covers the damage to the rental car if you have the corresponding type of coverage on at least one vehicle you own. For example, if you damage the rental car in a collision, you must have “collision” coverage on at least one vehicle covered by your personal auto policy. But if the rental car is vandalized, stolen, or damaged in any way not as a result from a collision, you must have “comprehensive” coverage on at least one vehicle covered by your personal auto policy. The main point here is that if your personal auto policy doesn't have the coverage type that damages the rental car—and you turn down the damage waiver—you will become personally responsible for paying all the costs of the damaged rental car out of your own pocket!
However, the damage waiver usually offered by the rental company will cover the damaged rental car regardless of what’s covered by your personal auto policy.
PERSONAL AUTO POLICY LIMITS
There are other costs you could possibly be responsible for in the event of a crash. These include administrative fees and the depreciated value of the vehicle after repairs. Neither of these expenses is covered by your personal auto policy. Also, most personal auto policies only reimburse up to the actual cash value (ACV) of the damaged vehicle. If the contract requires you to cover the cost of the damaged rental’s replacement, the ACV payout may not be enough to cover the whole expense. Again, the damage waiver will cover all such expenses.
Keeping these facts in mind, you will be prepared to make the right decision for you based on the type coverage you carry on your vehicles. If you are unsure about what type of coverage you carry on your Kentucky auto insurance policy, call your Johnson & Pohlmann agent before renting your vehicle and they will help you. It only takes a few minutes and could save you money on additional rental insurance you may not need!
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