What You Need to Know About Car Rental Insurance from Farmers Union Insurance Agency, St. Paul, MN

Are you looking into car rental for your summer vacation?  Review your Auto insurance coverage before you go.  Don’t wait until you reach the car rental counter, where you might feel pressured to make a quick decision and buy extra coverage.  Do your homework ahead of time and figure out if you need the car rental company’s insurance.

Does My Car Insurance Cover Rental Cars?

Your Auto insurance typically provides the same kind of coverage offered by the car rental company.  Some Auto policies, for example, include liability coverage for rental cars.  If you have physical damage as part of your coverage, that will apply to your rental as well.

If you have collision coverage or comprehensive coverage, you’ve probably covered most of your bases.  But car rental companies have a way of adding extra fees that go beyond traditional coverage.  Before traveling, check your policy and call your local Farmers Union Insurance Agent to make sure you understand what’s covered on your Auto policy and what isn’t.  Find out if your policy:

  1.  Extends to rental cars
  2. Covers car rental company fees, such as administrative fees, towing, and loss of use while the vehicle is being repaired
  3. Covers diminished value claims
  4. Covers the rental car’s full value in case the car is totaled
  5. Includes coverage if the car is being valet parked or in the custody of a valet service

If you have a coverage gap, talk to your Farmers Union Insurance Agent about how you can stay protected on your trip.

Find Out What Your Credit Card Covers

Some credit cards offer car rental insurance when you pay with your credit card.  This coverage is typically “secondary insurance,” which means it only covers what your primary Auto insurance policy doesn’t cover.  Terms vary by issuer, but typically include coverage for physical damage and theft… but not injury, liability, diminished value, or damage to other vehicles.

Coverage only applies if you decline the rental car company’s insurance and may exclude certain vehicles such as large vans, trucks, and expensive cars.  Coverage may also be excluded in some popular tropical destinations, like Jamaica.

Consider the car rental company’s insurance if:

  • You’re traveling outside the U.S.
  • You’re renting an RV, large van, truck, or specialty car
  • Your primary Auto insurance coverage doesn’t include diminished value or other special conditions listed above.

Be aware you may need to show proof of insurance at the car rental counter.  If you don’t have it, the car rental agency may require that you purchase the insurance they offer before renting you the vehicle.  Rules are different when traveling for business or using a business credit card.  Once again, check with your Farmers Union Insurance Agent to better understand your benefits.

Thanks to our company partner, Secura Insurance, for the content of this blog.  See more helpful insurance insights from Secura Insurance’s blog here, and talk to your local Farmers Union Insurance Agent about insurance coverage with Secura Insurance.

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