If I go on vacation and rent a vehicle, does my auto insurance policy provide coverage when I drive the rental car?
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Asked July 21, 2010
There is a good possibility that your insurance will extend to a rental car, but there is no guarantee unless it is specifically listed in your policy. The deciding factors are the different insurance company policies, and the laws of the particular state you live in. Contact your insurance company and ask them directly if your coverage will be extended, just to make sure.
If you live in a state that requires no fault coverage, then your insurance will cover the rental car as well. The whole purpose for no fault insurance is to make sure that the costs are settled without waiting for competing insurance companies to decide who is paying.
Something to keep in mind is that the insured value of the rental car, under your policy, may not cover the costs involved. Many rental companies will charge you for loss of use of the vehicle in addition to liability costs. Your insurance company does not cover that, and your choices are to purchase coverage from the rental agency, purchase rider for such coverage on your policy, or pay the cost difference out of pocket. Make sure that the rider or rental company coverage specifically states that all costs are covered, including the difference between actual cost and depreciated value.
Answered July 21, 2010 by Anonymous