A car insurance policy is a must for any driver. Your insurance can save you from massive financial losses in the event of an accident, and it’s mandatory in nearly every state.
While the concept seems pretty straightforward, the details become a little complicated when you start thinking about vehicles beyond the one you drive every day. What happens when you rent a car? Will your existing policy cover your rental, or will you need to take another out for the time being? Does coverage differ for a 15-passenger van in Los Angeles vs a minivan rental in Las Vegas?
At State Van Rental, we offer options to ensure those who rent our vehicles have coverage. Requirements may differ by state, so those renting vans in Los Angeles may have different needs compared to our van rental customers in Las Vegas. Read on to learn everything you need to know about insurance policies for rental cars.
Does My Car Insurance Policy Cover a Rental Car?
Most car insurance policies do cover rental cars. Your car insurance likely provides the same amount of coverage for your rental as it does for the car you own. However, it’s important to note that equal coverage is dependent on equal use and equal value.
You use your personal vehicle for personal reasons, and the same must be true when you rent a vehicle. Your car insurance policy will often cover damage and theft as long as you use the rental for personal travel. If you’re renting a van for commercial use, be sure to check with your insurance company to see what they’ll cover.
Additionally, your insurance will likely only cover a rental car if its value is comparable to the primary vehicle on your policy. The deductible amount your insurance provider sets for your usual vehicle is the same amount it will honor for the rental.
Do I Need Rental Car Insurance?
Whether or not you need rental car insurance depends on the situation. There are a few details you’ll want to investigate to find out.
The first place to look when deciding if you need rental car insurance is your policy. While some insurance policies will cover your rental, some may not. There may also be details that prevent your policy from covering a specific vehicle.
Read your policy or call your agent to clarify details such as the types of rental vehicles your policy will cover and how much coverage it will provide. For instance, your policy may cover a car, but not a van. Likewise, the policy may cover damage to the vehicle, but not personal injury. Inquire about these details before you rent a car so you know if you need a separate renters policy.
Another detail to check is the rental company’s rules. The company you rent from may require insurance. At State Van Rental, insurance is required through your policy or one of the coverage packages we offer so you’re prepared in case something happens. Our coverage options include Collision Damage Waivers, Rental Liability Protection, Personal Property Protection and Supplemental Liability Coverage.
What If I Have A License But Don’t Own a Car and Want to Rent?
If you’re like other drivers who have a license but don’t own a car, you likely don’t have a car insurance policy. This could be the case if you live in a big city or if you’re an international traveler renting a van. Anyone who rents a car without an existing insurance policy must obtain liability coverage. A liability protection plan will cover you against third-party claims outside of damage to the rental vehicle or any person or item inside the rental vehicle.
What Does Rental Car Insurance Include?
Securing rental car insurance is a great idea if you’re renting a vehicle that’s outside of your normal policy or if you don’t have car insurance to begin with and is often required by rental companies. You can obtain a few types of protection through your rental car insurance policy:
- Collision protection: If you crash a rental car with insurance, the collision waiver will release responsibility for damage to the vehicle. The insurance company will pay if you damage the rental or another vehicle in the event of an accident in a rental car. Rental car insurance will also cover damages if your rental car was hit while parked.
- Loss protection: Beyond collisions, rental insurance will cover other kinds of losses such as theft and vandalism.
- Liability protection: Liability coverage absolves you of responsibility for damages or injuries to a third party or their property.
- Personal effects protection: A personal effects package will cover your belongings if someone steals them from your rental car.
How Do I Choose a Rental Car Insurance Policy?
When you determine that you need a form of rental car insurance, start by reaching out to the rental company. The rental company will be able to tell you about its policies, what they cover, what geographic areas they’ll cover and how much they cost. At State Van Rental, we’ll even speak directly with your insurance agent to make sure the policy you choose is the right fit. For instance, we can determine whether your car insurance policy will cover one of our vehicles, such as a 12-passenger van rental.