Does my personal car insurance cover rental cars?

Traveling is stressful enough without throwing in important last-minute decisions at the rental car counter. Read on for some of most frequently asked questions regarding rental car insurance.

Renting a car? Read up on your own auto insurance policy, your credit card company’s rental protection, and the coverage offered by the rental agency. Research and consider what these sources provide before you find yourself at the rental company’s counter.

Have you ever found yourself at the airport’s rental car counter, baggage in tow and exhausted after a long flight, when the agent behind the desk asks, “Would you like to purchase insurance for your rental vehicle?” Let’s face it, traveling is stressful enough without throwing in important last-minute decisions like this one.

Doing a little research beforehand can help save you from making a rushed decision in moments like these. Read up on your own auto insurance policy, your credit card company’s rental protection, and the coverage offered by the rental agency. Research and consider what these sources provide before you find yourself at the rental company’s counter. Be sure to read all contracts and talk with the rental agency, your insurance agent, and perhaps your credit card company as you carefully weigh your options.

Kentucky Farm Bureau Insurance customers may also find the following list of FAQs helpful for making that final decision…
 

Q. Does my own insurance policy cover a rental car?

A. Your Kentucky Farm Bureau Personal Auto Policy protects you while you are operating a rental vehicle. Coverage that applies to an accident depends on the coverage you purchased when insuring your personal vehicle.  

  • Under your policy’s Liability section, you are covered for Bodily Injury Liability and Property Damage Liability that arises out of your use of the rental vehicle.
  • Under your policy’s Physical Damage section, (Collision and Other Than Collision coverages) you are covered for direct and accidental loss to the rental car.
  • The coverage your policy provides may be primary, or it may be secondary. It depends on the terms of your policy and the protection provided by the rental car agency.
  • If you are renting a motorcycle, your automobile policy does not cover you if you rent a motorcycle.  But, if you have a motorcycle policy with Kentucky Farm Bureau, it does!  Similar to a personal automobile policy, your motorcycle policy protects you while you are operating a rented motorcycle.

 

Q. Should I buy the rental agency’s insurance coverage?

A. For your peace of mind, you may want to buy the rental agency’s insurance protection. This coverage is specifically for that vehicle. It’s truly your decision, but keep these things in mind…

  • Liability Insurance provides resources to compensate others for injury or loss for which you are legally liable.
  • Physical Damage Waiver specifically covers damage to the rental vehicle.
  • In Kentucky, insurance you purchase from the rental agency is required to be primary, but this may not always be the case if you rent the vehicle in other states. You’ll want to check with the rental company regarding purchased coverages.
  • Primary coverage is called on first to cover eligible losses.
  • Secondary coverage comes into play after primary coverage.
  • If there are more expenses involved after a primary policy responds to a covered loss, then secondary sources of coverage may become involved.
  • Your Kentucky Farm Bureau policy provides coverage if you are in the United States, its territories or possessions, Canada, or Puerto Rico. Coverage under this policy is subject to its terms and conditions.
  • Coverage offered by rental agencies varies. Ask your rental agency representative for details.

 

Q. What is the rental agency’s physical damage waiver (PDW)?

A. A physical damage waiver (PDW) is offered by rental agencies as an option for coverage for damage to the rented vehicle. Here are some things to know about PDW:

  • This is specifically for damage to the vehicle you’ve rented.
  • Under a PDW, the rental agency gives up its right under the rental contract to recover damages from you.
  • Rental agencies vary in the kinds of, and the terms of, the waivers they offer. Be sure to read your rental agreement.

 

Q. Should I check my credit card company for protection?

A. Some credit cards offer limited insurance protection. You’ll want to contact your credit card company to find out if it does. Keep in mind that, typically, the entire rental transaction must be charged to the credit card for any available coverage to apply. And, just as with other coverage, the specific terms and conditions of policies vary, so read the contract or policy.
 

>> We want you to be safe out there on the road… but accidents still happen.
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*The information provided in this blog is for educational purposes only. It does not represent any particular contract. It is not meant to interpret, extend, or change any insurance policy or coverage in any way. The actual policy provisions will control. The policy itself sets forth, in detail, the rights and obligations of both you and your insurance company. Any coverage available will depend on the situation and the terms of the applicable policies.