Renting A Car While On Vacation; Allstate Provides Rental Car Insurance Tips
July 28, 2009
WEST COLUMBIA, SC – July 28, 2009 – Are you thinking of renting a car during an upcoming vacation? Did you know that most auto policies extend to rental cars? Ultimately, it’s up to you to make sure you’re covered, so plan ahead.
If you have auto insurance, call your agent and find out what kind of coverage you have, said Allstate agent Jim Macfie. Specifically, ask your agent how your auto policy’s liability coverages and/or Collision coverages might apply to vehicles rented temporarily. Your liability coverages afford protection for damage you are responsible for to someone else’s property.
The Insurance Information Institute says the best way to protect yourself when using a rental car is to purchase a regular automobile insurance policy that explicitly extends collision and comprehensive coverage to rental cars in any state or country.
Before renting a car, the Insurance Information Institute suggests that you make two phone calls, one to your insurance agent or company representative and another to the credit card company you will be using to pay for the rental car.
- Insurance company
Find out how much coverage you currently have on your own car for liability, as well as comprehensive and collision. In many cases, whatever coverage and deductibles you have on your own car would apply when you rent a car, providing you are using the car for pleasure and not for business. Remember, if you have dropped either comprehensive or collision on your own car as a way to reduce costs, you will not be covered if your rental car is stolen or damaged in a collision. In this case, you may want to assess whether or not to purchase the collision damage waiver from the car rental company. - Credit card company
The insurance benefits offered by credit card companies differ by both the company or the bank that issues the card, as well as by the level of credit card used. To know exactly what type of insurance a specific credit card offers, call the 800 number on the back of the card. If you are depending on a credit card for insurance protection, ask the card company or bank to send you their coverage information in writing. In most instances, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company. If you have more than one credit card, consider calling each one to see which offers the best insurance protection and travel assistance services.
At the Rental Car Counter
Since insurance is state regulated, the cost and coverage will vary from state to state. While, it is up to you to determine the best coverage for your needs, I.I.I. says that consumers can generally choose from the following coverages:
- Collision damage waiver
Sometimes referred to as a loss damage waiver, they are not technically insurance products. They do, however, relieve or waive a renter of financial responsibility if their rental car is damaged or stolen. In most cases, waivers also provide coverage for loss of use. This is in the event the rental car company charges the renter for the time a damaged car can’t be rented because it is being fixed. Waivers, however, may become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated. - Liability insurance
Provides liability protection for up to one million dollars. Rental companies are required by law to provide the state required amount of liability insurance. Generally, these amounts are low and do not provide much protection. However, an umbrella liability policy may be more cost-effective. This provides an additional million dollars worth of liability protection for accidents while driving your own car or one that you rent, if it is a temporary substitute for an insured vehicle on your policy. Umbrella or excess coverage policies typically have a required limit of liability insurance that must be carried on the individual’s auto policy before the excess coverage kicks in. - Personal accident
Offers coverage to you and your passengers for medical and ambulance bills for injuries caused in a car crash. - Personal effects coverage
Provides insurance for the theft of items in your car.
For more information, please contact Macfie at 803-939-0375.
The Allstate Corporation
The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer. Widely known through the You’re In Good Hands With Allstate® slogan, Allstate is reinventing protection and retirement to help individuals in approximately 17 million households protect what they have today and better prepare for tomorrow. Customers can access Allstate products and services such as auto insurance and homeowners insurance through approximately 14,700 exclusive Allstate agencies and financial representatives in the U.S. and Canada, or in select states at allstate.com and 1-800 Allstate®. Encompass® Insurance brand property and casualty products are sold exclusively through independent agents. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers. Customers can also access information about Allstate Financial Group products and services at www.myallstatefinancial.com.
