When renting a vehicle on vacation or for non-business use, should I purchase the coverage the car rental people always want to sell me?
A. This is a difficult question. Most personal auto policies provide basic liability and physical damage coverage for the rental of a vehicle. The problem is, the rental contracts you sign frequently hold you responsible for more than your policy will pay. For instance, many contracts now call for “loss of use” damages, and “diminution” damages. Loss of Use occurs because when a rental vehicle is in the shop being repaired, it is not available for rental. Diminution occurs when a relatively new vehicle is wrecked and repaired, but now worth less than it was before being wrecked. Most insurance companies are not covering damages for Diminution and only a few are covering Loss of Use. Therefore, if you want to be fully covered for any possible rental car damages, you must buy their daily insurance that is quite expensive. Q. Why did my auto insurance premium go up? I haven’t had any accidents or tickets. A. Automobile insurance rates go up almost every year, regardless of your driving re
Related Questions
- If I go on vacation and rent a vehicle, will my New Mexico auto policy provide coverage while I am driving the rental vehicle or must I purchases coverage from the rental company?
- When renting a vehicle on vacation or for non-business use, should I purchase the coverage the car rental people always want to sell me?
- If my vehicle is manufactured in 2006 or older, can I purchase extra powertrain coverage?
