“Should I buy the insurance offered to me when I rent a car? Won’t my automobile coverage extend?”
When you rent a car you sign a contract with the rental car company. It is our observation that those contracts can hold you responsible for more than what your automobile policy will contemplate, and your life will become quickly complicated when you have to return a damaged car to them.
You can be held responsible for (1) the value of the loss of use of that vehicle while it is being repaired, and (2) the diminution of its value because it has been involved in an accident -- it’s simply worth less when they sell it. The rental car provider may apply any uncovered charges to the credit card used for the rental while you’re standing at the counter hoping you can still catch your flight.
They refer to it as a “Damages Waiver” which basically means they offer to “waive” the costs they will incur after a theft, collision, or other damage to the vehicle they make available for rent. On a short term or vacation rental we have taken the position of recommending that you buy the “insurance,” or accept the damage waiver. Yes it adds to the cost of your rental, but you have effectively transferred the problem back to them giving you that ultimate peace of mind.
If you are renting a vehicle for business use, or for an extended period of time where the cost of the damage waiver is significant, contact your insurance agent for more specific advice. Credit Cards can also provide certain protections, but typically is offered secondary to the coverage provided by the cardholder’s automobile insurance provider – so not always the ideal solution and you should examine your protection based on the card that you carry.
Enjoy the summer, safe travels, and approach the car rental counter with eyes wide open!
Darnielle Insurance is available to answer your questions.
We are located at 1320 28th Street West, Billings, MT 59102.
Give us a call at 406-652-4180.
Start a Quote Online
We'll Shop Around So You Don't Have To
Start a quote by filling out our online application providing us with the basic information we need to perform a quote. It only takes a few minutes and we'll respond within
one business day.
Darnielle Insurance has an immediate opening for a Commercial Insurance Sales & Service Representative. Salary determined on employment and includes benefits package. View and download full job description. Send resume and cover letter to email@example.com.
- Dec 18, 2017 08:00am
Talk About Full Service
- Mar 23, 2017 11:40am
Winter is Loosening its Grip...
- Nov 06, 2016 04:10pm
- Oct 11, 2016 09:57pm
Phishing, Don't Take the Bait
- Aug 05, 2016 03:04pm
Your Home may be Underinsured
- Jul 06, 2016 04:23pm
Do You Volunteer Your Time AND Insurance?
- Apr 15, 2016 08:49pm
Home Improvement Season!
- Feb 26, 2016 09:17am
Wow... Uber is coming to Montana!
- Jan 02, 2016 05:02pm
Hey "Sled-Heads" are you ready to go "Billing?"
- Nov 12, 2015 09:02pm
Reducing Your Insurance Costs ... Distinguishing Bad Advice from Good Advice