Does your primary car insurance extend to rental cars?If so, does it really cover all expenses of an accident?

Question

Ever since I switched to Geico, I have verified with them that my car insurance policy extends to rental cars whenever I rent them out. Which is great, because it saves me money by waiving all the extra rental companies insurance surcharges per day. However, a recent alamo agent informed me even though i maybe saving money and my primary carrier extends to the rental car sometimes geico may not cover everything. Such as "time of replacement." The time lost to the rental car company when geico works out the replacement of a total loss rental car. This maybe a hoax for me to buy alamo insurance, but I wanted to know from those experienced should I worry? Does primary insurances really extend to rental cars and do they cover everything i may encounter if I was in an accident? Would my credit card rental car accident insurance cover what my primary wouldnt cover? Curious...thanks

Answer 1

There are two types of coverage on your auto policy, liability, and physical damage (that would be collision and comprehensive). In most states, the liability will carry over onto a TEMPORARY SUBSTITUTE vehicle, such as a rental car. Physical damage does NOT necessarily carry over, though.

In either case, LOSS OF USE for the rental car, while it's in the shop, is NOT covered under your policy. In my experience, if you return a car with a scratch, the "loss of use" time for repair is about 3-4 days, and your credit card WILL be charged for that 3-4 days, EVEN IF THE REPAIR IS NEVER MADE.

So, primary insurance FOR THE NAMED INSURED will carry over in most cases, for liability coverage. In many cases, also for collision and comprehensive (although some companies like Progressive specifically do NOT transfer physical damage to a temporary substitute vehicle). But loss of rents is NEVER covered.

You'll have to check with your credit card company, but I've never heard of one covering loss of rents, either.

Now, the bottom line - I do NOT recommend my clients buy that waiver coverage they like to sell, UNLESS you're renting a vehicle out of the country. Then, the whole international thing is just too much of a pain to deal with (I'm NOT going to tell you horror stories, but it's bad), and just to save the $5 a minute international charges to Europe, you're going to want to buy it.

Answer 2

It is going to vary from state to state. Where I am at it will cover the entire cost of the rental along with 60% if loss of use. Sound like a great answer but,

The car rental companies have a great clause added to their contracts that state if you don't take their insurance and you do damage to the vehicle you owe them the RETAIL cost of a vehicle.

An insured recently received a bill for over 10,000. The car rental company went out and bought a new vehicle, sold the damaged vehicle and sent him a bill for the difference. There was only 4000 damage to the car and that is all that the insurance company will pay for.

Another person hit a rental vehicle and their insurance company paid for the damages. After a year they sold the vehicle and sent a bill for 2000. The loss that they said they took because they sold a damaged vehicle.

I would rather spend the little bit extra and buy their insurance and know that I can wreck the vehicle and it is their responsiblity, not yours.

Answer 3

You'll have to ask your agent about that specific point. My auto insurance covers all damage to a rental car, but it does not cover the lost rental time charges that the rental company will charge for while waiting for the damaged auto to be repaired. Whether yours covers it or not depends on your policy, thus the repeated answer from everyone that you have to check with your agent.

Answer 4

Depends. Are you in a no fault state? Does your policy have an absolute exclusion for non-listed drivers? I've seen it go both ways. But I CAN tell you, if you're driving on just a permit, whoever owns the policy, is going to have two choices after your accident - flat out exclude you from coverage, or get their policy cancelled. Then they'll end up with a high risk policy, and you WILL be flat out excluded. See, if you get in an accident driving alone on a permit, you won't be ALLOWED to get your license for at least a year, or until you turn 18, whichever is LATER.

Answer 5

Only your insurance company can answer this question. For me personally, I never take the outrageous insurance offered by rental car companies.

Answer 6

I would recommend one to visit this site where onel can get rates from different companies: http://COVERAGE-FINDER.NET/index.html?src=5YAGFFICIeIa1

RE :Does your primary car insurance extend to rental cars?If so, does it really cover all expenses of an accident?
Ever since I switched to Geico, I have verified with them that my car insurance policy extends to rental cars whenever I rent them out. Which is great, because it saves me money by waiving all the extra rental companies insurance surcharges per day. However, a recent alamo agent informed me even though i maybe saving money and my primary carrier extends to the rental car sometimes geico may not cover everything. Such as "time of replacement." The time lost to the rental car company when geico works out the replacement of a total loss rental car. This maybe a hoax for me to buy alamo insurance, but I wanted to know from those experienced should I worry? Does primary insurances really extend to rental cars and do they cover everything i may encounter if I was in an accident? Would my credit card rental car accident insurance cover what my primary wouldnt cover? Curious...thanks
1 following 3 answers

Answer 7

i think it should cover all aspects since it is in your plan---don't get tricked by others to buy their insurance---in most cases the companies will work together to handle any discrepancies---if you have questions i would contact your geico agent and ask them :)

Answer 8

Check with your agent to be sure. No one on here can answer for sure.

Answer 9

Enjoyed this question

Answer 10

Pretty good arguments here.