Vacation Season is Fast Approaching

What's the scoop on car rental coverage?

You're at the car rental counter in a strange city and the rep behind the counter asks if you want to buy coverage for your rental vehicle. 
Do you need it?  It depends.

If you have comprehensive and collision coverages on your personal auto policy, you generally would be covered if your rental vehicle is stolen or damaged in a storm, fire or a collision with another vehicle (up to your policy limits minus your deductibles), And the liability coverage on your personal policy generally would apply if you are held liable for causing injury or damage to people or property (including other vehicles).  But what if you carry only collision coverage on your personal policy?  Then you might not be covered if the rental vehicle is stolen or damaged.  Please note that if you're traveling on company business, your personal auto policy may not apply.  Check with your employer regarding coverage.

What about the Collision Damage Waiver

(CDW) offered by the rental company? 



Enjoy your vacation!

CDW "Waives" your financial responsibility if the rental vehicle is damaged or stolen.  It DOES NOTcover damage to the other property or provide liability coverage. Your personal auto policy may provide the coverage you need.  You may also be responsible, for loss of rental income, if the car rental company cannot rent the vehicle to anyone else due to repairs that need to be done. 






For more information on this post or insurance questions please contact Virginia Trowbridge at 650-FARMERS
or virginia.ctrowbridge@farmersagency.com