Reasons Why You Need Rental Car Insurance In California

 

Reasons Why You Need Rental Car Insurance In California – Before traveling, it is important to understand that insurance applies in the event of an accident while driving a rental car. At Vargas & Vargas insurance, we are often asked how we handle claims in such situations. To prepare, you need to research the level of insurance offered by the car rental company and see if additional insurance is required.

 

In most states, if you have your own auto insurance policy, coverage will apply to you and the rental car you use. This means that if there is an accident involving your rental car, your existing car insurance policy will still provide coverage. However, please note that this type of protection only applies in the United States and its territories – it does not apply to international rentals. In Massachusetts, the law requires car rental companies to carry a certain level of liability protection for accidents involving their vehicles. For example, they must be able to pay up to $5,000 in claims related to their car. Once the rental company reaches the stated liability limit, the remaining charges are billed based on the renter’s personal policy or the non-owner’s policy.

 

 

 

Reasons Why You Need Rental Car Insurance In California

If you have an accident and damage your rental car, the rental company may charge you for services that you cannot use during the repair. Normally your car policy will not cover this charge, however if you have added Safety Shield Plus as an endorsement to your policy this charge may be covered. In addition, many credit cards offer car rental loss of use coverage if used to pay for the rental.

Pros And Cons Of Leasing Or Buying A Car

In some cases, you may need to purchase rental car insurance to protect yourself against accidents you encounter while driving the rental car. It is important not to confuse premiums with rental compensation. Car rental insurance is a special policy provided by car rental companies to protect the rental vehicle. This type of insurance usually includes:

Liability Insurance:  This covers you for medical bills or property damage if you cause an accident while driving a rental car. Loss/Collision Waiver: The Loss or Collision Damage Waiver protects you in the event of damage to the rental car, including vandalism and theft. Personal Accident Insurance:  This insurance provides coverage for injuries to you and your passengers while driving a rental car.

Personal Property Insurance: Provides protection for your belongings if they are stolen or damaged while in your rental car.

You usually won’t need to buy a separate car rental agreement. If you already have auto insurance, it will extend coverage to any rental car. If your auto policy includes comprehensive coverage, collision coverage, liability coverage, and medical payments/personal injury coverage, purchasing an additional rental car policy may not be necessary. Additionally, any personal property in your rental car is protected if you have homeowner’s, renter’s or apartment insurance.

Rental Car Insurance Explained

In some cases, renting a car can still be beneficial even if you already have car insurance. Examples of such situations include when you want to avoid a claim on your auto insurance policy; No conflict or perfect management; Traveling somewhere that is not in your plans; There is a high deductible for auto insurance; There is a lower limit to contractual liability; or rent a truck or moving vehicle (car insurance won’t cover this).

If you are involved in an accident with a rental car or if another driver is renting a car, the steps to take afterwards are similar to any other car accident. However, there are some additional considerations that must be kept in mind. To resolve an accident involving a rental car, do the following: Get yourself and the vehicle out of harm’s way; assess who is injured; call emergency services; Exchange contact information and details of accident documents; Damage in the photo and road conditions/obstacles; Tell your rental company what happened (they may ask you to fill in your own report); And let your insurer know even if it’s not your fault so they can decide whether to make a claim.

Now that you know about the different rental car insurance options and what to do in the event of an accident, you can get behind the wheel of your next rental car with confidence. Even when fully covered, it’s understandable that some feel confused after a crash. That’s why Vargas & Vargas Insurance is here to help guide you through any claims process that may arise from a minor or major accident.

Vargas & Vargas Insurance has been helping families, individuals and businesses for over 40 years. You can contact our team at 617-298-0655. If you’re using the Galaxy Fold, consider opening the phone or viewing in full screen to optimize the experience.

Rental Car Insurance Fees

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Auto insurance protects you from financial losses due to vehicle damage, accidents or theft. Car rental insurance provides a similar type of coverage for car rentals. Read on to learn more about how rental car insurance works and why you need it.

Car rental insurance is a type of insurance. Protects against financial losses incurred while driving a rental car. Rental car drivers can purchase rental car insurance that covers:

Do You Actually Need Rental Car Insurance? Not Always

Not all rental car insurance policies will protect against all of these losses. As with traditional auto insurance, drivers have the right to choose the type of coverage they want to pay for.

The good news is that auto insurance often covers rental cars. The driver’s liability insurance and other types of coverage remain in effect even if the driver is driving a rental car instead of a personal vehicle.

However, there are some exceptions. Car insurance companies may exclude coverage for cars rented outside the United States. And drivers who lease cars that are more expensive than the cars they own could experience losses beyond policy limits. A driver with $25,000 in collision insurance who rents a Ferrari will not be fully insured.

There are different types of car rental insurance. Common examples of car rental insurance include the following.

Chase Freedom® Rental Car Insurance

Additional liability coverage is a type of rental car liability insurance. Protects the policyholder from claims by other drivers. If the driver of the rental car causes a collision that injures others or damages their property, the additional liability policy pays. It covers the victim’s loss, to determine the policy.

Collision Damage Waiver (CDW) is not a traditional form of insurance. Rather, it is unique to rental car insurance policies.

When the renter pays the optional CDW, the rental company agrees not to try to collect money from the renter to pay for the damage to the vehicle in the event of a collision.

Personal property insurance is a type of car rental insurance that protects the insured’s property. Provides coverage, up to the policy limit, for items in the rental car. For example, a driver whose laptop is stolen from a rental car can claim compensation.

Overseas Rental Car Travel Insurance: Does Travel Insurance Cover Overseas Car Rental?

Personal accident insurance covers medical expenses incurred by the insured. It can also cover medical expenses for others in the rental car in the event of an accident. A for-hire driver who is injured in an accident will have to pay for emergency and medical bills under this policy.

In many cases, the driver’s standard car insurance will cover everything that the rental car insurance policy offers. For example:

However, drivers should note that their own insurance may not be as comprehensive as rental car coverage in all situations. Individual policies may have lower limits or higher deductibles. Or car insurance may exclude coverage altogether in some cases. Cars rented abroad are usually not included.

When answering the question “Should I buy car insurance when I rent?” It is important to read the policy document carefully to understand what is covered.

Does Car Insurance Cover Rental Cars?

However, rental car insurance offered by credit card companies is not as comprehensive as cardholders expect. It usually only replaces the collision damage exception. It generally does not provide coverage for bodily injury or liability. And it may not cover the cost of personal property or medical care the cardholder receives after an accident.

Drivers ask themselves, “Should I insure my rental car?” Be aware of credit card rental car insurance limits. This means that you read the cardholder terms and conditions carefully.

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