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WILL MY POLICY COVER ME DRIVING A RENTAL CAR?
Will your insurance extend to cover you while driving a temporary replacement vehicle? The correct answer is yes and no. Although most auto contracts will extend your coverage while operating a temporary substitute vehicle, there are four areas most all auto insurance policies will not extend coverage:
- Loss of use
- In the event of an accident while driving the rental car the rental agency will likely continue to charge a daily rate pending repairs that would not be covered under most all auto insurance policies.
- Storage Fees
- The rental agency may charge a daily storage fee pending repairs that would not be covered under an auto policy.
- Administrative Fee
- The rental agency may charge a fee to administer the claim that would not be covered under an auto policy.
- Diminished Value
- This is a big one! If you rent a $30,000 rental car and involved in a $13,000 accident the diminished value to the rental car could be as much as $6,000 that would not be covered under most auto policies.
The only contract I’ve found that will pick up these four areas is MetLife. It’s for the above reason’s I would encourage you to accept the rental agency insurance.
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