Most drivers have experienced this situation. You are standing at the rental car counter, and the clerk asks whether you want to purchase the extra insurance. If it is your first time renting a car, you may not know whether you truly need it. Since you already have your own auto insurance policy, it is natural to wonder if the rental company’s coverage is necessary.
If your auto policy includes the right types of coverage, you may already be protected when you rent a car. However, the keyword is “may,” because several factors determine whether your policy applies to a rental vehicle.
Renting a Car in Bloomfield, NJ: What Your Insurance Covers
In some situations, your personal auto insurance extends to a rental car. Any liability coverage you have for your own vehicle typically applies when you are driving a rental. This means you are covered if you cause an accident and are legally responsible for damages.
The same usually applies to collision and comprehensive coverage. If the rental car is damaged and you carry these coverages on your personal policy, your insurance will often handle the repairs, subject to your deductible.
However, if you only carry the minimum liability coverage required by New Jersey law, you could face a costly situation. Liability coverage alone will not pay for damage to a rental vehicle. Without collision and comprehensive, you may have to pay out of pocket for repairs.
The Insurance Options Offered by the Rental Car Company
Rental car companies typically offer several types of optional coverage:
- Collision damage waiver
- Personal accident coverage
- Supplemental liability protection
If your personal auto insurance already includes collision and comprehensive coverage, the rental company’s insurance may duplicate what you already have. However, if you only carry liability on your own vehicle, purchasing their coverage can protect you from expensive repair bills if the rental car is damaged.
When You Might Not Be Covered
Drivers in Bloomfield, NJ, should be aware of situations where personal auto insurance may not apply. If you rent a car for business use and your policy only covers personal driving, your insurer may deny a claim. Coverage limitations may also apply for long-term rentals, depending on the terms of your policy.
E.S.T.I.R. Inc. supports the guidance from the New Jersey Department of Banking and Insurance, which recommends reviewing your policy carefully before renting a car so you understand the exact protection you have.
How to Know if You Are Covered When You Rent a Car
Rental car insurance can be confusing, even for frequent renters. Reviewing your policy with a knowledgeable professional is the best way to understand how your coverage applies. A representative from E.S.T.I.R. Inc. can walk you through your policy to ensure you have the protection you need before you get behind the wheel of a rental car.
