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By Rob LaVigne | October 31, 2018

What Auto Insurance Do I Need?

Hey there. It’s Rob LaVigne with Big River Insurance, with a quick tip to help you when you’re out and about renting a car, whether it’s for travel or business.
First off, what do you need to know? It’s pretty straightforward with a rental car. All you need to know is that the coverage you have on your regular car is the coverage you’re going to have on your rental car. That coverage will follow you. It will apply, regardless of the salesperson’s approach at the rental counter. You are insured. But there’s a couple of things that you need to know and be careful of.
First of all, whatever your limits of liability of the coverages you have, follow you there. So that’s what you get. What you got already is what you have there. And know that your deductibles follow you as well, so should you need to take advantage of your comprehensive, your collision coverage, you have to pay that first bit before the insurance company pays the rest.
As far as what else you need to know, there are a bunch of fees that are included, that your existing auto insurance will not cover, should you get in to an accident in your rental car. The first of which is an administrative processing fee. May take some time to get all their paperwork done and get all these cars in and out of the shop. They charge you for it.
The lost rental fee while that car is out of service is also a fee they will charge, typically around the daily rate times as many days as it takes, so that can really add up.
And lastly, the diminished value of the vehicle once they resell it. All these rental car companies, they turn their cars over regularly, and a big part of their business model is buying low, and selling close after it’s got some use.
What to do? Pretty straightforward. Always like to remind everybody, make sure all your drivers are listed on a rental policy. That way, everybody’s covered, just like they would be on your own cars. And also a quick note, Enterprise Rent-a-Car is a partner of Allstate’s, and if you rent with Enterprise there’s no need to get those extra coverages, because what you have follows you, and they waive those fees.
And lastly, if you can’t go with Enterprise, ask that rental car company for their lowest cost per day collision coverage. That’ll cover you and any damage you do to the car, but also exempt you from any of the additional fees, should you have an accident in your rental car.
We appreciate you taking a quick minute to watch this video. If there’s anything we can do for you, please don’t hesitate to give us a call, send us an email, come by our website. Our goal is to make sure you know what you’re doing with what you got so you can make the most of it.
Thanks very much.
Have a good day.