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I am going out of town and I am renting a car for a week. I usually purchase rental car insurance from the rental company. This time I am trying to save a little $$ and I called my insurance company (Farmers). They told me that Farmers do not protect rental cars unless you are driving a rental car because your personal car is damaged.
Then I called my credit card and they told me that they will cover the damages to the rental car but not the other car.
Now, I am confused. What do I need to buy so that I also cover the damages to the other car.
Here are few options on Budget Rental car but I don't understand them:
Supplemental Liability Insurance (SLI)
Third party injury/property damage coverage. more $ 9.95
/day
Loss Damage Waiver (LDW)
Protects you if car is damaged or stolen. more $ 11.00
/day
Personal Accident and Effects (PAE)
Additional personal and property insurance more $ 8.45
/day
I suspect your farmers auto policy isn't that good and you don't have an umbrella liability policy. Check with your carrier on a better policy, you'll have to pay more of course or shop around.
The SLI is basically liability insurance if you hit someone or something with the rental. Usually this would be purchased if you do not have insurance or did not want to use your insuance. Your insurance should cover you in a rental for this, but check on it.
The LDW covers any damage to the rental car itself. Usually you would get this if you don't have full coverage on your regular car, or if your regular insurance somehow excludes rental cars. Also might be a good idea if you have a high deductable on your insurance. This is basically what the credit cards offer.
The PAE covers your injuries in an accident or if your luggage is stolen from the car.
If I have to purchase through the rental car agency then which policy covers the other car.
Ah, why don't you ask the people at the car rental place? They have different types of coverage, just like the insurance companies. Yes it is expensive(that's how car rental companies make their money) but its better to have it, then not have it and get in an accident be in debt for $60,000-100,000. You could also use third party insurance like Orbitz which is cheaper than what the car rental places.
The credit card issuer (VISA, MC, AMEX) typically offers CDW (Collision Damage Waiver) for a rental car when you use the credit card to pay for all of the rental and decline any other insurance for the rental. For many people (including me), this is enough when renting a car.
Your personal auto policy should likely have the options for comprehensive (including collision damage) and liability. Liability is the minimum required insurance coverage. Many people don't get comprehgensive if the car is older and they have the means to replace it come need be. But of course you need to check with your insurance company as to the coverage. Looks like you aren't sure of what coverage you're paying for your 'other car'.
Bottom line - if your insurance does not cover your rental & the damage to someone you hit, you have terrible insurance...most likely some kind of liabilty only for $39/mo type of insurance.
You SHOULD have a good policy, which covers the likely scenarios, this includes collision and Personal injury protection.
Insurance at the rental car place has only one good thing going for it, and that is that it covers loss of use. many insurance policies cover the rental car, should you wreck it, but do not cover the loss of use of that car while it is repaired. Per the rental car contracts, not only are you responsible for damage to the car, but you also owe the daily rental rate while it is being fixed. If it takes 3 weeks to repair, you have 3 weeks at $40/day plus the repair.
It gets expensive quick....My insurance covers everything, including loss/use, but I do carry a good policy.
I have Farmers insurance and FULL COVERAGE on Two Cars.
1) Honda Accord 2008
2) Toyota Seinna 2013
My insurance told me that they only cover the Rental Car if I am getting a Rental Car because my main car is wrecked or not in service.
Thanks,
That may be a true statement, but don't ask if they cover the rental car. You need to be asking if they cover someone you hit driving a car that you don't own.
The trick isn't in the answer, but the question.
Your credit card covers the car rental, and your Farmers policy should cover 3rd party liability.
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