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After A Car Accident Can I Use My Insurance Coverage To Rent A Vehicle

This would depend on if you selected rental coverage for your policy. Of course, you must purchase this coverage prior to the accident occurring for it to be effective. Most insurance companies offer this coverage for their Insureds. In most instances there is a basic rental rate per day for this type of coverage up to a maximum number of days specified by your insurance policy. For example, you may have rental coverage that pays a rate of twenty five dollars a day with a maximum of thirty days allowed for your rental vehicle coverage. You may want to find out from your insurance carrier if the rental rate is inclusive of the sales tax charged as a component of your rental billing.

It is noted that if you rent a vehicle that exceeds the rental coverage amount you are allowed per day by your insurance carrier, you will be responsible for the difference. In addition, keep in mind that most insurance companies will not pay for the CDW(collision deductible waiver) and fuel charge that rental companies may charge as additional items on the rental invoice.

If you are involved in an accident with a rental vehicle, you are responsible for paying your deductible for the repair of this vehicle as though it were your own vehicle if you have collision coverage and meet other conditions specified in your policy with your insurance carrier. However, there may be some exceptions to this if you have violated the rental agreement by allowing a driver that is not listed on the rental contract to drive the rental vehicle. This is the same as not having insurance, unless that particular driver has their own insurance policy to cover the rental vehicle if it is involved in an accident. Don’t take that risk! Make sure that when you sign the rental contract that you list all individuals that you plan to drive the rental vehicle. In addition, make sure that the drivers that use your rental vehicle are licensed so you can avoid any potential problems if the driver of your rental vehicle is involved in an accident. The consequences of not ensuring that the drivers listed on the rental contract can be very costly to you if an accident occurs.

It is also important to understand that if you are renting a large truck for moving purposes it may not be covered via your insurance policy. In many instances trucks used for moving do not meet the weight specifications indicated in your policy to make your collision coverage applicable to an accident you may become involved in with this vehicle. Review your policy regarding this information and consider discussing this with your insurance agent or carrier prior to renting a large truck for moving to find out whether or not there is coverage under your policy. If it is determined that the moving truck is not covered, most facilities where you rent moving trucks have a special insurance policy that provides coverage if you were involved in a vehicle accident. You would be required to pay for the cost of this special insurance policy for the time you are renting the moving truck.

Keep yourself informed and apprised of important information concerning your rental vehicle coverage with your insurance carrier, you will be glad you did in the long run.

Author: Santanya Fahie
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