Are rented vehicles covered by your insurance policy?

Every year, millions of people travel the globe to explore new destinations. Renting a car is often part of the plan, whether for convenience or necessity. After a long flight, bus ride, and wait in the rental car line, many travelers finally reach the counter, eager to get their keys and continue their journey. But then comes the question, “Would you like to buy our insurance that provides coverage if something happens to the car?”

This question can make even an insurance professional or informed policyholder pause. Does your existing personal auto insurance policy already provide coverage? Understanding your coverage before traveling can save you time, money, and confusion at the rental counter. And knowing what your policy includes and whether additional coverage is necessary will help avoid any surprises down the road.

Coverage under standard policies

The standard personal auto insurance policy, based on language developed by Insurance Services Office (ISO) and adopted by many insurers, typically provides some coverage for rented vehicles. However, this coverage is limited:

• Collision – Covers damages caused by an upset or impact with another vehicle or object. A deductible usually applies.
• Other-than-Collision (Comprehensive) – Covers non-collision-related damages, such as theft or natural disasters. A deductible also applies.

These coverages apply only to specific types of vehicles, usually private passenger vehicles, and not all circumstances. For instance, coverage may not extend to moving trucks or motorhomes.

Unique benefits of West Bend’s policy

West Bend’s policy offers broader protection for rented vehicles. Unlike standard policies, this coverage falls under PART A – LIABILITY COVERAGE, providing the following benefits:

• Coverage up to the policy’s liability limit.
• No deductible.
• Coverage for four-wheel vehicles licensed for road use when rented for personal purposes.

This comprehensive approach eliminates the need for collision damage waivers (CDWs) or loss damage waivers (LDWs) often pushed by rental car companies. However, coverage details may vary among providers, so confirm specifics with your insurance agent before declining these waivers.

Frequently asked questions about rented vehicle coverage

Here are some common questions about rented car coverage under our policy:

Who’s covered?

The “insured” and any “family member” as defined in the personal auto coverage form.

What’s the coverage territory?

The United States, its territories and possessions, Puerto Rico, and Canada.

Is there a coverage limit for damages?

Yes, the Property Damage or Combined Single limit is the total amount payable for damages to the rented vehicle.

Will West Bend pay for loss of use claims by rental companies?

The Claims Department will determine whether the rental company suffered a verifiable loss of use. If other fleet vehicles were available during the repair period, loss of use coverage may be denied. If validated, West Bend will pay for a reasonable downtime period. For example, replacing a windshield typically takes only one day.

Does a Personal Umbrella provide additional protection?

Yes, the Umbrella limit provides excess coverage over the underlying auto liability limit. Additionally, since the Umbrella coverage territory is worldwide, it can protect you even outside the U.S., Puerto Rico, and Canada. A $250 retention (deductible) applies in such cases.

Tips for travelers

If you’re planning a trip that involves renting a car, consider taking these steps:

• Review your policy – Understand your coverage for rented vehicles to avoid unnecessary expenses.
• Contact your agent – Confirm specifics about your coverage, including liability limits, deductibles, exclusions, and unique situations like renting a moving truck or traveling outside covered territories.

By knowing the details of your policy, you can confidently navigate rental agreements and focus on enjoying your journey.

This article is intended for general educational and illustrative purposes only and should not be construed to communicate legal or professional advice. Further, this article is not an offer to sell insurance. Please consult with your licensed insurance agent for specific coverage details and your insurance eligibility. All policies are subject to the terms, conditions, limitations, definitions, and exclusions contained therein.