The Run Down on Rental/Loaner Vehicle Coverage

Whether it’s a collision or comprehensive claim, accidents happen and when they do it can be a pretty stressful time. Trying to juggle all the different decisions that need to be made can make your brain go fuzzy – Do I file a claim with my insurance? What shop do I take my vehicle to? How do I get a loaner vehicle? AND we know the one question everyone must be thinking about…if my rental or loaner vehicle is involved in an accident am I covered?

WELL GREAT NEWS, we have the answers to that question for you!

If you are in a loaner vehicle due to an auto claim, you’ll have the coverages matching that of the broadest coverage on your policy. We are sure you are wondering what that means:

Your loaner car’s coverage will match the vehicle with the broadest coverage on your auto policy. Say you have two vehicles on your policy, and one vehicle has a standard collision deductible of $500 and a comprehensive deductible of $250, while the other vehicle has a broad deductible of $500 and a comprehensive deductible of $250. Your loaner car’s coverage and deductibles come from the broad $500/comp $250 vehicle. Keeping in mind what was just stated, it should be noted that if you do not have full coverage (collision and comprehensive) on any of your vehicles you will need to look into obtaining additional insurance through the repair shop or rental company. For example, if you only carry comprehensive coverage on your personal vehicles, you will only have comprehensive coverage on your loaner (in case you did not know, that is a BIG problem in a loaner vehicle).

It is important to note that ONLY drivers LISTED on your policy AND that reside with the named insured are covered. If you have a loaner vehicle and a friend takes it for a spin, coverage may not be extended to them depending on the circumstances of the loss and usage.

Now, how about a rental car not associated with a claim, as is common when traveling? This circumstance is different because your policy won’t pay to rent the vehicle itself, but should an accident occur, coverage is extended in the same manner as with a loaner car. And again, ONLY drivers who are LISTED on your personal auto policy AND reside with the named insured are covered regardless of whose name is on the rental agreement.

We stated it before but, it is important enough that we need to do it again, if you do not carry full coverage on any of your personal vehicles (collision and comprehensive) you will need to look in to purchasing additional insurance through the rental facility. If something were to happen, you may be on the hook for repairs if you don’t.

Please keep in mind every insurance company may have different rules and stipulations that they follow with these types of claims, and all claims are subject to your individual policy’s terms and conditions.

Have any questions about what you just read? Please contact your Independent Insurance Agent or email us at socialmedia@psmic.com!

Disclaimer: This is a general interpretation of processes and coverage. All claims are subject to Insuring Agreements, Endorsements, Exclusions, Terms, and Conditions of the Policy.