Maybe THE most
frequently-asked question

You’re planning to rent a car on a little vacation trip next week and wondering if you need to purchase the additional insurance coverage the rental agency offers.  For years, the answer was pretty simple.  As long as you had full coverage on at least one car on your own policy and you were comfortable with your policy deductible applying to the rental car, there was no compelling reason to buy additional coverage at the rental counter.  Your own coverage followed you to the rental car.  That is still true.  Now, however, there are some additional factors to consider.  Some contracts allow the rental agency to charge for the loss of rental income while a damaged car is out of service and in the shop for repairs.  Further, some rental agencies will also charge for the difference between what the rental agency could have sold the car for, had it never been in an accident, and the diminished value of what the repaired car can be sold for (“diminution of value”).  Most standard automobile policies do not cover these charges.  If you’re concerned about the possibility of facing these additional charges, ask questions of your rental agent and consider buying the offered coverage.  In most cases, you’ll pick up the added benefit of having no deductible to pay.  If you’re renting anything larger than a passenger car, a minivan or a pickup truck, it’s always best to buy the rental agency’s additional coverage because the standard extensions of coverage do not apply to larger vehicles (the box truck for your weekend moving project, etc.).  When in doubt, please contact us!