Motorists Confused: Can existing policies cover for car rentals?


Reports indicate that the number of car rentals have boomed during the final quarter of 2009, which experts say is a result to the continuous hike in car operating costs and auto insurance premiums.  As the costs of owning a car goes up, people who do not need to own a vehicle now lean on renting a car instead of buying one. Likewise, those who previously own an old vehicle prefer to rent newer models than to purchase them. For those who prefer car rental, the next question is – will your auto insurance cover for your rented vehicle?

Motorists Confused: Can existing policies cover for car rentals?To assist consumers on making auto insurance purchases, local groups are starting campaigns that promote information regarding extending the coverage of existing policies for car rentals. As more and more drivers rent cars, local groups now focus their attention to the welfare of car rental customers and to make sure that rental companies do not take advantage of the situation. Part of their campaign is to prevent motorists from making double purchases on insurance policies and to teach consumers on how to take advantage of low cost rental auto insurance.

When looking for car rentals, the common practice among companies is they have representatives that will encourage the purchase of insurance for a rental car. When this happens, the consumer who already has insurance for his car at home will then think twice if he needs to buy new car insurance policies or not.
According to industry experts, the only way to make sure if your existing car insurance policy will cover for the rented vehicle is to check the policy papers and take a closer look. A number of insurance companies can extend coverage protection to rented cars granted that the vehicle is intended for business or vacation use. Experts say that there are existing automobile insurance guidelines that companies follow, which sets forth policies on how they extend coverage for rental vehicles. Since these guidelines vary from one provider to another, contacting an insurance representative is sound advice to eliminate confusion.

A study conducted by the Insurance Information Institute reveal that majority of motorists who go on trips using rented vehicles end up purchasing double coverage policies, which should not have been the case if there were aware that their existing policy can cover for the car rental. According to experts, the problem originates from the fact that most drivers cannot determine if their existing car insurance can cover for their car rentals.

Industry insiders predict that the trend in car rentals will last until the second quarter of next year. Until then, local groups will keep an eye on car rental companies to make sure everything is done accordingly.