PRNewswire
LOS ANGELES
Jul 3, 2004
At the rental-car counter: Do I buy the auto insurance offered?
Rental car insurance can be expensive, but driving either uninsured or under-insured could be financially catastrophic.
1. The coverage you have on your own vehicle may insure you while you
drive the rental car. First, talk to your auto insurance agent or
broker or with your auto insurance company. Provided you are not on
a business trip, the coverage and deductibles you have on your
personal auto may extend to the rental car. But double check with
your agent and be clear on exactly what coverage you need. If anyone
else intends to drive the rental car, please discuss whether your
coverage will transfer to other drivers of your rental car. Agents
and brokers representing Mercury Insurance are always pleased to
answer questions and offer related advise (800-579-3467).
If you do not have comprehensive (theft) and/or collision coverage to
consider transferring to the rental car, you will have to purchase
this coverage through the rental car agency. If your personal auto
insurance policy will cover you, keep in the rental car your proof of
auto insurance certificate and contact information for your agent,
broker or Mercury Insurance.
Being prepared will payoff; at $10 per day, the Damage Waiver sold by
rental car companies is a big profit item for the rental car industry
that is equal to an annual premium of $3,650 for comprehensive and
collision coverage. That's as much as 10 times what your auto
insurance company charges! Check with Mercury Insurance if you have
any questions.
Some auto rental company contracts may stipulate a "loss of use"
clause, which deals with the loss of use of the vehicle you are
renting if it is damaged while in your possession. Check with your
auto insurance agent or broker and the rental car company to make
sure where you stand on this issue.
Some rental car companies combine personal accident and personal
effects coverage as one type of auto insurance, while others sell it
individually. Check with Mercury Insurance if you have any
questions.
2. Your credit card company may provide coverage at no charge when
using their card to pay for the rental car. If so, establish exactly
how you will be covered while driving the rental car -- and for how
much. You may have full coverage, or you may only need to purchase a
specific type of coverage from the rental car company to bring your
coverage to a level with which you are comfortable. It is always
safe to double check with Mercury Insurance if you have any
questions.
3. Once you have established that you are already covered or that you
will need to purchase auto insurance from the rental car company --
either way, clarify the following: Establish the status of specific
coverage for Collision Damage Waiver (damage you cause to another's
vehicle(s) you hit with your rental car), Liability Insurance (damage
you cause to other people or property), collision (damage you cause
to the vehicle you rented) and comprehensive claims (stolen vehicle,
weather-related damage like that caused by hail and flooding and
collisions with animals), Personal Accident (medical/ambulance
bills), and Personal Effects (theft of personal items in the car).
Also, before you even get in the rental car, be sure to take the time
to closely inspect it for existing damage. If you find any, note it
on the rental form and have an employee of the rental company initial
it. Call Mercury Insurance with any questions.
SOURCE: Mercury Insurance
CONTACT: John Brice, +1-858-456-3855, JBrice@BriceandAssociates.com, for
Mercury Insurance; or Ted Huntington of Mercury Insurance, +1-661-291-6469,
THuntington@MercuryInsurance.com
Web site: http://www.mercuryinsurance.com/