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Do you Self Ensure your Rental Car

Posted On: October 19th, 2018 6:22PM

Caution Picture

 

 

 

If you self-insure when you rent a car (use your own insurance vs purchasing the rental company insurance), you may be responsible for Lost Revenue in the event of an accident. Let me explain.

 

Recently Jean and I overheard a conversation in an airport, where a customer was returning a car to an upper level car rental company that had been involved in an accident. The content of the conversation was basically “your rental agreement will continue until the damages have been repaired and the vehicle is put back into service”. Can you imagine being responsible for paying the daily rental rate while a vehicle, that you do not own, is in the shop for an indefinite period of time? The Lost Revenue that you may be paying is the daily rental rate for as long as the vehicle is out of service.

 

Upon contacting our insurance agent, we found that yes this may be the case. It is critical that each of us understand each vehicle rental agreement as well as your own insurance coverage when self-insuring a rental car. We learned that our insurance company is aware of these circumstances, where you as the vehicle renter are responsible for paying for lost revenue, but they did have an answer. Our insurance company works with a specific vehicle rental company where the Lost Revenue is covered by our insurance.  Going forward our first call will be to the rental company that coordinates with our insurance company.

 

 

Hopefully you found this information to be informative.

Caution

Do you Self Insure when you rent a car?

If so, read this.  You may be at more risk than you realize.

 

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