Rental Car Insurance Basics

Renting a car? Whether you're traveling for business or pleasure, understand what insurance coverage you have in place before you sign on the dotted line.

Insurance

Rental Car Insurance Basics

Maybe you've been told you should never accept rental car insurance. But is that good advice? It depends.


If you or your employees are renting cars for business reasons, it’s important to understand what your current business auto insurance covers.

One of the most important things to know is that you should never wait until you are at the rental car counter to figure out if you need the additional insurance coverage.

Here are some tips to help you determine what rental car risks there may be and if you’re properly insured:

  1. Contact with your business auto insurance company to discuss your current policies and coverages, and how these pertain to renting a car for business purposes.
  2. Consider including hired car (non-owned) coverage on your business auto insurance. Such coverage will aid in protecting you should physical damage occur to a car you or an employee has rented.
  3. While credit cards and rental car agencies offer their own insurance, both typically include a variety of business exclusions.
  4. Do your research. Look into various rental car companies to find one that best fits your business needs. Additionally, know what your insurance covers versus what the rental company may hold you accountable for. Use this information to develop a standard policy for whether or not employees of your practice should purchase additional coverage through the rental company.
  5. Create a set of standard policies and procedures for employees to follow when they rent a car, including:
  • Listing the business name on the rental and using a business credit card for the transaction, if possible. Some coverage policies will not respond to claims unless the business name is clearly stated.
  • Always encourage employees to follow safe driving techniques, avoid distractions and abstain from activities such as drinking and driving.

Rental car insurance can be complicated if you are unsure of the coverages you have versus the coverages you need. Ensure your business and employees are covered when traveling for work by contacting your insurance provider and being familiar with the rental car company to help eliminate surprises.

Remember, many of the same protocols apply when renting a car for personal use, so do not forget to check your insurance coverages before setting off to help ease your mind and ease your drive.

For further information on auto insurance and rental car coverage, contact one of our experienced agents today by calling 800-769-2000, ext. 8180 or emailing agents@ncmic.com.


The information in the NCMIC Learning Center is offered solely for general information and educational purposes. It is not offered as, nor does it represent, legal or professional advice. Neither does this information constitute a guideline, practice parameter or standard of care. You should not act or rely upon this information without seeking the advice of an attorney familiar with the specific legal requirements of the state(s) in which you practice. If there is a discrepancy between the site and an insurance policy you have with NCMIC, the policy will prevail.