Rental Car Insurance Options

As an insurance agent, you are likely deemed to be your customers go to expert on all things insurance related, including car rental insurance. It seems like everybody wants to find a way around paying the exorbitant car rental insurance fees and they usually want to know if they are covered by their auto policy even in the rental car.

While it is a personal decision for your customer to make, you can advise them of the pros and cons.

If your customer is involved in an accident and did not take the car rental insurance:

  • They will have to pay their auto policy’s deductible.
  • The rental car company will probably charge them a daily rental rate while the car is repaired. This will not be covered by the insurance company.

If your customer is involved in an accident  and they did pay for the rental company’s insurance:

  • They won’t have a deductible.
  • If they are involved in an accident, the claim is likely to not show up on their auto insurance policy (unless there is an injury).

There is also another great option available through American Express.  Car rental insurance through AMEX is a FLAT $24.95 per rental period, vs per Day by the Car Rental company.

Coverage includes:

1) reimbursement for damage to or theft of the Rental Auto and personal property, and

2) medical expenses and death and dismemberment benefits resulting from a Covered Accident. Coverage is worldwide.

What the Plan Covers
The $100,000 coverage level with a premium of $24.95 covers:

  • Up to $100,000 of primary damage and theft coverage for the rental car.
  • Up to $100,000 of Accidental Death and Dismemberment (AD&D) coverage.
  • Up to $15,000 per person of excess coverage for Medical Expenses.
  • Up to $5,000 per person of excess coverage for personal property, maximum of $10,000 for all.
  • For Florida Residents, up to $15,000 per person of excess coverage for personal property, maximum of $25,000.

Check out the Amex website for more information.

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