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Renting A Car? Do You Need to Buy The Car Rental Insurance?

Renting A Car? Do You Need to Buy The Car Rental Insurance?

Rex and Cheri have the answer. Listen here.

Rental Car Insurance:

Have you been standing there at the rental car counter and they asked you would you like to add additional insurance for a little fee? So our question is, do you really need to buy the rental car insurance when you’re standing at the counter and Rex hat answer is? Well maybe it did. Maybe it depends on, depending on a lot of different things as to whether or not to want to purchase rental car insurance. So you’re listening to insurance talk with Rex Lesueur and Cheri Martinen, the father daughter team from Bancorp and insurance. We’re located in beautiful Central Oregon and La Pine and South Deschutes county. Uh, we’re a family run business. Rex, you and Tammy Lesueur my mom, have been doing this for since 1990. Yeah, we came to beautiful Central Oregon back when La Pine was a tiny community and still is.

We’ve been working in the insurance business almost 29 years and I’m in central Oregon. I don’t want you to think that he’s just a small town insurance agent, Rex and Tammy, my mother have grown their business and are licensed and over 12 states throughout the northwest and work with a lot of different companies throughout Oregon, Washington, California, and Nevada. Oh Gosh. I’m not going to name them all over Montana. So we’ve got lots of experience. I actually have almost 40 years of experience in the insurance business, so a little about, about us. Now let’s go into our topic, which is rental car insurance. Do you really need to buy it? Rex, you have a pretty good story about a time when you had an accident in a rental car? Yes, There’s nothing like crashing the rental car to learn exactly what, what the process is and what happens when you crashed your rental car.

What Happens When You Crash A Rental Car:

Let me tell you this story. This was back when you were in middle school. We were, we decided was a good idea to take you back east to visit the family in New Jersey where you were born and to uh, show you the New York City, take it to Washington, DC, Gettysburg, Williamsburg, all the monuments, all great places on the east coast, historical places, so which you would have a rounded education. So yeah, I remember I got out of school for like a week. It was great. Yeah, maybe two weeks. It was a long time. We’re back there almost three weeks, so we started before the school and to do it, we think it was in June and it was a, was a great time at, we even took it to the Jersey shore I think one day. So it was very educational. Oh yeah. Jersey shore has always, we don’t have the beach in New Jersey.

They have a shore. It’s different. It’s warmer though. The story goes we’re in this rental car and I’ve got you and your mom and my mother and Tammy’s dad, we’re all kind of crammed into this minivan and we’re visiting Gettysburg. Gettysburg’s has a special place in our family because my great grandfather did fight at Gettysburg on the union side. Yeah. It was neat. We got to see him, the monument for his unit, little devil above the whole stand, which is a pretty cool thing to have in your family. We get there and we’re getting ready to go and we have a specific time that we have to be, to the place to pick up a historian that’s going to take us around the battlefield and show us things. And that’s a pretty cool thing to do.

That is the educational part? There was the education. Yeah. So we, were at Rite Aid and I’m trying to back into a place and I backed right into a big concrete posts with this rental car. You know, I suffering this stares and indignation of my mother ,my father in law, and my wife. And you’re just looking at me giggly . It was pretty funny. We crashed the car, we went off, we took the car back, showed them the dent, they said great. They had an estimate, they called us upset. It’s $1,800 to fix the vehicle. We turned it into our insurance company. The insurance company pays all but the $500 deductible, which pay to the rental car company . We think it’s all done and that’s concluded, right? Yeah, it sounds pretty good.

But What About Loss of Use?

We send them the money. They’re happy. Everybody’s, everybody’s good to go. Then we get a phone call from the rental car company and they say, okay, this vehicle has taken two weeks to fix. I looked at it and thought it shouldn’t have taken two weeks, but okay. Then they said, this car has not been rented to anybody for two weeks, we feel that you should be paying us for the loss of rents, the loss of use on that vehicle. Because if it’s not in the shop, it could be out earning money for the rental car company as part of the fleet. Okay. and I’m waiting for the shoe to drop. He said we’d like $1,400. Jeeze, that is as much as the first claim.

I said you know you were letting us use the car, putting miles on it, drive it all over the east coast, all the way from New York to Virginia for $350 a week. Really, you want $700 a week for this thing to sit in the shop while you work on it? Well, needless to say, we went back and forth with them. We argued and we negotiated and we went back and forth and, we told him no at first and then they threatened us with an attorney and, then we ended up agreeing to pay them $700 or $350 a week for the use of that vehicle. And that was not covered by our insurance, it was out of pocket. Yes we did. That was, really, an eyeopener for me. Ever since then I have been giving my clients and people I know, different advice about what to do when they are standing at the rental car counter trying to deciding whether or not the buy their insurance, the insurance from the rental car company. And that’s what we’re going to go over after this break.

Do You Need To Buy Rental Car Insurance?

Stay with us and we’ll go into, if you should be buying that rental car insurance when you’re using it for personal use, like a family vacation, like you were doing Rex. If you have any questions about insurance, give us a call at (800) 452-6826. Again, that’s (800) 452-6826 and Bancorp insurance would love to answer any of your questions.

Now, once again, here are your hosts, Cheri Martinen and Rex Lesueur. We are still answering the question; do you really need to buy rental car insurance? We just heard how Rex’s accident on the east coast, uh, really changed the way that he thought about rental car insurance and the needs. And now we’re going to get down a little bit more into the nitty gritty on your personal insurance policy. Um, and if you really do need to buy rental car insurance when you’re standing at the counter, when you’re going on a family vacation, um, this is Cheri Martinen and Rex Lesueur from Bancorp insurance and you’re listening to insurance talk. Welcome back, I guess. Yeah, welcome back. All right.

Talking about what to do when you’re renting a car. So you’re on a family vacation and you’re renting this vehicle for your personal use and you’re standing there at the counter and it doesn’t matter which of the counters you’re standing at. You know, here at the airport, there’s six, seven different rental car company, they are throwing pieces of paper and pens that you sign this, sign that, we’re going to charge you x and x and x.

Does My Personal Auto Insurance Cover Me To Rent A Car?

It’s expensive and you’re, you’re thinking it’s a, it’s a big part of the, the vacation experience or whatever you’re doing there, where you want to drive, you want to go places and you don’t want to necessarily think about, oh Jeez, what am I going to do the Insurance. Oh and does my personal insurance policy cover me for this? It’s probably the last thing on your mind. It is, you’re trying to wrangle with everybody. It fleets through your mind as you’re signing the paperwork and get going. But you really should pay a little more attention to it, because like the story I just told you, it can cost you quite a bit of money in the event that you damaged their vehicle and, or whether or not you injure somebody with that vehicle. You’d need to put some thought into it.

Well, and you know, when you’re driving a rental car, it’s not your regular vehicle. You’re, you’re like, does this button do well? How the heck do I, yeah, the wipers are on the left. The wipers are on the right. And the next thing is you are out driving around. We drive around Central Oregon. I mean, people complain about the traffic here in Bend, but boy, you go to fly into a city, and the next thing you’re in New Jersey and you’re on the New Jersey turnpike and it’s eight lines going each way. It seems like when you’re coming from the airport, it doesn’t matter where, they put you on a highway going somewhere. Yeah. And people are going 80 miles an hour and the exit is for four lanes over and you’ve got to merge over there. The chance of having an accident in a rental car is exponentially higher than in in your regular vehicle, because of the territory you’re in.

Your Liability Insurance Will Extend From Your Personal Auto Insurance to The Rental Car:

You need to be a little bit careful. Yeah. Plus you’re listening to your phone, it’s going turn right. You’re like, yeah, we love to do that. So to start with, if you have a typical personal auto policy, then your liability coverage will extend from your policy to the rental vehicle. If you’re driving that vehicle and you are in an accident and you injure somebody, then your auto insurance should cover it. Now I’m going to make a disclaimer here. There are lots of different policies out there, lots of different coverages, pickup your phone, call your agent, make sure that it does cover the liability before you assume that it does. Don’t come back and say, hey, this Rex on Insurance Talk, said it’s covered. It might not be, check with your agent because you may have a, a cut rate insurance policy that doesn’t have it.

What About Physical Damage To the Car?

Pick up the phone and make sure that that’s the case. And you can see that on that first page of your policy, right? It says, yeah, it’s called liability insurance in case just in case. The next step is, do you have, physical damage coverage that comes from your personal auto policy? The answer is typically yes. If you have physical damage coverage on your personal policy, on your regular vehicle, the policy should extend to physical damage coverage for your rental car. You should check with your agent. This brings up the question if I have coverage,why should I buy it? Yeah while you are standing at the counter. Why, should I buy that? Because it’s, sometimes, it’s, 20 bucks a day and you know, on a, on a 10-day vacation, it’s a couple hundred bucks and do you really want to increase your rental car bill by that much?

What are they giving extra?

Well, what are they giving? What they’re giving is you can buy the liability insurance from them so that if you have an accident in that car and you injure somebody, it’s actually on their coverage. You can buy the physical damage coverage, which if we had bought that physical damage coverage when we rented that car in New Jersey, when you were in middle school, what would have happened was, is we brought the car back to the rental car place and explained to them that we had trashed their car. I apologize profusely that their car now had a dent. I would smile at them very nicely. I handed them the keys, pointed out the fact that we had spent the $200 for the 10 days for the coverage from their insurance company, handed them the keys and walked out and forgot about it.

If You Buy The Rental Company’s Insurance You Never Turn The Claim into Your Personal Insurance

You wouldn’t even have to turn in a claim to your personal auto insurance. Nope. You don’t have to turn in a claim to your personal auto insurance. They take care of it. Oh that’s nice. Yeah. I mean that’s pretty straightforward and you’re done. Claims on your personal insurance can kind of bite you later, Huh? If you have too many claims on your personal auto insurance policy, that can actually be a situation, you have. After all how many at fault accidents do you need before it starts to impact your personal insurance? Will you know, this is something that you are going to have to make that decision on your own. You probably have the coverage check with your agent. Do you want to eliminate the hassle? Just buy it, just buy it.

Buy The Physical Damage

I without a reservation recommend that you buy the physical damage coverage and by stepping back, physical damage coverage is the part of the insurance that pays for damage to the vehicle. I would definitely recommend and that’s probably where most of the claims come from anyway. Yes, it is. Stay with us because we’re going to answer the next question that we have, which is do you really need to buy a rental car insurance when you’re renting a car for business use, which is a little bit different, it’s a different type of policy. If you have any questions, please give us a call at 1-800-452-6826

What If You Are Renting A Car For Business Use?

This is Insurance Talk, once again, here are your hosts, Cheri Martinen and Rex Lesueur. Okay, If you were on a business trip and you were renting a car, do you really need to buy the rental insurance or does your business auto policy covers the rental car? We’re coming back to this question with Insurance Talk with Cheri Martinen and Rex Lesueur we are the father daughter team from Bancorp insurance in beautiful central Oregon. Hey, we’re glad to be back. So we already answered the question. Do you need to buy rental car insurance if you’re using the rental car for personal use? The answer was it depends. It depends. Yeah, said, that its optional but Rex did recommend that you definitely buy at least the physical damage when you were standing there at the counter, from personal experience, because if you’ve ever crashed a rental car, you know that its a hassle that you would sincerely appreciate avoiding.

When You Rent A Car For Business Typically Your Business Name is On The Contract

Let’s talk about renting this vehicle for on a business. I mean it’s normally a different trip. You could rent a fun car if you’re on a business trip. You don’t have to write the rent the minivan. I crashed a minivan. I like minivans. I don’t know why I crashed it. But anyway, it happened. So the difference between renting a car for personal use and renting a car for business use is whose, what name is on the rental contract. If you put your business name on the rental contract, then the business is exposed to the loss, not you personally.

If there was an incident, the rental car company would be coming after the business and not after you personally. Right. So that’s a big difference. That’s a big difference. So what kind of coverage does your business have for you renting vehicles? It’s a different situation than what I’m doing when I it with my personal auto. Again you need to check with your insurance agent, to make sure or you can call us. Bancorp at 1-800-452-6826. If you do have a business and you are renting the car on your business the contract is in the business name, then you need to have a couple of coverages. The important coverage is called hired auto liability.

But I didn’t hire the auto. They are renting the auto. Do I get a concierge service. A hired, rented, borrowed is all the same thing. So if you have a commercial insurance policy and you’re going to rent a car, you’ll need to check with your agent to see whether or not you have hired auto liability. I’m underlining the word liability. We’re going talk liability first and liability is the coverage that would pay in the event that you are using that vehicle, injured somebody or damage somebody else’s property. It’s the same, it’s a similar coverage to the personal auto liability, but it’s basically covering the liability from the rental car. Got It. And so you need to make sure that you have the hired auto liability coverage. Okay. You find that on the front page of your policy or when you call your agent, right?

Look for the Hired Auto Liability Coverage

Well that’s going to be interesting as to where you might find that sometimes auto liability is bundled or packaged with your general liability. Let’s say you don’t own a commercial vehicle. All your vehicles are registered in your personal name, which you have a corporation and you want to go on this business trip and you want to write off the vehicle cost. You may not have a commercial auto policy that would have that coverage, but it might be on your commercial general liability policy as an as an additional coverage. Ah so this gets complicated really quickly, right? Because it can be on a commercial auto policy and it can be under a general liability policy.

Now what if you’re a business saying you’re renting, you’re moving or something you got to rent to like a Uhaul or you got a rent trailer. You know, it’s not every day, but you got to rent the truck, or you got to rent that trailer.

You Also Need Hired Auto Physical Damage.

Trailers are a different story, but renting the truck, you still need to have this coverage. Now if you’re renting a large vehicle, my recommendation is that you buy the liability insurance because not only are you renting the vehicle that you’re probably not use to driving it on a regular basis if you’re renting, wide corners. Yeah. And if you’re renting, it’s more then likely in an unfamiliar city, well then you have the double whammy of not knowing the streets, not knowing the highways and the chance of having a small collision where you damage somebody else’s vehicle or injuring somebody is, larger on the physical damage side. You’ve got to make sure that you have hired auto physical damage. A lot of commercial auto policies and a lot of commercial general liability policies that have hired auto liability insurance do not automatically include the hired auto physical damage.

You have to ask for that specifically? Need to either ask for that specifically or ask your agent if you have it and if you don’t, then make sure they add it before you rent the vehicle. And then my recommendation is that you still buy the physical damage side when you’re at the counter. And you know when you’re talking about the total expense of a business trip, which you know by the time you fly somewhere, stay in a hotel a couple of nights, and you take your client out. The 20 bucks a day is not something that’s going to, break you up, but make sure you have the hired auto liability and make sure you have the hired auto physical damage if you’re not going to buy the coverage at the counter rental counter. Yeah, yeah, yeah. You need to make that you do have that coverage.

Buy The Physical Damage To The Rental Vehicle

The easy answer for, do you really need to buy a rental car insurance for your personal auto would be at least the physical, yeah, least the physical damage. The answer is maybe, answer is sometimes, but the my, recommendation is that you, at least by the physical damage. The commercial policy, so you’re on a business trip and you’re going out and you’re buying the rental car policy. Again, it’s the same answer. Check your policy beforehand, but at least buy the physical damage. Don’t assume anything. All right. Well if you have any questions on our topic today, please call Bancorp insurance at 1-800-452-6826. Do you have a questions for us that you’d like to hear the answer on the show? Email us at Bancorp@bancorpinsurance.com thank you and remember that Bancorp Insurance will be there for you for the what “ifs” that happened to your family, you and your business.

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