We get this call all the time at the agency! When going on vacation do I need to purchase the insurance they offer on my rental vehicle? That questions has a few different components to it.
The first question we would ask our client is “where are you going”. The reason we ask that question is because, If you are going somewhere within the United States or its territories then your personal Auto Insurance policy follows you. All of your limits follow you and you are covered in the US.
The second question we would ask is “how long are you going for?”. The reason we ask this question is because if you are going somewhere in the US and you are going for more than a month. The insurance companies would not see that as a vacation any more they would see that as a regularly used vehicle and that brings up a whole other situation. Luckily most people vacationing in the US do not use a rental vehicle for that extended amount of time but, it’s always good to keep that in mind.
The one thing that we caution our vacationers about is, that although your Personal Auto Policy does follow you in the US, it does not cover what is called “loss of use”. This term refers to the time that the rental vehicle is down to be repaired if you where to have an accident in the vehicle. Some rental companies offer protection for this for a small amount of money.
To get down to the bottom of it, if you are vacationing inside the United States and are going for a few weeks then, No you do not have to purchase the insurance offered by the rental company but, please be aware that you may be held accountable for the loss of use.
As always, if you have any questions or concerns about your travel plans and the rental, give us a call. We would be happy to talk to you about your specific situation.