Important Information for Rental Car Road Warriors....
NORTHBROOK, Ill.--July 1, 2003--With the July 4th holiday and a long weekend approaching, many people will be renting cars and embarking on their yearly summer road trips to visit family and friends. Allstate has issued a timely reminder to travelers that when renting vehicles for their holiday getaway, they need to have insurance, for example, from their existing auto policy or specific coverage purchased at the car rental counter."Allstate customers frequently ask us - do I have insurance coverage when I rent a car?" says RJ Young, vice president for field operations, Allstate Insurance Company. "The short answer is - it depends. If you're going to be renting a car this coming weekend, you should first check your policy or with your insurance agent to see what coverage you have."
According to Young, before renting a car, people need to check their policy to confirm the coverage and limits they have. In some auto insurance policies from Allstate, some of the coverage, limits and deductibles carried on your personal auto policy will apply to a rental car. This can save you money, because you may not need to buy the optional insurance from the rental car company. However, if you don't have comprehensive and collision coverage on your own car, you may not be covered if the rental car is stolen or damaged in an accident. In addition, individuals may want to write down their policy numbers. Certain car rental companies may request the information when choosing to forgo the coverages they offer.
Consumers should always remember that all coverage depends upon their individual insurance policy, the rental car company's insurance coverage, and state laws.
Other issues that may come up when renting a car:
| -- | If I have an accident do I have to pay for the rental car while the vehicle is being repaired? Many times the rental car company will require that customers continue paying for the rental car while it's being repaired. Some insurance policies do not cover this cost. |
| -- | Are drivers under the age of 25 covered under their own auto policies? Generally, as long as the driver is named on the auto insurance policy. It is important to note that the driver's coverage while driving the rental car will vary depending on their specific policy. |
| -- | Who is covered to drive the rental car? - While drivers listed on the auto policy may be covered, it may be important to provide rental car companies with the names of individuals that will be driving the vehicle, as policies vary by rental car company. |
| -- | What issues exist when driving the car internationally - to Canada or Mexico specifically? Many policies are extremely limited in their ability to provide coverage for drivers traveling into Mexico. Canada, however, is a territory that is covered by some policies. Check the policy for further information. |
If consumers do not have auto insurance, they should consider purchasing coverage at the car rental counter. The following coverage options may be available:
-- Collision Damage Waiver (CDW) - Sometimes called a Loss Damage
Waiver (LDW), this coverage may relieve the customer of
financial responsibility if the rental car is damaged or
stolen. The CDW may be void, however, if you cause an accident
by speeding, driving on unpaved roads or driving while
intoxicated. CDW does not provide liability protection.
-- Liability Insurance - This may provide excess liability
coverage of up to $1 million for the time a car is rented.
Rental companies may be required by law to provide the minimum
level of liability insurance required by state where you rent
the car, but generally this will not offer enough coverage in
the event of a serious accident.
-- Personal Accident Insurance - This may provide coverage to the
driver and his/her passengers for medical and ambulance bills.
It may be unnecessary if individuals are covered by health
insurance or have adequate medical coverage under personal
auto policies.
-- Personal Effects Coverage - This may provide coverage for the
theft of personal items in the car. However, if you have
homeowners or renters insurance you may be covered for items
stolen from the car, minus the deductible.
The cost of insurance at the rental car counter will vary depending on the rental car company, state, location of the dealer and type of car being rented.
The Allstate Corporation is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate(R)" slogan, Allstate provides insurance products to more than 16 million households and has approximately 12,300 exclusive agents and financial specialists in the U.S. and Canada. Customers can access Allstate products and services through Allstate agents, or in select states at allstate.com and 1-800 Allstate(R). Encompass(SM) and Deerbrook (R)Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group includes the businesses that provide life and supplemental insurance, retirement, banking and investment products through distribution channels that include Allstate agents, independent agents, financial institutions and broker-dealers.