If you plan on renting a car, you can count on being asked about purchasing insurance coverage through the car rental company. Whether you buy coverage from the rental agency or use your own, it’s wise to make sure you have enough insurance to pay for costly repairs if you suffer an accident in a rental car.

Coverage on a New York state personal auto policy follows the policyholder while driving a rental car, but renters need to know that most personal auto policies have territorial limits. This means coverage will not apply outside stated locations, such as, the United States, its territories and Canada. However, a personal umbrella policy may fill some of the territory gap in coverage. Consequently, your first consideration will be where the car is to be rented and on what your policy will rely.

Most states have a financial responsibility law that requires registered vehicles to have a minimum amount of liability insurance. Depending on the law in the state the car is rented and the wording of the renter’s personal auto policy, the minimum coverage likely will be provided by the rental car company.

Rental car companies offer insurance to protect renters who damage the rental car. These “collision damage waivers” do not need to be purchased if you have a New York personal auto policy. By law, New York policies must cover all obligations assumed by the insured for damage to the rented car. There is no deductible, no limit, and no requirement to have similar physical damage coverage on your own car (only liability coverage). *Note that this automatic coverage is limited to rental periods lasting no longer than 30 days.

If you are using a major credit card, rental car coverage may be available through the credit-card company. This coverage varies significantly by covered expenses, type of vehicle, location of rental and length of rental term. Typically, the coverage is secondary to a cardholder’s own personal auto policy within the U.S., but it’s wise to check with your credit-card company for coverage details before you rely on it.

When you pick up your car, be sure to check its condition prior to driving it. If it already is damaged, record the damaged areas on the rental contract and bring it to your rental agent’s attention before driving off with it. If damage occurs after you rent the vehicle, do not allow the rental car company to charge these damages to your credit card. If you are involved in an accident or suffer a loss, contact our office, or your credit-card company (if you’ve relied on them), as soon as possible. This is important because the company providing the coverage needs time to inspect the vehicle and to be sure that all repair charges imposed by the rental car firm are proper and reasonable.

It’s a lot to think about as you embark on a trip. Give us a call before you leave, so the decision will be easy at the rental counter.