REDUCING RISK
RENTAL CAR INSURANCE
CONSIDERATIONS
When it comes to renting vehicles for business use, it’ s important to understand your coverage options to smooth out any surprise bumps in the road. Since coverage varies from one rental agency to the next, it’ s important to know the risks and how to protect against them.
For years, we have been advising our clients to purchase hired car physical damage on their business auto policy and to reject the“ insurance” offered when you rent a car. Since hired car physical damage covers rented vehicles the same as it would an owned vehicle, why pay more for loss damage waiver( LDW) or a collision damage waiver( CDW)? Because rental agreements have evolved in recent years and possibly create pitfalls for auto renters.
ABOUT YOUR BUSINESS AUTO POLICY
If you are relying on your hired car physical damage on your business auto policy to protect you, but the vehicle isn’ t rented by the business, the hired car physical damage coverage won’ t respond to claims. Your employees should use the business name on the agreement and pay with a business credit card, if possible.
4 • SpectrumInsGroup. com