Rental Car Insurance Considerations

BY: GREG GOETZ, INSURANCE ADVISOR, SPECTRUM INSURANCE GROUP

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 would you pay more for a loss damage waiver( LDW) or a collision damage waiver( CDW)? Because rental agreements have evolved in recent years and can possibly create pitfalls for auto renters.