Direct Auto: Renters Insurance Available?

Direct Auto Insurance offers rental car insurance, but it is not clear if this includes renters insurance. The website mentions rental car insurance in the context of renting a car for personal or vacation use, rather than insurance for renters of properties. It is important to note that rental car insurance and renters insurance are two different types of coverage. Rental car insurance covers the vehicle, while renters insurance typically covers a renter's personal belongings and liability while renting a home or apartment. It is recommended to contact Direct Auto Insurance directly to clarify the specifics of their rental car insurance coverage and whether it includes any provisions typically associated with renters insurance.

Credit card rental coverage

Many credit cards offer rental car insurance as a benefit. This insurance typically covers damage to or theft of a rental car. However, it's important to understand the specifics of your credit card's rental car insurance before declining coverage from the car rental company.

Here's a step-by-step guide to help you navigate credit card rental coverage:

Step 1: Understand Your Credit Card's Coverage

Before renting a car, carefully read the terms and conditions of your credit card's rental car insurance. Note any exclusions, such as luxury vehicles or certain countries. You can find this information in your credit card's guide to benefits or by calling the phone number on the back of your card.

Step 2: Book Your Rental Car

Reserve your rental car using the credit card that offers rental car coverage. This is important because the insurance is usually only valid if the rental car is paid for with the same card.

Step 3: At the Rental Agency

When you arrive at the rental agency, use the same credit card to complete the payment and decline the collision damage waiver offered by the rental company. This step is crucial, as purchasing their coverage may nullify your credit card's rental insurance.

Step 4: Understand the Coverage Limits

Credit card rental insurance typically covers damage to or theft of the rental car. However, it may not include liability insurance, personal accident insurance, or personal effects insurance. Additionally, certain types of vehicles, such as luxury or exotic cars, may be excluded from coverage.

Step 5: File a Claim

In the event of an accident or mishap, contact your credit card company to file a claim. If your credit card's coverage is secondary, you may need to file a claim with your primary insurance first. Be sure to submit any required documentation, such as a copy of the rental agreement, accident report, or repair estimate, within the required timeframe.

Primary vs. Secondary Coverage:

It's important to understand the difference between primary and secondary rental car insurance. Primary coverage allows you to file a claim directly with your credit card company, bypassing your personal auto insurance. This can help you avoid paying a deductible or experiencing a rate hike. Secondary coverage, on the other hand, requires you to file a claim with your own insurance first, and the credit card insurance may cover additional costs not covered by your policy.

Exclusions and Limitations:

Credit card rental insurance typically has exclusions and limitations. For example, certain types of vehicles, such as exotic cars or motorcycles, may be excluded. Additionally, there may be limits on the rental period, with some policies covering only a few weeks or a month. Be sure to check your credit card's specific coverage details.

International Rentals:

If you're renting a car internationally, pay close attention to the coverage details. Some credit cards may exclude certain countries from coverage, and the coverage limits may vary. In some cases, your secondary coverage may become primary if your personal auto policy doesn't cover international rentals.

By following these steps and understanding the specifics of your credit card's rental coverage, you can confidently navigate the rental process and ensure you have the protection you need.

Personal car insurance coverage

There are several types of personal car insurance coverage, including liability coverages, vehicle coverages, coverages for yourself, and other optional coverages. Liability coverages include bodily injury liability and property damage liability. Bodily injury liability covers the cost of injuries or death resulting from an accident for which you are at fault. This coverage extends to you, the designated driver, or policyholder, and any family members listed on the policy who are driving someone else's car with their permission. Property damage liability, on the other hand, covers damage to someone else's property resulting from an accident that is your fault.

You can also opt for medical payments coverage or personal injury protection (PIP), which covers the treatment of injuries to the driver and passengers, including medical payments, lost wages, and the cost of replacing services normally performed by someone injured in the accident. PIP may also cover funeral costs. Collision coverage pays for damage to your car resulting from a collision with another vehicle or object, regardless of fault. Comprehensive coverage, often referred to as "other than collision," includes damage to your car from vandalism, theft, weather events, and accidents involving animals.

In addition to these basic coverages, you may also want to consider uninsured and underinsured motorist coverage. Uninsured motorist coverage will compensate you for injuries or property damage caused by a driver without insurance, while underinsured motorist coverage protects you from at-fault drivers whose insurance is insufficient to cover the costs of an accident. Other optional coverages include emergency road service, rental reimbursement, and mechanical breakdown insurance.

It's important to note that there is no such thing as "full coverage" in car insurance. Each type of coverage is priced separately, allowing for variability in policy limits and pricing. By understanding the different types of coverages available, you can select the right combination of coverages and limits that suit your unique needs and budget.

Liability and physical damage coverage

Renters' insurance covers liability and physical damage, and it is not required by law. However, your landlord may require you to have it before you sign your lease. Liability insurance covers you if you cause harm to others or their property through accident or negligence. This includes medical expenses and legal costs if someone sues you for an accident that happened in your home. For example, if a friend comes over and trips over an extension cord, breaking their wrist, liability insurance would cover their medical expenses and legal fees if they decided to sue.

Personal liability insurance also covers damage to other people's property for which you are responsible. For example, if you accidentally cut down a tree that falls on your neighbour's house, liability insurance would cover the cost. It also covers damage to other people's property caused by pets or other members of your household. For instance, if your dog bites someone outside your household, your liability insurance will likely cover their injuries.

Personal liability insurance does not cover injuries to yourself or other members of your household. It also does not cover damage to your personal property. Instead, you would need to purchase separate personal property coverage, which pays for your belongings if they are stolen or damaged in a disaster. Loss of use coverage is another type of coverage that pays for expenses if you have to move out while your home is being repaired.

Liability-only insurance for renters can be difficult to find, as standard renters' insurance policies are more common. However, some companies do offer it. When deciding how much liability insurance you need, it is recommended that you select at least enough to cover the value of your assets, including your car, bank accounts, and retirement savings. This will reduce the chances of a lawsuit wiping out everything you own.

Rental car insurance costs

The cost of rental car insurance can differ depending on the type of coverage. Supplemental liability insurance, which increases the amount of liability coverage, costs $8 to $17 per day. A collision damage waiver, which excuses the renter from paying for any damage to the rental car, costs $12 to $30 per day. Personal accident insurance, which covers medical bills for the driver and passengers, costs $3 to $13 per day. Personal effects coverage, which protects personal items in the rental car, costs $1 to $2 per day. Finally, roadside assistance coverage, which covers costs for lockouts, battery changes, fuel delivery, etc., costs $8 to $10 per day.

It is important to note that you may not need to purchase rental car insurance if you already have a regular car insurance policy or coverage through your credit card. Personal auto insurance policies usually extend at least some coverage to rental cars, so it is worth checking with your insurance provider before purchasing additional rental car insurance.

Personal effects coverage

• Any items you normally carry with you during an average day
• Purses, wallets, and backpacks
• Laptops, cell phones, and other personal electronics
• Luggage and suitcases
• Other items you brought with you while travelling or are carrying inside the rental car

Your insurer will have certain exclusions for personal effects coverage. Depending on your insurer, your personal effects coverage could exclude the following items:

• Medical supplies, including contact lenses, artificial limbs, and false teeth
• High-end electronics
• Equipment attached to your automobile (like stereo equipment, built-in GPS systems, radar detectors, and CB Radios)

Personal Accident Insurance and Personal Effects Coverage (PAI-PEC) is offered at the time of rental for an additional daily charge. If accepted, the PAI contained in the policy provides the renter and the renter's passengers with Accidental Death, Accident Medical Expenses, and Ambulance Expense Benefits. The PEC contained in the policy insures the personal effects of the renter, additional drivers, or any member of the renter's immediate family who permanently resides in the renter's household and who is travelling with the renter against the risks of loss or damage.

Frequently asked questions