Does Safeco Auto Insurance Cover Rental Cars?

Safeco auto insurance offers rental car reimbursement, which helps pay for the cost of renting a car while the policyholder's car is in the shop for repairs after a covered loss. This is included in most states as part of the auto insurance policy, although some restrictions may apply depending on the specific terms of the policyholder's plan. For example, in most states, the policyholder is responsible for the cost of fuel, loss-damage waivers, and fees for underage drivers. Safeco also offers Loss of Use coverage, which is an optional coverage that provides rental car reimbursement.

Safeco's Rental Car Reimbursement

In most states, you are responsible for the cost of fuel, loss-damage waivers, and fees for underage drivers. It is also important to note that Safeco's Rental Car Reimbursement has daily limits, and the payment will be limited to the period of time reasonably required to repair or replace the vehicle (up to your policy limit). This may vary by state.

It is worth mentioning that Safeco's Rental Car Reimbursement is different from rental car insurance offered by rental car companies. Rental car insurance is typically offered at the time of rental for an additional daily charge and acts as supplemental liability insurance. This type of insurance is excess to your current policy, meaning that it only comes into effect after your current policy limits have been exceeded.

Before deciding whether to purchase rental car insurance from a rental car company, it is essential to understand what your personal auto policy covers. Your local independent agent or Safeco's customer support can help clarify your coverage details. Additionally, your credit card company may offer rental car insurance if you use their card to pay for the rental, so it is worth checking with them as well.

In summary, Safeco's Rental Car Reimbursement provides temporary coverage for renting a car while your vehicle is being repaired, but it is important to understand the limitations and variations by state. Rental car insurance offered by rental car companies is supplemental and should be considered based on your specific needs and existing coverage. Consulting with your independent agent or Safeco's customer support is recommended to make an informed decision.

Loss of Use

Additionally, Loss of Use coverage can provide reimbursement for the loss of rental property income. If your rented property becomes uninhabitable, Safeco can help cover the income lost during the period of repairs.

Supplemental Liability Insurance

SLI is typically offered with a maximum combined single limit of liability ranging from $300,000 to $1,000,000, depending on the rental company and the jurisdiction. It is important to note that SLI does not cover any prohibited use of the rental car, as outlined in the rental agreement. Additionally, it does not cover bodily injury or property damage to any insured individuals or their relatives residing in the same household.

When considering whether to purchase SLI, it is essential to review your existing insurance policies, as there may be some duplication of coverage. Your personal auto insurance policy may already provide liability coverage for rental cars, and your health, life, or car insurance policies may also offer benefits that overlap with SLI. However, if you are travelling abroad, it is worth noting that U.S. auto insurance policies often do not provide coverage outside of the country, so you may need to purchase additional liability insurance for international rentals.

In summary, Supplemental Liability Insurance offers added protection against third-party claims and can provide peace of mind when renting a car. However, it is important to carefully review the terms and conditions of the policy, as well as your existing insurance coverage, to ensure you understand what is and isn't covered.

Collision Damage Waiver

A Collision Damage Waiver (CDW) is an optional extra offered by car rental agencies to help pay for damage to the rented car. This is sometimes called a Loss Damage Waiver (LDW) or Physical Damage Waiver. The waiver’s cost depends on various factors, including the rental car type and location.

A CDW covers auto damage during the rental period and sometimes theft. If you choose not to get a CDW, you must explicitly decline the coverage. If you want to purchase a CDW, you’ll pay an additional daily fee on top of the rental fee. The fee amount can depend on the car’s cost—for example, you may pay more per day for a very expensive vehicle.

With a CDW, if the car is damaged, the rental company waives its fees for repairing the car and any loss of use charges that occur while the rental vehicle undergoes repairs. Some agencies offer a partial damage waiver or a damage waiver with a deductible. These coverages cost less but only partially pay for any damages.

A CDW typically covers losses from any damage to a rental car while in your possession. This includes weather-related damage, damage to the car while parked, and accident-related towing. Rental agency coverage will also typically cover the agency’s administrative fees and any daily lost revenue due to the vehicle being out of rotation (also called loss of use).

In some cases, you must purchase a separate theft protection plan to cover car theft. In other cases, state law may say you’re not responsible for theft or you’re only liable for a limited amount of vandalism- or theft-related causes, even without a protection plan.

A CDW does not cover damage to other cars, bodily injury to other people, injuries to you or your passengers, or theft or damage of your personal items in the vehicle.

Depending on the state where you’re renting the car, liability coverage may be included in your rate or it may only kick in after the liability coverage through your personal insurance has been exhausted. Your personal auto policy or health insurance can also help cover you for injuries, while your homeowners policy may cover theft.

A CDW can reduce the risk of an incident being reported to your insurance company and help you avoid paying your insurance’s deductible if you damage the car. However, a credit card with secondary coverage can also cover the deductible.

Personal Accident Insurance

When renting a car, personal accident insurance can be purchased as an add-on to cover injuries or death of the driver and passengers in the rental car. This can be especially useful if your personal auto insurance policy does not cover rentals or if you are travelling in a foreign country.

Some key benefits of personal accident insurance include:

• Lump-sum benefit payments that can be used for out-of-pocket medical expenses, extra help around the house, transportation, or any other needs.
• Coverage for a range of accidental injuries, such as severe burns, broken bones, and emergency room visits, as well as diagnostic testing.
• No waiting period, allowing policyholders to file claims immediately after a covered accident.
• Coverage for accidental death, providing financial support to designated beneficiaries.

Frequently asked questions