For All Your Insurance Needs

Colt’s Commentary – June

Hey there!

It’s your favorite fact-loving friend, Colt. Did you know that the first rental car service started back in 1904? That’s a long time ago!

Speaking of rental cars, I’m here to answer some very important questions about rental cars/ insurance.

A lot of people ask us, “when I rent a car, do I need to get the insurance?” This is a great question…​​

  • When you rent a car, your liability insurance from your personal auto policy usually transfers to protect you while driving the vehicle.
  • In this case, your comp. and collision would also transfer, but there are certain circumstances that might cause out-of-pocket costs.
    • One example of this is Loss-of-Use: If you are in an accident with a rental vehicle that results in damage to the vehicle and the rental company states that they are losing money because they cannot rent the vehicle while it is in the shop… They might come to you for “loss-of-use”, or the rental payments that they would be getting if the vehicle were not in the shop.
    • You also want to be careful when it comes to vehicle damage coverage, so you don’t end up with an unexpected expense.
  • Coverage varies with each carrier, so if you have any other questions about insurance on a rental vehicle give us a call and we can help!

– Colt


McGovern Agency ~ For all your Insurance Needs!
(586) 464-2400 –


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