Car Insurance Consumer Concerns
One potential pitfall that takes many motorists by surprise is the “hold harm less” clause in some rental agreements that make the rental company blameless in any lawsuits stemming from use of their vehicle.
If you’re not careful, you can in effect render your own coverage void by such an agreement. Say you hit a pedestrian in a defective rental vehicle from ‘ABC Rental’ (fictional name) and are subsequently sued, your own carrier may say they won’t defend you because, under the hold harmless cause in the rental contract, they can’t recover the cost from ABC.
You might want to pick up a collision damage waiver on a rented car even if it fully duplicates your existing coverage. Some treat a rented vehicle almost like it was a second car. However if you should have an accident while driving a rented vehicle on a trip, the rental company may want their money “up front. If you haven’t taken the collision damage waiver, they don’t want to wait for your insurance to settle the claim and may even attach your credit card for the funds.
On the other hand, if you have purchased the waiver, “it will be no muss, no fuss,”
Like other insurance officials tracked, experts strongly advise policy-holders to check with their own agent if they have doubts about buying the collision damage waivers.
Policies vary from company to company. For instance, some may have some exclusions of coverage for rental vehicles that are used for business, rather than a vacation trip.
There may be some “ifs” and “buts” in the collision damage waivers, themselves that customers should be aware of, both pointed out.
Some of the most important fine print in typical contracts involves the driver’s behavior. Many of the waivers are voided, for instance, if the customer’s accident is caused by speeding, driving on unpaved roads or driving while intoxicated.
Some people can obtain limited coverage on rental vehicles through sources other than the damage waivers or their auto insurance policies.
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