My friend went to a car rental last week since her car broke down which she is still using until now. And in the car rental, she was given a waiver, is that something like a car insurance and just different style? How can one still be insured even if they just borrowed a car here in Palm Beach, Florida?

Kim

Brandon, FL

Cars nowadays are necessity it is hard sometimes for us to go to a short or long distance place without it. This is the reason why in the State of Florida there are a lot of car rentals. But it is still advisable for a driver with rented car to have a Car Insurance policy.

Car Insurance Companies usually offer a Non-Owner Policy for those who doesn’t have a car of their own and usually borrow or rents a car. This policy pays for the injuries and damages that you have incurred to the other driver in case you are driving a borrowed or rented car but this policy doesn’t pay for your own injury and damages. Car Rental agencies in Palm Beach, Florida usually offers a Collision Damage Waiver and Liability policies but this is not an insurance, it just an arrangement that the certain car rental agency will relinquish its right with certain exceptions and to pull through from the borrower the cost of damage to the car. If you have your own car insurance then it might already cover the damage to the rented car though your policy might have its own limit that might be smaller than the worth of the rented car. If your car insurance has a low coverage limit then you might as well increase it. Your car insurance might have a higher premium but then again it is cheaper than buying the additional coverage from the car rental.

Will my car insurance coverage here in Palm Beach, Florida extend to a rental car? If the money I paid for a rental car already includes insurance and I get into an accident, which insurance will cover the damage?

Agustín

Palm Beach, FL

The collision coverage in your own car insurance policy in Palm Beach, Florida would probably provide coverage for damage you cause to any vehicle that you drive, as well as a rental vehicle. But a lot of car insurance policies state that your personal collision coverage is “excess” to whichever coverage, which means that any coverage you purchase from rental vehicle company come in first. Furthermore, your personal collision coverage needs you to pay a deductible and your insurer pays the remainder up to your coverage limit.

The comprehensive coverage would probably extend to whichever rental vehicle you’re driving and provide coverage for theft, vandalism, storm, etc. Also, your own comprehensive insurance is excess and you have to shell out some amount for your deductible.

For an accident in which you were at-fault, your auto liability coverage would pay for the damages you bring about to another person/s, as well as any medical bills from your carelessness. The liability coverage would pay up to the maximum value of your policy and in case you are driving a rental car when you got into an accident, your own liability coverage would also be excess.