Does my car insurance carry over to my rental car? Your Massachusetts Auto Policy does transfer over to your rental car but there are some things to think about especially if you have Springfield Auto Insurance.
If you are going on vacation and you are going to rent a car – be sure to bring a copy of your policy with you.
In addition, there is something important to know.
This is where it gets a bit tricky.
The Massachusetts Auto Policy pays out based on “Actual Cash Value” – in other words the ACV of the car at that moment. However, the rental car companies want to get reimbursed based on “Replacement Cost” – this can represent thousands of dollars in different values.
If the rental car has a cash value of $20,000 but the replacement cost is $23,000 that is what the rental company will be looking for. The insurance company will pay out the $20,000 but that’s $3000 short of what will settle the claim.
So, the moral is that it is best if you purchase the rental car insurance from the rental agency – this insurance is designed specifically for the rental car. I know it is a bit more expensive for the rental car insurance but if something happens it can be well worth it.
It is up to you. The important thing is that you understand car insurance and your rental car and know the answer to does my car insurance carry over to my rental car.
If you have any questions or concerns about this situation please feel free to call our office and we will assist you.