Do I need to buy insurance from rental car company?

Buy insurance from rental car company? It depends.

Do I need to buy insurance from rental car company while on vacation?

It’s a common and great question. The answer is: it depends.
The following is an actual, e-mail our Agency received this afternoon.
(The names and e-mail addresses have been changed to protect the innocent.)
——– Original Message ——–
Subject: Rental Car Insurance Question
Date: Tue, February 14, 2017 12:59 pm
Dear Johnson & Rohan Insurance,
I hope you’re doing well.  I’m heading to Florida with the family and renting a van.  The car rental companies are always trying to get me to purchase additional insurance.  I always decline thinking that my current auto insurance will cover me .  Is that true?
Thanks in advance,
Longtime Client

Need to buy insurance from rental car company?

Dear Longtime, Massachusetts Auto Insurance Client,
Yes, your Massachusetts personal auto coverage will apply to the rental vehicle and you can turn down their additional coverage offers.
However, this is as long as:
  • you’re renting a private passenger-type vehicle (vs. moving van)
  • vehicle is being used as “substitute transportation” (ie – on vacation)
  • vehicle is being used for for pleasure (vs. business)
Your MA personal auto coverage applies to rental vehicle including $100,000 per person/$300,000 per accident liability limits. Damage to rental vehicle subject to policy deductibles.
So, again, you can turn down on their additional coverage offers and pay their base, per-day rate.
The only thing your auto policy won’t cover is: loss of rental expense (days of lost rental for repairs to the rental vehicle). Most credit cards, however, include this loss of rental expense.
(FYI- Coverage does not apply outside of US, Canada and US territories and possessions.)
Please call or e-mail with any questions or to discuss.
Thank you,
Johnson & Rohan Insurance