Are Additional Drivers on my Rental Car Covered by My Auto Insurance?
Many companies now charge a per-day charge for additional drivers. One agentwarned me that we could be arrested if a non-listed driver (even one over 25)was stopped for a routine traffic violation.
Others have said that the car rental agreement would become invalid, resulting in other problems, if additional drivers on the rental car were not "signed on".
My insurance company has told me that I and my designated drivers are covered when I rent a car. What is the REAL answer? Do I have to sign on addtional drivers? Thank you so much.
What your insurance company may not realize, is that when you rent a car, you're required to sign a contract (a legally binding document) and part of that document lists who will be driving the vehicle. In that document, you must either inform the car rental company of who exactly will be driving the vehicle and have them approved by the rental company, or you may tell them (and sign something) to indicate that no one else will be driving.
Additional drivers are generally required to complete and sign an additional driver form at the rental counter. If the rental car was pulled over and there was a person driving who was not listed on the rental contract, the vehicle may legally be considered stolen, and the car is usually impounded immediately and the rental company contacted.
If you had an unauthorized driver, driving your rental car and they were in an accident, any coverage for loss or damage to the rental car that you may have purchased through the car rental company would be invalid because you would have violated the terms and conditions of your rental contract.
When you say "My insurance company has told me that I and my designated drivers are covered when I rent a car." .. is your insurance company speaking of public liability and property damage coverage or coverage of loss or damage to the rental vehicle itself, or both?
In most states, car rental companies are required to carry basic public liability and property damage on their vehicles, up to the minimum limits required by state law. This protects OTHER people and property in case of an accident .... NOT the rental car itself. It automatically covers basic liability or may supplement your own liability coverage that extends to you when you drive another vehicle... this is how you can rent a car even if you do not own a car or have your own personal automobile insurance.
But you must also remember that you are fully financially responsible for the rental vehicle, including damage, loss (due to theft) and a fee for loss of use, should the vehicle be unable to be rented for a certain period of time.
Your insurance company may use the word designated driver, while the car rental company uses the word authorized driver.
I would specifically ask your insurance company about a scenario regarding them extending their coverage (and what type of coverage it would be) from you to a driver that you allowed to drive the vehicle in violation of the rental contract, that you signed, aknowledging that you would comply with all of the terms and conditions set forth in the agreement.
For example:
Ask them specifically what would happen if you sign a rental contract, stating that you will be the only driver of the rental car, but then allow someone else to drive the rental car. Let's say that person got into an accident and caused $7000 worth of damage to a parked car on the side of the road and $8000 worth of damage to the rental car.
Would your insurance company be willing to cover both those items, plus pay for the loss of use fee charged by the rental car company, even though you had signed a contract stating that no one else would be driving the rental car?
I can understand you wanting to save yourself the fees associated with having an additional driver, but make sure that you know what the consequences would be, should something happen while that unauthorized person was driving the car that you rented.
Hope this helps!
Read more about:
Additional Drivers
Car Rental Insurance Overview
Personal Auto Insurance Coverage
CDW and LDW Coverages
Credit Card Coverages
Category Article additional drivers, car rental Insurance
