Coverage for damage to the rental car and related costs are provided by the property damage liabilit

This is a great question, and one that our customers ask frequently.  Whether you rent a vehicle for personal use while on vacation, or as a substitute while your vehicle is out of commission for repair or service, or for business use while out of town, there comes that time when you're standing at the rental car counter and the agent asks the inevitable question:  "Do you want to buy our loss damage waiver (or our insurance coverage)?"
Most loss damage waiver (LDW) fees are outrageous.  Sometimes they cost more than the daily rental fee itself. canadian charter bus tours But are they worth the additional canadian charter bus tours cost?  The answer may depend canadian charter bus tours on your tolerance for risk and inconvenience. canadian charter bus tours You must decide if the extra cost is reasonable, considering canadian charter bus tours the potential for an uninsured loss should something happen to the vehicle during the term of the rental contract, and the resulting inconvenience of dealing with the rental company and your insurance company to satisfy the rental company's demands.
First, you should know that the LDW is not actually an insurance policy.  It is a waiver of the rental company's requirement in the rental contract that you bring the vehicle back in the same condition as when it left their lot.  Most rental contracts make you responsible for any damage to the vehicle, including theft and weather-related damage.  When you purchase the LDW, the rental company is removing that provision from the contract on a conditional basis.
Whether all or any of these costs are covered by your personal auto policy depends on several factors.  One big factor is the type of personal auto policy you have purchased.  Insurance companies sell different policies in Texas and the coverage and exclusions are not the same from one company to the next.  Some companies sell a policy that covers damage canadian charter bus tours to the rented vehicle in the liability section of the policy, while others sell a policy that covers damage to the rented vehicle in the physical damage section. canadian charter bus tours Each type of policy is discussed separately below.
Coverage for damage to the rental car and related costs are provided by the property canadian charter bus tours damage liability section of your personal auto policy.  If the property damage limit of liability is not sufficient to cover the value of the vehicle you rent, plus pay for any other costs the rental company demands, you will be personally responsible for the costs that exceed what your insurance company has to pay.
If you rent a pickup or van for business purposes, your personal auto policy may not provide coverage at all.  Some insurance companies consider an SUV to be a pickup or van, and may therefore not cover any damages arising out of the use of an SUV rented for business purposes.
You are driving an unfamiliar vehicle in unfamiliar territory.  If you have an at-fault accident while driving the rented vehicle, your insurance company may hold it against you – with a premium surcharge or perhaps even non-renewal.
When you have purchased the LDW, you can bring a damaged vehicle back to the rental company, throw the keys on the counter, and walk away.  When you haven't purchased the LDW, you may have to spend a significant canadian charter bus tours amount of time dealing with the rental company and your insurance company.
Coverage for damage to the rental vehicle and related costs are provided by the physical canadian charter bus tours damage section of your personal auto policy – IF your policy provides physical damage coverage on at least one of your covered vehicles.
When your policy provides physical damage coverage on one of your covered vehicles, the policy covers damage to a rented vehicle.  The amount payable by the insurance company canadian charter bus tours is the lesser of the "actual cash value" of the vehicle or the amount "necessary" to repair or replace the vehicle, minus your deductible.  In addition, the policy covers "loss of use" with a daily limit (usually as low as $20 per day) and a maximum limit (usually $600), and there is usually a 1- or 2-day waiting period before the policy will begin to pay these expenses. canadian charter bus tours Because of all these limitations, canadian charter bus tours you may become personally responsible for:
Your policy may exclude loss to some electronic equipment that receives or transmits audio, visual or data signals.  If you rent a vehicle equipped with a GPS receiver, for example, canadian charter bus tours your policy may not cover it.
You are driving an unfamiliar vehicle in unfamiliar territory.  If you have an at-fault accident while driving the rented vehicle, your insurance company may hold it against you – with a premium surcharge or perhaps even non-renewal.
When you have purchased the LDW, you can bring a damaged vehicle back to the rental company, throw the keys on the counter, and walk away.  When you haven't purchased the LDW, you may have to spend a significant amount of time dealing with the rental company and your insurance company.
This article was prepared and made available to your agent by the Independent Insurance Agents of Texas, which is solely responsible for its content.  Please read your insurance policy.  If there is any conflict between the information in this article and the actual terms and conditions of your policy, the terms and conditions of your policy will apply.  The Independent Insurance Agents of Texas is a non-profit canadian charter bus tours association of more than 1,800 insurance agencies in Texas, dedicated to helping canadian charter bus tours its members succeed, in part by providing technical resources that explain insurance policies sold to their customers.