The level of coverage available to the car’s driver would depend on the terms in his or her own insurance.
Those terms might include mention of liability and compensation for motor vehicle collisions.
If that were the case, then that provision could probably be used to cover the rental car. Of course, the policyholder should not assume the availability of such coverage. Rather, that same policyholder should call the insurance company, in order to check on the nature of coverage provided by the liability and compensation provision.
Moreover, the policy’s terms usually give the amount of coverage for a simple and average-sized automobile. Hence, the liability and compensation provision on a personal policy would probably not cover the damages to a luxury model, if that driver/policyholder had chosen to rent a luxurious set-of-wheels.
That is why a rental company might hesitate to give a customer an upgrade to what had been promised on a coupon. That same customer might not be able to pay for any conceivable damages. Still, that fact could not be used as a reason for providing the same customer with the chance to get behind the steering wheel of that particular upgrade.
Rental insurance can be used to guarantee coverage, in the event that the driver’s own policy did not cover an automobile with the value of the rented vehicle.
Some rental insurance can supplement the liability provision.
Some rental insurance can function as personal accident coverage. In other words, it covers medical expenses.
In addition to insurance, companies that rent motor vehicles also give customers the chance to pay for loss damage waiver protection. That guarantees the fact that the rental company will assume liability for any damages or theft that might take place, while the signer of the waiver is driving the protected vehicle.
The loss damage waiver also has a second function. It ensures coverage of the loss suffered by the rental company, in the event that one of its vehicles no longer qualifies as a moneymaking object within the company’s inventory.
Rental insurance does not cover every conceivable situation
If the rented vehicle were taken into a body of water, and the water flooded that same vehicle, then that might not be covered under the loss, damage waiver. Still, that does not mean that no customer could be safe from the consequences of such an incident.
Those renting an automobile or a larger vehicle always have the right to pay by using a credit card. Some credit card companies cover losses that are not covered by insurance. A personal injury lawyer in Los Banos would never overlook the fact that a client had rented a damaged vehicle by using a credit card.