Rental Car Coverage Advice for Michigan Drivers

Most drivers have no idea if they should purchase the additional insurance offered by rental car companies. When it comes to renting a car, especially out-of-state, Michigan No Fault insurance attorneys will almost always recommend purchasing additional rental car coverage.

Why purchase rental car insurance coverage if I have No-Fault insurance in Michigan?

The big reason is car damage. With most No-Fault policies today, there is an open question on whether the car damage to a rental car will be covered by your own auto No-Fault policy, even if you have purchased collision coverage for your own vehicle. Ask your insurance agent about car damage and whether the coverage on your personal vehicle extends to a rental car. In many cases, renters are not appropriately covered and should purchase the additional insurance to minimize the risk. Even if a car accident is not your fault, you don’t want to get stuck with a $20,000 bill for vehicle repairs.
Most rental car companies offer customers the option to purchase additional coverage such as:

• Collision damage coverage
• Personal accident insurance
• Supplemental liability protection

The risk of relying on your Michigan No-Fault insurance policy when renting cars out of state

The good news is if you have No-Fault in Michigan and you are injured in a car accident in another state, you will still be able to collect No-Fault benefits for medical bills, wage loss, replacement services, mileage, and attendant care. But for out-of-state rental use, the main risks of only relying on your own Michigan No-Fault insurance policy and not purchasing the additional rental coverage include uninsured and underinsured coverage, the possibility of a reduced bodily injury coverage that can leave you personally exposed, and as said above, car accident collision damage to the vehicle.

Also, very important insurance options such as uninsured and underinsured motorist coverage may not transfer over to the rental car you are driving if you become seriously injured in a car accident. Again, check and find out before you leave with your agent.

As a final note, check your credit card. Some credit card companies will pay for vehicle damage if the rental car is purchased on their card.

In general, as with most insurance contracts, rental car insurance policies are deliberately written to be confusing. They also include a lot of exceptions and exclusions that, combined with the exceptions and exclusions of your own auto No-Fault policy, have been the subject of many seminars for lawyers and insurance adjusters on what is and isn’t covered.

Insurance policies and contracts for rental cars change often. It’s safest to assume with rental cars that your own Michigan No-Fault policy will likely be deficient and will not protect you fully if you’re involved in a car accident in a rental car out of state.
For additional car accident resources including checklists and what no fault benefits you are entitled to, visit the Car Accident Resource Center

Steven M. Gursten is recognized as one of the nation’s top experts in serious car and truck accident injury cases and automobile insurance no-fault litigation. As a partner in Michigan Auto Law, Steve Gursten recovers some of the highest reported settlements and jury verdicts in Michigan every year, including the top-reported car accident or truck verdict and settlement in 2008, 2009 and 2010.

The accident attorneys of Michigan Auto Law exclusively handle car accident, truck accident and motorcycle accident cases. The law firm has offices in Farmington Hills, Sterling Heights, Ann Arbor, Detroit and Grand Rapids to better serve victims injured throughout Michigan. Contact us at 1-800-777-0028 to speak to an auto accident attorney.