When Renting a Car be Prepared with Proof of Motor Vehicle Insurance Coverage
If you have personal motor vehicle insurance, and you are renting a car, you likely do not need to obtain the insurance a rental car agency offers or tries to sell you. Each company’s insurance requirements and proof of insurance varies, so check the FAQs rental car protection page that rental companies like Hertz and Enterprise post on their website. Just to be safe, when you are ready to pick up the rental car, make sure you are prepared with the proper documentation to show proof of motor vehicle coverage – if necessary. Here is a quick story about the showdown my wife and I had with a car rental agency over proof of insurance. Of course we won. Here is how we dealt with its bozo ways.
The Proof is In the Card
My wife was traveling to Florida and reserved a rental car online – she rented the car from a company we never used before. She scheduled to pick up the rental car after her arrival at the Miami airport. Prior to her departure, I reminded my wife there was no need to purchase the car rental insurance that would be offered by the car rental agency. Our motor vehicle insurance was more than sufficient to cover her while using the rental car. She was prepared, she was carrying proof of motor vehicle insurance with her – both a physical copy and digital copy of our insurance ID card. Based on previous experience, car rental agencies will accept the ID card to verify proof of insurance – some don’t even request the proof. It varies from state to state, but insurance ID cards typically state the policy number, policy effective dates, vehicles and policyholders.
The Drama
My wife called me from the car rental agency and explained the car rental agent would not accept the insurance ID card presented because my wife was not listed as an “insured,” but instead as an “additional insured.” I was irritated, because she clearly had a document showing proof of coverage. Despite my irritation, I told her to hold while and I called my insurance broker’s office.
Within about 20 minutes, my insurance broker emailed me a new insurance card that listed my name and my wife’s name as the insureds. Simple enough. I emailed it to my wife. Done, right? No.
I then got another call from my wife. She explained the car rental agent would not accept the insurance ID card because it was “company policy” to see the certificate of insurance from an insurer. I became enraged and asked my wife to put me on speaker phone. I wasn’t looking for a back and forth conversation, I just wanted to let the rental agent know my displeasure with the situation. I informed the agent he was a bozo and ripped him for not requesting the certificate the first time he spoke with my wife. I then proceeded to rip his company’s policy that attempts to screw people over at the last minute when they are renting cars – how many people are carrying their actual certificate of insurance with them?
Resolution
I was at work and could not get home to take get a copy of our declaration page. However, it was 6 PM in Miami and 3 PM here on the West Coast. So, on the phone again, I called my State Farm broker’s office and explained the situation.
The State Farm associate was surprised that the insurance ID card was not sufficient for the car rental company. The associate said she would email me a declaration certificate in a few minutes. She also pointed out that our current policy did not cover “loss of use.” Loss of use coverage protects an insured from lost income if he/she damages or totals a rental agency’s rental car. Loss of use liability can extend while the car is off the lot, while being repaired or while awaiting replacement. So, just to be safe, for an extra $20 dollars a year, I added the “loss of use coverage.”
After I received the updated declaration page, I emailed a copy to my wife. My wife told me that while she was waiting for me to send her the paperwork, the same issue came up with other individuals. I was not surprised, because I have never experienced this issue with renting a car before. So just beware and be prepared.
After the incident I did go back and check the insurance proof requirements for this rental agency. Its website states “you must provide your insurance ID (declaration page) which has to match the name last name and address of the main driver on the reservation” in order to rent a car. I do understand the policy, the company will want to make sure that customers do have the coverage limits it is mandating. However, I remain of the opinion that its coverage requirements are unrealistic and unnecessary for most drivers – it requests $300,000 liability coverage. Which then necessitates a customer to show a certificate of insurance. I believe this company does this not for the benefit of the driver, but as a method to force drivers to purchase additional unnecessary insurance. Like I said, a total bozo policy.
Be Prepared
Just an FYI for people traveling to Florida and renting a car there – rental car companies in Florida must automatically provide $10,000 in bodily injury liability insurance per person ($20,000 per accident), $10,000 in property damage liability insurance per accident, and $10,000 in personal injury protection (PIP). However, a company is free to mandate a certain amount of liability insurance and proof of insurance. While you may not need rental car insurance by law, it is wise to have additional protection just in case you get in a bad accident or total a rental car. But, don’t let companies take advantage of you and carry the proof you need.
Next time you plan on renting a car try and check out the state law requirements for minimum coverage and also check out the company specific requirements for proof of insurance. It will save you time and money.