FRIDAY, JANUARY 29, 2021
Does Commercial Auto Insurance Cover Rental Vehicles?
Commercial auto insurance policies can sometimes provide coverage for a rental vehicle after an accident, but this depends on your policy.
Say one of your employees is involved in an accident while operating a commercial vehicle. If your policy covers rentals, you can receive compensation for the cost of renting a replacement while the original commercial vehicle is being repaired. However, renting a vehicle for work purposes comes with its own risks.
Driving rental vehicles puts more liability pressure on your business. This is why most commercial auto insurance policies also offer Hired and Non-Owned Auto Insurance. This insurance covers hired vehicles, borrowed vehicles and, in many cases, rented vehicles in case of an accident. Hired and Non-Owned Auto Insurance generally only covers liability, however, so you may need additional coverage on your commercial auto insurance policy, such as:
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Comprehensive Coverage: Comprehensive coverage provides compensation for damages to the vehicle caused by fire, wind, hail, lightning, falling objects, theft, vandalism and other incidents not involving collision.
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Collision Coverage: Collision coverage provides compensation for damages to the vehicle caused by a collision with another vehicle or object.
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Medical Payments Coverage: Medical payments coverage provides compensation for medical bills the driver and their passengers may face after an accident, no matter who caused the accident.
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Uninsured/Underinsured Motorist: This insurance covers damages incurred in an accident involving another driver who is not carrying insurance.
Be sure to speak with your insurance agent and double check your policy to see what kind of coverage you should expect in case of an accident.
Does Commercial Auto Insurance Cover Personal Vehicles?
Say that instead of renting a vehicle after an accident, you instead choose to use your personal vehicle to perform work activities while the commercial vehicle is being repaired. In this case, insurance can grow a little complicated. Many personal auto insurance policies don’t typically cover commercial use. If your vehicle is not listed on your commercial auto insurance policy, it may not be covered, as well.
Before choosing to drive your personal vehicle for work, review your policy and check with your insurance agent to make sure that you will be covered in case of an accident.
If you need to rent a vehicle after a commercial vehicle accident, ask your commercial auto insurance agent if your policy will cover the cost or if you will be paying for it out of pocket.
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