Will my New York car insurance cover a rental car?
In New York, just about every personal auto policy that we have follows us when we rent a vehicle. The policy would protect you in the event that you were in an accident and caused damage to someone else or to the rented vehicle itself.
A claim such as that could be put through your own insurance policy, with one caveat. The one thing it might not cover is the loss of business use associated to the car in which you were renting.
For example, as a result of the accident, it couldn’t be rented for 30 days. The rental car company shows that its business use gave them $50 per day. That’s $1500 for the month that they would not have received as a result of the vehicle being in an accident.
So, if they offer that protection to you and you want to purchase that, then you might want to go ahead and pick that part up. But oftentimes they wrap that into the rest of the insurance, so you either get all of it or none of it. You’ll have to decide whether or not you think it’s worth it or if you want to self-insure for any loss of business use that might occur as a result of renting the vehicle.
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