If you have a personal auto policy, it usually extends to a rental car you drive for a personal ski trip. The same coverages, limits, and deductibles you carry on your own car generally apply to the rental. The catch is that your policy only covers what you already have. If you dropped collision or comprehensive, the rental isn't covered for damage either, and several rental company charges typically fall outside a personal policy altogether.
Many Denver drivers rent an AWD SUV for a weekend on I-70 rather than take their own sedan into the mountains, and plenty of visiting friends and family rent at DIA. Either way, a few minutes reviewing your coverage before you pick up the keys can save you a costly surprise at the counter or after a slide on an icy road.
According to the Insurance Information Institute, "whatever auto insurance and deductibles you have on your own car would apply when you rent a car," as long as you're using it for recreation and not for business. Here's how that typically breaks down:
Colorado's minimum liability limits are $25,000 per person and $50,000 per accident for bodily injury, and $15,000 for property damage. A minimum-limits policy can fall short quickly after a multi-car pileup on a crowded ski weekend, so check your limits before you go.
The Insurance Information Institute notes that personal auto policies typically don't include several charges rental companies can pass on to you after damage:
Some insurers offer riders for these costs. Before a trip, it's worth asking your agent whether your policy includes any of them.
Many credit cards include rental car coverage when you pay for the rental with that card. The Insurance Information Institute notes this coverage is usually limited and typically secondary, meaning it applies only after your personal policy. Benefits vary widely by card, and some exclude certain vehicle types, such as larger SUVs or trucks. Call your card issuer before you rely on it.
At the counter, you'll likely be offered some combination of these:
Relieves you of financial responsibility for damage to or theft of the rental. The Insurance Information Institute warns that it "may become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated," so read the terms if your trip involves a gravel road to a cabin.
Adds liability protection above your own policy.
Medical and accidental death benefits for you and your passengers.
Protection for belongings in the car.
The waiver can make sense if you don't carry collision and comprehensive, have a high deductible, or want to avoid a claim on your own policy. If your personal coverage is solid, some of these options may overlap with protection you already pay for.
Winter driving rules in the mountains apply to rental cars too. The Colorado Department of Transportation says its Traction Law is in effect every year "from Sept. 1 through May 31 on the I-70 Mountain Corridor between Dotsero and Morrison," and CDOT can put it into effect on other state highways when conditions call for it (CDOT).
When the Traction Law (Code 15) is active, AWD and 4WD vehicles need winter, all-weather rated, or mud-and-snow (M+S) tires with at least 3/16-inch tread. Otherwise, a vehicle needs chains or an approved alternative traction device (CDOT Traction and Chain Laws). During the most severe storms, the Chain Law (Code 16) can require chains or an approved alternative traction device on every vehicle. Drivers who don't comply can be fined, and penalties are higher if a noncompliant vehicle causes a road closure.
For renters, a few practical steps:
A car full of skis, boots, and snowboards parked at a trailhead or hotel lot can be a target. Auto insurance generally doesn't cover your personal belongings inside a car. The Insurance Information Institute notes that homeowners or renters insurance typically covers stolen or damaged possessions, subject to your deductible and limits. Our post on whether renters insurance covers laptops and smartphones shows how personal property coverage works for belongings you carry with you.
A ski trip should be about fresh powder, not surprise bills. The team at Spotlight Insurance Agency can review your auto insurance before you travel, explain how your policy applies to a rental car, and help you close any gaps, including coverage for the gear you bring along.
Request a quote or contact us today at 720.923.1500. You can also email office@spotlightins.com or visit our office at 4800 Happy Canyon Rd, Suite 270, in Denver.
Also Read : Understanding Bodily Injury Liability Coverage in Auto Insurance
In most cases, yes. A personal auto policy generally extends the same coverages and deductibles to a rental car used for personal travel. If you don’t carry collision or comprehensive on your own car, damage to the rental typically won’t be covered.
Not always. It can be worthwhile if you don’t have collision and comprehensive, carry a high deductible, or want to avoid a claim on your policy. Keep in mind the waiver may be voided by speeding, driving on unpaved roads, or impaired driving.
Yes. The law applies to all motorists when it’s in effect, including drivers of rental cars. On the I-70 Mountain Corridor between Dotsero and Morrison, it’s in effect from September 1 through May 31 each year.
Usually not under auto insurance. Homeowners or renters insurance typically covers personal belongings stolen from a vehicle, subject to your deductible and policy limits.
