When you take your car to a repair shop or a dealership for maintenance or repairs, it is not uncommon for them to offer a loaner car for your use while your vehicle is in their care. However, before you drive off in that loaner car, it’s essential to know what kind of insurance coverage you have and what you may need to protect yourself and the vehicle.
What is Loaner Car Insurance Coverage?
Loaner car insurance coverage is a type of insurance that covers you when you are driving a rental vehicle or a loaner car provided by a repair shop or dealership. This type of insurance is typically offered by the rental car company or the dealership, but it’s important to understand what it covers and what it doesn’t.
What Does Loaner Car Insurance Cover?
Loaner car insurance typically offers liability coverage, which means it covers damages you may cause to other cars, property, or people while driving the loaner car. It may also provide collision coverage, which covers damages to the loaner car, and comprehensive coverage, which covers non-collision damage to the loaner car, such as theft, vandalism, or weather-related damages.
What Doesn’t Loaner Car Insurance Cover?
Loaner car insurance typically doesn’t cover personal injuries, damages to your own car, or damages to the loaner car caused by your own negligence or reckless driving. It may also exclude coverage for certain types of vehicles, such as exotic or luxury cars.
Do You Need Loaner Car Insurance Coverage?
If you have full coverage auto insurance on your own car, it may extend to cover you when driving a loaner car. However, it’s important to check with your insurance company to see what kind of coverage you have and what limitations or exclusions may apply. If you don’t have auto insurance or if your policy doesn’t cover loaner cars, it’s a good idea to consider getting loaner car insurance coverage.
How Much Does Loaner Car Insurance Coverage Cost?
The cost of loaner car insurance coverage varies depending on the rental car company or dealership, the type of coverage you choose, and the duration of your rental. Some companies may offer it for free, while others may charge a daily or weekly fee.
Tips for Using Loaner Car Insurance Coverage
Here are some tips to help you make the most of your loaner car insurance coverage:
- Read the fine print of your coverage to understand what’s included and what’s excluded.
- Take photos or videos of the loaner car before you drive off to document its condition.
- Report any damages to the rental car company or dealership immediately.
- Drive safely and follow all traffic laws to avoid accidents and damages.
- Return the loaner car on time and in the same condition as when you received it to avoid additional charges.
The Bottom Line
Loaner car insurance coverage can provide valuable protection when you are driving a rental vehicle or a loaner car. However, it’s important to understand what it covers and what it doesn’t, as well as any limitations or exclusions that may apply. If you have any doubts or questions, don’t hesitate to ask the rental car company or dealership for clarification.
