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Rental Car Coverage: Staff Training Guide
Rental Car Coverage: Staff Training Guide
Objective:
To ensure staff understands when rental car coverage applies on a personal auto policy and how to explain this to clients.
Key Concepts
Key Concepts
Rental car coverage is an optional feature of personal auto insurance policies.
It provides coverage for the cost of a rental car while the insured's vehicle is being repaired due to a covered loss.
When Rental Car Coverage Applies
When Rental Car Coverage Applies
Collision Claims:
Coverage is triggered when the insured's vehicle is damaged in a collision.
The damage must be covered by the collision coverage on the policy.
Comprehensive Claims:
Coverage is triggered when the insured's vehicle is damaged due to a comprehensive loss (e.g., theft, vandalism, hail).
The damage must be covered by the comprehensive coverage on the policy.
When Rental Car Coverage Does Not Apply
When Rental Car Coverage Does Not Apply
Mechanical Breakdowns:
Rental car coverage does not apply when the insured's vehicle breaks down due to mechanical issues.
This includes engine failure, transmission problems, and other mechanical malfunctions.
Client Communication
Client Communication
Clearly explain to clients that rental car coverage is tied to collision and comprehensive claims, not mechanical breakdowns.
Review the specific terms and conditions of the client's rental car coverage.
If clients are concerned about mechanical breakdowns, discuss alternative options such as vehicle service contracts or roadside assistance.
Use examples of collision, comprehensive, and mechanical breakdown scenarios to illustrate when coverage applies.
FAQ Link: https://www.streetsmart.insurance/faq/rental-car-coverage-when-does-your-personal-auto-policy-apply/
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