When Johnson County families travel and need a rental vehicle, the first question that comes up at the counter is whether to purchase the rental car company’s insurance. Flury‑Hinderks Insurance, a trusted independent agency in Overland Park, explains the key points you should consider before saying yes or no.
What Your Personal Auto Policy Already Covers
In most cases, your personal auto insurance treats a rental car as a temporary replacement for your own vehicle. This means the same liability limits and deductibles apply. For example, if you carry a $500 collision deductible on your personal policy, you will pay the same amount if you are in an accident while driving the rental. Liability coverage for damage you cause to another driver or their property also follows the limits of your existing policy.
Potential Gaps and “Gotchas” in Rental Agreements
Rental contracts can include charges that your personal policy does not address. One common fee is the “diminution of value” charge, which reflects the loss in market value after an accident, even if the vehicle is repaired. Some companies also charge for the time the car is out of service (loss of use) or for the difference between the pre‑rental market value and the salvage value if the car is written off.
Understanding the Loss Damage Waiver (LDW)
The rental counter often offers a Loss Damage Waiver, or LDW, for an additional daily fee. This is not insurance; it is a contract that releases you from responsibility for certain damages, including repair costs, diminution of value, loss‑of‑use fees, and before‑and‑after assessments—provided you have not violated the rental agreement. The waiver can be costly, sometimes approaching the price of the rental itself, and it is void if you operate the vehicle improperly.
Credit‑Card Coverage: What to Expect
Only a handful of credit cards provide rental‑car coverage, and even then it is usually secondary to your personal auto policy. That means you must file a claim with your insurer first before the credit‑card benefit can be applied. Unless you have a card with a dedicated primary coverage program—such as certain American Express cards—it is risky to rely solely on this benefit.
Making the Best Decision for Your Trip
Flury‑Hinderks recommends confirming with your insurance agent that your policy limits will extend to a rental vehicle. Compare the cost of the LDW against the potential out‑of‑pocket expenses you could face if a claim arises. For short trips or everyday travel, many drivers find their personal policy sufficient. For longer, cross‑country journeys—especially those on a bucket‑list itinerary—the peace of mind offered by the waiver may be worth the extra expense, as it eliminates the need to file a claim and worry about the rental company’s additional fees.
Take Action
If you have questions about how your coverage applies, or you want a comprehensive review of your auto policy, contact Flury‑Hinderks Insurance in Overland Park. Their agents can walk you through the specifics of your policy, help you understand any gaps, and advise whether purchasing the LDW makes sense for your travel plans.
Original reporting: Johnson County Post (Overland Park) — read the source article.
