We get frequent questions about insurance for renting a car truck or trailer New York. So how does a New York auto insurance policy apply? Most questions surround renting a car for a vacation. However some are for business use as well. This post will also expand the information to include the renting of moving trucks and trailers.
New York State requires that all car insurance policies issued in the state have a Rental Vehicle Coverage Endorsement attached. Insurance for renting a car truck or trailer New York comes included in the endorsement. No specific premium charge applies to insurance for renting a car truck or trailer New York. Physical damage (collision and comprehensive) on an insured vehicle is not required.
Why is it a big deal? Insurance policies exclude damage, done by an insured, for property in the care, custody or control of the insured. The auto insurance policy gives back coverage for borrowed vehicles and rented residences or garages yet rented vehicles remain uncovered. New York requires a fix to the problem.
There are two parts to the loss that need consideration. First, th damage to the property itself. Second, the loss of use of the property damaged.
If liability for trailer damage comes with a rental contract NY includes up to $2,000 in coverage. Not much money unless you rent a very basic trailer. Don’t forget the loss of use of the trailer can add to the bill. When renting a trailer for use on a trip or a project seriously consider buying a collision damage waiver.
The New York Rental Vehicle Coverage endorsement does not include coverage for trucks. However, as you will see below, pickups and vans are fine. If you rent a truck buy the collision damage waiver offered. I recently heard a story of someone who pays a rental company monthly due to an accident during a move.
CARS, VANS & PICKUPS
The New York Rental Vehicle Coverage covers these rented vehicles. The endorsement does have limitations. Relevant limitations to this coverage include:
COVERAGE TERRITORY-United States, its territories or possessions, and Canada
LENGTH OF RENTAL- Limited to 30 continuous days
RENTAL BY AN INSURED- Named insured on the policy and a relative who resides with the named insured
VEHICLE TYPES- Private Passenger, Station Wagon, Pick-Up, Panel Truck or Van
USE OF RENTED VEHICLE- Pleasure use and business use but not transporting people or property for hire
RENTAL FROM- A person or company engaged in the business of renting vehicles (and registered to them)
DUTIES AFTER A LOSS
Probably one of the most intangible factors in utilizing this coverage is how much work you are willing to do in the event of a loss. The insured/renter requirements in a loss are the same as to an owned vehicle. Your insurer will require prompt notification as in other claims. Protecting property, obtaining police reports and allowing your insurance company to inspect the vehicle all apply.
The loss to a rental vehicle counts for claim activity and could be especially relevant. A claimed filed under a collision damage waiver will not show in claim activity unless it was necessary to use other parts of your auto policy. These could include your liability and no fault coverage. The New York Rental Coverage Endorsement requires more obligations because the conditions of the policy still apply. Will the savings offset the obligations depends on your viewpoint.
In the end the choice to buy the collision damage waiver offered by rental companies seems like a personal preference. In NY you have an option to fall back on.