Will My NY Insurance Cover a Rented Auto?

New York state license plate
Drivers in the Empire State who carry automobile policies will have their bodily injury liability, property damage liability, and no-fault coverage transfer over to the rental vehicle. But their coverages will only kick in on an excess basis. State law requires rental companies to provide customers with the minimum protection allowed in New York. If the rental company's policy limits are exhausted after a loss, the renter's personal coverage would be applied.

The minimum New York auto insurance coverage that can be purchased is liability in the amounts of $25,000 for bodily injury to one person, $50,000 for bodily injury per accident, $10,000 for property damage, and no-fault coverage of $50,000. The rental company must provide this to customers.

Rental companies in the state must also purchase uninsured/underinsured motorist coverage in the same amounts as bodily injury liability. This pays for the injuries of the renter and passengers if they are struck by an uninsured, underinsured, or hit-and-run motorist.

Damage Caused to the Rental Car

Motorists who have only liability policies without comprehensive and collision coverage will still have protection in place to pay for physical damages caused to rented vehicles.

The damages would be paid under the insured's policy and will provide the whole amount needed to repair or replace the damaged vehicle regardless of the policy limit. This only applies if there are less than five cars insured on the policy. This protection is referred to as rental vehicle coverage and is included in motor vehicle liability policies. Motorists do have the right to reject this option and may want to make sure that it is included before renting vehicles.

New York stateRenters who have rejected rental vehicle coverage or do not own a policy can purchase "optional vehicle protection" or a "collision damage waiver" from the rental company, which is usually offered at a price between $9 and $12 a day.

Although a motorist may be covered for damages with the mentioned coverage, there are still expenses that can arise from an accident involving a rented vehicle. Rental companies can charge a renter for the loss of use of the damaged automobile. For example, if a vehicle rents for $30 a day and is at a repair facility and not generating income for 15 days, the renter could owe the company $450 for the loss of use of the vehicle.