Insurance

Liability is a " legal obligation to perform or not perform specified act(s). In insurance the concern is with the circumstance in which (1) one party's property is damaged or destroyed, or (2) that party incurs bodily injury as the result of the negligent acts or omissions of another party. Liability insurance is designed to provide coverage for exposure on either a business or a personal basis." ." Barron's Dictionary of Insurance Terms 256 (3ed 1995)

Liability Insurance is "coverage for all sums that the insured becomes legally obligated to pay because of bodily injury or property damage, and sometimes other wrongs to which an insurance policy applies." Barron's Dictionary of Insurance Terms 257 (3ed 1995)

The renter becomes legally liable for all elements of the rental contract. When damage occurs the renter is responsible to pay for all damage to the vehicle including but not limited to, the physical damages, loss of use, administrative fee and any diminution of value. If the claim is covered under a liability policy, then that policy should cover all elements of the damage claim. However, if the insurance denies payment of any portion of the claim, the renter is not relieved of their contractual responsibility.

Collision Insurance is "coverage providing protection in the event of physical damage to the insured's own automobile (other than that covered under comprehensive insurance resulting form collision with another inanimate object." Barron's Dictionary of Insurance Terms 87 (3ed 1995)

Comprehensive Insurance is "coverage in automobile insurance providing protection in the event of physical damage (other than collision) or theft of the insured car. For example, fire damage to an insured car would be covered under the comprehensive section of the personal automobile policy." Barron's Dictionary of Insurance Terms 94 (3ed 1995)

Most card member benefits provide secondary coverage for the damage claim so you will have to submit the claim to your insurance carrier before they will make any payment. Check with your card member program to determine if they provide primary or secondary coverage.

Primary Insurance is "property or liability coverage that provides benefits (usually after a deductible has been paid by an insured) up to the limits of a policy, regardless of other insurance policies in effect." Barron's Dictionary of Insurance Terms 371 (3ed 1995)

Secondary Insurance (or Excess Insurance )is "policy that pays benefits only when coverage under other applicable insurance policies has become exhausted." Barron's Dictionary of Insurance Terms 150 (3ed 1995)

Your coverage will depend on your insurance policy and the state you live in.

Some states require that rental car damages be covered under your liability policy an some require that your comprehensive and collision policy cover the rental car damages. States with no requirement allow the insurance company to sell policies with or without rental car coverage.

Alaska allows rental agencies to cover rental cars under liability. Minnesota requires all rental cars to be covered under liability. North Dakota requires all rental cars to be covered under liability. New York requires all rental cars to be covered under liability. Rhode Island requires all rental cars to be covered under liability. Texas requires all rental cars to be covered under liability. Maryland requires all rental cars to be covered under comprehensive and collision. Massachusetts requires all rental cars to be covered under comprehensive and collision.