Should You Move on Truck Rental Insurance?

 By Diane Tait

When I was in my twenties, I moved so often they should have named a Ryder truck after me.  Nowadays, I’m more likely to hire a mover to take care of the entire process if I decided to move.  However, I still have a few friends and clients who prefer to do it themselves when they move either their residence or small business.  So, I thought it would be a good idea to explore the ins and outs of truck rental insurance. 

Who ya gonna call? – With a half dozen rental truck providers in Jacksonville, I’m not going to recommend one company over another.  That’s a choice that you’ll have to make for yourself.  However, before you call truck rental agencies for a quote, you’d be wise to call your insurance agent first. Why?  Because you’ll want to find out if your homeowner’s insurance and auto insurance extend to rental trucks.  You’ll also want to know about the limits and exclusions. While your property coverage may extend to the belongings you’ll be transporting, the coverage won’t extend to the truck.  Even if your auto policy covers a moving truck, you need to make sure there aren’t any exclusions based on size.

Does your credit card cover a rental truck? – If you’ve ever rented a car then you know that many credit cards provide rental car insurance.  The coverage may include such things as collision coverage should you be involved in an accident and theft coverage should the vehicle be stolen.  That’s the good news.  The bad news is that most credit cards specifically exclude rental truck protection, as well as cargo vans, commercial minivans, and trailers.  Check with your credit card providers for more details.

Should you consider acquiring supplemental insurance from the rental agency? – Even if your homeowner’s and/or auto insurance policies offer some protection for rental trucks, you may still wish to sign up for coverage with the rental agency.  Here’s why:

1. If you have an accident with the truck, you’ll not only be required to file a claim with your insurer, you’ll also have to pay your deductible.  This means not only will you be out the amount of your deductible, but your rates are also guaranteed to increase if you rely on your own policy to cover any damages.  If you purchase a collision damage waiver from a truck rental agency, the company not only agrees to cover any damage done to the truck, they also agree not to make a claim against you if the truck is stolen.
2. Supplemental liability protection provided by a truck rental agency gives you as much as $1 million in coverage should you be responsible for damage to other vehicles or property.  When you consider the fact that you probably have little experience driving a heavily laden truck, spending a few extra dollars for this kind of coverage could save you a great deal if you need it.
3. Personal accident insurance pays for injuries or accidental death, including those to other drivers or family members who were riding in the truck. Even if you have adequate medical coverage, you may wish to opt for this if the policy doesn’t cover other drivers or passengers who will be riding along with you.
4. Cargo coverage typically insures the contents of the truck for damage caused by collision, rollover, or fire.  You’ll need to note the limits and exclusions on this portion of the policy. For instance, many policies exclude coverage for accidents caused by shifting cargo.  This kind of coverage also excludes theft of cargo and personal belongings.  For that, you’ll need personal effects coverage.
5. Personal effects coverage allows you to be reimbursed for theft of your belongings both inside the cargo compartment as well as in the cab.  Again, you’ll need to read the fine print to determine any and all exclusions as well as the limits of the protection included in the policy.
6. Towing coverage is important if you plan on towing a trailer or automobile behind the truck.  Not only does this coverage protect you should the trailer and its contents are damaged or destroyed in a collision, but it also covers such things as a rollover, fire, theft, hail, wind, and/or a landslide.  This part of the protection usually includes a deductible.  You’ll need to review this along with the terms, limits and exclusions carefully.  If you’re trailering a car, you’ll need to determine whether the coverage extends to it or only the trailer itself.
7. Roadside assistance is much more important on a long-distance move than a short-haul. But if the engine refuses to start or you're stuck by the side of the road with a flat tire you’ll appreciate it. 

Should you shop for truck coverage the same way you shop for rental rates? – Absolutely.  Whether you’re only planning on moving across town, across the state, or cross country, you’ll want to make sure you have the best coverage that money can buy. Especially when you consider your lack of truck driving experience as well as the consequences if you have an accident, you don’t want to discover an exclusion that could cost you dearly. Some rental agencies charge a flat fee regardless of the mileage while others charge a nominal upfront fee plus a per-mile fee.  This means depending on how far you plan on moving, there can be a significant difference in the cost of coverage. Some rental agencies bundle coverage into an all-inclusive package, while others let you pick and choose the coverage.  Either way, you’ll want to make sure that anyone driving or riding with you is covered by the policy, as well as the limits, exclusions, and deductibles that apply to the policy.   

What happens if you decline supplemental insurance? – If you have an at-fault accident and have no coverage, not only are you liable for collision damages, medical bills of injured parties, and potential lawsuits, but there are other charges the rental agency may choose to pursue.  These include Loss of Use fees for everyday the truck is unable to be rented, Diminution of Value fees to recoup the loss in value of the damaged truck, and even administrative fees imposed by the rental agency.

What should you do if your rental truck is involved in an accident? If anyone is injured, call 911 immediately. If possible, move the truck off the road. If you have an attorney, now is the time to call him or her to make sure you don’t abrogate any of your rights. Once you’ve made sure that everyone in your vehicle is alright, you should next call the rental agency’s emergency or customer service number to report the accident.  If you use your homeowner’s or auto insurance for any part of the coverage, now is the time to call them as well. While waiting for the police, EMS, and the tow truck to arrive, document the scene and collect all the evidence you can.  Use your smartphone to access the rental company’s homepage as soon as possible to start filing a claim online.    Unless the truck is on fire, hanging over a precipice, or is in imminent danger of being struck by another vehicle, do not abandon it since you’re still responsible for the vehicle.

Even if Diane Tait owns and operates A&B Insurance.  To find out more about how you can save money on boat insurance, go to her site.