As a legal driver in Michigan, your no-fault insurance policy covers you for medical costs and other benefits, even if you were partially responsible for the crash. If you get a rental car, however, will you receive the same level of protection? Do your personal injury protection (PIP) benefits still apply if you are injured? Should you purchase supplemental insurance if you rent a car?
Understanding what protection your no-fault insurance policy provides when using a rental can be very confusing. Jay Trucks explains more about rentals and car insurance in Michigan, including how your no-fault benefits coverage may or may not apply in a car crash.
If you have been injured in a rental car due to another’s reckless or negligent behavior, you may be eligible to seek compensation for your injuries and other losses. Our auto accident lawyers in Grand Rapids are available to discuss your potential legal options after a rental car crash in a free consultation.
Does Your No-Fault Car Insurance Cover You in a Rental Car?
In Michigan, your no-fault insurance provides coverage for medical benefits anytime you are injured in a motor vehicle, including:
- When you drive your own car, a rental car or ride as a passenger in another person’s car
- Extends to cover your spouse or other resident relatives
- Applies if you take your car – or the rental – out of state
If you have a crash, your PIP Insurance also still provides:
- All reasonable medical costs for injuries sustained in the collision
- 85 percent of your lost income for up to three years (there is a monthly maximum)
- Up to $20 per day for attendant services
Should You Consider Purchasing Supplemental Insurance For a Rental Car?
Purchasing supplemental auto insurance for a car rental – even if you have some coverage under your own policy or a credit card – may be a good idea for the following reasons:
- You caused the crash and other parties sustained injuries. Most Michigan car insurance policies only carry the maximum state limits of $20,000, so there is likely not enough coverage for multiple injured parties in an accident. In this situation, you could end up having to pay the rest out of pocket.
- Your Michigan no-fault benefits exclude coverage for property damage or theft of a rental car.
- If you intend to rent a car for 30 or more days. In Michigan, long-term leases of 30 days or more make you an “owner” of the rental under the law, and your no-fault insurance will not apply.
In some cases, your credit card may provide rental car insurance, but that coverage may also be limited. It is best to contact your credit card company and insurance provider to get the specifics about what coverage may or not be available in advance.
Before You Rent a Car
Research to make sure you have a solid understanding of what coverage your auto insurance does and does not provide for a rental car. Find out how your insurance will apply, not only for you and your passengers in this situation, but also what coverage applies to other parties if you cause an accident. Get information about any additional coverage your credit card may apply and if it is in addition to, or instead of, your current auto insurance policy. This information will give you the best idea of what supplemental car insurance you may or may not need.
Insurance Companies Are Not Your Friend
Your insurance providers may sound friendly when you speak with them, but to stay in business, their priority is to their bottom line. To accomplish this, your provider must work hard to pay as little as possible out on a policy. What this means when you rent a vehicle is that your insurance company will not easily pay out money for a claim if you have a crash in that rental.
Insurers will look for exclusions and other reasons to devalue or deny your rental car crash claim. So when it comes to understanding the terms of your policy, and what is or is not covered, you must be proactive. While your provider may not lie when you ask specific questions about your coverage, he or she is also not likely to volunteer information that is included in the small print of your policy.
Our Law Firm is Ready to Help
If you are injured in a rental car because of another driver’s negligent actions, we are prepared to help. Our firm has been representing injured victims for decades, recovering millions in compensation for our clients.
At Jay Trucks, we have a team of legal professionals who are experienced and ready to fight for maximum recovery and to protect your best interests. There is no risk to you as the initial case review is completely free. If you choose to move forward and we represent you, there is nothing to pay up front to hire our services or while we work on your case. We only get paid if we recover compensation for you.
