Question:
I'm renting a U-Haul truck to move and an auto transport trailer
for a car. If I am involved in an accident, will my standard auto
insurance policy cover any damage caused by the truck or the
trailer or damage to the vehicle on the trailer?
Answer:
Your instincts are good. The time to save money is not when you are
behind the wheel of a borrowed, 35-foot-long truck in an unfamiliar
city.
Generally your own car insurance policy will not extend to a
U-Haul, Ryder, Penske or other type of truck you rent to move your
belongings or to a
rented trailer
. However, if you have collision and comprehensive on the
vehicle on the trailer, it should cover the car if it's damaged
during transport.
A personal auto insurance policy gives coverage to passenger
vehicles, such as your own vehicle, and many times to a rental car,
but not to commercial vehicles or rented trucks. The weight
and height of rented trucks just don't conform to coverage the
average personal auto insurance policy gives (e.g. no coverage for
a truck weighing 9,000 lbs. or more).
U-Haul specifically notes on its site that auto insurance
through your own car insurance policy, or even any supplement
insurance your
credit card
may normally give you for rental cars, does not normally extend to
its rental equipment.
There are some auto policies that will extend your
liability coverages
to a trailer you are towing (with your own vehicle), but not all
will. If you are towing the trailer with a vehicle that you
don't own, then car insurance coverage usually won't extend to that
non-owned trailer.
Policies do vary. So, review your policy and then speak to
your insurance agent if you need clarification on if there is any
coverage extended in your specific situation.
Likely you'll find that you are without liability or
collision coverag
e for the rented truck, which means that you'd be personally
responsible for damages that you caused to others and any damage
done to the truck or trailer.
If you damage a moving truck, you ordinarily will be charged for
any damage you caused, plus any lost rental revenue while the
vehicle is being repaired. U-Haul notes that it wants to be
reimbursed for damages immediately upon the return of the rented
item. For this reason, it is wise to obtain some insurance
coverage from the rental truck company offerings.
The two most common insurance coverages purchased on rental
moving truck are supplemental liability insurance (SLI) and limited
damage waiver (LDW).
SLI (may also be known as additional liability insurance or ALI)
protects you against claims made by a third party for bodily injury
and/or property damage as a result of you operating the rental
truck. U-Haul offers $1,000,000 of this coverage, and without
a deductible being due.
LDW coverage usually frees you from financial responsibility for
any accidental loss or damage to the truck or towing equipment.
Keep in mind that there are exclusions to this coverage, and it
can be voided if you use the rental property in a manner that
violates the terms of your rental agreement. For example, if you
let an unauthorized individual drive the vehicle and that person
crashes the truck, then it's possible you won't be covered.