As your customers make plans for Spring Break (and other) vacations, many may consider renting a vehicle during their trip. In the process, they may question if they should purchase the rental car company’s insurance. With Frankenmuth’s Rental Gap Coverage, you can be confident in telling them they are already covered, and purchasing the extra coverage is not necessary. Our rental gap coverage is provided automatically under the personal auto policy and no endorsement is required.

What is Rental Gap Coverage?

It provides coverage when an insured is held responsible for damage to a rented vehicle. This occurs in situations when the rented vehicle is not a total loss and the rental company opts to:

•      Sell the rental vehicle in its damaged condition, rather than repairing it
•      Repair the rental vehicle in spite of a real or perceived reduction to its value

Rental Gap Facts

•      Insureds no longer need to purchase the rental car company’s insurance
•     Only covers Private Passenger vehicles. U-haul trucks, motorcycles, etc. are not covered
•     The coverage is only applicable if a vehicle is rented in the United States (its territories or possessions), Canada and Puerto Rico

Rental Gap Requirements

•      At least one personal auto covered by the policy must include both “Other than Collision” and “Collision Coverage”
•      A rental contract must be present and “loaners” are not covered

Miscellaneous

•      Frankenmuth Insurance may negotiate certain charges from the rental company such as loss of use and administrative fees

Thank you for your continued support, and as always, if you have any questions please feel free to contact your Underwriter or Field Manager.