Does Erie Auto Insurance Cover Rental Cars?

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   Darald Novak AAI

   Retired Agent and Broker, Self Employed, Albany NY USA

   Without specifics, "it depends..."    on what state the policy is written in.  I am in New York and the NY Personal Auto Policy is required (by statute) to have some type of "Rental Vehicle Coverage Endorsement'.  It is  not optional.  The endorsement sets forth an Insuring Agreement, Definitions, Priority of Payment, Exclusions, Subrogation, Duties after an Accident or Loss, and General Provisions.  Coverage for the actual damage to or loss of the rental vehicle (with limitations) is provided 'regardless of fault.'   The endorsement does not set forth  value or limit.   Theoretically, I can rent a Rolls Royce, total it, and my carrier most likely pays the rental company the $350,000 value of the car including loss of use.   My NY Rental Vehicle Coverage does not pay the 'reduction/diminution in value of the vehicle' in the event it is repairable - this coverage cannot be added to my policy.  Diminution of Value coverage is available through the physical damage insurance offered by the rental company (aka the collision damage waiver, etc).  A thorough reading of an Erie Personal Auto Insurance policy issued in your state is warranted as my answer only applies to the New York Personal Auto Policy.  Commercial or Business auto policies address rental vehicles in a different manner - a topic for a separate question.

   Answered on April 1, 2014

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