Understanding Truck Rental Insurance

Accidents happen, but if you have one while you’re in the process of moving and you’re driving a rented moving truck, whose insurance policy covers the damage? In many cases, it’s not until something like this happens that the mover comes to find out that their auto insurance policy doesn’t cover their driving of a rented vehicle.

Therefore, before you drive a truck rental off the lot, check with your insurance provider to see if you’re covered. If it turns out that you’re not protected, then you’re going to need to purchase an optional insurance protection plan through the rental agency to safeguard your items and reduce your liability.

Types of insurance for truck rentals

There are four primary types of supplemental protection plans for moving truck rentals – Damage Waivers, Supplemental Liability Insurance, Personal Accident and Cargo Insurance and Auto Tow Protection. Here is a brief description of each so you can have a better idea of what type of coverage you should consider.

Damage waivers (PDW and LDW)

Damage waivers relieve you of certain financial responsibilities concerning loss or theft of items or damage to the truck rental or towing trailer. Waivers are available as either Personal Damage Waiver (PDW) or Limited Damage Waiver (LDW) policies. In a PDW policy, the renter has zero responsibility. In a LDW policy, the renter is responsible for the first $500 of loss or damage (in most cases). It is important to note that damage waivers are not insurance, but rather they are optional plans to increase your protection.

Supplemental liability insurance (SLI)

Supplemental Liability Insurance, or SLI, is an insurance policy that protects you and your items from damage claims made against you by other drivers or people. In most cases, the maximum amount of SLI coverage is $1,000,000. When considering whether or not to accept this coverage, you should read over the policy carefully as they typically include many exclusions in their terms and conditions.

Personal accident and cargo protection (PAC)

A Personal Accident and Cargo protection plan covers you and your items while in the truck rental. If you are injured or your items are damaged due to certain listed causes, your protection plan will cover the costs. Personal Accident and Cargo protection plans do not cover damage caused by shifting cargo, theft or burglary. Many truck rental companies may also have exclusions and most of these policies are strictly for non-commercial customers.

Auto tow protection (ATP)

If you are using a trailer to tow your private automobile, an Auto Tow Protection plan will cover the vehicle against damage while it is in transport. This coverage applies to vehicles towed by either a car dolly or a car trailer. This policy covers against most forms of damage, including fire, explosion, flood, hail, windstorm, vehicle overturn, landslide and collision. There is typically a deductible involved so ask prior to agreeing to the contract so you know how much you’re liable for in the event of a damage-causing situation.