Ask Your Peers  Uninsured Motorist Coverage and Rental Vehicles 

Has anyone been involved with an uninsured motorist claim when your insured was driving a rental vehicle? I am in Texas and I know that the uninsured motorists statutes vary by state but it appears that UM coverage does not apply to short term rental vehicles unless they are being used as a temporary substitute for an owned vehicle that is out of service. It looks like coverage would not be available regardless of whether the insured has a personal auto policy or a commercial policy. If they are hit by an uninsured driver they appear to be out of luck. Fortunately there has not been a claim but my insured has asked that question. :) Help!!

I have not had this situation. Do you have a copy of your policy? Have you looked at it? What does it say?

Interesting question Dan! I just read the personal auto policy forms written in Illinois by a couple of our carriers.

Both are ISO-based policy forms, and both provide UM coverage on an Excess basis for claims occurring while occupying an auto the insured does not own.

Hi Dan,

You are correct that each state varies on how they handle a UM/UIM claim while the insured is renting a vehicle. In my experience depending on the carrier the UM/UIM would extend to the rental regardless of reasoning for the rental as long as there is no commercial exposure present. For instance if the insured lives in TX and is renting a moving truck under 18,000 GWV(Gross Vehicle Weight) 12,000-16,000 GVW for a private passenger auto, than the policy coverage will follow to the broadest limits on the policy to the rental, this includes the UM/UIM. Best thing to do would be to contact underwriting at the specific carrier and/or review the policy language to confirm. Hope this helps!

Take Care!