When you’re preparing to move, there are many things to consider. One question you might have is, “Does my car insurance cover U-Haul?” With very few exceptions, it probably doesn’t. However, there are other solutions to consider.
Do You Need U-Haul Coverage?
If you rent a U-Haul truck for your move, keep in mind that if you get into an accident while moving and the truck is damaged, you could be on the hook for repairs. U-Haul recommends that all of its customers purchase a company-provided insurance policy that shields them from liability for any damage to the vehicle. While a rental truck insurance policy is similar to policies provided by car rental agencies, as NerdWallet points out, the circumstances of renting a U-Haul truck differ from renting a car.
Many drivers decline rental car agency coverage because their personal insurance policy usually extends to rental cars. Credit card companies also offer additional rental car coverage that kicks in if the damage exceeds personal insurance coverage. However, according to NerdWallet, most personal car insurance policies specifically exclude cargo vehicles, trailers, and vehicles that weigh more than the amount specified in your policy. If you’re renting a small van, it doesn’t hurt to check with your insurance company to see if it’s covered.
If your credit card company provides rental car protection, it probably only covers cars and other passenger vehicles. According to Insurance Panda, Visa’s rental protection specifically excludes all trucks. It also excludes vans that seat more than eight people. American Express excludes cargo vans and box trucks.
U-Haul warns its customers that all major credit card companies and most insurance providers do not provide coverage for U-Haul’s rental equipment. Budget Truck Rental reminds its customers that they should verify with their insurance provider that they do or don’t have rental truck coverage. Assuming that you have a certain type of coverage could cost you.
What Does a Rental Coverage Agreement Include?
NerdWallet notes that purchasing coverage through your rental company means you don’t have to guess whether you have coverage in the event of an accident. Review the company’s coverage options, which should be listed on the company website. When you purchase your coverage, review the agreement to determine the following:
- Is the vehicle covered? Rental coverage typically covers damage that is the result of an accident. Your coverage will likely exclude mechanical damage, such as overloading the truck and damaging the drivetrain. If you rent a truck and it’s damaged by overhead objects, such as a low overpass, your coverage won’t cover that either.
- Is your stuff covered? If you want your rental truck policy to cover your household items, you may have to purchase extra coverage from the rental company. A basic policy typically only covers the truck. However, before you spend more money, check your homeowner’s insurance policy or your renter’s policy. These policies often cover certain damages when you’re in the process of moving. If you do purchase cargo coverage from the rental company, keep in mind that you’ll have to pay a deductible if you have to file a claim, typically $100. If you’re towing your car when you move, your auto insurance will cover it if you have comprehensive and collision coverage.
- Are you covered? If you’re at fault in an accident, you could be liable for the other driver’s injuries and damage to their vehicle. Your rental policy will provide a minimum amount of liability coverage, but it may not be enough if you’re in a serious accident. If you have personal car insurance, your liability limits will apply when you’re driving the rental. If they don’t apply, you can purchase a supplemental policy from the rental company.
What Options Do You Have When Moving?
As NerdWallet notes, rental companies like U-Haul, Penske, and Budget Truck Rental, offer similar protection plans. With U-Haul, you can choose between these two protection packages:
- SafeMove: This package includes coverage for damage to the truck, damage to your cargo, medical coverage, and life coverage.
- SafeMove Plus: This package adds driver liability for twice the amount of the premium.
Penske and Budget Truck Rental offer a menu of coverage options that you can add to your coverage agreement. However, this usually will end up costing you more than a U-Haul package, especially on longer moves.
Coverage for Renting a U-Haul Truck
According to The Zebra, if you decide to rent a U-Haul truck that has a full 1-ton towing capacity (similar to an F-350 or 3500) or smaller, your personal car insurance policy should extend to cover that vehicle, similar to if you rent a car. If you need to rent a tow trailer, your personal policy should cover that as well. Keep in mind, that if the truck or tow trailer sustains damage when it’s in your possession, you may have to pay additional fees. That’s why you should still consider buying coverage from U-Haul. If you rent a truck that has a towing capacity of over 1 ton, your personal policy won’t provide any coverage.
Remember that, while your personal policy may extend to smaller U-Haul trucks, it won’t cover your cargo if you’re at fault in an accident. You should make sure that your homeowner’s policy covers your cargo when moving. If the other driver is at fault, their property damage liability insurance will cover any damaged cargo. If the truck is damaged or you’re injured while driving a rental truck and you’re at fault, your personal policy won’t cover the costs. However, the other driver’s liability insurance should pay for medical care and repairs if they’re at fault.
As Insurance Panda notes, insurance policies can vary, so before renting a U-Haul truck and purchasing coverage from U-Haul, check your personal insurance policy to see exactly what it covers and what it excludes. Don’t be afraid to contact your insurance agent if you need clarification.
Keep in mind that U-Haul expects to be reimbursed for damages as soon as you return the truck to the rental office. If you purchase coverage from U-Haul instead of relying on personal insurance, you won’t be on the hook because you’re waiting for your insurance company to process a claim.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Do You Need U-Haul Insurance? | nerdwallet.com
Do You Need Car Insurance to Rent a U-Haul? | insurancepanda.com
Does Car Insurance Cover a U-Haul? | thezebra.com
What Does Liability Car Insurance Cover? | caranddriver.com
What Is Comprehensive Car Insurance? | caranddriver.com
Car Insurance | caranddriver.com
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