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Rental Dilemma

Spring brings baseball, road tripsand confusion over PAP coverage for rental cars

By Chris Amrhein | Updated on April 01, 2014

Ah, Spring! Flowers bloom, grass greens, and baseball returns. If your insurance brain has been hibernating, start stretching those muscles and get back in the game.

Let’s warm up with an exercise on rental cars and the personal auto policy (PAP). I specifically speak of the liability insurance protection that may not be provided by the ISO PAP when the rental car is driven by anyone other than the renter named on the agreement at the time of an accident.

A rental car company informed a reader that although he and his wife have liability coverage, his mother-in-law would not be covered unless she was specifically added as a driver to the agreement—for an extra charge, of course. The agent wanted to know (a) if the rental car company was correct; (b) if his PAP wouldn’t cover her anyway as a permissive user; and (c), if all else failed, would she be covered for the rental car liability under her own PAP.

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