Driving a Rental Car Over the Holidays in Florida: Does Your Policy Follow?

Thanksgiving and the December holidays are when many South Florida families rent a car: relatives fly into Miami, the family car is too small, or you are flying out and picking up a car somewhere else. At the counter you get about a minute to accept or decline several coverage options. It is better to decide now, with your policy in front of you. Here is what Florida law says, what your own policy may bring along, and what to ask your agent.

The short answer

Your own auto policy may already cover part of what is sold at the rental counter, but policies differ, and not every part of a policy works the same way in a rental. What carries over depends on the coverages you bought and on your policy wording. State insurance regulators give the same advice: read your policy or call your agent before you reach the counter (NAIC; Utah Insurance Department). Florida law adds one rule of its own about whose insurance pays first.

Who pays first in Florida: s. 627.7263

Under s. 627.7263, Florida Statutes, the liability and personal injury protection (PIP) insurance that covers the rental or leasing company is primary, unless the rental agreement says otherwise in at least 10-point type on its face. The company’s coverage is primary only up to the state minimums: 10/20/10 liability under s. 324.021(7) and $10,000 PIP under s. 627.736.

The law also lets the company shift that role to you. If the agreement contains the statutory sentence saying that the renter’s “valid and collectible liability insurance and personal injury protection insurance” is primary, your own policy pays first. So read the front page of the agreement, not just the total.

The primary rule covers only liability and PIP, and only up to the minimums. It says nothing about damage to the rental car itself, which is usually your responsibility under the contract.

What your own Florida policy may bring along

Check your declarations page coverage by coverage:

• Bodily injury and property damage liability. These pay for harm you cause to others. Florida only requires $10,000 of property damage liability (s. 324.022; FLHSMV), so a crash in a newer rental can go past the minimum quickly. Our guide to Florida minimum car insurance explains what the minimum leaves out.
• PIP. Florida PIP pays 80% of reasonable medical expenses up to $10,000, regardless of fault (s. 627.736(1)). The law requires your insurer to cover you for an injury in Florida while occupying *a* motor vehicle, not only your own car (s. 627.736(4)(e)1).
• Collision and comprehensive. These repair or replace a covered car after a crash, theft, flood or other loss (DFS). If you carry them on your own car, ask whether and how they apply to a rental; the regulators say that with both coverages you are less likely to need the counter’s damage waiver (NAIC). Your deductible still applies (Texas Department of Insurance). See comprehensive vs. collision.

Damage to the rental car and the counter options

The collision or loss damage waiver (CDW/LDW) releases you from charges for damage to the rental car. The Florida Attorney General warns that the waiver may still exclude theft, tire damage or a driver who has taken drugs or alcohol, even an over-the-counter cold medicine, and suggests checking your own policy or credit card agreement first (Florida Attorney General).

Read the agreement for loss of use and administrative fees: after an accident the company may charge for the time the car cannot be rented, so ask how your own policy handles these charges (Utah Insurance Department). Credit card benefits, where they exist, are usually secondary, paying after other insurance (NAIC).

In Florida, insurance sold at the rental counter is a limited line under s. 626.321(1)(d). It can include excess liability, damage to the rented car, baggage, and injury to the renter and passengers. It is allowed only for rentals of up to 60 days, and you must receive written notice that your personal policy may already cover these risks and that buying the coverage is not required to rent the car.

Renting outside Florida

If you fly to see family and rent a car there, two Florida rules matter:

• The PIP that Florida law requires covers you outside Florida (in the U.S., its territories or Canada) only while you occupy your own insured car (s. 627.736(4)(e)2). For an injury in a rental in another state, check your policy, any medical payments coverage and your health insurance.
• A Florida liability policy used as proof of financial responsibility covers use in the United States and Canada (s. 324.151(1)(a)). Driving into Mexico or renting abroad needs its own check; regulators note that policies may exclude other countries (Utah Insurance Department).

A quick checklist before you pick up the keys

1. Who will drive? A low rate may not include a second driver (Florida Attorney General). Add every driver to the agreement; s. 627.7263 speaks of an “authorized” driver.
2. Personal or business trip? A personal policy generally does not apply to business travel, so check with your employer (Utah Insurance Department).
3. How long? Longer rentals, a week, a month or more, may run into policy limits (Utah Insurance Department).
4. Inspect the car. Note every scratch with the agent and take photos before you leave the lot (Florida Attorney General).
5. Tolls. Florida has cashless tolls, and the toll plus the company’s toll fee may reach your card days after you return the car. Ask how it is billed (Florida Attorney General).

What to ask your agent

• Does my liability carry over to a rental, and are my limits enough for a newer car?
• Do my collision and comprehensive apply to a rental, with what deductible, and what about loss of use and fees?
• Who is covered if a relative or friend drives the rental?
• Does anything change for a rental outside Florida or outside the U.S.?
• If I don’t own a car, is a non-owner policy worth a look? (NAIC) See our non-owner SR-22 guide if you also need a filing.

Lending your own car to visiting relatives is a separate topic; see lending your car in Florida. For a review of your declarations page before the trip, visit our Florida City car insurance page, request a quote or call (305) 859-3953. We will go through what your policy says about rentals; the policy wording always decides.