Whenever you’re filling out paperwork for a rental car, you get the inevitable questions about additional insurance coverage. Is it a smart investment or a waste of money?
As with so many other insurance-related questions, the correct answer all comes down to your budget and risk tolerance. For churches, private schools, and nonprofits in Georgia, rental car insurance is an important consideration, especially when renting vehicles for mission trips, school activities, or community service projects. Ensuring proper coverage can help organizations avoid costly surprises.
The following three scenarios provide information to help you make the right decision the next time you rent a car.
Scenario 1: You Did Not Purchase Coverage from the Rental Car Company, and You Had an Accident. What Happens Now?
If you decline the insurance offered by the rental car company and then get into an accident, you’ll have to look to your personal auto policy for help.
Not all auto policies are created equal. Also, your policy’s response to an accident in a rental car may vary based on Georgia state law. This is especially important for church and nonprofit leaders in Georgia who may rent vehicles for transporting volunteers, students, or members of their congregation.
If you hurt people, damaged other people’s cars or personal property, or totaled the rental car, you are liable for the costs of repair, replacement, and/or medical care – and potentially lost wages and lost revenue from the rental vehicle.
The good news is the liability section of many personal auto policies covers expenses resulting from bodily injury and/or damage to the property of others. However, that section is often subject to limitations and likely will not cover damage to the rental car or loss-of-use costs for the rental car company.
For churches, private schools, and nonprofits renting cars in Georgia, it’s critical to ensure they have adequate liability coverage before assuming a personal auto policy will be enough.
Scenario 2: You Purchased Coverage from the Rental Car Company, and You Had an Accident. What Happens Now?
Some rental companies offer several insurance options. These may include supplemental liability insurance, insurance for damage to your own personal property, travel insurance, and others. The most common insurance is that offered specifically for the rental car itself, often called a Loss/Collision Damage Waiver.
For churches, schools, and nonprofits in Georgia, purchasing this type of waiver may be beneficial when renting vehicles for outreach events, student transportation, or mission trips. If an accident occurs, this waiver typically covers all expenses related to the damage, eliminating the need to file a claim with a personal auto insurer.
However, it’s important for Georgia-based organizations to carefully read the terms and conditions of the waiver, as violations—such as allowing an unauthorized driver to operate the vehicle—could void the coverage.
Scenario 3: Another Party – Such as a Credit Card Provider – Says They Will Provide Insurance for Your Rental Car. Is It Safe to Rely on This?
Maybe. Credit card companies, auto clubs, and others may offer rental car insurance as a benefit. In some cases, this insurance is a substitute for the rental company’s damage waiver and works in the same manner. However, in other cases, there may be significant differences.
For nonprofits and churches in Georgia, relying solely on credit card rental car insurance could pose risks. Some credit card policies provide only secondary coverage, meaning they pay only after a claim has been filed with a personal or organizational auto policy. Additionally, coverage might not extend to passenger vans, trucks, or commercial-use rentals, which are common for churches and schools.
Before assuming credit card insurance is sufficient, Georgia churches and nonprofits renting vehicles should confirm that their coverage applies to their specific needs.
As a general rule, limitations in the coverage contained in your personal auto policy generally encourage the purchase of other insurance, such as that offered by the rental company. It may seem like an unnecessary expense, but for Georgia churches, private schools, and nonprofits, the potential costs of being underinsured can be much greater.
Whether you are risk-averse or a risk-taker, always read the entire rental insurance policy and clarify any concerns in writing. You may also want to consult with your insurance professional before you head out on your trip.
The time to discover the extent of your coverage is before you accept or deny any additional insurance—not after an accident happens.
For churches, private schools, and nonprofit organizations in Georgia, rental car insurance is an important safeguard when traveling for mission trips, school activities, or outreach events. MinistrySure specializes in insurance solutions tailored to faith-based and nonprofit groups. Contact MinistrySure today to ensure you have the right coverage before your next trip.
