Rental Car Insurance: What You Need to Know

If you’re planning to rent a car for a vacation or business trip, you may be wondering whether you need rental car insurance. The answer isn’t always straightforward, as it depends on a variety of factors. In this article, we’ll explain everything you need to know about rental car insurance, including what it covers, how it works, and whether it’s worth purchasing.

What is Rental Car Insurance?

Rental car insurance is a type of insurance policy that provides coverage for rental vehicles. It can help protect you financially if you get into an accident or if the car is stolen or damaged while in your possession. Rental car insurance is typically offered by the rental car company, and can be purchased at the time of rental or in advance.

Types of Rental Car Insurance Coverage

There are several types of rental car insurance coverage that you may be offered by the rental car company:

It’s important to note that rental car insurance coverage can vary by state and by rental car company. Be sure to read the terms and conditions carefully before purchasing any coverage.

Should You Purchase Rental Car Insurance?

Whether or not you should purchase rental car insurance depends on a few factors:

Your Personal Auto Insurance Policy

If you have auto insurance, your policy may cover rental cars. Check with your insurance provider to see whether rental cars are covered, and what type of coverage is provided. If your policy does cover rental cars, you may not need to purchase additional rental car insurance.

Your Credit Card Benefits

Some credit cards offer rental car insurance as a benefit to cardholders. Before renting a car, check with your credit card company to see what type of coverage is included, and whether you need to decline rental car insurance from the rental car company in order to be eligible for the credit card coverage.

The Cost of Rental Car Insurance

Rental car insurance can be expensive, so you’ll want to weigh the cost of the coverage against the potential benefit. If you’re only renting a car for a short period of time, it may not be worth the cost of the insurance.

Frequently Asked Questions

Here are some common questions and answers about rental car insurance:

Do I need rental car insurance if I have my own car insurance?

Not necessarily. If your personal auto insurance policy includes rental car coverage, you may not need to purchase additional coverage from the rental car company. However, you should check with your insurance provider to be sure.

What does collision damage waiver cover?

Collision damage waiver (CDW) covers damage to the rental car in case of a collision. It typically has a deductible, which means you’ll be responsible for paying a certain amount of the cost of the damage.

Does liability insurance cover damage to the rental car?

No, liability insurance only covers damages and injuries you may cause to others while driving the rental car. It does not cover damage to the rental car itself.

Does personal accident insurance cover medical expenses for everyone in the car?

Yes, personal accident insurance typically covers medical expenses for you and your passengers in case of an accident.

Conclusion

Rental car insurance can provide valuable protection when you’re renting a car, but it’s important to understand what you’re getting and whether it’s worth the cost. Be sure to check your personal auto insurance policy and credit card benefits before purchasing rental car insurance, and read the terms and conditions carefully to understand what types of coverage are included.