Rental Car Liability Insurance: What It Is and Why You Need It

Do you plan on renting a car on your next vacation or business trip? If so, it’s important to understand what rental car liability insurance is and why you need it. In this article, we’ll cover everything you need to know about rental car liability insurance, including what it covers, how it works, and frequently asked questions.

What is Rental Car Liability Insurance?

Rental car liability insurance is a type of insurance that protects you from financial responsibility if you’re involved in an accident while driving a rental car. It covers bodily injury and property damage to others, as well as damage to the rental car itself. This type of insurance is not required by law, but it’s highly recommended.

What Does Rental Car Liability Insurance Cover?

Rental car liability insurance covers the following:

How Does Rental Car Liability Insurance Work?

When you rent a car, you’ll be asked if you want to purchase rental car liability insurance. If you decline, you’ll need to provide proof of insurance from another source, such as your personal auto insurance policy. If you do purchase rental car liability insurance, you’ll pay a daily fee for the coverage. If you’re involved in an accident while driving the rental car, you’ll need to file a claim with the rental car company and your insurance provider.

Why Do You Need Rental Car Liability Insurance?

There are a few reasons why you need rental car liability insurance:

• Your personal auto insurance policy may not cover rental cars.
• If you’re involved in an accident, you could be held financially responsible for medical expenses, lost wages, and property damage to others.
• You could be held financially responsible for damage to the rental car itself.

FAQs

1. Is rental car liability insurance required by law?

No, rental car liability insurance is not required by law. However, it’s highly recommended.

2. Can I use my personal auto insurance to cover a rental car?

It depends on your policy. Some personal auto insurance policies cover rental cars, while others do not. Check with your insurance provider to see if you’re covered.

3. Is rental car liability insurance expensive?

The cost of rental car liability insurance varies depending on the rental car company and your location. However, it’s generally affordable and worth the cost for the peace of mind it provides.

4. What happens if I decline rental car liability insurance and get into an accident?

If you decline rental car liability insurance and get into an accident, you’ll need to provide proof of insurance from another source. If you don’t have insurance, you could be held financially responsible for medical expenses, lost wages, and property damage to others.

5. Is collision damage waiver the same as rental car liability insurance?

No, collision damage waiver is not the same as rental car liability insurance. Collision damage waiver covers damage to the rental car itself, while rental car liability insurance covers bodily injury and property damage to others.

Conclusion

Rental car liability insurance is an important type of insurance to have if you plan on renting a car. It offers valuable protection from financial responsibility if you’re involved in an accident while driving the rental car. Be sure to purchase rental car liability insurance or provide proof of insurance from another source before hitting the road.