Renters Car Insurance: Everything You Need to Know

When you rent a car, you might be asked if you want to purchase insurance from the rental company. While this might seem like a good idea, it can be expensive, and you may already have coverage through your renters insurance policy. In this article, we’ll explain renters car insurance, what it covers, and how it works.

What is Renters Car Insurance?

Renters car insurance is a type of coverage that provides protection for damage to a rental car. This type of insurance can be purchased from the rental car company or through your renters insurance policy. It’s important to note that renters car insurance is not required by law, but it can provide peace of mind while you’re driving a rental car.

There are two types of renters car insurance: collision damage waiver (CDW) and loss damage waiver (LDW). CDW covers damage to the rental car if you’re involved in an accident or collision, while LDW covers theft of the rental car or damage due to vandalism or natural disasters. Both types of coverage typically have deductibles, which are the amount of money you’ll need to pay out of pocket before the insurance kicks in.

How Does Renters Car Insurance Work?

When you rent a car, the rental company will typically offer you the option to purchase CDW and LDW. If you accept, you’ll pay a daily fee for each type of coverage. Alternatively, you can purchase a standalone renters car insurance policy from your insurance company. This may be more cost-effective than purchasing coverage from the rental car company.

If you’re involved in an accident or your rental car is stolen or damaged, you’ll need to file a claim with your renters car insurance provider. Depending on the type of coverage you have, you may need to pay a deductible before the insurance company will cover the cost of repairs or replacement.

What Does Renters Car Insurance Cover?

Renters car insurance typically covers damage to the rental car, including collision, theft, vandalism, and natural disasters. However, there are some exclusions to this coverage. For example, if you’re driving under the influence of drugs or alcohol, your renters car insurance policy may not cover any damage or injuries that occur as a result of an accident.

Additionally, some renters car insurance policies may not cover certain types of vehicles, such as luxury cars or trucks. It’s important to read your policy carefully to understand what is and isn’t covered.

What Isn’t Covered by Renters Car Insurance?

While renters car insurance can provide valuable protection, there are some things that it doesn’t cover. For example, renters car insurance typically doesn’t cover personal injury or liability for damage to other vehicles or property. To be fully protected while driving a rental car, you may need to purchase additional insurance, such as personal liability insurance or a non-owned auto insurance policy.

FAQs

Conclusion

Renters car insurance can provide valuable protection when you’re driving a rental car. By understanding what it covers and how it works, you can make an informed decision about whether to purchase coverage from the rental car company or through your renters insurance policy. It’s important to read your policy carefully to understand what is and isn’t covered, and to consider purchasing additional insurance if necessary to be fully protected while driving a rental car.