Rental Auto Insurance Tips

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Does my car insurance policy cover my use of a rental car?

Auto Insurance and Rental Cars

For private passenger cars, car owners can elect to have Rental Car Reimbursement coverage added to their car insurance policy. This reimbursement coverage pays for a rental car in the event that the insured auto is not drivable or is in the shop for repairs made necessary in a covered auto accident.

The Rental Car Reimbursement does not cover car rental for everyday or business purposes; however, if your auto insurance policy includes collision and comprehensive coverage, a rental car used for pleasure may be covered.

   
Does my car insurance policy cover my use of a rental car?

Private Passenger Car Insurance Vs. Rental Company Car Insurance

For private passenger cars, car owners can elect to have Rental Car Reimbursement coverage added to their car insurance policy. The reimbursement coverage pays for a rental car in the event that the insured auto is not drivable or is in the shop for repairs made necessary in a covered auto accident.

The Rental Car Reimbursement does not cover car rental for everyday or business purposes; however, if your car insurance policy includes collision and comprehensive coverage, a rental car used for pleasure may be covered.

   
Should I purchase car insurance when I rent an auto?

Questions to Ask Before You Purchase Rental Company Car Insurance

Drivers of rental cars need auto insurance to cover the vehicle in the event of an accident. Before you purchase rental car insurance, check with the car insurance company of your personal vehicle.

If you have collision and comprehensive coverage, and the rental car is being used for pleasure (and not business) purposes, your rental car may be covered. You may also want to check with your major credit card companies. Many offer rental auto insurance to their members, but the amount varies greatly.

   
When purchasing rental car insurance, what does Collision Damage Waiver (CDW) Coverage provide?

Rental Company Car Insurance: Collision Damage Waiver (CDW) Coverage

The Collision Damage Waiver (CDW) Coverage offered by rental car companies provides 24-hour coverage for any collision or theft that occurs to the rental car up to the cash value of the car itself. The terms and conditions of the CDW vary widely from company-to-company and from state-to-state.

If you have auto insurance for your personal auto and/or have homeowner's insurance coverage, you may not need to purchase rental car company insurance. If you do not have car insurance, check with your major credit card company to see what auto insurance they provide.

   
When purchasing rental car insurance, what does Personal Accident Insurance Coverage provide?

Rental Company Car Insurance: Personal Accident Coverage

The Personal Accident Coverage offered by rental car companies provides accidental death and medical coverage for the driver and any additional passengers riding or driving the car. This insurance is usually optional. If you do not have car insurance, check with your major credit card company to see what rental car insurance they provide.

   
When purchasing rental car insurance, what does Liability Coverage provide?

Rental Company Car Insurance: Liability Coverage

The Liability Coverage offered by rental car companies varies from state-to-state. The rental companies are required to carry the minimum amount of liability coverage required by your state.

The excess liability coverage provides up to $1 million for the time you rent the car, but is usually not enough to cover a serious accident. If you have car insurance for your personal auto and/or have homeowner's insurance coverage, you may not need to purchase liability rental car company insurance.

   

Buying Rental Car Insurance

Do you need rental car insurance? You might. In most cases you have to have comprehensive and collision insurance (also called full coverage insurance) in order to even be allowed to purchase automobile rental insurance. If you want to know is rental car insurance necessary, it isn't necessary the way liability insurance is. It is not required by law, but if you are in an accident and need to get to and from work while your car is in the shop, car insurance for rental cars will be the coverage that gets you there.

If you can afford a rental car out of pocket if you get into an accident, then rental car insurance coverage isn't as important, but the coverage is usually very inexpensive and even if you can afford a rental car, with the price tag of rental cars it might be a money saver to have the rental coverage on your policy.

Here are a few rental car insurance tips:

  1. If you are looking at rental car insurance types (after you determine is car rental insurance necessary) determine how much the coverage will cost and then, if you're really curious if it's a good deal, call some car rental companies and price rental cars. Then you will know what you are paying as compared to how much you would spend paying for it yourself.
  2. Types of car rental insurance are usually expressed in levels of coverage. The higher the level of insurance the nicer or larger the car you can rent in case of an accident. If you are only driving the car until yours is repaired, it isn't necessary to get the highest available level of coverage. That can help you answer the question, "Should I buy rental car insurance?"

   

Should You Buy Insurance For a Rental Car?

If you are planning on renting a car, it is important that you do some research beforehand to determine whether or not to purchase rental car insurance. Most of the time, obtaining it from the rental car agency is going to be more expensive. Knowing your options before you rent the car is beneficial to you and your wallet.

First of all, if you have car insurance, call your provider to see what is included on your policy in the event you are in an accident while driving a rental car.

If you do not have car insurance, you can check with your homeowner's insurance and see if there is any rental car insurance included in your policy.

If you do not have either of these policies on your own, it is possible to obtain rental car insurance from your credit card company too. Calling them, they can tell you what options that they offer.

The last option is to obtain rental car insurance from the rental car agency. This should be used as a last resort, as it is usually more expensive.

It is best to prepare yourself and not spend any money unnecessarily. It is important to carry the rental car insurance as you may put yourself in a bigger financial hardship if you were to be in an accident with no insurance.

   
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