You most likely don’t need rental car insurance if you currently have auto insurance for your vehicle. Generally, the minimal amount required by your state is automatically covered by rental companies. This occurs if you don’t currently own a car with insurance. However, rental car coverage might be necessary if you need additional coverage, are traveling abroad, or have a business purpose.
What is rental car insurance?
In the event of an accident, theft, or damage to the rental car, you will need rental car coverage to shield you from paying for repairs out of pocket. However, the daily price will raise the cost of your rental. Additionally, you might not need an extra rental car policy. Especially if your existing car insurance policy already offers sufficient coverage when you rent a vehicle.
Certain credit cards provide benefits similar to auto insurance if the entire rental amount is paid using the card. Understanding the coverage you now have and what is covered (and isn’t) if you add more safeguards is the best method to determine if you need car rental insurance.
How Does Rental Car Insurance Work?
Rental car insurance is offered by various sources and forms, unlike main car coverage, which is more uniformly provided by large and local insurance companies. Your auto coverage will pay for the rent if your car is damaged. Moreover, you could even be eligible to receive your daily rental charge back in some circumstances.
However, renting a car for vacation or leisure may result in partial insurance from your personal vehicle policy or credit card provider. Furthermore, you can also choose to purchase coverage directly from the rental agency in these situations.
Types of Rental Car Insurance
Rental car insurance is used broadly to refer to a variety of insurance policies that may be applicable during certain rental times. This puts it in line with standard vehicle insurance, which offers a number of additional safeguards in addition to liability-only, comprehensive, and collision coverage.
You may need the following kinds of rental car coverage:
Liability coverage
If you and another person are in an accident and someone else is hurt or loses something, this basic rental car coverage helps cover the costs of repairs and medical expenses. If your car policy provides adequate liability coverage, you might not need to acquire liability coverage for a rental car.
Loss damage waiver (LDW)
This coverage, though not insurance, covers damage to rental cars not caused by the renter’s actions like speeding or off-roading. Obtain LDW coverage if your vehicle insurance plan already includes collision and comprehensive coverage, even if it may be unnecessary. Furthermore, renting a car without collision and comprehensive insurance and not receiving a loss damage waiver may result in additional damage and loss of use fees.
Personal accident coverage
This coverage type helps to pay for medical expenses if you or other passengers sustain injury in a rental car accident. However, you may already have additional medical coverage. This may include personal injury protection (PIP) on your auto insurance policy, medical payments coverage, or a health insurance plan.
Personal effects coverage
Personal things taken from a rental automobile are covered by this insurance. This protection may come into play, for example, if someone breaks into your car and takes your laptop and bags. However, your individual homeowners insurance or renter’s insurance policy may provide coverage for personal property.
How Much Does Rental Car Insurance Cost?
You should set aside an extra $30 to $50 a day on average if you decide to add CDW/LDW and other coverage. Additionally, the average cost of automobile rental insurance is calculated by crunching the statistics.
Furthermore, the worth of the automobile and the area or state in which you are renting a car are the main determinants of coverage costs. Luxury cars might cost even more. Lastly, selecting more than two qualified coverage packages might result in a lower cost.
Where to Get Rental Car Insurance
Before renting a car, you may need to get rental car insurance from a number of suppliers. However, you can purchase protection straight from the rental car business. These companies are among the best available if you choose to compare quotes for coverage in advance.
- Allianz Global Assistance
- American Express
- Bonzah
If you lack personal auto coverage or have insufficient coverage, you need rental car coverage to cover damages in accidents or property damage, as cash payments may be required.
Should I Get Rental Car Insurance?
Getting rental car insurance depends on whether you want to know that you will be protected in the worst-case situation. If you don’t currently have full coverage insurance, you can choose from different coverage options. This may include loss damage waiver or collision damage. In addition, rental automobiles are more frequently linked to aggressive driving, inattentive driving, bad handling, and poor driving than non-rental cars. Even when you drive well on your daily commute, driving in a strange environment might be nerve-wracking.
