Do you need car rental insurance?

You’ll find out when renting a car, car rental companies desperately want you to buy their insurance. For some drivers, rental car insurance is a necessity. For others, it’s a redundant expense. 

Here’s what you need to know before you shell out for car rental insurance on your next vacation.

First, you should always check with your car insurance company first! It is not necessary to get rental car insurance from your rental car company. If you already own a car, your car insurance policy might cover rental cars. If so, you might be able to decline the expensive insurance offered at the counter and save money.

However, there could be drawbacks to using your own insurance when renting a car. It might be beneficial to use the insurance the rental agency offers. In some cases, your auto insurance may not be applicable to the situation. This is why you should know your fully auto policy in and out. 

If you decide to go with the rental insurance you will have different policy and coverage options.

  • A loss-damage waiver or collision-damage waiver: If you’re in an accident in a rental car (or it’s stolen), you are typically responsible for the financial loss, which could be costly. With this coverage, the rental company waives that responsibility, relieving you of it. 
  • Liability insurance or supplemental liability insurance: This coverage offers protection from any lawsuits that might arise from any incidents occurring during your rental period. 
  • Personal accident insurance: This coverage is designed to pay for medical costs that you might incur in an accident while renting the car. 
  • Personal effects coverage: Insures your belongings that are with you in your rented car.

Renting a car outside the US?

Renting a car outside the U.S. brings its own challenges. Fewer insurance companies cover their customers who rent cars internationally, so, again, contact your company to find out your policy provisions. More people opt to buy the extra coverage when traveling abroad because of the increased risk of accidents due to different driving conditions and traffic laws.

No matter if you go with rental insurance or not, always read the car rental insurance agreement as well as your own insurance policies carefully. Speeding, drunk driving, non-approved drivers or using the vehicle for certain business purposes will void most rental car insurance.

Still not sure if you need rental car insurance, contact us at today to find out.

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