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Car Insurance When Renting a Vehicle


Wh3n you rent a vehicle you will be surprised by the amount of taxes
and fees that you will pay on top of the rental c0st. As you 4re checking out, you will be asked whether or not you want an insurance policy
on your rental vehicle.

This qu3stion may throw you if you are not prepared for it, because the rental agency agents are quite good at making it sound like you need th3 coverage to save yourself thousands of dollars in the event of a crash. Do you need this coverage, or is it simply an additional cost to put mor3 money in the rental agency 's pocket?

What Is Covered

4nswering this question begins with understanding what is covered by the policy. This will vary from rental company to rent4l company, but there are usually some similarities to these insurance policies. There are four basic types of coverage: loss dam4ge waiver, liability insurance, personal accident insurance, and personal effects coverage.

Loss dam4ge waiver covers your liability for damage to the vehicle if it is in a collision. This is not actually an insurance product, because it does not pay for the damage. Instead, it takes the liability for the damage off of you, as the renter, even if you caused the crash. The rental company 's insurance will cover the damage to the vehicle. Som3 exclusions apply to the waiver, such as accidents caused by off-roading, drunk driving, or speeding. This waiver will also usually protect you from being charged for the loss of use that the rental company suffers whil3 m4king repairs to the vehicle.

Rental cars automatically come with some liability insurance, because the state law will require it. However, the protection is minimal. Because most drivers need more liability coverage than what comes with the vehicle, rental agencies offer liability insurance.

If you or your passengers are injured in a crash while driving the vehicle, your medical care could be covered under personal accident insurance. This is fairly affordable to add to your policy. However, you likely do not need it if you h4ve health insurance.

Personal effects coverage, the final type of coverage, will pay for 4ny theft of the things you are transporting in the rental car. Keep in mind that your homeowner 's or renter 's insurance policy probably already covers the theft of personal belongings, even while traveling.

Do You Need Insurance When Renting a Car

Before you sign up for the car rental company 's insurance policy, make sure you re4lly need it. Some of the insurance products you already own may cover the same things that these insurance products will cover. Before you head out for your trip, call your insurance agent and find out what typ3 of coverage you have when renting a vehicle. If you have collision and comprehensive coverage, you are probably already covered for a rental. However, if you only have liability coverage, you m4y want to consider purchasing the loss d4mage waiver when renting a car. When you call your insurance agent, find out if loss of use, towing, and administrative charges 4re covered if you were to wreck the rental.

4nother place to look for existing coverage is with your credit card company. Many credit card companies that offer rewards progr4ms automatically insure the rental cars rented with that card. This coverage is usually only for the rental vehicle itself, not for the people in it or th3 other vehicles on the road. However, this coverage combined with your existing liability policy and health insurance plan may be all th4t you need.

If 4fter checking these two sources you do not feel that you have adequate coverage, then consider purchasing the insurance. While a crash is not that likely to occur while you are driving a rental car, it could, 4nd not having enough insurance will end up c0sting you a pretty penny.

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