The Rental Agent will ask you to buy insurance for your rental car when you approach the Rental Car Counter. If you reply no they will ask you for your initials next to each coverage you decline. These decisions could have a significant impact on your financial situation. It is important to decide before you arrive whether you need the Rental Car Counter’s auto insurance. This will prevent you from making a financial loss or spending money on insurance you do not require. As auto insurance agents, one of the most common questions we get is “Do I have to buy the auto insurance at the rental car counter?” Answer: Yes. It is possible to cover the rental car with insurance policies you already have or to buy additional protection. This article will help you make the right decisions.
There are several ways to secure coverage when you rent a car without having to purchase it at the rental car counter.
Transfer Coverage from Your Existing Auto Insurance Policy. If you rent a car, you will need to bring your insurance ID. You should bring your card when you rent the car. You may need it if the rental company requires it. It can also save you time and aggravation if your car is pulled over by police. As long as the rental car is not being used for business purposes, or rented in another country, your auto insurance policy coverage and deductibles will transfer to any cars you rent. Check the declarations page on your personal auto policy to see if you are currently covered for Property Damage Liability and Comprehensive coverage. Keep track of your Property Damage Liability Limit and your Comprehensive or Collision Deductible. You should consider renting a car abroad and purchasing insurance at the rental counter. Most personal auto policies only cover the owner of the policy.
If you rent the car out for pleasure, the Property Damage Liability section of your auto insurance policy will cover any damages to the rental car. If you are involved in an auto accident and your car is being repaired, your insurance policy will cover the damage. Your personal auto insurance policy will cover damage to your rental car. This means that you’ll have to pay the deductible if the rental car is damaged.
Rent-a-Car Insurance – Many credit cards offer rental car insurance as a benefit. These cards usually provide coverage only after your auto insurance policy limits are exhausted. They also do not pay if the renter used their card to cover the full cost of the rental. We recommend that you call your credit card company to verify your rental car protection. Credit cards seem to have varying levels of protection. Talk to your credit card representative and ask for information on rental car liability, comprehensive, and collision coverage. This information should be requested in writing, as it is possible to receive multiple answers from one credit card company. Also, be sure to ask about exclusions. Most credit cards do not cover exotic or luxury car rentals.
Buy a Non-Owned Auto Insurance Policy – If your rental car fleet is large but you don’t have auto insurance, you can save a lot of money and purchase a “Non Owned Auto Liability” policy. You will get the same protection as the excess liability coverage at the rental car counter. These policies are usually $300 per year and cover you while driving any private passenger vehicle. This policy provides only protection against Bodily Injuries and Property Damage Liability. You will still need to buy the Collision Damage Waiver, or one of our other coverage options.
If none of the above methods work, you might consider buying coverage at the Rental Car Counter. The rental car agent is paid a commission each time they sell you coverage. This can make it difficult to get honest advice on these coverages. You don’t have to worry, we’ve provided all the assistance you require below.
Collision Damage Waiver, (CDW), – Some rental car companies call this protection the Loss Damage Waiver (LDW). This is sometimes mistakenly called insurance. It’s actually a waiver from responsibility. The rental car company will waive your responsibility for damage or theft when you buy this protection. You would file a quick claim form after returning the car to request that the rental company pay for the repair or replacement of the vehicle. This protection typically costs between $15 and $25, depending on where you rent the car.
Caution: Your coverage may be voided if you cause an injury or violate the law. This covers driving while impaired, excessive speeding and driving off the road.
The Collision Damage Waiver may be worth considering if your Property Damage Liability coverage is less than $10,000. If this happens, the Collision Damage Waiver may be an option. If you are found responsible for damage to another person’s vehicle or property, rental car companies may charge you for lost rental income. All of these factors should be taken into consideration when deciding whether to purchase the Collision Damage Waiver.
This coverage also has the advantage of not having to pay a deductible. This is a great advantage if your auto policy covers you in an accident and you need to rent a car for repairs. In this case, any damage to the rental car would be covered under your Collision or Comprehensive coverage. You would also have to pay the deductible.
Excess Liability: Car rental companies must provide minimum liability protection for their renters in most states. However, this is often not sufficient to protect your interests in the event that you injure another person in an accident. Your personal auto policy’s liability will be transferred to your rental car. This ensures that you have sufficient limits of bodily injury liability and property damage liability. We do not recommend buying this coverage. This coverage will only be available after your personal auto insurance policy limits have been exhausted. The cost of this protection is between $10 and $13 per Day for 1,000,000 dollars worth excess protection.
Personal Accident Insurance: This insurance covers you for medical expenses and ambulance costs if you are in an accident with your passengers or pedestrians. You don’t need to purchase this coverage if you are a resident of a state with no fault, have medical insurance, or have medical expenses coverage. To find out if you are covered by your auto insurance or health insurance, check the policy. This type of loss will not result in an increase in the price of your auto policy. If it is covered by another policy, there is no advantage to renting it from the rental car company. This protection costs typically $2-$5 per day depending on where you rent.
Personal Effects Insurance – This covers theft of your personal effects, such as laptop computers, cameras, camcorders, and camcorders. If you have a renters or homeowners policy, you may be able to get this coverage. The deductibles for homeowners and renters are typically $500 or more, so not all your items may be covered. To find out if you are covered, check the declarations section of your policy to see your deductible.
You don’t usually have to pay any deductible when you rent a car. This is one of the many benefits of this coverage. When you return your rental car, you simply need to file a claim and get reimbursed for any items stolen. In most cases, the rental company will require receipts or other evidence of ownership to prove that the items you claim were stolen. Before purchasing this coverage, you should ask the rental agent whether there are any exclusions. This protection costs between $2 and $5 per day.
