Rental Car Insurance
Many people rent cars without knowing what the rental vehicle’s coverage is. If the car is damaged, this can lead to huge problems. Before you sign papers and drive the car off the lot, make sure you are fully aware of rental car insurance.
Let me try to clear up some confusion. However, I want to highlight the reasons why it is important to know what coverage you have before renting a car. This article does not offer professional advice. However, it will inform you that you should consult a professional.
The Rental Car vs. other Vehicles
Two main components are required when discussing any type of auto insurance. Each state must have some form of liability coverage. This insurance covers “the other guy”. This insurance covers you and your car.
This issue has caused confusion and people have ended up paying thousands of dollars in damages. You can be sure to understand the differences and protect yourself.
Create Your Own Auto Policy
Auto insurance is required if you own a car. If you rent or borrow a vehicle, your own insurance should cover you. Before you rent, make sure to call your agent and find out how the car is covered.
Check to see if your policy covers damage to the rented vehicle (collision), and damage to other vehicles (liability).
If you have liability insurance on your vehicle, then you probably won’t have insurance for the rented car. If the vehicle is damaged, you may still be responsible.
Keep in mind, however, that your policy may have a deductible. This deductible will also apply to your rented vehicle.
Make sure to get your own agent to explain what coverage you have under your policy when you rent a vehicle.
Credit Card Insurance
Some credit cards offer rental car insurance coverage. This may not be collision insurance, so be careful. You will need liability insurance to become a legal driver in the US. If you have liability insurance but not collision coverage, this may be a good option.
Call your credit card company to verify what coverage you have. Don’t assume that the credit card rental policy covers all.
Rental Car Company Insurance
Many rental cars have their own insurance policies at a daily cost. You can either get coverage or supplement your existing policy. Although the daily rate can be expensive, if you’re not certain you are covered and have been in an accident, it may be worth it!
After you’ve listened to my advice and figured out your coverage, you can decide if you want rental car company insurance.
Insurance for Non-Owner Vehicles
Non-owner vehicle insurance is for those who don’t own a vehicle but rent out or borrow a lot. It is often cheaper than owner insurance and cheaper than the daily rate of rental car company insurance if your vehicle is rented a lot.
However, this may only be liability insurance. This will keep you legally covered and protect you from claims from other drivers. However, it may not cover your rental car. You may be able to rent a car if you have collision insurance through your credit card.
Do you need rental car insurance?
Asking your auto insurance agent or representative at your company is the best place. Before you rent a car, verify that you have insurance coverage from another source.