Our vehicles are our primary means of transportation to school, work, the grocery shop, doctor’s visits, and many other places in our day. Without your vehicle, life can quickly come to an abrupt halt. A rental car might be the best option. This is where rental car insurance comes in handy.
You can rent car insurance to protect your rental car, whether you are traveling, in an accident or simply need it for routine maintenance. Bankrate offers some helpful tips to help you choose the right coverage.
Different types of rental car insurance
The rental car insurance is similar to regular auto insurance. Based on your specific needs, you can choose the coverage and level of coverage that you need. The types of rental car insurance differ from auto insurance.
You should know your options before you purchase rental car insurance. These are the most popular types of rental car insurance:
- Loss-and damage waiver (LDW), also known as the collision damage waiver or CDW, is more of a policy than a waiver. This basically states that the rental company won’t pursue you if the car is stolen or damaged. This may not be possible if you have comprehensive or collision car insurance.
- Supplemental liability protection: This protects you from damage to other vehicles and property. These instances may be covered by your own liability insurance, even if you rent a car.
- Personal accident coverage: This covers you and your passengers for the cost of medical treatment if you are injured in an accident. You may be covered if your policy provides personal injury coverage or medical payments coverage.
- Personal effects coverage: This covers any personal belongings that are stolen from your car rental. This coverage may be offered by your renter’s or homeowner’s insurance policies.
There are many types of rental car insurance. However, not all policies will cover you. This policy would not cover the cost of renting a vehicle while your regular vehicle is being repaired. You would then use rental car reimbursement coverage. This is an option that is usually included in most auto insurance policies.
What are the best times to insure your rental car?
It can be difficult to know when you require car rental insurance. You might be tempted not to rent a car if you are only renting it for a short time. Some people’s personal car insurance policies automatically cover rental cars. In what circumstances is standalone rental car insurance required?
There is no type of insurance.
Financial expert Laura Adams says that if you don’t have auto insurance, you should get liability and a waiver for rental cars. You should also purchase damage protection if you have non-owner auto insurance. It only covers liability.
In most states, driving without car insurance is against the law. This could lead to serious financial and legal problems. You should also avoid renting a car from your credit card company as it usually does not provide enough coverage in the event of an accident.
You don’t have collision or comprehensive insurance
An LDW is a good option if you don’t have collision or comprehensive coverage on your auto insurance policy. Your personal policy won’t cover repairs if you cause damage to your car or get into an accident.
“If you have collision or comprehensive auto insurance, these will cover any physical damage. They may also extend to rental cars. Adams says that state laws can vary so make sure you check with your insurance company.
All auto insurance policies provide liability coverage. This protects you if you are sued or cause an accident.
Adams states that “Knowing if you should rent a car depends on what type of coverage you have.” If you have liability coverage, it will follow you when you rent a vehicle. If you inflict injury on someone’s property or cause it, liability protects you against a lawsuit.
You’re on a business trip
Your car insurance policy may have limitations if you’re going on a business trip. You might be excluded if your car is involved in an accident on the way to a conference, or big meeting.
Laura Adams states, “Another thing to consider is whether you rent a car for business or personal use.” Your existing auto insurance may not be sufficient to cover you if this is the case. Renting car insurance is a good option if you are unsure. It will be a wise decision as even minor damage can be costly to repair.
You don’t want to have to pay a deductible
If your rental car is covered by your personal auto insurance, and you are in an accident, you’ll need to pay a deductible. If you purchase rental car insurance, and you are in a collision with another vehicle, you don’t need to pay a deductible.
What is the cost of rental car insurance?
There are a few things that affect the cost of rental car insurance. It all depends on which company you purchase coverage. It depends on where you live, the type of car you rent, and how often you drive. You will pay more if you add on coverages.
Is my credit card able to provide rental car insurance?
Cardholders often have rental car insurance offered by credit card companies. Your credit card company may offer rental car insurance, but it is often secondary insurance. Your auto insurance company will be billed first if the car is stolen or you are in an accident. Your deductible will be applied to any claim if that happens.
Although it is more rare, there are credit card companies that offer primary car rental insurance. You don’t have to pay a deductable because primary insurance doesn’t go through your auto insurance. To find out if your credit card has rental car insurance, and what kind of insurance they have, you can contact your credit card company.
Many major credit card companies like American Express, Visa, MasterCard, and American Express offer rental car insurance to their cardholders. You will need to rent the car and pay the rental car with your card in order to take advantage of this coverage.
What insurance companies offer rental car insurance?
Getting rental car insurance coverage is pretty easy because most major car insurance providers offer it. Allstate, Farmers, Geico, and Farmers all offer rental car insurance coverage. It is free if you are already covered.
Your car insurance policy might offer similar coverage as the personal accident protection, loss-and-damage waiver or supplemental liability protection. Not all car insurance policies offer rental car insurance. This insurance is often included with collision and comprehensive policies, or with supplemental coverages that provide greater coverage.
You can find out if your coverage is valid by reviewing your auto insurance policy. Adams suggests Adams: “Before you go on your next trip, make sure to review your auto insurance policy and speak with your insurance agent about the rental car insurance that you might need.”
Here are some companies that provide standalone coverage if you need it.
- Allianz Global: Allianz Global’s Rental Car Damage Protector includes $75,000 in coverage, for just $11 per day, and offers coverage anywhere in the world. Each policy includes $400 coverage for personal and lost baggage, as well as $250 coverage for trip interruptions.
- Bonzah: With a RoamRight Auto Rental Insurance Plus policy from Bonzah, you can get up to $35,000 in coverage, plus up to $500 in coverage for lost luggage and personal items, no deductible and a 10-day free look period.
- RentalCover.com: Rental car insurance from RentalCover.com is meant to supplement insurance from your credit card provider. According to the company, drivers can obtain supplemental insurance for $134 lower than renting a car from a rental counter. Drivers can cancel their rental insurance and receive a full refund until the time they pick up their car.
- Sure: Sure is a mobile-based rental car insurance company that is entirely digital. The app allows you to select the dates you wish to travel, the type and amount of coverage you desire, as well as the deductible. You can make and update your choices while on the move. You get great perks like flat tire protection or reimbursement for lost keys.
- InsureMyRentalCar.com: InsureMyRentalCar.com offers an LDW with up to $100,000 in protection without a deductible. You can have 24/7 emergency roadside assistance if your car breaks down. Starting at $9.75 per Day
Questions frequently asked
Are you required to have insurance for a rental car?
You should have insurance on your rental car. This could be from your car insurance company, your credit card, or any other insurer. Accidents can happen, and you may be responsible if your coverage is not sufficient or the damage to your vehicle exceeds your limits.
Are rental car companies able to offer insurance for their vehicles?
You can buy rental car insurance from rental car companies. There are four types to choose from: liability coverage, personal injury insurance, personal effects coverage, and loss damage waiver. Compare pricing and coverage with other options after you receive a quote from the rental car company.
What insurance covers a rental car?
It could be. It all depends on the services included in your policy. It is best to review your policy before renting a car. You can also call your agent to get answers to your questions.
What will happen to my insurance if I get in an accident with a rental car?
Getting into any accident will most likely affect your insurance premium, whether it is in your car or a rental car. This is particularly true if your rental car insurance is through an auto insurance company or credit card company. If you have a claim attached to your auto policy, the company will be notified and may increase your rate.
