The person behind the counter displays a menu of insurance options and recommends you purchase them for your rental car. You stare at the paper like a deer in the headlights and wonder what to do. Many people play it safe and purchase the insurance. Do you need rental car insurance, or does your current car insurance cover rental cars?
Does My Car Insurance Cover Rental Cars?
In most cases, rental cars are covered by the renter’s personal auto insurance policy and no additional insurance is needed. This includes personal article coverage for belongings stored in both rental vehicle’s cabin and trunk. To avoid purchasing unneeded insurance contact your auto insurance agent ahead of time and determine what coverage applies.
Does My Credit Card Cover Rental Cars?
In some instances, paying for a rental car with a credit card comes with built-in insurance. Call your credit card carrier to inquire what coverage is given and what stipulations must be met.
Should I Supplement My Existing Coverage?
States mandate a minimum amount of liability insurance on every vehicle. Liability covers the other driver in an accident, but drivers are still responsible for damages to the rental car. If you have low coverage on your own vehicle, you can add additional liability insurance and collision coverage from the rental car company.
Beware Of Loss Of Use Fees
Your insurance agent says your insurance policy has your rental car covered for liability, collision, and personal articles. You might think you’re good to go, but that may be an incorrect conclusion. In the event of an accident, you may be charged for loss of income and administrative fees because one of their vehicles is out of service. Find out ahead of time if your policy covers loss of use and administrative fees. If your policy does not cover the loss of use fees, buy the loss of use waiver at the rental car counter.
Preparation is the key to ensure proper rental car coverage and preventing an unnecessary purchase. Think about what coverage you’re comfortable with, know what your existing auto insurance policy or credit card provides, and purchase the rest if needed from the rental car counter.
How about you, Clever Friends, if you were to rent a car today, do you know what coverage you already have?