Rental Car Insurance Explained

With so many types of coverage on the average auto policy, it’s no wonder people get confused. Fortunately, you don’t have to figure it all out on your own. One of the areas of coverage that is difficult to understand for many is rental car insurance. There are several ways that you can get this coverage and certain situations where you might not need to purchase supplemental rental car coverage. Although it will vary from one situation to the next, here’s what you need to know.

What is Rental Car Insurance?

This coverage is similar to regular auto coverage, but it’s designed to protect a rental car specifically. There are different types and levels of coverage that you can choose from, and that’s where the variations start to make things a little more complex. Let’s break it down by the types of rental insurance available for rental cars and auto policies.

Rental Coverage on Your Personal Auto Policy

The first option is to add rental coverage to your auto insurance policy. It’s usually available in a range of limits based on the total dollar amount per day. For example, if you have coverage up to $50 per day for a rental, you could rent a car that costs up to $50 per day and your insurance will pay for it.

You will want to make sure that you have collision and comprehensive coverage on your personal auto policy, too. That’s the protection that will extend to cover the rental car in case of any damage or loss. If you don’t have rental coverage here, you do have a few other options.

Separate Rental Car Coverage

If you are renting a car and need to purchase separate coverage, you will have a few different options to choose from. Again, remember to check your personal auto policy for any rental coverage first so that you’re not paying extra for double coverage that you don’t need. The types of insurance available from a
rental car agency directly include:

·  Loss-and-Damage Waivers

·  Personal Effects Coverage

·  Supplemental Liability

·  Personal Accident Protection

Loss-and-damage waivers are sometimes also known as collision damage waivers. This is a document that you sign that states the rental company will not pursue you for damages if a rental car in your name is damaged or stolen. If you do have collision and comprehensive coverage on your policy, you may not need the additional LDW.

In addition to your existing liability coverage, you can also get supplemental liability insurance to cover any instances that may occur while you are driving the rental. The same is true with personal accident protection—this works to cover medical expenses for you and your passengers if there’s an accident.

Personal effects coverage will protect belongings and items stolen from a vehicle or lost in an accident or other incident. Some home insurance and renter’s insurance policies have coverage that extends to personal property in automobiles, but not all of them. Double-check yours to be safe.

How Much Is Rental Car Insurance?

The cost of rental car insurance depends on several factors, including what coverage you buy, where you buy it from, and what type of car you’re renting. The miles you intend to drive, your driving history, and any additions to your coverage will increase the premium. You should never buy rental insurance from the rental agency directly without first comparing your other options.

Talk to an insurance agent to learn more about rental car insurance and how you can make sure that you’re protected. It’s an affordable investment that’s worth every penny for the peace of mind that it gives.