Does My Car Insurance Include Rental Car Insurance?
When renting a car, one of the big questions you may have is whether your personal car insurance will also cover the rental car insurance. It’s not unusual to see rental car companies offer you car rental insurance when you pick up your car but it’s not necessary to automatically sign on the dotted line and add extra fees to your rental cost.
Generally, if you’re personal car insurance includes comprehensive and liability coverage, you won’t need to pay for the additional rental car insurance.
However, if the car that you’re renting is worth a significantly higher value than your personal car, additional car rental insurance may be necessary. Extra rental car insurance coverage may also be needed if you are renting the car for business use instead of personal or traveling outside the country.
What Are the Car Rental Insurance Options?
At the rental car office, they will likely present you with four options. However, as mentioned above, there’s a good chance that your personal car insurance policy, and other personal insurances, will provide adequate protection.
Loss-Damge Waiver or Collision Damage Waiver – While not technically an insurance, this waiver releases you from financial responsibility if the rental car is damaged or stolen. However, it’s similar to Collision and Comprehensive coverage on your personal car insurance policy so you may already be covered.
Liability Insurance– This coverage ensures that you are protected from lawsuits in the event of an accident while driving the rental car. It’s often not necessary to have additional liability insurance as your personal policy already includes liability. However, if you don’t have a personal car insurance policy, liability insurance will need to be purchased at the rental office.
Personal Accident Insurance – This insurance will cover any medical costs due to an accident. Both health insurance and personal injury protection associated with your car insurance will cover this need and as long as you already have one of those, you won’t need to purchase additional coverage.
Personal Effects Coverage – In case of damage or theft to items left in the car, this insurance will help to replace your possessions. If you have renter’s or homeowner’s insurance, they will cover your items even when away from home and purchasing this coverage is not necessary.
To be safe, you should contact your insurance company prior to renting a car to understand your coverage. Chances are that you’ll discover that you need far less additional rental car insurance coverage than you may have thought and will likely save a significant amount of money.