Discover Rental Car Insurance

If you’re planning on renting a car for your next trip, it’s important to think about insurance. Rental car companies offer insurance options, but they can be expensive and confusing. In this article, we’ll cover everything you need to know about rental car insurance so you can make an informed decision.

What is Rental Car Insurance?

Rental car insurance is a type of insurance that covers you in case of an accident or damage to a rental car. This insurance can be purchased from the rental car company or through your personal auto insurance provider.

Types of Rental Car Insurance

There are several types of rental car insurance, including:

Type of Insurance
Description
Collision Damage Waiver (CDW)
Covers damage to the rental car in case of an accident.
Loss Damage Waiver (LDW)
Sometimes called Collision Loss Damage Waiver (CLDW), this covers both damage and theft of the rental car.
Personal Accident Insurance (PAI)
Covers medical expenses for you and your passengers in case of an accident.
Personal Effects Coverage (PEC)
Covers theft of personal items from the rental car.

It’s important to note that rental car insurance is not mandatory, but it is recommended in case of unforeseen circumstances.

Should You Purchase Rental Car Insurance?

Whether or not to purchase rental car insurance depends on several factors.

Your Personal Auto Insurance

If you have comprehensive and collision coverage on your personal auto insurance policy, it may cover damage to a rental car. However, it’s important to check with your insurance provider to make sure.

Your Credit Card Benefits

Many credit cards offer rental car insurance benefits as a perk.However, it’s important to read the fine print and understand what is covered.

The Length of Your Rental

If you’re only renting a car for a day or two, the cost of rental car insurance may not be worth it. However, if you’re renting a car for a week or more, it may be a good idea to purchase insurance.

How to Purchase Rental Car Insurance

You can purchase rental car insurance from the rental car company or through a third-party provider.

Rental Car Company Insurance

The rental car company will offer you insurance options when you pick up your rental car. You can choose to accept or decline the insurance.

Third-Party Rental Car Insurance

You can also purchase rental car insurance from third-party providers, such as travel insurance companies. This may be a more affordable option than purchasing insurance from the rental car company.

FAQ

What is a deductible?

A deductible is the amount of money you’re responsible for paying before insurance coverage kicks in. For example, if you have a $500 deductible and you cause $1,000 in damage to the rental car, you’ll be responsible for paying $500 and the insurance will cover the remaining $500.

What happens if I don’t purchase rental car insurance and get into an accident?

If you don’t have insurance and get into an accident, you’ll be responsible for paying for the damages out of pocket. This can be very expensive.

Can I add additional drivers to my rental car insurance policy?

Yes, most rental car companies allow you to add additional drivers to your insurance policy for an additional fee.

Is rental car insurance mandatory?

No, rental car insurance is not mandatory. However, it’s recommended to protect yourself in case of an accident or unforeseen circumstances.

Can I purchase rental car insurance after I’ve picked up the rental car?

Yes, you can typically purchase rental car insurance even after you’ve picked up the rental car. However, it’s important to note that the longer you wait, the more expensive it may be.

Conclusion

Rental car insurance is an important consideration when renting a car. Whether you purchase insurance from the rental car company or a third-party provider, it’s important to know what you’re getting and what is covered.

By understanding your personal auto insurance policy and credit card benefits, as well as the length of your rental and your overall needs, you can make an informed decision about rental car insurance.