Rental Insurance for Cars

Renting a car can be a great option when traveling or when your own car is in the shop. However, it’s important to have the right kind of insurance coverage when renting a car. Rental car companies offer insurance coverage, but it can be expensive and may not offer the coverage you need. In this article, we will discuss the various types of rental car insurance and provide tips for finding the best coverage without breaking the bank.

Types of Rental Car Insurance

When renting a car, there are several types of insurance coverage you may be offered. It’s important to understand what each type offers and if it’s necessary for your situation.

Collision Damage Waiver (CDW)

A Collision Damage Waiver, also known as a loss damage waiver, is an optional coverage that waives your financial responsibility if the rental car is damaged or stolen. This coverage can cost between $10 and $30 per day and may not cover all types of damage.

Some credit card companies offer coverage for CDW if you pay for the rental with their card. However, it’s important to read the fine print and understand what is covered and what is not. It’s also important to note that using your credit card’s coverage may void any coverage offered by the rental car company.

Liability Insurance

Liability insurance is required by law in most states and covers damage or injury you may cause to others while driving the rental car. The rental car company may offer this coverage or you may already have it through your personal auto insurance policy.

If you have liability coverage through your personal auto insurance policy, it should extend to your rental car. However, it’s important to check with your insurance company to make sure you have adequate coverage.

Personal Accident Insurance (PAI)

Personal Accident Insurance, also known as Personal Effects Coverage, provides coverage for medical expenses and accidental death or dismemberment for you and your passengers. This coverage can cost between $1 and $5 per day.

If you have health insurance, you may not need PAI. It’s important to check with your health insurance provider to see if your policy covers medical expenses incurred in a rental car.

How to Save Money on Rental Car Insurance

If you’re looking to save money on rental car insurance, there are several ways to do so.

Check Your Personal Auto Insurance Policy

Before renting a car, check with your personal auto insurance policy to see what kind of coverage you already have. You may already have liability coverage and collision coverage that extends to your rental car.

Use a Credit Card that Offers Coverage

Some credit card companies offer coverage for rental cars if you pay for the rental with their card. This coverage can be a great way to save money on rental car insurance, but it’s important to read the fine print and understand what is covered and what is not.

Shop Around

Don’t just accept the rental car company’s insurance coverage without shopping around first. There are several third-party insurance providers that offer rental car coverage at a fraction of the cost of the rental car company’s coverage.

FAQ

Conclusion

When renting a car, having the right insurance coverage is important. It’s important to understand the types of coverage offered and determine if additional coverage is necessary. By checking your personal auto insurance policy, using a credit card that offers coverage, and shopping around for third-party insurance providers, you can save money on rental car insurance and have peace of mind while on the road.