Insurance on Rental Cars

When renting a car, one question that often comes up is whether or not to purchase insurance. Many people wonder if their personal insurance will cover them behind the wheel of a rental car, or if they should opt for the insurance offered by the rental car company. In this article, we will explore the different types of insurance available for rental cars and help you make an informed decision.

Personal Insurance Coverage

Before deciding whether or not to purchase insurance from the rental car company, it’s important to check with your own auto insurance provider to see if you’re already covered. In many cases, your personal insurance policy will provide coverage for rental cars.

However, it’s important to confirm with your insurance company the extent of the coverage provided. Most personal auto insurance policies will cover liability, collision and comprehensive coverage. But, they may not cover other fees, such as rental car company administrative fees if there is an accident, which can add up quickly.

If your personal auto insurance policy provides the coverage you need, you may not need to purchase additional coverage from the rental company. However, if you don’t have personal car insurance or if your policy doesn’t cover rental cars, you may want to consider purchasing insurance from the rental car company.

Rental Car Company Insurance Coverage

When renting a car, the rental company will often offer several types of insurance coverage. These can include:

It’s important to note that these insurance options can vary by rental company and location. Additionally, the cost of these insurance options can quickly add up, so it’s important to evaluate whether or not you truly need them before adding them to your rental agreement.

FAQ

Do I need insurance to rent a car?

Insurance is not legally required to rent a car, but rental car companies will require you to have some form of coverage in place before you can drive off the lot. This could be covered by your personal car insurance or by purchasing insurance from the rental car company.

What is collision damage waiver (CDW) insurance?

Collision damage waiver insurance covers the rental car in case of an accident or theft. It can be expensive, but it can also save you from having to pay out of pocket for damages to the rental car.

What is personal accident insurance (PAI)?

Personal accident insurance covers medical expenses and accidental death and dismemberment for the driver and passengers in the event of an accident. While this type of insurance is not typically necessary, it could provide peace of mind when driving in unfamiliar territory.

What is supplemental liability insurance (SLI)?

Supplemental liability insurance provides additional liability coverage in case of an accident where the driver is at fault and damages exceed the rental car company’s policy limit. While this type of insurance is not typically necessary, it could provide extra protection for drivers who are concerned about the potential financial impacts of a serious accident.

What is personal effects coverage (PEC)?

Personal effects coverage covers personal items that are lost or stolen from the rental car. While this type of insurance is not typically necessary, it could provide peace of mind for those who are traveling with valuable items or who are concerned about theft.

Conclusion

When renting a car, it’s important to consider your personal insurance coverage and the options available through the rental car company. While you may already have coverage in place, purchasing additional coverage could provide extra protection and peace of mind while you’re on the road. Just be sure to carefully review the coverage and costs of each option to make an informed decision that best meets your needs.