You’ve just gotten off a long flight, and all you want to do is check into your hotel and relax. The last thing on your mind is insurance…until you get to the rental car desk, that is. Do you need to purchase rental car insurance? Here are a few things to consider while making your decision:
What Types of Rental Car Insurance are Available?
There are typically four types of rental car insurance for you to choose from:
- Collision damage waiver – Under this coverage, the rental car company won’t charge you for a damaged or stolen vehicle.
- Supplemental liability protection – This will cover costs to others if you cause an accident in the rental vehicle.
- Personal accident insurance – This coverage will pay for injuries or death of the driver and passengers of your rental car.
- Personal effects coverage – This coverage will reimburse you for stolen personal items while you are renting the vehicle.
What Rental Car Coverage Do I Already Have?
Check your personal auto insurance policy. It’s likely that your policy will provide the same level of coverage for your rental as it does your own vehicle, including liability insurance. Your policy may also include collision, comprehensive, and medical payments for a rental vehicle. There are some exclusions, however, such as rentals in a foreign country, or rental vehicles being used for business. Check with your insurance agent for specific details about your coverage.
You may also have some rental insurance coverage via your credit card. Coverage is typically secondary, designed to pick up where your personal auto policy leaves off, and is typically limited to collision, damage, and theft. Contact your credit card company to find out exactly what is covered and what terms may apply.
Finally, consider your other insurance policies. If you’re in an accident involving a rental car, and you have health and life insurance, you probably have coverage for your own costs. Homeowner’s insurance may help you to repair or replace valuables that are lost, damaged, or stolen while you’re in a rental vehicle. Again, check with your insurance agent for specific details.
What Rental Coverage Am I Missing?
If something does happen to the rental vehicle, you could be looking at loss of use and diminished value fees – things that your regular policy may not cover.
Still not sure if you need rental car insurance? Contact The Reis Group to learn more.