Car Rental Insurance - Do I Need it?


Ouch!!!!

 Rental car companies may offer to sell you insurance when you rent a car.  The cost varies based on location and the type of vehicle you rent. You may or may not need to purchase their coverage.  Here are some things to consider before you buy:

If you have personal auto insurance, call your insurance agent to see if and how much coverage extends to a rental car. If your personal auto policy has comprehensive and collision coverage, it may cover damage to the rental car.  Coverage from a personal auto policy does not apply to rental of commercial-use vehicles (such as U-Haul trucks).

If you have homeowners or renter’s insurance, your home coverage may cover personal property stolen from a rental vehicle.  Your policy’s deductible will apply.

If your auto policy has Personal Injury Protection or Medical Coverage, you may have coverage up to your policy’s limit of coverage if you are injured in an accident while driving a rental vehicle. If not, you should consider adding the rental car company’s insurance if you do not have health insurance.

Some credit cards have coverage that applies when you use the card to pay for a rental car. Your personal auto insurance policy coverage is primary, and the credit card coverage would apply after that.

If you travel to Mexico or Canada, your personal insurance may or may not cover rental cars in those locations.  It may be wise to purchase rental insurance when you travel abroad. If you travel for business, check with your employer about rental car coverage.

It’s important to note that it is more economical to have full coverage on your personal auto policy than to pay for rental car insurance on a regular basis.  Rental car insurance can cost as much as $60 per day for full coverage – that’s over $800 added to the cost of a two-week car rental!

Happy Traveling!


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