Insurance is state regulated, the type of coverage and the premium cost will vary from one state to another. Rental car customers usually have choices of what added insurance they may need to purchase in order to cover a rented auto. Before you show up in line at the rental car counter be sure to do some advanced planning.
The Insurance coverage you may want to understand include the following coverages:
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Collision Damage Waiver
- Rental car insurance usually offers a collision damage waiver, in some cases this coverage may also be called, a Loss Damage Waiver. These policies are not technically insurance policies but, they do “waive” a your financial responsibility if the rental car should happen to be damaged or stolen.
- Collision damage waivers may offer a added coverage for “loss of use.” This coverage is important to the rental car company in the event their rental car isn’t available to be offered for use to another customer. Without “loss of use protection” any costs and charges would be your responsibility during the time a damaged car isn’t there to be rented to the next customer because it’s repaired.
- Many Collision Damage Waivers have exclusions for customers involved in an accident while speeding, driving on unpaved roads or driving while drinking or impaired. Often the exclusion will Void this protection.
- Collision Damage Waivers usually costs between $9 and $19 a day.
- Rental car customers who have Personal Auto Insurance including Comprehensive and Collision coverage, may not need this added protection. It’s best to speak with your insurance agent or company before renting a car to understand if you might need to purchase a Collision Damage Waiver.
Liability Insurance
- Rental car companies are required under the law to maintain the state required liability insurance. However, the state minimum amount is usually very low and doesn’t not offer very much protection.
- If you have a good personal auto insurance policy with high enough Auto Liability limits that protect your assets, adequately it’s completely logical to skip adding this coverage to your rental car.
- Rental Car liability protection is considered as secondary or supplemental insurance, if you are liable in an accident your personal auto insurance will pay first and then the rental Liability Insurance will pay any remaining liability costs you might have resulting from an accident.
- Rental car liability insurance cost between $7 and $14 a day included on a rental car agreement.
- If you have a personal Umbrella liability policy you it’s not necessary to purchase the rental car liability coverage, as once your personal auto policy pays, your liability umbrella coverage would come in and then the rental car liability insurance would pay last.
Personal Accident Insurance
- Provides medical and ambulance coverage for you and any passengers you may have in your car in the even of injuries caused by a car crash.
- If you have a good health insurance policy or your personal auto policy has Personal Injury Protection (PIP) or medical coverage then this coverage wouldn’t be needed for a rental car.
- Personal Accident Insurance usually costs between $1 and $5 a day when added to a rental car agreement.
Personal Effects Coverage
- Offers coverage for items stolen from your rental car.
- If you have a Homeowner or Renters insurance policy, theft of your belongings while you are away from home is generally a part of most policies. However the homeowner or rental policy deductible would apply.
- Personal Effects Coverage usually costs between $1 and $4 a day when added to a rental car agreement.
- If you travel with expensive personal items like jewelry, cameras, or sports equipment, it may be more cost-effective to add an endorsement, rider or floater to your home or renters insurance policies. Doing so would mean these items are completely protected at home and on vacation.
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Other Details To Remember Before Signing a Car Rental Agreement:
- If you don’t own a car but use rental cars often may want to consider purchasing a Non-owner liability policy. These not only offer liability protection when you rent a car, but also provide liability insurance coverage if you borrow and drive someone else’s car.
- If your vacation will be outside the United States then you need to find out what the insurance laws and requirements are for the country you will be driving a rented car in. Some insurance companies will cover other country driving while others may not. The best source for information about insurance laws outside of the U.S. is your your travel agent. You also want to advise your personal auto insurance agent or company before renting a car or driving in another country.
- Don’t forget to bring your proof of personal auto insurance coverage if you plan to drive anyplace.
- Many rental car companies will investigate your driving record and look at your credit history before agreeing to rent a car to anyone now. Be sure to check with the rental car company you plan to use before trying to rent a vacation car.
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