Have you ever gone to rent a car for a trip or a holiday, only to be told by the car rental salesman that you needed to get the rental car insurance they offer? I definitely know that I have! But like me, you probably wondered if you should get rental car insurance or not.
Well today, we’re here to figure out if you need to get rental car insurance. So, next time you go and rent out a car, you’ll be better prepared.
- Does your own auto insurance cover rental cars?
- Does your credit card cover rental cars?
- Getting rental car insurance on your own
- What about renting a car internationally?
- Final thoughts
Does your own auto insurance cover rental cars?
If you own your own car and have an auto insurance policy, then chances are that it might cover rental cars. Typically, your own Auto Insurance will cover you in a rental car for personal and non-commercial use. This is not a guarantee. So before you assume that your auto insurance does indeed cover rental cars, make sure you check your policy and give them a call to confirm.
Another very important thing to check is if you have comprehensive insurance. Comprehensive insurance basically means that it will cover damages not caused by a collision, such as a tree falling on it or vandalism. If your own insurance is not comprehensive, that puts you on the hook for damages that might occur without Collision! This can then become very very expensive, so only consider using your own insurance if it is comprehensive.
If you do indeed find out that your auto insurance does indeed cover rental cars, and you have comprehensive coverage, then you won’t need to get the rental car insurance.
Check limitations on what kind of vehicle they insure
To add on to the point mentioned above, if you own or insurance does indeed cover rental cars, they might also have restrictions on what kind of a car that they would cover.
For instance, your insurance might only cover passenger vehicles and not commercial vehicles. So if you go and rent out a Lamborghini or a box moving truck, then your insurance might not cover them. In this case, you would then need to get the rental car insurance that is being offered. So make sure to check this as well.
Check limitations on what they cover
Another limitation/restriction that your personal auto insurance might have is what they actually cover. Your insurance might only cover liability but not comprehensive or Collision. In those cases, it means that if you are in an accident, they might cover the car that you hit but not cover the repair costs for your rental car.
Check your insurance deductible
Lastly, with personal Auto Insurance, you would also have to pay a deductible. Depending on how much coverage and deductible you have set, you might be facing a very high deductible in the case of an insurance claim.
So for instance, if you have a $2,000 deductible and the rental car insurance is only $30 oh, then it might be a good idea to get the rental car insurance. So make sure you also check this with your personal auto insurance and figure out what your current deductible is.
Does your credit card cover rental cars?
You might or might not know this but certain credit cards offer insurance coverage if you pay for your rental using the card. The level of coverage depends on the credit card itself.
For instance, your credit card is provider might provide liability but not Collision or it might only be a secondary insurer. Secondary typically means that your credit card might pay for your deductible but your primary insurance will cover the rest.
So if you have one of these credit cards, make sure you call the number on the back of the card to no exactly I want the card covers. Remember, check your credit card benefits before you rent a car.
Getting rental car insurance on your own
There are various companies out there that offer rental car insurance as completely separate insurance policies. These companies exist out there that allow you to shop around before renting out a car, and getting a better rate.
For instance, Allianz Global Assistance is a rental car insurance company that offers rental car damage protection for $9 a day and covers up to $40,000 in Damages and loss.
There are various reasons why you would shop for completely separate rental car insurance. Some of them being better coverage, no deductibles, and a lower cost. So if you go this route, make sure to do it before renting the car and then declined the car rental company’s offer for rental car insurance at the counter.
What about renting a car internationally?
Renting a car in a different country can become a bit more risky and complicated. There is a bit of a gray area when it comes to accidents that happened abroad.
And the case of renting a car internationally, it’s probably a good idea to get coverage when it is offered at the car rental company. This is because different countries may have different requirements when it comes to car insurance. Your local insurance company might not cover you when you are abroad and you don’t want the risk of getting into an accident in a foreign country without insurance.
When you do get the car insurance abroad, make sure that you read your entrance documents carefully and understand exactly what it covers and does not cover. Before driving off, make sure you get all your questions answered by the car rental salesman.
To answer the question, should I get rental car insurance? Probably.
The thing is unless you thoroughly figure out if you are personal insurance covers rental cars, it’s probably easier and safer to go the safer route. Rental car insurance that is offered to you at the counter is typically relatively inexpensive and offers complete protection from any damage that might occur.
On the other hand, if you’re diligent and are willing to pay any deductibles that come with alternate rental car insurance options, then you could end up saving yourself a pretty penny!
So at the end of the day, it’s really up to. Hope this article is helpful, let me know your experiences with ensuring rental cars in the comments below.
T’ill next time!
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