Before you rent a car, it's worth reviewing the coverage on your personal car insurance policy. In some cases, the coverage you have on your own car extends to a rental car. In other words, buying rental car insurance coverage may duplicate what you already pay for.
The extra cost of the rental company's coverage might make sense in a few cases, however. For that reason, it's important to understand what your personal auto insurance covers, and what the rental agency is offering.
Remember, if you damage a rental car and don't have comprehensive or collision coverage, you may have to pay out of pocket for repairs. That's why it's important to read your policy before you rent a car to understand what's covered.
If you have a personal car insurance policy, it includes liability coverage and any additional coverage you've opted for, such as comprehensive or collision. That coverage may extend to your rental car, as long as you drive it for personal use. The coverage limits and deductibles on your personal policy also apply to your use of a rental car.
In addition to your auto insurance, certain credit cards offer extra insurance if you pay for a car rental using that card, according to the Insurance Information Institute (III). If you have extra rental car insurance through a credit-card issuer, call the toll-free number on the back of your card and have them explain your options in detail before you reserve your car.
For example, if your credit card provides collision coverage for rental cars, then you might decide not to purchase that coverage from the car rental agency. The card issuer's insurance is typically \"secondary,\" according to the III. That means it may pay your deductible and expenses that exceed what your primary insurance company will pay.
If you don't currently have insurance, you'll need to at least buy liability coverage from the rental company before you hit the road. That's because liability coverage for all drivers is required by law in most states.
Liability coverage is intended to help protect you if you injure someone or damage their property while driving. If you have sufficient liability coverage through your own auto insurance, you may not need to buy extra rental car liability insurance coverage from the agency. Your insurance agent can help you review your coverage, so you can set the liability limit that's right for you.
A collision/loss damage waiver (also known as an LDW or CDW) isn't technically insurance. If you damage the rental car, this waiver may help cover the cost of repairing it. The waiver typically does not cover damage from speeding or driving on unpaved roads.
A collision damage waiver may duplicate your existing coverage if you have collision and comprehensive coverage on your own car. However, if you've dropped collision or comprehensive coverage from your policy, and you don't purchase the waiver, you would likely have to pay out of pocket for damage you cause to the rental car.
Additionally, a rental agency could charge you for \"loss of use\" of the car (lost rental income) while the car is in the shop being repaired. Your own auto policy typically won't reimburse you for that. Be sure to read your car rental agreement carefully to clarify what kinds of charges you could incur if you were to damage the vehicle.
Personal effects coverage may help cover your personal belongings, such as your laptop or clothing, if they're stolen from the rental car. If you have renters or homeowners insurance, the personal property coverage on that policy typically helps cover your personal items through what's known as \"off-premises coverage.\"
Off-premise items are usually only covered up to a certain percentage of your personal property coverage. The deductible on your homeowners or renters insurance will apply. Check with your agent about the limits of your coverage.
Personal accident insurance helps pay your and your passengers' medical bills, if you're injured in a rental car accident. The III says if you have health insurance, medical payments coverage or personal injury protection on your car insurance policy, you may already have coverage comparable to what the rental company offers.
Before you rent a car, take a few minutes to find out whether you have coverage through existing channels, such as your credit card company, health insurance plan or renters or homeowners policy. And, be sure to check your personal car insurance coverage. Buying extra rental car insurance may not make financial sense if your auto policy already provides the coverage you need.
Yes, you can use your own car insurance for a rental car as long as your trip is for personal travel. Your personal coverage limits and deductibles will apply. If the trip is for business, your personal auto insurance policy might not cover any type of damage or injury unless you have commercial coverage. However, your company may have a commercial auto policy that can cover the vehicle.
If you have liability and comprehensive insurance for your personal vehicle, the coverage likely extends to instances when you are driving a rental vehicle in the United States. For this reason, it is likely that your existing auto insurance policy will adequately provide coverage for cars you rent within the country.
There are four main rental car insurance options that you could be offered through your rental agency: a loss damage waiver (LDW), liability coverage, personal accident insurance and personal effects coverage.
This additional coverage option protects your personal items like electronics, luggage and clothing. If you have a homeowners or renters insurance policy, it will cover personal items stolen from a rental car as well.
On the other hand, standard cards often include secondary coverage. This comes with lower limits and requires you to file a claim with your own insurance company first. In either case, you have to book the rental with the credit card to qualify for coverage.
One study in the Journal of Advanced Transportation found that inattention, poor driving, poor handling and aggressive driving are all associated more with rental cars than non-rental cars. You might be a great driver on your regular commute, but it can be stressful driving in a new situation.
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Yes, your personal insurance usually extends to rental cars. You will have the same coverage and limits that apply to your primary vehicle. If the trip is for business, check with your company to see if it has a business auto policy.
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On your auto policy, your rental car is considered a replacement for the car you own, and so, the degree to which your rental is protected is dictated by the level of coverage you have. Furthermore, if you have multiple vehicles, the policy for the vehicle with the maximum amount of coverage applies.
In most instances, rental car insurance overlaps with your personal auto insurance policy and you won't need to pay for duplicate coverage. There may be situations where adding rental car insurance is worthwhile, so it's important to review your personal auto coverages. If you don't have a personal auto policy, you will need to purchase liability coverage through the rental car company.
Important note: If your personal auto policy includes liability, comprehensive, collision, and medical payments/personal injury protection, then you may not need rental car insurance. If you have a homeowners, renters, or condo policy, any personal belongings you keep in a rental car should be covered too.
Rental car insurance is separate coverage offered by a rental car company, whereas rental car reimbursement coverage is an optional coverage you can add to your personal auto insurance policy to help pay for rental car costs while your vehicle is being repaired after an accident.
Your personal auto insurance will cover most rental cars with the same coverage limits and deductibles. For example, if you carry comprehensive and collision coverage on your auto policy, you'll be protected against physical damage to your rental car. Your liability coverage will also apply when you get behind the wheel of your rental.
You don't need a personal auto policy to rent a car. If you don't have a personal policy, you'll be required to buy liability coverage through the rental car company. You will also have the option to add additional coverages, including collision and tire damage.
If you already have car insurance or rental car coverage through your credit card, then rental car insurance may not be worthwhile. There are a few instances, however, where adding rental car insurance could be beneficial and worth considering: 59ce067264