Buying Rental Car Insurance: What You Need To Know in 2023

It should be made clear that insurance is still required even when renting a vehicle. However, you might need to buy rental car insurance coverage from the rental car business depending on whether or not you have insurance (and the scope of that policy’s coverage).

Car rental insurance is a type of car insurance that covers the rental car and its driver. This type of coverage protects any damages that may occur on the rented vehicle and any damages that you may cause to other vehicles and property during your rental period.

Car rental insurance coverage can also cover damage caused by theft or vandalism if you rent a car from an airport or other locations with high-risk factors. 

In addition to covering any damages, it also provides coverage for liability claims made against you by other drivers or pedestrians who have been injured by your actions while driving.

Can I use my own insurance for a rental car?

Personal auto insurance includes liability protection and any added protection you’ve chosen, such as comprehensive or collision. You may have already had to buy full coverage auto insurance for your personal vehicles. 

If you use the rented vehicle for personal purposes, that coverage can also apply to it. Your rental car usage is also subject to the coverage restrictions and deductibles on your policy.

If you cause an accident in your car, liability coverage helps cover the costs of another person’s medical bills or property damage (or your rental vehicle).

Suppose a covered risk damages your vehicle, such as theft, wind, fire, or natural catastrophe. In that case, comprehensive coverage can help pay for the repairs (or a rental car) after your deductible is met.

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Your Credit Card Might Offer Coverage for Rental Cars

According to the Insurance Information Institute (III), some credit cards, like Capital one cards, provide supplementary insurance on top of your auto insurance if you use that card to pay for a rental car. Also, the insurance provided by the card issuer is often “secondary.” For example, it might cover your deductible and any additional costs above what your primary insurance carrier will cover.

If your credit card offers collision coverage for rental cars, you can choose to opt out of purchasing coverage from the car rental business.

Before making your automobile reservation, call the toll-free number on the back of your credit card and ask the company whether it offers supplemental rental car insurance to go through your options in detail.

What situations call for rental car insurance coverage?

If you don’t have insurance, you must get liability coverage from the rental company before you depart. This is because most states require all drivers to buy liability auto insurance coverage.

The additional security offered by rental insurance is something to think about if any of the following situations apply:

• Your current policy does not provide collision coverage.
• Only commercial auto insurance coverage covers you.
• You do not want to take a sizeable deductible risk.

Additionally, your current auto insurance won’t protect you if you drive abroad. Find out by looking up your policy or read this article to learn more about auto insurance coverage types. 

Types of Insurance Coverage for Rental Cars

Rental car companies often divide their additional insurance options into four categories.

Liability Protection

Insurance coverage for liability insurance protects you from financial loss if you hurt someone or damage their property while driving.

You might not need additional rental car liability insurance coverage from the company if your auto insurance provides adequate liability protection. It would help if you reviewed your safety concerns to choose the appropriate liability limit.

Accidental Damage Waiver

An LDW or CDW, a collision/loss damage waiver, isn’t insurance. However, this waiver could contribute to the cost of fixing the rental car if you damage it. Usually, the waiver excludes damage caused by speeding or using unpaved roads.

It is possible to duplicate your current collision and comprehensive insurance protection if you already have collision and comprehensive insurance on your vehicle.

However, if you don’t buy the waiver and have dropped collision or comprehensive coverage from your policy, you’ll probably be responsible for any damage to the rental car.

Additionally, a rental company may charge you for the “loss of use” of the vehicle (missed rental revenue) while it is being fixed.

You won’t normally get reimbursed for it under your auto policy. Make sure to carefully read your automobile rental agreement to understand what kind of fees you can be responsible for if you cause damage to the vehicle.

Individual Effects Insurance

If your personal belongings are taken from the rental car, such as your laptop or clothing, personal effects coverage could help. Your personal belongings are usually covered by a renters or homeowners insurance policy’s property coverage, sometimes known as “off-premises coverage.”

If you have that type of coverage, off-premises items are typically only partially covered by your property insurance after you pay your deductible. A representative from your insurance company should confirm the limits of your coverage.

Personal Accident Protection

If you are hurt in a rental car accident, personal accident insurance can assist cover your medical expenses and those of your passengers.

According to the III, you might already have coverage similar to what the rental business provides if you have health insurance, medical payments coverage, or personal injury protection (PIP) on your auto insurance policy.

Medical expenses resulting from a covered auto accident might be covered by medical payments coverage and personal injury protection (not available in all states).

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Getting Rental Car Insurance Separately

Several businesses sell separate plans for rental cars if you don’t want to purchase insurance at the counter. You typically have to decline the rental company’s insurance to use these. Other options are to buy non-owner auto insurance coverage or to buy temporary auto insurance. 

Allianz Global Assistance

For $11 per day, Allianz Global Assistance offers a rental car damage protector that covers losses and damages up to $75,000 in value. The 24-hour emergency help is part of the primary policy, which pays out before your motor insurance.

Bonzah

For as little as $7.99 per day, Bonzah offers insurance that covers up to $35,000 in vehicle repairs or replacement costs. Because it is primary insurance, it pays out before your insurer. Generally speaking, policies cover international travel but read the fine print.

Insure My Rental Car

Loss damage waivers for up to $100,000 of damage to your rental car are available through Insure My Rental Car. For as little as $9.75 per day, you may obtain coverage for as long as a year. You don’t need to utilize your auto insurance initially because the policy offers a primary range. Policies can apply to rentals outside of the United States.

Rent Cover

You wouldn’t need to submit a claim to your motor insurer first because Rental Cover offers no-deductible policies that count as primary coverage. Options for coverage differ per nation. Although rates aren’t listed on Rental Cover’s website, the company asserts to be up to 50% less expensive than the rental desk.

Sure provides rental car insurance that protects any of your things inside the vehicle and damages the car up to $100,000 in value. You may request an online price from the company’s website, and the coverage also covers flat tires and misplaced keys.

Final Thoughts: Is rental car insurance worth it? 

Yes, and it’s usually required.

Most people don’t know they need insurance coverage for a rental car. Upon arrival, rental companies will ask for proof of your own auto insurance or if you would like to add on insurance through their provider. Knowing your options is important in order to save time and money. 

FAQs

What does insurance for a rental car entail?

You are covered by rental car insurance when you rent a car directly from a rental car business, like Enterprise Rent-A-Car.

You will be asked if you want to add insurance to your rental car or whether you want to forego it when you rent a car at the airport or another rental car facility.

Is insurance for a rental automobile the same as reimbursement for a rental car?

Rental car insurance is different from reimbursement for a rental car. While rental car reimbursement coverage is an optional coverage, you can add it to your personal auto insurance policy to assist cover rental car costs when your vehicle is being repaired after an accident. 

Should I get rental car insurance from the company?

The first step is to examine your personal auto insurance policy or call your provider to determine what kind of rental car coverage may already be included.

Your auto insurance will generally cover your rental car within the U.S. if you have comprehensive and liability insurance on your vehicle when you had to buy full coverage auto insurance.

Your auto insurance coverage will most likely be sufficient for the rental if you rent a car in the U.S. that is comparable in value to your vehicle.

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