Consider Purchasing Insurance for Rental Cars
If you use a rental car, you’ll likely be asked whether you want to purchase additional coverage, such as coverage covering property damage to the rental vehicle and liability insurance to cover injuries that might occur in an accident. Use the suggestions below to determine whether you should pay extra for your rental car to include additional coverage.
If you don’t have auto insurance that covers property damage, collision and comprehensive, then chances are you’ll be required to purchase some kind of property coverage for a rental car from the rental car company. The property coverage you purchase for a rental vehicle is usually referred to as CDW, collision damage waiver. Even if the rental company does not require such additional coverage, you will likely purchase such insurance to protect yourself from the costs of property damage to the rental car.
If you have collision and comprehensive coverage, you should call your insurance company to find out whether your policy will provide property coverage for a rental vehicle. Sometimes policies will cover rental vehicles, but if you drive an older or less valuable car than the vehicle you’re renting, you might run into problems with having your collision and comprehensive policy cover a rental vehicle.
Liability coverage for personal injuries that could occur in a rental vehicle are covered by policies much like liability insurance you purchase for your own vehicle. If you carry minimal liability coverage, you can choose to purchase greater coverage through the rental car agency.
Take the time to let the rental car agency go over the coverage they provide to you in order to understand details such as whether towing services are provided to you in the event the car is in an accident or is damaged and whether you’ll be provided with a new rental vehicle to meet your travel needs.
Be prepared for significant price jumps in quoted rental car rates if you choose to purchase additional coverage to protect the rental vehicle and people who could be injured in a car accident. Rental car agencies are not insurance brokers and frequently have a flat rate that they charge for such protection. Additional amounts you’ll have to pay can be up to about $20 a day for such additional protection.
Follow the rules of the rental car company, especially in terms of who’s driving the car. If there is a problem that occurs and an unauthorized driver was driving the vehicle, you will likely not be able to take advantage of the protection you purchased.
If you are deemed negligent by the rental car agency in terms of your behavior that might have contributed to a problem that arises with a rental car, at times it will void all or a part of the coverage you purchase.
If you’re renting a car, the protection provided for additional fees can be a good idea to avoid unforeseen liability and difficulty in the event there’s a problem that occurs with a rental car. Use the suggestions above to decide whether to pay more for your rental vehicle by choosing to opt into additional auto insurance coverage available through the rental car agency.