Have you ever wondered if you need automobile insurance when you rent a car? This is a question car rental companies ask as you’re signing paperwork. But do you really need rental car insurance, or does your standard, everyday policy cover it? Well, here’s a brief guide to this common automobile insurance question.
Is it Covered?
Most people are worn out by the time they’re picking up their rental car. In most cases, either there was an accident, or you just landed at the airport and all you want is to rent a car and head to your hotel room to relax. An agency may persuade you to opt for rental car insurance, but the truth is that your existing automobile insurance may already cover it. So, the best way to answer this question is to review the policy you already have.
Many companies extend their coverage to include rental cars as long as you only drive the vehicle for personal use. If you’re not sure about the details, you can always call your agent before you hit the road. Although, even if your car insurance does cover rentals, keep in mind that the same coverage limits, as well as any deductibles, also apply when driving your rental vehicle.
With that in mind, here are some examples of coverage…
Liability coverage is for damages to another person’s vehicle, or even their medical bills if they’re injured in an accident that you cause while driving your rental car.
Comprehensive coverage takes care of any damage to the car that was not caused by an accident. It’s generally cheaper than collision coverage.
On the other hand, collision coverage is meant for car accidents that involve other vehicles, but it also covers you if you hit an object, like a tree or a road sign. It won’t cover damage to another person’s car, however.
Does My Credit Card Offer Rental Car Coverage?
Certain credit cards even offer rental car insurance if you pay for the rental vehicle with the card. To confirm if your credit card company offers extra insurance, call the number on the back of your card and ask for the details regarding automobile insurance.
In some cases, your credit card may only provide collision coverage, which means that it pays for your vehicle damages, but not any costs arising from injuries.
Never just assume that your current policy extends to rental cars. It’s best to contact your provider for all the details, just to be on the safe side. This will help you make an informed decision the next time you’re at the car rental counter.