Is It Necessary To Buy Rental Car Insurance
Rental car insurance is coverage that protects people when they drive a rental car. You can get rental car insurance through your personal insurance policy, from your credit card benefits, or from the rental car company itself. Depending on the policy, rental car insurance may cover damage to the vehicle, damage or injuries that you cause, your own injuries, theft, and loss of personal items.
is it necessary to buy rental car insurance
Rental car insurance is rarely worth it if your personal vehicle is insured and you pay for your rental car with a credit card. You may not have to purchase rental car insurance if you are traveling for business, either.
A collision damage waiver, often referred to as a loss damage waiver, will cover repairs if you cause any damage to your rental car. Coverage may exclude certain parts of the car, such as tires or the windshield, as well as certain causes of damage such as weather or damage while on private property.
Liability insurance covers damage to other vehicles, property and people as a result of accidents you cause when driving your rental car. Note that this does not cover you, your passengers or the rental vehicle itself.
The state minimum levels of liability insurance are included as part of the basic rental fee in almost every state. In these cases, any additional insurance you purchase will at most give you higher coverage limits. There are some exceptions, most notably in California, where rental companies are not required by law to include liability insurance.
Personal accident insurance covers the medical costs for injuries to anyone in your rental vehicle during an accident. Many rental companies in the U.S. include "personal effects" coverage within personal accident insurance.
Homeowners and renters policies usually cover personal possessions when they are outside of the home, including items stolen from a rental car. Though there are often limitations with high-end electronic equipment and cameras, this insurance is usually better than the daily rate coverage the rental company offers. Coverage may be denied if the rental or trip is for business purposes.
No, you do not need insurance to rent a car because rental companies have their own insurance. Rental car companies usually provide minimum liability coverage only, so if you don't have personal insurance, you'll probably want to purchase extra rental car insurance through the rental company. If your personal car is insured and you pay for your rental with a credit card, you can probably skip the optional coverage offered at the rental counter.
You don't have to purchase all of these coverage types to be protected while driving your rental. But minimum liability insurance carried by the rental car company isn't enough protection if you get into an accident.
Before you buy the rental company's insurance, you should consider what coverage you may already have through your personal car insurance. The coverage limits and deductibles you have on your personal vehicle typically still apply to rentals, as long as you're renting for personal use. Many major credit cards also offer coverage for rental cars if you pay with your card and decline the collision damage waiver offered by the rental company.
Rental car liability insurance is coverage that pays for injuries or property damage that you cause in an accident when you are driving a rental car. Rental car liability insurance does not protect you or your rental car from collision damage, car theft, loss of personal effects, or injuries.
In most states, some rental car liability insurance is included with the rental. However, the state-mandated minimum insurance that these cars carry might not be enough to protect you from the financial repercussions of an accident. Because of this minimal coverage, rental companies sell supplemental liability insurance at the counter. Rental car companies also offer other types of coverage like loss damage waivers, roadside assistance, and personal accident insurance.
You might already have rental car insurance through your current insurance coverage or your credit card, however. Your current auto insurance policy likely extends its liability coverage to rental cars, whereas credit cards often provide the equivalent of comprehensive or collision coverage but no liability coverage.
If you do not have a personal car insurance policy and your credit card doesn't cover you, you can purchase supplemental liability insurance from the rental car company. However, this can quickly get expensive, especially since liability insurance for the rental car is sold separately from other coverage.
If you rent cars frequently, it might be more efficient to buy rental car liability insurance from another source. For instance, travel insurance companies offer rental car liability insurance, often at lower prices. You can also buy a non-owner car insurance policy, which offers liability coverage. Another option is to compare credit cards that covers rental cars
Third-party rental car insurance covers anyone's medical expenses and property damage in the event of an accident apart from for you and the rental car. Major third-party rental car insurance companies include Allianz and Bonzah, though online travel agencies and travel insurance companies usually offer this type of coverage as well.
If you need rental car insurance, buying from a third party is normally much cheaper than buying additional coverage directly from the car rental company. Buying enough coverage is very important, too. Although the mandatory minimum liability insurance is automatically included when you rent a car in most states, this bare-bones coverage is probably not enough to protect you if you get into a serious accident.
On that note, Bonzah is the only major third-party rental car insurance company that offers supplemental liability insurance. The other insurers offer the equivalent of comprehensive and collision coverage, along with some other benefits.
Even if you have car insurance that already covers rental cars, buying coverage from a third-party rental car insurance company can keep you from paying a deductible or from driving up your rates if you need to file a claim. Frequent car renters can also buy annual rental car insurance from Insure My Rental Car and P'teet.
If you plan to buy third-party rental car insurance, be sure to check coverage options and restrictions. Third-party companies often exclude unusual vehicles like limousines or motorhomes, or the coverage may be geographically limited. The many credit cards that offer rental car insurance have similar restrictions, by the way. Some also require you to file a claim with your normal car insurance company first.
You need some form of insurance to drive a rental car, but you only need to buy extra car insurance from the rental car company if you don't have personal auto insurance or you're traveling internationally. Standard car insurance policies usually extend to rental cars, so most drivers are already covered. Many credit cards also provide insurance against damage to the rental car itself.
If your car rental is covered by your standard insurance and you're willing to pay your normal deductible, it's fine to go without separate rental car insurance. In this case, just be sure to ask your insurer about any exclusions before the rental begins.
It's also worth noting that even if your standard car insurance policy only includes liability coverage, you might be protected in other ways. For instance, some credit cards allow you to file claims for damage to a rental car, while homeowners, condo, or renters policies cover personal possessions.
In other words, you should consider your current insurance policies before deciding if you need rental car insurance. Additionally, if you plan on using a credit card as coverage, be sure you know about any exclusions and actions you need to take for the coverage to apply, such as declining the rental car company's insurance options. For more details, check out WalletHub's complete guide to rental car insurance.
Yes, USAA offers rental car insurance. If you already have a personal auto policy with USAA that includes liability, comprehensive, and collision coverage, this insurance will likely extend to cover your rental car. If you only have liability insurance with USAA, physical damage to the rental vehicle will not be covered.
You can talk to a USAA customer service representative at 1 (800) 531-8722 to see if your personal policy will extend to your rental car. If you do not have sufficient coverage through USAA to cover your rental car, you can purchase insurance from your rental car company, or see if it is offered by your credit card company.
Liability Insurance. USAA liability insurance will usually extend to your rental as long as you are driving in the U.S. Your personal liability insurance will pay for others' medical expenses and repairs to others' property resulting from an accident you caused in your rental vehicle.
Collision and Comprehensive Insurance. If you have collision and comprehensive insurance with USAA, this will typically cover any damage that occurs to the rental vehicle itself during your rental period. However, your USAA collision and comprehensive coverage limits may not be high enough if you are renting a car with a much higher value than your personal vehicle and the car gets totaled.
Personal Injury Protection or MedPay. If you have personal injury protection (PIP) or MedPay through your personal auto policy, medical expenses for you and your passengers will be covered even after a rental car accident. If you do not have either type of coverage, you can purchase personal accident insurance through the rental car company.
USAA also offers rental car reimbursement coverage, which helps pay for the cost of a rental car while your personal vehicle is being repaired for a covered claim. If you add rental reimbursement to your policy, USAA will pay dependent on the rental vehicle toward the cost of your rental, up to 30 days or $900 per claim. You select specific rental car reimbursement limits when you purchase the add-on. For example, if you choose $25 per day/$600 per loss as your rental reimbursement limits, USAA will pay up to $25 per day, but no more than $600 per claim for your rental. You're covered for a rental when your vehicle repairs are started, or immediately if your vehicle isn't drivable. 041b061a72