Updated: May 2024
You’ve likely asked yourself, “Do I really need car rental insurance?” While it’s essential to have insurance coverage to protect both yourself and the rental, you might already be covered. Avoid the steep costs (which can reach up to $60/day) at the rental counter—that are often negotiable. Here’s what you need to know in 2024.
Good News: You Could Already Be Covered (mostly)!
Before you agree to purchase rental insurance, here’s how to check if you need it:
Step 1: Check Your Car Insurance Policy
If you already have car insurance, it usually extends to rental cars if you have liability, comprehensive, and collision coverage. Most states require liability insurance, which typically carries over to rental cars. If it does, and your coverage is adequate, you can decline the rental company’s supplemental liability insurance. Remember to verify whether your comprehensive and collision coverage includes rentals, as these are crucial for non-driving related incidents (like vandalism or theft) and accident damages, respectively.
Pro Tip: Contact your car insurance provider for quick answers. Their customer service can provide rapid clarity on coverage.
Step 2: Call Your Credit Card Company
Many credit cards now offer secondary car rental insurance as a benefit, provided you pay for the rental entirely with the card. The perks vary by card, so you should contact your credit card company to inquire about specific car rental benefits associated with your card. Remember, credit card companies do not cover personal property or medical benefits, but your other insurances might.
Remember: This coverage is secondary and fills in only the gaps left by your personal car insurance, including possible loss-of-use fees.
Step 3: Health Insurance Check
If your health insurance provides comprehensive coverage, you may not need the rental company’s personal accident insurance. Check if you have personal injury protection or medical payments coverage through your auto insurance as well.
Step 4: Homeowner’s or Renter’s Insurance
Your homeowner’s or rental insurance often covers your personal property wherever you take it, including a rental car, on a trip. Before assuming this, however, call your insurance provider to ensure there isn’t any additional paperwork that must be provided to verify what you’re taking, where you’re staying, or what to do in the event something happens. As long as you’re covered, you can skip on the rental insurance company’s personal effects coverage.
Step 5: Travel Insurance
For those who opted for travel insurance, check if it includes car rental collision coverage and whether it is primary or secondary. Primary coverage takes precedence over your regular car insurance in the event of an accident.
Decoding the Contract
Understanding common terms in rental agreements can save you from unexpected charges:
LDW/CDW: The loss damage waiver and collision damage waiver. These waivers protect you against any liability in the event your rental car is vandalized, stolen, or damaged in a crash. It is possible these can let you off the hook for loss-of-use charges (fees rental companies can charge you for losing use of the care while it is being replaced or repaired).
Liability/SLI: Liability insurance or supplemental liability insurances are used to relieve you of incurring any personal costs if you damage someone else’s vehicle or property while driving the rental car. It might also cover any medical bills if anyone is hurt in the accident you caused.
PAI: Personal Accident Insurance will cover medical costs for you and any of your passengers in the event you’re hurt in an accident in your rental car.
PEC: Personal Effects Coverage will cover your personal items if they are stolen or damaged in your rental car.
Bottom Line: Do The Research
Just like all other aspects of your trip, you need to do some research. Chances are, you’ll need some type of car rental insurance to be fully covered but you can have peace of mind and fully enjoy your trip. You can check out our great car rental insurance offers, by clicking here, along with our great prices comparing all the best car rental rates wherever you’re going. Quick. Simple. Easy. Thanks for choosing AutoRentals.com!
