Beads of effort start forming at your eyebrow. You knew this question was coming, but you ’ re unprepared. You ’ rhenium inquisitive, Is it worth it ? Should I pay more ? Or am I merely throwing my money away ? Does my personal car policy protect me ? Can I earphone a friend ?
We ’ ve all been there. But don ’ t worry. We ’ ve got your back. We ’ ll break down the mystery surrounding rental car insurance and whether you actually need it. So future time you ’ re at that counter, you ’ ll be prepared to answer confidently !
Does Your Car Insurance Cover Rental Cars?
In general, your individual car policy will cover your rental car. so most people don ’ t need to buy rental policy.
But it ’ south silent a well theme to understand your personal car policy policy before paying for your rental car. A draw of policies extend coverage to rental cars, indeed your rental may be covered .
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Don ’ t assume though. Check your coverage policy. If your policy doesn ’ t extend collision or comprehensive coverage to your rental, you may have to pay out of pocket if you get into an accident. And no one wants that .
If you ’ re on business, check if your company has rental cable car insurance. If so, no indigence to buy lease insurance because you ’ rhenium already covered. If your company doesn ’ t cover it, you might need the rental car indemnity. This is because individual policies typically won ’ triiodothyronine cover you if you ’ re renting a fomite for commercial enterprise purposes .
Rental Car Insurance vs. Your Own Policy
here ’ s a helpful comparison of what ’ s normally offered by the rental car company versus what your policy would cover .
Accidents and Theft
Rental car company: The collision damage release ( besides called loss-damage release ) covers larceny or damage to the rental fomite in a collision. It ’ s not actually insurance though. It ’ s a release that says the rental car caller won ’ thyroxine deem you responsible for all the damage. But keep in heed that it won ’ triiodothyronine cover you ascribable to negligence ( like speeding ). And the rental company could still charge you for other things like towing expenses or “ loss of manipulation ” —the money they lost while not being able to rent it .
Your policy: If you have comprehensive or collision coverage on your personal car policy, you don ’ t need the collision damage release .
Liability Insurance
Rental car company: Supplemental liability coverage will cover you if you end up damaging other people ’ s vehicles or property. Liability limits for rental cars is normally between $ 300,000 to $ 1 million .
Your policy: If you have adequate indebtedness coverage, this extra protection international relations and security network ’ triiodothyronine necessary. Skip it .
Personal Accident Insurance
Rental car company: Personal accident indemnity takes care of checkup bills for you and your passengers if you ’ re injured while driving the rental. It even includes death benefits for worst-case scenarios .
Your policy: Your personal health policy or personal injury protection on your car policy probably provides enough coverage. So you credibly won ’ triiodothyronine need personal accident insurance. american samoa far as death benefits, you ’ re better off buying term life policy to protect your income and your family .
Personal Effects Coverage
Rental car company: This type of coverage will pay for any of your personal property ( up to a certain total ) that is stolen from the fomite .
Your policy: You might not need this since your renters or homeowners coverage normally provides the lapp auspices. But always check to make sure.
Read more: The 7 Best Car Insurance Companies (2022)
What Does Rental Car Insurance Cost?
The cost of rental insurance varies depending on your country, who you buy it from and how much coverage you want .
typically, entire coverage policy costs $ 30 to $ 60 per day. If you choose to shop a lanthanum menu, hera ’ sulfur about how much each will cost :
- Collision/Loss Damage Waiver – $20 per day
- Liability Insurance – $15 per day (for $1 million in coverage)
- Personal Accident Insurance – $5 per day
- Personal Effects Coverage – $2 per day
You can besides purchase rental car insurance through third parties if you don ’ triiodothyronine want to buy at the counter. Some people do this since the rental car insurance is frequently overpriced ( that ’ s why they ’ rhenium blackmail you to buy it ! ). But for most people, it ’ south normally better to just use your person car indemnity policy .
When Do You Need Rental Car Insurance?
If you ’ re placid wondering, Should I get rental cable car policy ? —let ’ s sum it all up. You ’ ll need it in these situations :
- Your personal insurance policy doesn’t cover rentals.
- You don’t own a car and don’t have auto insurance.
- You rent cars more than the average person.
- You’re worried about paying a high deductible.
- You’re traveling for business and your company doesn’t cover you.
If you rent much but don ’ thyroxine carry your own policy, you might want to besides consider nonowner cable car policy. It covers bodily injury and property wrong if you ’ re in an accident when you ’ ra driving a car you don ’ thymine own. It ’ randomness besides less expensive than standard insurance, which is adept for your budget .
If you decide not to purchase the rental company ’ south extra coverage, be aware of a few things :
- If the rental car is damaged or stolen and you have to file a claim, it will affect your premium the same as if the incident involved your own car.
- The rental company may charge a deposit on your debit card and then refund the money when you return the car in good condition.
- Your personal auto coverage does not cover vehicles like moving trucks. In that case, you’ll need to purchase insurance from the truck rental company.
Certain credit cards besides offer some security against lease car incidents, but they shouldn ’ metric ton be your go-to solution. This is because recognition cards come with therefore many downsides they ’ re plainly not worth using—even if they do give you some limited rental car insurance. besides, citation card protection is secondary coil, so it will only kick in after your personal policy pays out .
International Travel
If you ’ re traveling internationally, should you get the extra car rental policy ?
Renting a car outside the U.S. brings its own challenges. Fewer indemnity companies cover customers who rent cars internationally. So constantly contact your company to see if your rental is covered .
Some people like to buy the extra coverage when traveling abroad because of the increased risk of accidents due to different drive conditions and traffic laws. The extra coverage will besides help you avoid the harass of filing a title in a foreign country .
Rental Car Insurance: To Buy or Not to Buy?
The bed line when it comes to rental cable car indemnity is to make certain you don ’ deoxythymidine monophosphate yield for something you don ’ t need. But it ’ s besides not worth taking unnecessary risks to save a buck .
If you rent cars often, you might want to update your personal policy to get more coverage while you rent. And flush if you don ’ thymine rend often, it ’ s still good to review your personal policy once a year.
Read more: The 7 Best Car Insurance Companies (2022)
If you have a solid car indemnity policy in stead, adjacent time you ’ re at the rental agency counter you can just smile and say, “ No thank you. ”
If you need to update your car insurance policy, or want to make certain you have enough coverage, we recommend using an freelancer policy agent who is part of our second local Providers ( ELPs ) program. They are RamseyTrusted and will listen to your specific situation to get you coverage that suits your needs and your budget .
connect with an ELP near you and start saving nowadays !