Do I need rental car coverage?
If you are involved in an accident in a rental car, the most significant costs policy can cover include vehicle repairs, your liability for injury or damage to others, and medical treatment for you and your passengers .
however, your personal cable car policy policy or your credit batting order might already provide coverage for one or more of these. If you can say yes to all of the following questions, you probably don’t need rental car insurance.
- Are you paying with a credit card that offers a collision damage waiver
- Are you comfortable with the liability limits on your personal car insurance policy?
- Would your personal car insurance and/or health insurance provide enough coverage for medical treatment for you or your passengers if any of you are hurt in an accident?
- Are you renting a non-luxury or non-exotic car of comparable value to your own vehicle(s)?
If the answer for any of these is “ no ” or “ not sure, ” it makes sense to consider purchasing one or more of the optional coverages, from either the rental car company or a reputable third-party policy ship’s company.
How does rental car insurance work?
The insurance that rental car companies offer provides coverage for those who don’t have car insurance and supplements the coverage of those who do. If you are renting a car outside of the U.S. or Canada, your existing car insurance probably won ’ thymine cover the rental, but your credit card might .
The rental car company can’t make you buy the coverages it offers, shown below. And you can besides shop for these coverages online from companies not affiliated with the rental car party .
| Coverage | What it pays for | These risks are also covered by |
|---|---|---|
| Collision damage waiver (CDW) | Damage to the car, plus revenue the rental car company loses during repairs. | Certain credit cards. If you have collision and comprehensive coverage in your personal car insurance, these usually cover repair costs, after you pay the deductible, but not loss of use. |
| Supplemental liability insurance (SLI) | Injuries and damage to others in an accident you cause, including costs exceeding your own policy’s limits. | The liability coverage in your own car insurance usually extends to rental cars. SLI bumps your liability limits up to a stated amount, sometimes up to $1 million. |
| Personal accident insurance (PAI) | Medical treatment for you and your passengers, plus ambulance costs and a death benefit. | Your auto policy, if you have medical payments coverage or personal injury protection. Personal health insurance also covers medical treatment, with deductibles and copayments. |
| Personal effects coverage, often paired with PAI | Theft of personal belongings from the vehicle. | Theft of personal property from a vehicle is usually also covered by homeowners or renters insurance. |
If you can ’ metric ton remember the coverages you have on your personal car policy policy, you ’ ll find them on your declaration page, which itemizes your coverages, policy limits and deductibles. Or just contact your agent or aircraft carrier .
similarly, you can check on your credit circuit board ’ sulfur service agreement to see if it offers a collision damage release for rental cars, but it ’ second normally easier to contact the issuer ’ s customer service department .
How much does rental car insurance cost?
The rates on rental car insurance vary by company and location. A quick on-line arrest of rentals from Los Angeles International Airport and Orlando International Airport revealed the follow average rates from three major lease car companies :
- Collision/loss damage waiver: $26 a day, or 30% of the vehicle’s average base rate ($86.55 a day).
- Supplemental liability: $12 a day, or 14% of the base rate.
- Personal accident/personal effects (combined): $8 a day, or 9% of the base rate.
In these two locations, purchasing insurance from the rental car company could add 40% to 60% to the cost of the rental, before taxes and fees .
Will credit card rental car insurance cover me?
credit cards often come with a collision or passing price release when you use the menu to pay for your own lease. This coverage normally does not apply to cars you rent for person else .
The collision damage waivers offered by Visa and Mastercard usually apply to vehicles rented for 15 days or less. If you don ’ triiodothyronine have personal car policy, the credit circuit board covers the costs of repairing the fomite, plus loss-of-use charges from the rental cable car company. If your personal policy policy includes collision and comprehensive coverage, the recognition tease will cover your deductible and loss-of-use fees, while your personal car insurance company normally covers the rest.
It’s important to note that the coverage you get from your credit card, when available, only covers the vehicle. You even need to think about indebtedness and medical payments coverage, if your personal car insurance policy does not already include these .
When is rental car insurance worth it?
here are the most common reasons to consider the follow lease car coverages .
Collision damage waiver
If your recognition card does not already offer this coverage, the collision damage release could save you hundreds, if not thousands of dollars. even if your personal policy has collision and comprehensive coverage, you would still have to pay your deductible and lost gross fees for any damage you cause .
You should also consider a collision damage waiver when you rent an exotic or luxury car, or any vehicle with a higher value than your own. Mastercard ’ s collision damage waiver typically excludes vehicles that retail for more than $ 50,000. Visa typically excludes luxury makes, including Aston Martin, Porsche and many Mercedes-Benz and BMW models. And some insurance companies won ’ t traverse collision and comprehensive examination costs that exceed the respect of your own fomite .
Supplemental liability insurance
If you cause an accident and don ’ t have a personal car policy policy, or have one with moo indebtedness limits, auxiliary liability would protect you from claims, including those exceeding your personal indemnity policy ’ s liability limits .
Personal accident insurance
If your personal car policy doesn ’ triiodothyronine include medical payments coverage or personal injury protection, personal accident policy will cover aesculapian discussion for you and your passengers. Health insurance usually covers medical expenses for you and your family, but deductibles and copayments can add up quickly. personal accident policy often entirely adds $ 10 a day or less to the rental .
Roadside assistance
Most car rental companies besides offer wayside aid coverage, frequently for an extra $ 5 to $ 10 a day. tied though rental cars are normally in good shape, anyone can forget to turn off a dome light or have a run down blow away. If you already have roadside aid through AAA, your credit tease or your cell phone provider, you probably won ’ t need this. differently, it ’ s a judgment call .
When else should I get rental car insurance?
personal car indemnity normally doesn ’ thyroxine apply to vehicles rented outside of the U.S. or Canada, but the coverage offered by credit cards extends to many other countries. Check with your credit card provider to make sure it does not exclude coverage in the country you are visiting.
Since your personal policy ’ s indebtedness and medical payments coverage probably won ’ thyroxine lend oneself to rentals outside the U.S. and Canada, consider adding these when renting abroad. Health insurance plans frequently besides include limits or exclusions in other countries .
The policy rules for car-sharing programs, such as those that allow you to rent a individual vehicle, are unlike from those for traditional rental car companies. It ’ mho best to check on details with the car-sharing supplier and your insurance carrier .
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