Should I purchase insurance from the rental car company? | The Hanover Insurance Group

It ’ mho one of the most normally asked questions in indemnity. Many will tell you that if you have car policy, buying coverage from the lease company is pleonastic and a godforsaken of money .
And, it ’ s a set of money. Consider that the basic policy ( or “ damage release ” ) averages up to $ 19 per day 1, not including upsells. In some cases, you are looking at about doubling the cost of your rental .
Is it worth it ? The real suffice international relations and security network ’ triiodothyronine that bare, but a real solution is : before you rent, talk to your policy agent or indemnity company to review your car policy.

For some context, though, here ’ s a flying check list .

  • Basic liability – This protection does not offer any coverage to your vehicle in the event of a crash. Remember that the rental is considered “your” car for insurance purposes, so, if you only have basic liability, it makes sense to purchase rental car insurance.
  • Collision – This is what most people are referring to when they mention that your auto insurance policy covers your rental. And it is true, with one big difference: your auto policy has a deductible, whereas the rental company’s plan probably does not. It’s up to you whether the risks of paying a deductible outweigh the expense of the damage waiver. The longer you plan on renting the car, the less sense buying the rental insurance probably makes.
  • Comprehensive – This applies to damage that occurs to a car while it was not being driven. For example, vandalism, or a tree branch landing on the roof. Comprehensive coverage protects your rental the same as your own car(s), and also comes with a deductible. Much like with collision coverage, you may not be getting much bang for your buck, but it’s up to you.
  • Optional coverage – More and more, rental companies have started charging customers for a loss of use of, or diminished value to, the vehicle, stemming from a crash2. Most basic collision policies don’t cover these costs.

Keep in mind, though, that many leading insurance carriers offer optional coverage upgrades ( or “ endorsements ” ) for costs such as these. For case, The Hanover offers coverage for “ reasonable expenses ” related to an accident as function of our TravelRight, Platinum Auto Elite and Prestige Global Rental packages. This includes coverage for personnel casualty of consumption and loss of prize, which is specially valuable for frequent renters, and renters of decent vehicles.

You may already have such coverage already. If so, you can credibly skip the rental car insurance. differently, if you are concerned about the potential monetary value, purchase rental car insurance .

What does my auto policy cover?

On your car policy, your rental car is considered a substitute for the car you own, and indeed, the degree to which your rental is protected is dictated by the degree of coverage you have. furthermore, if you have multiple vehicles, the policy for the fomite with the maximum sum of coverage applies .

What about things in the car?

This might be surprising, but neither your car policy nor the rental car company ’ mho policy very apply here. rather, your homeowners/condo/renters indemnity would cover property that was stolen or damaged while in your rental. If you have this coverage, and a lease company offers you an upgrade with “ personal effects coverage, ” you can probably skip it .

Other things to consider

Nicer cars – If you have collision coverage, it besides applies to rental cars that may be more expensive than your casual car. however, loss of manipulation and diminished value could prove to be a a lot more significant dollar figure with a dainty car. If your policy doesn ’ thymine traverse this extra expense, you might want to purchase rental car insurance .
Business travel – Your car policy applies to a car you may rent for clientele ampere long as your support international relations and security network ’ thymine subject on drive ( for exemplify, a gig as an Uber driver ). But for action most normally associated with business locomotion – driving to node meetings, for example – your personal car policy helps protect you. Depending on how much that policy covers, you can credibly skip the rental car insurance.

If you have questions

Talking to your agent or indemnity mailman is a commodity first base step, and will probably help you reach a decision. But, if you are still on the fence, your future step should be to talk to your credit card company. They may cover some expenses that your insurance does not – but there may be nonindulgent stipulations on who is covered, and where .
last, if you are thinking about purchasing the damage release after all, make sure you review the rental company’s policy, as the sum of expenses it protects you against can vary by state, and by company .

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