The Facts Behind Rental Car Insurance
Travelling is expensive enough. Between airfare, accommodations, and dining, the costs of a vacation or business trip can quickly add up. For this reason, it is important to save money wherever possible. One area of potential savings can be found in rental car insurance.
Do I really need rental car insurance?
For most drivers, the answer is likely to be no. The fact is that a driver's personal insurance coverage extends to a rental car in most situations. If you have liability, comprehensive, and collision coverage on your personal auto policy that coverage should extend to your rental vehicle. Purchasing rental insurance would literally provide you with duplicate coverage. As always, be sure to check with your local insurance agent in order to best understand your policy.
What does rental car insurance really provide?
Most rental car insurance policies have similar features. Here are some of the most common:
1. Damage Waivers
Damage waivers provide coverage in the event of a damaged or stolen rental care, although this coverage may not apply if the car is misused (ie driving on unpaved roads, driving under the influence, etc.) If you have comprehensive and collision coverage on your personal auto policy damage waivers may not be necessary.
2. Supplemental Liability
Supplemental liability coverage provides additional liability protection if you are in an accident that is determined to be your fault. If the other party files a claim against you that exceeds your regular policy limits, your supplemental liability coverage comes into play. If you have adequate liability coverage, however, purchasing supplemental liability may be unnecessary. If you feel the limits on your personal auto policy are too low, contact your local insurance agent for a quote on an umbrella policy.
3. Personal Effects Coverage
Personal effects coverage protects personally-owned items and property in the event they are damaged while inside the rental car. If you have homeowners or renters insurance you likely do not need to this coverage, although you may have to satisfy your deductible.
How else can I protect myself?
Before going to pick up your rental car, speak with your insurance agent. A short phone call could end up saving you hundreds of dollars and provide you with a better understanding of your policy and your insurance needs.