You are at the car rental counter ready to embark on a great fun filled vacation and the sales persons asks if you would like to purchase their insurance. You are thinking about the beach and not your car insurance.
In almost all situations your personal car insurance coverage’s will carry over to your rental car. That means, if you carry comprehensive and collision coverage on your personal auto policy, you’ll be protected against physical damage to your rental car. Your liability coverage also applies when you get behind the wheel of a rented vehicle.
It is always a good idea to review your personal auto insurance coverage’s so you are sure which ones will carry over to your car rental. If you do not currently have your personal car covered for collision or comprehensive then these will not carry over to your rental car.
When to consider adding rental car insurance
While rental car coverage invariably overlaps with your existing home or auto insurance, there are a few instances where adding rental car insurance could be beneficial:
- Deductibles may not apply with rental car insurance: If you have a high deductible on your personal auto policy, you could pay much less or nothing out of pocket on a rental car insurance claim.
- Avoid claims against your personal car insurance: If you have a claim, you can file it against the rental car insurance, which can avoid a potential rate increase to your personal policy.
- You have no coverage on your personal auto policy: If you don’t have comprehensive or collision coverage on your personal auto policy, adding the loss-damage waiver can protect you against damage to your rental car.
- You can temporarily increase your coverage limits: You may only carry the state minimum for liability coverage on your personal auto policy or maybe you aren’t carrying enough car insurance coverage for your own peace of mind while driving a rental car. Adding additional liability from the rental company means greater protection if you’re at-fault in an accident.
- If you rent an exotic car: If your personal car is a sedan and you rent a controvertible Corvette then it would be a good idea to purchase the additional insurance.
Does your credit card offer rental car coverage?
It is always a great idea to check with the credit card company you are using to pay for the car rental. Many times they offer coverage free of charge for just using their card for the car rental.
So, if you plan on renting a car on your vacation make sure to invite your personal auto insurance coverage’s along for the ride!