Is Rental Car Insurance Necessary?
Is rental car insurance necessary? Read this information before you spend extra money or drive uncovered.
Is rental car insurance necessary? You’re probably wondering if you are preparing for a trip of any sort. Rental car insurance is one of those “iffy” areas. You want insurance “if” anything happens, but it’s so darn confusing, and you don’t want to pay double “if” you’re already covered.
Here’s some quick information about rental car insurance to help you decide.
Should I Buy Rental Car Insurance?
This question depends on several things – what your regular insurance covers, credit card perks, and which state you live in.
Before you automatically assume you need insurance from a rental car insurance company:
- Give your insurance agent a call.
- Check to see if you’re covered if you damage, or wreck a rental car.
- Ask if the insurance covers any administrative fees or towing charges too.
Many times, if you have comprehensive coverage, rental car insurance isn’t necessary. But, always check first.
Your next call must be to your credit card organization. Many credit card companies cover rental car insurance as a perk for their customers. The key is to call and ask. If you’re lucky and your credit card company provides insurance for rental cars, they usually provide for loss of the rental vehicle or damage to it. Credit card perks don’t usually cover bodily harm, damage to other cars in the wreck or personal liability.
After you know what type and how much rental car insurance you already have, you can finish making your decision based on the different types available. Cost and coverage vary from state to state. So content is additional depending on where you live.
Rental Car Insurance Coverage– Liability Insurance
Rental companies are required by law to provide liability insurance that meets your state’s requirements. A word of warning – this amount is usually pretty low, and you won’t have very much protection. This kind of insurance will fetch you around $7 to $14 daily.
If you feel your liability insurance on your regular car is enough, you may not even want to purchase this. But if you travel frequently and feel you need extra protection, your best bet may be to take out an umbrella liability policy that covers your car and homeowner’s insurance.
An umbrella liability policy is only cost-effective if you travel regularly and will cost you another $200 to $300 per year. This amount, however, offers you one to two million in liability coverage.
If you don’t own your car, you might want to consider taking out a liability policy to cover yourself when renting a car or borrowing a car.
Personal Accident Insurance
It is another rental car insurance you may not need if your regular car insurance covers you. Personal Accident Insurance covers you and anyone riding with you. In the event of an accident, your ambulance and medical bills are covered by this policy.
Personal accident insurance cost around $1 to $5 per day, but remember, you may not need it if you have adequate coverage with your regular car insurance.
Personal Effects Coverage
Personal Effects Coverage is convenient for people who travel frequently and carry expensive items with them. If you have expensive cameras, equipment, or jewelry with you when you travel, this type of insurance covers the things if the items are stolen from your rental car.
Again, if you have adequate homeowners or renters insurance for off-premises theft, you are most likely covered.
If you don’t want to take chances and don’t have the time to call your insurance agent before you travel, you can buy this insurance for $1 to $4 per day.
Loss Damage Waiver (LDW)
LDWs aren’t technically a form of insurance but cover you if your rental car becomes damaged or gets stolen. It also includes “loss of use” coverage. It means that if your rental car is damaged, the rental company can’t charge you for the time that it’s being repaired, but you’re not using it. LDWs cost around $9 to $19 per day.
Insurance is one of those things that no one particularly likes – but it’s necessary. In response to the question, “Is rental auto insurance obligatory ?” the answer is a definite, “That depends.”
The best way to answer this question is to talk to your insurance agent and check for credit card car rental benefits. Know what type and the amount of coverage you already have before you plunk down any more money for rental car insurance or before you discover you weren’t covered after all.