Do I Need Rental Car Insurance
If you already have car insurance for a personal vehicle, you probably dont need rental car insurance. If you dont already own a car with insurance, rental companies automatically cover the bare minimum in your state. However, if you want more protection, or if youre traveling abroad or for business purposes, you might need to get rental car insurance.
Adding Rental Car Coverage To Your Car Insurance
In addition to the basic liability coverage that extends to your rental vehicle, you may be able to add extras onto your insurance through the rental company. Some types of extra coverage you may find include:
- Collision or loss damage waiver: A collision or loss-damage waiver isnt technically insurance. However, it can protect you if youre involved in an accident, and you dont have collision or comprehensive coverage on your personal insurance policy. This waiver will cover any damage you cause to the rental car when driving. Collision and loss-damage waivers usually dont apply if you were speeding or driving on unpaved roads when the damage occurred.
- Personal accident insurance: Personal accident insurance helps you pay for your own medical bills and the medical bills of anyone driving in your rental car with you if youre involved in an accident. If you have health insurance or personal injury protection from your car insurance provider that extends to rental cars, this may be a redundant protection.
- Personal effects coverage: Personal effects coverage compensates you if items are stolen from your rental car. For example, if you leave your laptop on the seat of your rental car and someone smashes the window and leaves with it, your personal effects coverage will help you cover the cost of a new laptop up to your policy limit.
Alternative #: Use Credit Card Benefits
These days, most credit cards provide free collision coverage for car rentals, provided you use the card to secure the rental. A sample credit card benefits statement describes coverage as:
Physical damage and/or theft of the covered rental vehicle. Valid loss-of-use charges assessed by the rental company while the damaged vehicle is being repaired and is not available for use, as substantiated in the companys fleet utilization log. Reasonable and customary towing charges related to a covered loss to take the vehicle to the nearest qualified repair facility.
Note that this typical Visa cards benefits do not cover diminished value or administrative costs. A few premium credit cards offer primary collision coverage, meaning the card takes full responsibility for the payment. But coverage on most cards is secondary, meaning the card picks up only what you cant first recover from your own insurance. And you still have to pay the rental company up front, then file for reimbursement from your card issuer.
Another gotcha in the above fine print: This card pays for loss of use only if verified by the rental companys log. Unfortunately, some rental companies dont cooperate with credit card issuers in providing this type of documentation in a timely manner.
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The Difference Between Primary And Secondary Coverage
For starters, its worth mentioning that most offer secondary insurance for rental cars. This means that the cards insurance will pay only the amount not covered by another policy the driver has. Therefore, you would have to file a claim with your other insurance first. As anyone who has dealt with insurance companies will know, this can be a time-consuming process.
On the other hand, with primary coverage from a credit card, personal car insurance is immaterial. As the name suggests, the primary insurance applies first, no matter what other coverage the renter has. Conveniently, this means you can start the process of submitting a claim by calling the number on the back of your card.
Should I Get Rental Car Insurance
So, should you get rental car insurance? It depends if you want peace of mind that youll be covered in a worst-case scenario. If you want coverage, opt for the rental agencys collision damage or loss damage waiver if you dont already have full coverage insurance.
One study in the Journal of Advanced Transportation found that inattention, poor driving, poor handling and aggressive driving are all associated more with rental cars than non-rental cars. You might be a great driver on your regular commute, but it can be stressful driving in a new situation.
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What Does The Travel Guard Rental Vehicle Damage Coverage Cover
Accidents can happen, and whether its a fender bender or a chipped windshield youll likely want some form of rental vehicle damage coverage. With Rental Vehicle Damage Coverage, you have up to $35,000 or $50,000 in primary physical damage coverage in the event there is covered damage to the rental vehicle.
Should I Buy A A Collision Damage Waiver Or Liability Coverage For My Rental
It depends on the coverage your current car insurance policy offers you, and how much car insurance you have overall.
If you are thinking of purchasing a collision damage waiver or a loss damage waiver, you need to consider what personal insurance you already have.
If you only have liability insurance, then a CDW may definitely be prudent. Without it, youd be responsible for any damage you cause to another vehicle. If you have collision and comprehensive coverage on your own auto insurance policy, then its possible that youre simply duplicating your coverage for no good reason.
However, its important to consider something known as loss of use. This is a clause in many rental agency contracts that charge a daily fee for the companys loss of use . Essentially, since rental agencies make money by renting out the vehicles, if one is involved in an accident and has to be repaired, it impacts their ability to rent it out for business. That loss of use fee helps compensate the agency for the time the car isnt available for rental.
The collision damage waiver would waive that fee, but your personal car insurance doesnt typically reimburse for it. Read the rental agreement carefully to make an educated decision. Some people get the CDW for extra peace of mind.
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Does My Personal Car Insurance Cover Rental Cars
Its going to vary depending on the personal auto insurance policy you have and why youve rented a car. Occasionally some coverages will extend to a rental. Be sure to check what your deductible is on your personal auto insurance policy as well. You may want to consider rental car insurance if that deductible is high.
What Travel Guard also offers, that you may not get with your personal auto insurance policy, is access to 24/7 assistance services. When you purchase rental vehicle damage coverage through Travel Guard it comes with travel and roadside assistance to help when youre on the road and need it most.
Significance Of Car Rental Insurance Cover:
When you rent out a car, you are responsible for damages caused to the vehicle, and thats why the car hire insurance cover is such a critical aspect of renting a vehicle. Rental car insurance will cover you against damages, theft and also damages to third-party property/life. Below are the benefits of rental car insurance coverage:
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Super Collision Damage Waiver : CDC only covers damages to the bodywork of the car, while the Super Collision Damage Waiver covers several additional parts of the vehicle. SCDW gives you peace of mind, even if the rental car is damaged very badly.
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Personal Accident Insurance : If you or any occupants of the rented car gets injured, the Personal Accident Insurance cover will pay out the medical expenses incurred.
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Uninsured Motorist Protection : If you are involved in an accident, and the driver of the other car is not insured, the Uninsured Motorist Protection will cover damages/injuries.
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Supplemental Liability Insurance : The Supplemental Liability Insurance will increase the maximum amount paid by Third-Party liability coverage.
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Roadside Assistance Cover: The RSA cover will come in handy if the rented car breaks down. You will be assisted if the car runs out of fuel, suffers a puncture or completely breaks down.
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Full Protection: As the name suggests, it is the combination of all the covers which are mentioned above. It covers damage/theft, repair costs, RSA charges and other costs involved in the process of claim.
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How Much Does Geico Auto Insurance Cover For Rental Cars
As with any other insurance policy, your Geico auto insurance policy will have limits on how much coverage is provided for rental cars. These limits may be different than the limits for your personal vehicle, so its important to check with your agent or broker to determine what those limits are. In general, however, most Geico auto insurance policies will provide at least some coverage for rental cars. This coverage may extend to damages caused by collision or theft, as well as liability coverage in the event that you are responsible for damages to someone elses property or person.
Types Of Rental Car Insurance
There are four main rental car insurance options that you could be offered through your rental agency: a loss damage waiver, liability coverage, personal accident insurance and personal effects coverage.
Below are the different types of car rental insurance:
Rental Car Liability Insurance
Rental car companies also sell liability car insurance. This covers other drivers property damage and injuries resulting from an accident you cause. If you have personal liability insurance, your own policy will provide this coverage . But if you know youre going to be cruising in Miami alongside Lamborghinis and Ferraris, $10,000 in liability coverage probably isnt going to cut it, so you may want to up your policy limits.
If you are a frequent traveler but dont own a car, you can also get non-owners car insurance to cover you in all driving situations.
Rental Car Loss-damage Waiver Insurance
This option waives your responsibility to pay for a total loss, accident damage, environmental damage, theft and vandalism. A collision damage waiver is similar, but it doesnt protect against theft. These waivers basically act like comprehensive and collision policies for the rental. If you already have comprehensive and collision insurance, you probably dont need this.
However, a loss damage waiver will not require you to pay a deductible, which is another thing to consider.
Personal Accident Car Rental Insurance
Rental Car Personal Effects Coverage
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Automobile Insurance Information Guide
Your motor vehicle may be an auto, truck, van, motorcycle, or another kind of private passenger vehicle. California Law. You must show financial responsibility
If you have sufficient liability coverage through your own auto insurance, you may not need to buy extra rental car liability insurance coverage from the agency
Rental Car Insurance Vs Your Own Auto Insurance
Here are the typical insurance options from rental car companies, along with how to determine if you already have coverage within your own auto insurance policy.
Coverage from your own policy applies when you are using a rental car for personal, nonbusiness purposes. The rules may be different for business use of a rental car. Check with your insurer or employer for details about coverage when using a rental car for business.
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Things To Check Before Buying Insurance For Rental Cars:
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What is the maximum limit of the collision loss damage insurance?
Usually, it depends on the value of the rented car and the rental company. But if the claim made by the rental company exceeds the coverage offered by the insurer, you might have to pay the exceeding amount.
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Is there a deductible in car rental insurance?
Yes, there will be deductibles in car rental insurance, and you might have to pay a partial amount to cover the damage. But if you get Complete Coverage or Zero Deductible coverage, then the deductibles will not be applicable.
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Is rental car insurance a primary or secondary coverage?
Usually, the most common coverage is secondary coverage, and it covers damage and theft. In secondary coverage, the rental company has to apply for a claim with the insurer. Primary coverage is the best option in car rental insurance, and its available with credit cards. The claim will be taken care of by the credit card company, and you dont need to worry about paying for damages.
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Is the entire car covered under the rental car insurance?
No, the Collision Damage Waiver does not cover the entire car. CDW covers only bodywork of the car, but the Super Collision Damage Waiver will cover some other parts in addition to bodywork.
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Is Roadside Assistance a standard coverage in rental car insurance?
It depends on the car rental company and the geographical location. Some companies do provide RSA as standard while some companies will offer it as an additional cover.
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Does My Auto Insurance Cover Rental Cars
Your personal auto insurance will cover most rental cars with the same coverage limits and deductibles. For example, if you carry comprehensive and collision coverage on your auto policy, you’ll be protected against physical damage to your rental car. Your liability coverage will also apply when you get behind the wheel of your rental.
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What You Need To Know About Rental Car Insurance
You booked your rental car ahead of time, and you’re finally ready to pick it up. But will it be insured if there is an accident?
Do you have rental protection in your auto policy, or should you buy it from the company? Is it a requirement?
What you want is affordable car insurance when you rent a car that gives you the protection you need. In this blog post, we’ll provide you with some clarity about your options.
Rental Car Insurance Without Exception
For the most part, your personal car insurance will cover you while driving a rental car. Some credit cards offer rental car insurance. However, there are limitations to every car insurance policy. For example, your personal auto insurance likely only covers the use of rental cars when youre driving them for personal use. This means that if youre on a business trip, your personal auto insurance may not cover you.
Check with your insurance agent before you rent a vehicle. The last thing you want is to think youre covered, get into an accident and find out that your insurance isnt valid.
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You Need General Liability Protection
You should never get behind the wheel of a caror lawnmower, for that matterwithout liability protection. But you dont buy that from a car rental company: It usually comes with household, homeowner, or tenant insurance, and it covers far more than a car rental. And if your net worth is in six figures, you probably need an umbrella liability policy that covers a million dollars or more.
Car rental companies in most countries are required by law to include liability insurance. In the U.S., required coverage can be ludicrously small its usually much better in Europe. If you dont have substantial liability insurance, you might consider buying the rental companys offering. Still, your best bet is to make sure youre covered 24/7 with your own insurance so you can forget about the rental companys overpriced insurance.
Does Geico Auto Insurance Cover Rental Cars
If youre a Geico auto insurance customer, you may be wondering if your policy extends to rental cars. The answer is yes, but there are some important things to keep in mind.First, your personal auto insurance policy will not cover any damage to the rental car. Youll need to purchase separate insurance from the rental company in order to be protected.Second, your Geico policy will only provide liability coverage for accidents or injuries that occur while youre driving the rental car. This means that if you damage the car or someone is injured while youre driving, you could be on the hook for expensive repairs or medical bills.Finally, its important to remember that your Geico policy only covers rentals in the United States and Canada. If youre planning on renting a car in another country, youll need to purchase separate insurance from the rental company or your credit card issuer.
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Is Rental Car Coverage Primary Or Secondary
Primary coverage is better, but few cards offer it. After an accident, primary coverage pays first, allowing you to bypass your personal auto insurance. That means you can avoid paying a deductible and potentially seeing your premiums rise. The secondary coverage that most credit cards offer typically means your auto insurer pays the claim but the card will reimburse your deductible and potentially other costs not covered by your personal policy.
Youll Pay Up Front For All Damage
You can cover your major damage responsibility by relying on your own insurance, a credit card with insurance, or a third-party policy. But in all of those cases you have to pay a damage claim up front, then recover as much as you can by filing a claim afterward. That means signing a credit card bill for hundreds or even thousands of dollars when you return the damaged car, and not knowing if youll get that money back.
Thats why many rental companies wont accept rentals via debit card, or a credit card with a small limit. If you can pay the initial rental fee with a debit card, youll still need to provide a credit card to cover a possible damage claim, which would be filed before you can leave the return counter.
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