Rental Car Insurance

Many drivers who travel for business or pleasure have faced this question, often after a long flight and long lines at the airport: Would you like to purchase additional rental car insurance coverage for this vehicle? Some people always elect to buy the insurance out of fear. Others always reject the offer, thinking they are already covered by their current auto insurance. Essentially, you will need to do a little research to determine if you are already covered under another policy for a rented car. The factors involved are sometimes complicated, but if you make a few phone calls ahead of time, you will know how to answer this question when it is asked. In most cases, this add-on service is at an additional cost to the policy holder, so it's always best to make a few inquiries with your agent. If you don't own a car but you frequently drive rental cars, it's always a good idea to get a few car insurance quotes, you never know, you may actually save more in the long run. Auto insurance coveres the driver, not the car. To get a quick quote, use our online form to compare up to five quotes from local agents.
Do You Already Have Rental Car Insurance Coverage?

There are generally two circumstances under which you may already be covered by insurance for a rental car. The first is your own auto insurance policy. The second is through the credit card that you have used to rent the vehicle. Investigating these two possibilities before you leave is a good idea—before you are standing, bleary-eyed at the rental car counter in the airport.
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* Your own auto insurance policy: First, call your auto insurance agent to verify whether your auto insurance policy extends to rental cars as well. In general, if you are traveling for pleasure, such as a vacation or visiting family or friends, your policy will also cover a rental car. Be careful though: any gap in coverage in your own auto policy applies to your car rental. For example, if you own an older vehicle and have dropped collision or comprehensive coverage, this would apply to your car rental situation as well. If you are traveling for business reasons, it is likely your own personal auto insurance policy will not apply. In this case, you may wish to inquire with your employer about rental car insurance coverage policies. Note: If you travel for pleasure outside of the United States, your policy may still be in effect—ask your agent to confirm this.
* Your credit card company: Many credit card companies offer auto insurance protection for vehicles rented with their credit cards. Coverage offered by credit card companies may vary from one company to another; these policies also may be revised from time to time so make sure that you are aware of the most current information. Often coverages offered through your credit card company only cover physical damage to the rental vehicle itself—rarely do these types of coverage extend to personal injury, liability, or theft of personal belongings. Insurance offered through your credit card should be thought of as supplemental, rather than primary coverage.

What Kind Of Vehicle Coverage Will You Need?

If you determine that you do need to purchase additional coverage, due to your travel circumstances or gaps in your own coverage, you should be familiar with the common types of insurance coverages offered by most car rental companies.

* CDW (Collision Damage Waiver) and LDW (Loss Damage Waiver): These waivers cover you for any theft, vandalism, or physical damage resulting from an accident.
* PAI (Personal Accident Insurance): This coverage applies to any medical costs related to an accident with the rental vehicle
* SLI (Supplemental Liability Insurance): This type of coverage extends your liability coverage, usually up to $1 million.
* PEC (Personal Effects Coverage): If your personal property is stolen or damaged while inside the rental vehicle, it will be covered under this insurance coverage.

Remember, if you have any of these coverages provided by your own auto insurance policy and you are not traveling for business, you need not purchase them again. Be cautious however—you should be familiar with your own policies coverage and limitations before you decide to purchase or decline additional coverage.

When you are preparing to travel, make a phone call to your own auto insurance agent. Describe the nature of your travel plans and inquire about how your policy extends to car rental. Also, call the car rental company from which you intend to rent your vehicle. Ask them if they can send you a copy of the rental car insurance policies they offer. Companies often make this information available on their Web sites as well.

Ultimately, if you do the research ahead of time, you will know exactly what coverage is provided by your own auto insurance policy, by your credit card company, and you will know what, if any, additional coverage you may need. Why spend money you don’t need to spend? Why take a risk at being underinsured? There's a lot of risk that can easily be avoided by simply getting a few free insurance quotes, so you know how much you're going to pay, to avoid taking a financial hit later. Use our online quote forms to compare up to five quotes from local agents in your area. Find out the details first, so you can make the right decision. Then take your trip with one less thing to worry about.