Whether you’re on a business trip or vacation, you’ve probably heard the usual questions that rental car companies ask; that is, if you want extra insurance for your rental car. You can say yes and buy it out of fear, or reject it in the belief that you can buy a rental car. The reality, however, is that unless you look at your current auto insurance policy and see if you’re covered, you don’t really know and could lose some savings. Therefore, it is best for you to call your insurance agent for details about your policy.
Generally, there are two situations in which you can benefit from car insurance for a rental car. Both ideas have their pros and cons.
Have a car insurance policy. Some insurance companies also extend coverage to rental cars as long as you are on vacation, so be sure to ask your insurance agent questions. But know that whatever coverage gaps you have in your policy will extend to your rental car. If you travel, you should have your employer pay for your insurance, as your auto insurance policy doesn’t apply.
Auto insurance coverage with a credit card company. Some credit card companies can provide protection for the car you rent with your credit card. While coverage varies by credit card company, the terms and conditions of your policy may change from time to time. However, insurance coverage usually only covers physical damage to the car; it usually doesn’t cover bodily injury, liability, or theft of personal effects.
Additional car insurance types for rental services
If you know that additional coverage is right for your situation, then know that most car rental companies generally offer four common insurance options:
Collision Damage Waiver and Loss Damage Waiver (CDW and LDW). If you lose your rental car due to theft, or if the car is damaged or damaged in a collision, you will be charged a fee.
Personal Accident Insurance (PAI). Pay for your medical bills as a result of a rental car accident.
Supplemental Liability Insurance (SLI). Covers you with extended liability coverage up to $1 million.
Personal Contents Insurance (PEC). Pay for any personal items stolen from your car rental.
Some things to remember about car insurance
When deciding whether to add extra insurance to your car rental, keep these tips in mind:
If you have an auto insurance policy, don’t buy the same coverage twice unless you have an insurance gap.
Check with your auto insurance agent before deciding to purchase additional auto insurance for your car rental.
Ask the rental car company for a copy of their insurance policy.
Compare the company’s prices with auto insurance quotes in your area to see which is better.