Are you about to rent a car and wondering if you need to purchase rental car insurance? Before you get behind the wheel, it’s important to understand what rental car insurance is and if it’s worth the extra cost. In this article, we will discuss the different types of rental car insurance, when you may need it, and when you can skip it.
What Is Rental Car Insurance?
Rental car insurance is an optional type of coverage that helps cover the costs of a rental car if it’s damaged or stolen. It is also sometimes called collision damage waiver (CDW) or loss damage waiver (LDW). These policies are offered to you by the rental car company and can be added to your rental agreement. It will typically cover any damage or theft of the rental car while it is in your possession. It may also cover the costs of towing, storage, and legal fees if you are involved in an accident.
When Do You Need Rental Car Insurance?
Whether you need rental car insurance depends on your personal circumstances. If you have an existing auto insurance policy, you may already have some coverage for rental cars. Contact your insurance company to find out if you have rental car coverage and what your policy limits are. If you don’t have coverage or your current coverage is inadequate, you may want to consider purchasing rental car insurance.
When Do You Not Need Rental Car Insurance?
You may not need to purchase rental car insurance if you have a personal auto insurance policy and a major credit card. Many credit cards offer rental car insurance when you use the card to pay for the rental. Before you decline rental car insurance, contact your credit card company to find out what type of coverage is offered. Depending on the type of coverage, you may only be covered if you rent the car for fewer than 15 days or if the rental car is within the United States.
What Types of Rental Car Insurance Are Available?
When you rent a car, you will typically be offered three types of rental car insurance: liability, collision, and comprehensive. Liability coverage helps pay for the costs of any damage or injury you may cause to another person or property. Collision coverage pays for damage to the rental car if you are involved in an accident. Comprehensive coverage pays for damage to the rental car from theft, vandalism, fire, and other perils. Depending on the coverage you choose, you may be liable for a deductible.
How Much Does Rental Car Insurance Cost?
The cost of rental car insurance will vary depending on the type of coverage you choose and the length of the rental. Generally speaking, you can expect to pay anywhere from $10 to $30 per day for rental car insurance. If you are only renting the car for a few days, it can be more cost effective to purchase the insurance than to pay out of pocket for any damage.
Is Rental Car Insurance Worth It?
Whether or not rental car insurance is worth it depends on your individual circumstances. If you already have car insurance and your credit card offers rental car coverage, you may not need to purchase additional insurance. However, if you don’t have coverage or you are renting a car for an extended period of time, it may be worth it to purchase rental car insurance. Be sure to shop around and compare rates to find the best coverage for your needs.
Rental car insurance can provide you with peace of mind when you’re behind the wheel of a rental car. Before you rent a car, be sure to review your existing car insurance policy and credit card benefits to determine if you need additional coverage. If you do, shop around and compare rates to find the best coverage for your needs.