Question

Is rental car insurance worth it?

Rental car insurance is only worth it if your personal auto insurance coverage doesn’t include rental vehicles.

When should you get insurance on a rental car?  

You should get insurance on a rental car if you are not already covered. Check if the rental cars are already covered under your personal auto insurance or credit card. Also, you don’t need rental car insurance if you have non-owner car insurance or umbrella insurance that has adequate coverage for rental cars. 

If you are not covered under any of the ways mentioned above, you can buy it from the car rental company. Third-party insurers such as Allianz Global, Bonzah, etc., also offer rental auto insurance, which is cheaper.

Why do you need rental car insurance?  

Rental cars usually have state minimum coverage only. Even if full coverage is in place, the coverage limits might be inadequate. Any damage to the car while you rent it must be paid out of your pocket. Therefore, it is best to buy rental car insurance with sufficient coverage.  

What does rental car insurance cover?  

A typical rental car insurance covers the following aspects:  

• Supplemental Liability Insurance (SLI)  
• Collision Damage Waiver (CDW)  
• Personal Accident Insurance (PAI)  
• Personal Effects Coverage (PEC)  
• Roadside Assistance