Rental car insurance covers the damages and liabilities incurred when renting a rental car. This coverage can be found in your car insurance policy's collision and comprehensive sections or as an endorsement. It is one reason why sometimes it is confused with rental reimbursement coverage.
The basic things you’ll need to rent a car are the following:
What rental agencies don’t usually tell you is that you would need rental car insurance. Rental car companies will also give you rental car insurance at an additional cost. For your rental term, this will protect you from liability and property damage charges associated with a covered occurrence, such as an accident.
You've just gotten off a long flight and stood in an even longer wait at the rental car counter, and the salesperson now tells you that you need rental car insurance. They make a compelling case, but is it truly worth it?
While you may want to acquire insurance from the rental business at times, your auto insurance will usually suffice while driving a rental.
You generally don't need rental car insurance if you already have auto insurance for your car. If you don't already have insurance on your car, rental providers will cover the bare minimum required by your state. However, if you want more coverage or travel internationally or for business, you may need to purchase rental car insurance.
If you're going on a work trip, your auto insurance policy may not cover any damage or injuries unless you have commercial coverage. On the other hand, your firm may have a commercial auto policy that will cover the car.
Your insurance may or may not cover rental automobiles in Mexico or Canada if you visit there, and it's a good idea to check with your agent before you leave. In general, regular auto insurance companies in the United States do not cover rentals outside the country, so getting rental car insurance is good.
Money can't buy happiness, but it can occasionally buy you peace of mind! If you acquire rental car insurance, you can rest comfortably that any damage to the rented car while it is in your possession is covered. Accidents, scrapes, hail damage, and any other damage to the car that may occur during the rental time are all covered. However, keep in mind that it all depends on the sort of coverage you choose.
If you don't have personal auto insurance and need to hire a car for a trip, rental car insurance is necessary. It can significantly lower your out-of-pocket payments without requiring you to purchase traditional insurance coverage.
When renting a car, you usually don't need to show proof of insurance unless you pay with a debit card. (Many insurers will not accept this and will instead require a credit card.) You won't require evidence of insurance if you pay with a credit card, but you'll still need to acquire insurance to hire the car. This can be accomplished in several ways.
First and foremost, if you want your credit card's car rental insurance to cover you, you must pay for the entire rental (including costs) with that card. In most cases, the cardholder must also be the primary renter, though other drivers listed on the rental contract are usually insured.
| Best Credit Cards for Rental Car Insurance |
|---|
| Chase Sapphire Reserve |
| Chase Sapphire Preferred Card |
| Ink Business Preferred Credit Card |
| Ink Business Cash Credit Card |
| Ink Business Unlimited Credit Card |
| United Explorer Card |
| United Quest Card |
| United Club Infinite Card |
| United Business Card |
| Capital One Spark Cash for Business |
| Capital One Spark Miles for Business |
Most credit cards include secondary coverage, which kicks in after your primary auto insurance policy has expired. You must first file a claim with your own car insurance company before filing a claim with your credit card's insurance provider in an accident, theft, or damage.
If you don't have personal car insurance, check your policy for secondary coverage may still apply.
On the other hand, Primary coverage is precisely what it sounds like. You can file an accident claim right away with credit cards that offer primary insurance coverage by dialing the number on the back of your card without first submitting to a personal policy.
The insurance for a rental car is identical to that of a regular car. Based on your demands, you can choose the type of coverage and the degree of coverage you want. On the other hand, Rental car insurance is not the same as auto insurance.
You should be aware of your options before purchasing rental car insurance. The following are the most prevalent types of rental car insurance:
While rental car insurance comes in various forms, it does not cover everything.
In most circumstances, adding insurance to a rental car costs $5 to $30 per day, depending on the car, rental provider, and region. The cost of adding insurance to a rental car can be more than the daily rental fee, but if you can't afford to pay for any damages to the car out of pocket, it can be worth it.
| Car Insurance Company | Rental Rates per Day |
|---|---|
| Hertz | $53 |
| Enterprise Rent-A-Car | $60 |
| Budget | $31 |
| Alamo Rent A Car | $44 |
| National Car Rental | $44 |
| Dollar Rent A Car | varies by state |
Car rental businesses also offer collision damage waivers (CDW), sometimes known as loss damage waivers, and extra rental car insurance choices. A CDW is a protection plan covering most damage to the rental car while it is on your own rather than an insurance policy. However, keep in mind that CDW conditions of service differ by car rental business.
You may not need to purchase additional rental car insurance if you have comprehensive/collision coverage on your personal auto insurance policy or if the credit card you used to secure the rental includes rental car insurance.
| Car Insurance Company | Damage Waiver | Liability Coverage | PAI/PEC |
|---|---|---|---|
| Hertz | $27 | $19 | $7 |
| Enterprise Rent-A-Car | $30 | $17 | $13 |
| Alamo Rent A Car | $25 | $13 | $6 |
| Budget | $9 | $15 | Varies as per state |
| National Car Rental | $10.99 | Depends on the state | Varies by state |
| Dollar Rent A Car | Varies by state | Depends on the state | Data not available |
The disadvantage of depending on these coverage alternatives rather than purchasing additional rental car insurance is that you may have to pay for damage upfront and file a claim to recover the costs. Yes, as long as your trip is for personal travel, you can use your auto insurance to cover a rental car. Your deductibles and personal coverage restrictions will apply.
Before you rent a car, get in touch with your car insurance company. Enquire in detail whether your car insurance coverage extends to the car you are about to rent. More often, if you opt for collision and comprehensive coverage, your car insurance company would extend their range to rental cars.
Though this is a standard feature, it is better to get in touch with your insurance company and confirm it to be on the safer side. Do not be lazy. Go through your coverage policy's fine print to get a complete picture of the extent of coverage.
When you get in touch with your car insurance company, ask them these questions regarding rental car insurance:
Some auto insurance companies will provide you with car insurance coverage when you drive in Canada and Mexico. But it will not extend its range when you rent a car. Inform your auto insurance company beforehand if you are planning to rent a car outside the United States.
You may be insured by your credit card company or a travel insurance plan in addition to the rental car provider's options. Rental car insurance is frequently included with premium credit cards. Primary coverage has significant limits and can cover the entire claim, so your insurance provider won't be aware of it (and won't raise your rates).
On the other hand, Standard cards frequently provide secondary coverage, which has lesser limits and requires you first to file a claim with your insurance provider. To qualify for coverage, you must book the rental with a credit card in either case.
Travel insurance can often cover collision and loss of usage at a lower cost than the rental car provider.
Do you use rental cars regularly? Do you feel the strain of rental car insurance on your wallet? We suggest you take a look at the following alternatives to rental car insurance insurance:
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
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