Whether you are traveling for work or on vacation, a lot of planning goes into an out-of-town trip. All things are considered, from eateries to hotels and flights. But what about rental cars?
Many drivers who are leaving town and renting a car often wonder if they will be required to buy an additional form of car insurance for their rental cars.
The simple answer is no, because most of the time your current car insurance policy will include rental car coverage. Even some credit card companies include rental car coverage as well.
If you are planning on renting a car soon, you should double check to make sure that you are in the clear before getting behind the wheel.
Does My Current Auto Insurance Plan Cover Me?
If you currently have a car insurance policy, chances are high that you are already covered to rent a car. Most liability insurance coverages will cover rental car accidents. For example, if you rent a car and happen to cause an accident with another driver, your liability insurance will cover the cost of damages and injuries inflicted on the other driver and their vehicle.
Here are a few things to keep in mind when it comes to most rental car coverages that come with liability insurance:
- Your spouse is probably also covered, and you may have the option to add additional drivers to your policy.
- You may have to pay an extra fee to have additional drivers covered.
- If you are renting a car for business purposes, you may not be able to use your personal car insurance policy.
Does My Credit Card Company Cover Me?
It’s not uncommon for credit card companies to offer rental car coverage as long as you use the card to pay for the rental car. However, make sure that you know the limitations on the type of coverage your credit card offers. For instance, many credit card companies only offer collision coverage, which will cover the cost of damages to the rental car but will not cover any injuries.
That being said, some companies will offer additional coverage for medical bills if you pay an extra fee, but use caution before purchasing. If you have good health insurance, you may not need to tack on additional bodily injury coverage through your credit card company.
It would probably be in your best interest to purchase liability insurance through your credit card company if your current liability insurance does not cover rental cars. This way, if you ever cause an accident with another driver while operating a rental car, your liability coverage will be able to cover the cost of the damages to the other driver.
If you want to use your credit card to rent a car, make sure to contact your credit card company and ask for information about your coverage. It’s a good idea to do this every time you rent a car just in case the coverage limits have changed.
Can I Get Coverage Through The Rental Car Company?
Even though you are most likely covered through your current car insurance policy, credit card company, or health insurance plan, most rental car companies sell rental car insurance. If you need it, you can buy it when you go to pick up the car. However, be careful not to spend money on insurance that you don’t need. Before buying insurance from a rental car company, check all your bases and make sure that you aren’t already covered.
Here are the most common types of insurance offered by rental car companies:
- Collision damage waiver: This waiver protects you from having to pay for the vehicle if it is subject to theft or damages.
- Supplemental liability protection: This type of insurance covers the damages done to another driver and their vehicle in an accident that you cause.
- Personal accident insurance: This type of insurance will cover any damages or injuries that happen to you or any of your passengers resulting from an accident in your rental car.
- Personal effects coverage: If any of your belongings are stolen from inside your rental car, this type of insurance will reimburse you for the missing items.
What Is The Difference Between Rental Reimbursement Coverage And Rental Car Coverage?
Rental car coverage and rental reimbursement coverage are not the same.
Rental reimbursement coverage is an optional type of insurance coverage that helps you cover the costs of a rental car when your own car must spend time in the shop getting repaired after an accident. Rental reimbursement coverage is not at all associated with covering a car accident that occurs while you are driving a rental car.
Rental car coverage is the type of insurance that covers you if you are involved in an accident with your rental car. Most of the time, your standard liability insurance policy will include rental car coverage, but not always. Check with your insurance company before renting a car to make sure.