If your family lives in a big city and you don't own a car, you will, of course, need liability insurance. Takeaway: Before purchasing rental car insurance, make sure that it provides all of the coverage you need and that it is not already covered by your personal insurance policy. Want to avoid this common scenario? Chicago Tribune: Do You Really Need That Collision Damage Waiver for Your Rental Car? Car rental companies offer four basic types of insurance, each covering a different potential cost. Baker holds a Master of Science in journalism from Quinnipiac University in Hamden, Conn. The case for a standalone car rental insurance policy. If so, you might be able to decline the expensive insurance offered at the counter and save money. You could also have coverage through your credit card. If you already own a car, your car insurance policy might extend to rental cars. Like rental car companies, services like U-Haul encourage customers to buy company-provided coverage that absolves them of financial responsibility for the vehicle if it is damaged. In addition, many credit card companies offer some level of car rental insurance as a benefit, so you might get extra protection just by paying with your credit card. Unless you have full auto insurance coverage, including liability, comprehensive, and collision, you may need to get some kind of insurance coverage from the rental organization. Join the club. A variety of credit cards include some level of rental car coverage, which might allow you to decline the insurance offered by the rental agency, says Sean Messier, an analyst for Credit Card Insider. you can take it, but for the most part, its just another way for the car rental firm to make more money. Your best strategy is to call your insurers and credit card companies before your trip to see exactly what is covered and decide whether you are comfortable with the coverage and deductible. The rental company may charge a deposit on your debit card and then refund the money when you return the car in good condition. Brush up on car rental insurance basics so that you buy only what you need when you reach the counter. It's rarely necessary to buy rental car insurance over the counter at the rental agency. Christopher Elliott is the founder of Elliott Advocacy, a 501(c)(3) nonprofit organization that empowers consumers to solve their problems and helps those who can't. However, as mentioned above, the car rental insurance is typically secondary, which will only cover what your personal insurance doesn't. Reasons Why to Buy Insurance on a Rental Car As mentioned, your NH personal auto policy will most likely extend coverage to a rental car, but it will not pay for the additional expenses the rental company can charge you. you don't need rental car insurance. The case for your personal car insurance. That's usually because the optional collision … They're on the hook for hundreds or thousands of dollars in damage. On a recent visit to Anchorage, Alaska, a stray pebble struck Brian Novak's rental vehicle. Your auto insurance does not cover "loss of use" The majority of auto insurance policies will cover … "It took a few months," he says, "but my credit card covered all costs.". This is not technically an insurance plan, but an agreement that shifts liability for any damage that occurs to the vehicle from the renter to the rental company. Personal effects coverage will compensate you for anything stolen from your car during the rental. Remember, most car insurance covers your rental, with some significant restrictions. What You Don't Need. There also other ways you’re protected that you may not know about. Overall car rental insurance can be a good idea, but generally it is mainly covered in your existing auto insurance policy. Reputable car rental companies only charge you for the actual repair. What kind of insurance do you need for your rental car? That's usually because the optional collision damage waiver can double the cost of the vehicle. // Leaf Group Lifestyle, How to Break Up With Someone You Live With, How to Get Paid for Caring for Your Loved One at Home, Esurance: Myth: Car Rental Coverage is Always Necessary, Allianz Global Assistance: The Four Types of Car Rental Insurance Explained. But it's also expensive. Your liability insurance for your own vehicle, for example, will cover your liability while in a rental car as well, hence the "supplement" modifier on what the car rental company offers. While your car or credit card insurance will cover the cost of damage to the car, they might not cover some of the additional charges the car rental company could charge. A standalone policy may offer a range of collision damage waiver policies that are cheaper and more comprehensive than those offered by car rental companies. If your family is on a tight budget, ask the car rental company what the waiver costs and check with third-party travel insurance companies about what sort of policies they offer. If they don’t offer renter’s insurance or if you want to shop around, check out www.insureme.com. If you plan to use insurance through your credit card, call the company ahead of time to make sure you’re aware of the limits and have adequate coverage. The truth is there is no clear-cut answer when it comes to purchasing insurance for your rental car, so it’s easy to understand why you’re hemming and hawing. The car rental agent slides a lengthy, legalese-filled contract in front of you, pitching all the additional insurance you "need" for your rental. Something to think about before you rent your next car. They will then offer you a “ collision damage waiver policy. While your car or credit card insurance will cover the cost of damage to the car, they might not cover some of the additional charges the car rental company could charge. The rental car insurance agency will verify that you have a license, credit card and possibly a liability insurance policy. This also will arm you with information when the car rental agent tries to sell you all these insurance types at the counter. It left a deep crack on his windshield. Rental car insurance comes handy when you’re off on a road trip on a rental car, and the last thing you want to worry about is bearing expenses in an unfortunate incident. Your homeowner's or renter's insurance, meanwhile, likely covers your personal items in the car. First thing to note: you mention being new at driving. Personal Effects Coverage: This coverage offers compensation for the theft of personal items from your rental car for an additional $1 to $5 a day. Thanks for sharing this advice on choosing rental car insurance! Christopher Elliott is the founder of Elliott Advocacy, a 501(c)(3) nonprofit organization that empowers consumers to solve their problems and helps those who can't. So, if you do have coverage, the first step to answer your question rests within the auto insurance policy itself. This means that damage to a rental car will not be covered and so it would be worth looking into car rental insurance options. Your own policies also might not cover all classes of cars, so check with your insurers to make sure you're covered if you plan to upgrade to a high-end SUV for the trip. He previously was a business reporter for "The Press of Atlantic City" in New Jersey and "The [Brazoria County] Facts" in Freeport, Texas. "Rental insurance provided through your credit card usually lasts around 15 to 30 days, and it covers most basic types of vehicles while excluding things like trucks and exotic cars," he says. It is not necessary to get rental car insurance from your rental car company. So when travelers ask me: Do I need insurance for my rental car, I say "yes." Copyright © 2020 Leaf Group Ltd., all rights reserved. But Preston McKinney, a travel agent with Odyssey Travel, a San Antonio travel agency, says it's worth checking with your insurance company. Before buying Hertz rental car insurance check your policy to confirm you need it, check out the Hertz rental car insurance claims process, and use our quote comparison tool to find the lowest rates. you can take it, but for the most part, its just another way for the car rental firm to make more money. That's because car rental companies are testing new technology that scans rentals before they leave the lot and after they return, logging even the smallest damage. The rental car insurance agency will verify that you have a license, credit card and possibly a liability insurance policy. Often times, people end up buying supplemental insurance … Here's how it works: National rental car companies sell primary collision damage waivers, which means your rental vehicle is covered at 100 percent. You can also follow him on Twitter, Facebook, and LinkedIn, or sign up for his daily newsletter. The case for travel insurance. Whether you’re about to rent a car for the first time or you're an old pro, you might not know whether it makes sense to buy insurance from the rental car company. So they have to make a bet that they'll drive safely and return the car in working order. 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It is important, however, to verify that you are covered and to find out about any additional rental car insurance … Your personal auto coverage does not cover vehicles like moving trucks. Buying insurance when you're already covered may be too much — but then again, not buying enough coverage could decimate your personal finances. You might find a policy to cover your rental outside the car rental company at a better price. As mentioned, your NH personal auto policy will most likely extend coverage to a rental car, but it will not pay for the additional expenses the rental company can charge you. "Where it gets complicated is when you start talking about what kind of insurance.". The credit card with which he'd paid for his rental covered chipped windshields. The case for the rental company's optional insurance. Others aren't as fortunate. In rare cases, they may have to replace the entire vehicle, which can lead to financial ruin. 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