Rental Car Insurance: When You Need It (and When You Don’t)
“Do you want to get the insurance?” You hear it all the time, right?
Vacations. Airplane tickets. Event tickets. Major appliances. Technology. Whether it’s called insurance or a protection plan, you’re asked to shell out more money just in case something goes wrong.
Rental cars are another prime example.
When a rental care associate is explaining options and waiting for an answer, you could feel pressured into a bad decision. That’s why it’s a good idea to understand when you actually need rental car insurance and when it’s probably not worth it.
When You Need Rental Car Insurance
You only have liability coverage. Without collision or comprehensive auto insurance, you’ll probably be responsible for any damage to the rental car if you don’t get the insurance.
You don’t have auto insurance. If you don’t own a car or have personal auto insurance, you’ll have minimal protection when driving the rental car unless you get the insurance.
You’re traveling internationally. Most US policies don’t cover you outside the US and Canada. Even if you’re in a country where liability coverage is included in the rental car fee, you may need a collision damage waiver.
You’re renting a specialty vehicle. Most auto insurance policies and credit cards exclude luxury vehicles, exotic cars, RVs, cargo vans, moving trucks, and other specialty vehicles.
You don’t want to file a claim on your existing policy. An insurance claim can increase your premiums, and you’ll still have to cover the deductible. You may decide to avoid the risk, get the rental car insurance, and let the rental company deal with the worst-case scenario.
When You Don’t Need Rental Car Insurance
You have collision and comprehensive insurance. These types of coverage typically extend to a rental car.
Your credit card provides rental car protection. Many credit cards offer coverage if you pay for the rental car with the card. Just check to see if the coverage is primary or secondary. Primary pays before your personal auto insurance and can help you avoid a claim. Secondary pays after.
You have high liability limits. Personal liability coverage typically follows you to other cards and covers damage or injuries you cause others.
You have good health insurance. If you have robust coverage, personal accident insurance for medical bills through the rental car company is probably redundant and unnecessary.
If you’d like to confirm what your auto policy and credit card protection cover with rental cars, schedule an appointment with Stanton Insurance Group. We’ll be happy to review your coverage and answer your questions!
