Everything You Must Know About Rental Car Insurance

When looking into rental automobiles, a car accident can be the last thing on your mind. However, the rental car representative will undoubtedly bring it up when you pick up your automobile. Do you understand which types of coverage to accept and which to reject?

Before you go to the rental car counter, you must do your homework and determine your insurance and credit card coverage. Otherwise, you can face severe issues if you get into a car accident while driving your rental.  Here is all you need to know about rental car insurance.

What Is Rental Car Insurance?

You are protected by car insurance when renting a car directly from a company. You will be asked whether you want to add insurance to your rental car or whether you want to forego it when you rent a car.

Do I Need Rental Car Insurance?

Do I require rental car insurance coverage? It depends on the response. While you want to ensure you and your rental vehicle are protected, you also don’t want to pay for extra coverage that could cause your rental to quadruple in cost.

How to Tell If You Need Rental Car Insurance Coverage?

Your rental vehicle within the United States will typically be covered if you have comprehensive and liability insurance on your car. In all, your auto insurance coverage will be sufficient for the rental if you are renting a car in the United States that is comparable in value to your vehicle.

Does My Credit Card Provide Rental Car Insurance?

Additionally, you should contact the credit card company for the card you’ll be employing to rent a car. The credit card provider may offer supplemental coverage if your auto policy has any coverage gaps.

Most rental companies typically offer a condensed, dependable range of options for rental car insurance. Before going to the counter, familiarize yourself with the rental company’s policy.

What Is Covered Under a Typical Rental Car Insurance Policy?

The following coverages are typically divided up under rental car insurance:

  • Liability protection
  • Insurance for personal injuries
  • Loss Damage Waiver (LDW) and Collision Damage Waiver (CDW)
  • Individual Effects Insurance

How Does Rental Car Insurance Work?

Below are the types of coverages offered in rental car insurance:

  • Collision Damage Waiver (CDW): Collision Damage Waiver will protect you from damages to the vehicle, as the name implies. Keep in mind that CDW only pays for bodywork damage. Additionally, driving while intoxicated or recklessly damaging the car is not covered.
  • Theft Protection: You are not required to pay if your rented car is stolen or the vehicle is damaged due to the theft attempt.
  • Third-Party Liability: While driving a rented car, third-party property and life damages will be covered by the third-party auto insurance policy.

Before you enter the rental car counter, be aware of the coverage provided by your credit card and personal insurance. However, if you are hurt in a car accident and aren’t at fault, you should have a skilled accident lawyer on your side.

Cover Your Rental Car with John E. Peakes Insurance Agency

If you are renting a car, you may want to insure it to avoid paying a hefty fine to the rental company in case of an accident.  To learn more about rental car insurance, contact us today. Our agents at John E. Peakes Insurance Agency will help you find the best coverage for your rental car.

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