“Do I really need automobile rental insurance?” you question yourself again. The answer is most likely, but not entirely. Let us give you the long and short of it before you start rolling your eyes. The bottom line is that you must have insurance to protect both yourself and the rental. You may, however, already have it. Don’t get caught paying a hefty fee (up to $40/day) at the counter unless you really have to—negotiable. it’s Here’s what you should know.
The good news is that you may already be covered (basically)!
Here’s how to figure out what you need and don’t need before agreeing to pay for rental insurance—just to get the counterperson to stop talking.
STEP 1: Review your auto insurance coverage; if you don’t have insurance, proceed to Step 2!
If you already have car insurance, as long as you have liability, comprehensive, and collision coverage, you should be fine.
Most states need liability insurance, which usually extends to rental cars. You can refuse the rental company’s supplemental liability insurance as long as it does carry over and you have adequate liability coverage.
You should double-check your comprehensive and collision insurance coverage because it isn’t always needed. Many customers disregard these insurance options, particularly if their vehicle is older or has high mileage. Comprehensive insurance protects your car against situations other than driving, such as damage or theft. Collision coverage assists in compensating for damage to your vehicle caused by any type of collision.
NOTE: If the car is involved in an accident, damage, or theft, you may still owe money. When a vehicle is out of commission, car rental companies frequently charge for loss of use.
The loss-of-use fees cover whatever money the company may have made by renting out the vehicle while it was being repaired, and they can quickly pile up. Check your insurance policy to check if something is covered; insurance companies frequently ignore this.
** Instead of reading your policy, call your auto insurance provider if you have any questions; they should be able to answer them right away. You can also consult their online FAQ area or contact one of their customer care representatives.
Step 2: Call Your Credit Card Company
Credit card companies are now offering supplemental automobile rental insurance as a perk for using their credit card on your trip. The catch is that you must pay for the entire rental with that card. Many credit cards provide travel bonuses, which you may find here: 2017’s Best Travel Cards
Of course, different cards offer different benefits. To learn more, contact your credit card company and ask if your card offers any car-rental-specific travel benefits. Make sure to ask about any restrictions. Personal property or medical benefits are not covered by credit card companies. However, you may already be covered in those locations (keep reading).
**Only secondary insurance is provided by credit card companies. These benefits will only reimburse the difference between what your personal car insurance covers and what these benefits do not (they can include loss-of-use fees). If you want to use any of these functions, you must decline the rental insurance.
Step 3: Do you have Health Insurance? How far will it cover you?
You don’t need the rental company’s personal accident insurance if your health insurance protects you everywhere. If you already have personal injury and medical bills coverage through your regular auto insurance, you’re covered.
Step 4: Travel Insurance
We understand that you’re sick of hearing about insurance. We promise that this is the last step in covering all types of insurance. If you decide to buy travel insurance, ensure sure it includes collision coverage for car rentals. You should also understand whether the insurance is main or secondary. You will not be required to use your usual auto insurance policy coverage in the event of an accident. If it is secondary, it will only kick in after your primary coverage has been exhausted to cover everything your initial policy did not cover.
Decoding of Contracts
We should all be aware by now that we cannot ignore the fine print. If you haven’t already, DON’T FORGET THE FINE PRINT. Here’s some explanation for all of those acronyms that no one understands—we’d rather keep it all in one place for you:
LDW and CDW are abbreviations for loss damage waiver and collision damage waiver, respectively. These waivers protect you from liability if your rental car is vandalized, stolen, or destroyed in an accident. It is possible that these will absolve you of duty for loss-of-use fees (fees rental companies can charge you for losing the use of the care while it is being replaced or repaired).
Liability/SLI: Liability insurance, also known as supplemental liability insurance, protects you against personal liability if you damage another person’s vehicle or property while driving the rental car.
If you are injured in a rental car accident, Personal Accident Insurance (PAI) will cover your medical bills and those of any passengers.
PEC is an abbreviation for Personal Effects. If your personal things are stolen or destroyed while in your rental car, they will be insured.
Finally, complete your homework.
As with all aspects of your vacation, you must undertake research. You’ll almost probably need car rental insurance to be fully insured, but you’ll be able to relax and enjoy your trip. By clicking here, you can see our incredible vehicle rental insurance packages, as well as our outstanding prices comparing all the best car rental rates wherever you’re heading.
Step 4: Travel Insurance
We understand that you’re sick of hearing about insurance. We promise that this is the last step in covering all types of insurance. If you decide to buy travel insurance, ensure sure it includes collision coverage for car rentals. You should also understand whether the insurance is main or secondary. You will not be required to use your usual auto insurance policy coverage in the event of an accident. If it is secondary, it will only kick in after your primary coverage has been exhausted to cover everything your initial policy did not cover.
Decoding of Contracts
We should all be aware by now that we cannot ignore the fine print. If you haven’t already, DON’T FORGET THE FINE PRINT. Here’s some explanation for all of those acronyms that no one understands—we’d rather keep it all in one place for you:
LDW and CDW are abbreviations for loss damage waiver and collision damage waiver, respectively. These waivers protect you from liability if your rental car is vandalized, stolen, or destroyed in an accident. It is possible that these will absolve you of duty for loss-of-use fees (fees rental companies can charge you for losing use of the care while it is being replaced or repaired).
Liability/SLI: Liability insurance, also known as supplemental liability insurance, protects you against personal liability if you damage another person’s vehicle or property while driving the rental car.
If you are injured in a rental car accident, Personal Accident Insurance (PAI) will cover your medical bills and those of any passengers.
PEC is an abbreviation for Personal Effects. If your personal things are stolen or destroyed while in your rental car, they will be insured.
Finally, complete your homework.
As with all aspects of your vacation, you must undertake research. You’ll almost probably need car rental insurance to be fully insured, but you’ll be able to relax and enjoy your trip. By clicking here, you can see our incredible vehicle rental insurance packages, as well as our outstanding prices comparing all the best car rental rates wherever you’re heading.
