Rental car insurance explained

When you rent a car, a customer service rep may try to sell you rental car insurance. Rental insurance may protect you from having to pay if the rental is stolen or damaged. But in some circumstances, you may not need to purchase additional coverage.

For example, if you already have full coverage car insurance, your policy may extend to the rental. Bankrate’s insurance editorial team covers scenarios where you may need rental insurance and explains how some common types of rental car insurance work. Figuring out if you need rental car insurance can be confusing.

The you carry on your personal auto policy, your contract terms and the reason you are renting a vehicle can all determine whether you should purchase extra rental car coverage. In most cases, the coverage you carry on your auto policy will extend to a rental car as long as you rent a private passenger vehicle. In some scenarios, however, your personal auto policy can leave gaps in coverage that will cost you if you are in an accident in your rental car.

Most insurance professionals advise exploring your options with your agent before driving off in a rental vehicle. You’ll want to purchase rental car insurance if you don’t have car insurance. That’s because most states have laws requiring you to carry a while driving a vehicle.

Consider purchasing a damage waiver and liability coverage from the rental company to protect your rental. Some rely solely on the rental car coverage that their credit card company provides. Although rental car coverage through your credit card can be helpful if you already have a primary insurance policy, it might not offer adequate protection as the only means of insuring your rental vehicle.

Before declining additional damage protection, you may want to call your card issuer for more information on their rental car coverage policy. Collision and comprehensive coverage are part of what’s known as , which covers damage to your vehicle after an at-fault accident or other incident, such as hail, theft or fire. These types of coverage typically extend to a rental vehicle.

However, if you only have , your personal car insurance won’t cover damages to the rental. To protect yourself in this situation, you can purchase a loss-and-damage waiver from a rental agency. This agreement waves your financial responsibility for damages or loss to the rental car.

If you rely on your personal car insurance to protect your rental car, and you get into an accident, you typically have to pay a . However, if you buy rental car insurance and you get into a collision, there is no deductible required. Rental car insurance is somewhat similar to regular auto insurance.

You can select the type of coverage and the level of coverage you want based on your needs. However, the types of rental car insurance are much different than auto insurance. Before getting rental car insurance, you should be aware of your options.

The most common types of rental car insurance include: While there are many different types of rental car insurance, it does not cover everything. For example, this type of insurance doesn’t reimburse you for the cost of renting a car. However, you may be reimbursed for rentals in some circumstances if you have rental reimbursement coverage — which is typically an you can add to your existing policy for an extra cost.

Note that this coverage provides reimbursement only if you’re renting a car because your insured vehicle has suffered a covered loss. The cost of rental car insurance depends on a few factors. For one, it depends on the company you buy coverage from.

It also depends on the state, what type of car you are renting, and how many miles you are driving. Purchasing add-on coverages will also increase the amount you pay. Many credit card companies offer rental car insurance as one of the benefits for cardholders.

However, rental car insurance provided by your credit card company is usually secondary insurance. That means if you get into an accident or the car gets stolen, your auto insurance company will get billed first. If that is the case, your deductible will apply to the claim.

There are some credit card companies that offer primary rental car insurance, although it is less common. Primary insurance does not go through your personal auto insurance, so you do not have to pay a deductible. You can call your credit card company to determine if your card offers rental car insurance and what type of insurance they offer.

Most major credit card companies, like Visa, MasterCard and American Express all offer some form of rental car insurance for their cardholders. To take advantage of the coverage, you usually have to pay for the rental car using the card and rent the car in your name. Most automatically provide rental car insurance coverage at no additional cost beyond what you are already paying for your .

However, it is important to remember that the coverage you carry on your policy is what will also apply to your rental. If you have liability only on your personal auto policy, you may want to consider bridging the gap with an LDW. Related Articles Some companies offer standalone rental car coverage policies.

The rates for these policies can be cheaper than a standard auto policy, but the coverage provided is not as robust. Frequently asked questions ___.