Do you need insurance to rent a car? Depending on your situation, yes. If you’re not sure how to get insurance, read our article about liability, personal accident, collision, and group liability insurance. You may not need to buy insurance when renting a car in some cases.
Liability insurance
Before you rent a car, check if the company offers liability insurance. In some instances, renting a car without this insurance may be less expensive than driving it yourself. Liability insurance covers the damages you cause to other people, including your own. The amount of coverage you need depends on your needs. In addition, you should check whether you have a personal insurance policy. If you don’t have one, you may be required to purchase one from the rental company.
Your standard policy may cover damages you cause to other people or damage to the rental car, but you may be responsible for paying the deductible yourself. Also, many policies only cover personal use. Your employer’s auto insurance will cover you when travelling on business. If you don’t have insurance or aren’t sure what coverage you need, check with your insurance agency.
Personal accident insurance
While renting a car usually comes with certain liability coverage, almost every state requires the renter to purchase additional coverage. Although most states require liability coverage, the amount you pay for coverage is usually not enough to cover your costs. Purchasing supplemental liability protection will raise your coverage limits so that you are not responsible for any damages to the rental car. If you total the vehicle, you will be responsible for the replacement cost.
Although liability insurance covers your rental car in the event of an accident, it does not protect your personal property or your property. The rental company will charge a debit card deposit for any damages to the vehicle. If you return the rental car in good condition, they will reimburse the deposit.
Collision insurance
It is always a good idea to purchase collision insurance when you rent a car. If you are travelling internationally or outside the U.S., you will also want to check whether your personal auto insurance policy covers such events. Also, collision damage waivers do not include your deductible, which is often quite expensive.
In addition to purchasing collision insurance when you rent a car, you should also consider obtaining a comprehensive insurance policy for the rental. This type of insurance covers repairs for the rented car, so that it can be beneficial in some cases. You may also be covered for medical expenses if you get into an accident while renting a car. The coverage limits of these policies vary greatly. Hence, it is important to talk to the rental company’s insurance agent or contact their customer service department to ensure your policy includes rental car insurance.
Group liability insurance
Group liability insurance to rent a car provides coverage for a designated driver, personal injury, medical costs, and personal property. Some companies may offer this insurance as a benefit to employees. You should also check the minimum requirements for insurance in your state. The rental company’s policies should meet these requirements. For further information, call the company’s customer service line.
Many personal credit cards come with this coverage as a bonus. Platinum and gold cards typically include it. Before renting a car, make sure you book it with your credit card. If it does not, you may be required to purchase additional coverage, which can cost between $3 and $9 a day. These plans are similar to personal injury protection (PIP) and medical payments insurance. For example, you’ll have to pay an additional premium for collision and comprehensive insurance if you rent a car with a collision/loss damage waiver.
