Should You Get the Insurance on a Rental Car

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"Should I get rental car insurance?" is one of the main considerations for people who are planning to rent a car. If you find yourself facing this uncertainty at a rental car counter, you need to take a number of things into consideration to make a well-informed decision. Think about your risk of accident in relation to your car usage situation and the coverage you already have from your other insurance policies. Below is a comprehensive guide to deciding whether you need rental car insurance.

Why You May Not Need Extra Car Rental Insurance

According to CardHub.com, people often end up purchasing supplemental insurance protection that isn't truly necessary. This can increase the cost of renting a car by $15 to $30 per day. If your own insurance policies don't include rental car coverage, you probably have some form of coverage from your credit card. All major credit card issuers, including Visa, Mastercard, American Express, and Discover, offer rental car insurance. However, Mastercard has several cards that don't provide any coverage.

CardHub rated the major credit card issuers based on the length and extent of rental car insurance coverage they provide, clarity with which they state their coverage details, and ease of getting claims paid. The grades are as follows:

• American Express – 90 percent
• Discover – 88 percent
• Mastercard – 79 percent
• Visa – 74 percent

To make sure you're covered, you have to use your credit card to pay for your car rental and decline the supplemental collision damage insurance the rental company offers. If you purchase that insurance, you won't get coverage from your credit card company.

It's important to note that rental car insurance from a credit card company comes with certain restrictions. Vehicles such as exotic or expensive cars, off-road vehicles, and trucks with open beds aren't covered. American Express doesn't offer coverage for popular SUVs, such as Ford Expeditions, Chevy Suburbans, and Range Rovers. Mastercard and Visa may not cover damages sustained on gravel or dirt roads, and other cards don't provide coverage for wheels and rims.

Additionally, some credit card companies only offer insurance for a maximum duration of 15 days. No card issuer provides coverage for more than 30 days in a row. In some countries, rental cars don't qualify for credit card insurance. Examples of these countries include:

• Italy
• Ireland
• Israel
• Jamaica
• Australia

Do You Really Need Rental Car Insurance?

Do you know that it may not be necessary to purchase insurance from a rental car company? If you own a car, your personal auto insurance policy may include coverage for rental cars. Also, depending on the type of credit card you have, you may be eligible for free rental car coverage. This means you may be able to decline the costly insurance from your rental car company and save some money.

Typically, rental car companies offer insurance in the form of a loss damage waiver (LDW) or collision damage waiver (CDW). Such insurance is beneficial because it provides protection if your rental car is damaged following a collision, vandalized, or stolen. It ensures that your rental car company won't ask you to pay for repairs and losses.

If you're unsure whether you should get rental car insurance, you should find out if you already have coverage from the following sources:

• Regular car insurance policy: Check the coverage types and limits in your personal auto insurance policy to determine whether it includes LDW or CDW for rental cars.
• Health insurance policy: If you have enough health insurance, your policy will typically cover the medical expenses for you and your passengers in the event of a collision involving your rental car. This is especially true if your regular car insurance includes personal injury protection or compensation for medical costs. If your health insurance policy doesn't offer such coverage, you'll still be covered for medical expenses if you have a personal accident insurance policy.
• Homeowners or renters insurance policy: It's worth noting that your homeowners or renters insurance policy should include coverage for your personal belongings, even if they're stolen from your rental car. As such, it's often safe to skip the rental car company's coverage for personal effects. This type of insurance could pay for the loss or damage of personal items in a rental vehicle.
• Travel insurance policy: If you have travel insurance, see whether your policy includes car rental collision coverage, which is usually similar to the LDW from a rental company. Sometimes, it's more affordable to get such coverage through a travel insurance policy.
• Credit card benefits: If you charge the car rental to your credit card, you may get some form of rental car insurance as a fringe benefit from your credit card company. Car rental insurance benefits may vary from one credit card company to another. You may get coverage for 15 to 30 days in a row or collision damage amounting to $25,000 to $50,000.

When Should You Buy Rental Car Insurance?

There are certain situations where buying auto insurance from a rental car company may be a wise decision. These situations include:

• You have inadequate or no auto insurance: If you don't have car insurance or comprehensive and collision coverage or have very high deductibles, it's a good idea to get LDW from your rental car company. If you don't have any auto insurance at all, you should also purchase supplemental liability.
• You're on a business trip: If you're traveling for both business and pleasure and your employer doesn't provide rental car insurance, find out from your own auto insurance provider whether your policy includes coverage for rental cars. If you're renting a vehicle mainly for business, it's likely that you won't get any coverage from your personal car insurance policy.
• You're renting a car abroad: Your auto insurance policy probably won't provide rental car coverage in most foreign countries. While you may get some protection from your credit card company, make sure the country you're visiting isn't specifically excluded.
• You're concerned about a rental car accident impacting your insurance rates: If you file a claim, your insurance rates are likely to go up. You won't have to worry about this if you buy insurance from your rental car company.

The right answer to the question "should I get rental car insurance?" may vary from one individual to another. By properly evaluating your unique situation, you can avoid unnecessary costs while ensuring you're adequately covered.

Information and research in this article verified by ASE-certified Master Technician Duane Sayaloune of YourMechanic.com . For any feedback or correction requests please contact us at research@caranddriver.com .

Source links:

https://www.thesimpledollar.com/insurance/auto/rental-car-insurance/

https://money.cnn.com/2014/06/30/pf/insurance/rental-car-insurance/index.html

https://www.daveramsey.com/blog/should-you-buy-rental-car-insurance

https://money.usnews.com/money/personal-finance/spending/articles/your-guide-to-purchasing-rental-car-insurance

https://www.smartertravel.com/car-rental-insurance/

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Should You Get the Insurance on a Rental Car

Source: https://www.caranddriver.com/car-insurance/a32500214/should-i-get-rental-car-insurance/

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