Should I Buy Personal Accident Insurance
Personal accident insurance covers the medical costs of you or your passengers in the event you cause an accident. If you carry an auto insurance policy, you may already have personal injury protection or MedPay insurance. In addition, you likely have health insurance.
Each of these forms of insurance will provide coverage similar to what you would obtain under your car rental company’s PAI. However, some health insurance policies exclude vehicle-related accidents, so you should verify your coverage under your health insurance policy if you don’t have PIP or MedPay insurance.
You may need to purchase PAI if:
- You don’t have health, PIP or MedPay insurance
- Your health insurance excludes vehicle-related injuries
- You have very low limits on your health insurance and/or your PIP or MedPay coverage
Insurance If You’re Renting From A Brick
Brick-and-mortar car rental companies are generally found at airports, train stations or other locations where travelers converge. These traditional rental companies allow you to simply reserve or select a vehicle from one of the many generally available on any given day. The insurance you’ll be offered is fairly standard .
Depending on what type of auto and/or homeowners insurance you carry, you may want to consider some of the insurance coverage provided by the rental car company. While auto insurance regulations, costs and coverage will vary by state and insurer, consumers renting from traditional companies can generally choose from the following coverages:
- Loss Damage Waiver Also referred to as a collision damage waiver, an LDW is not technically an insurance productit is designed to relieve or waive renters of financial responsibility if their rental car is damaged or stolen. Waivers may also provide coverage for loss of use, in the event the rental car company charges for the time a damaged car cannot be used because it is being fixed, as well as towing and administrative fees. The LDW may become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated. However, if you carry comprehensive and collision auto insurance, you may already be covered for damage to a rental car.
Rental Car Collision Damage Waiver
What It Is: A collision damage waiverprotects you if the rental car is stolen or damaged and covers towing and loss-of-use charges when the vehicle is being repaired. It typically runs between $10-$30 a day. If youre in the United States, you wont have to pay a deductible for coverage. However, some other countries will require you to pay a deductible for coverage to kick in. Its very similar tocollision and comprehensive car insurance.
The Verdict: If you already have collision car insurance and comprehensive car insurance, then you dont need to purchase the Collision Damage Waiver. Your own insurance should cover you and the rental car. If you pay with a major credit card, youll likely have even more protection. If you do not have these coverages, then you should purchase this waiver.
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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 or collision damage waiver . 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:
Purchase A Standalone Policy
If you don’t want to go through your own insurance or buy directly from the rental company, you can also buy a rental insurance policy from a third-party company, such as Allianz Travel or Insure My Rental Car.
These policies tend to be cheaper than the waivers offered at the rental desk, ranging from around $8-$12 per day. You usually need to decline the rental company’s insurance to take advantage of a third-party policy.
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Does My Auto Insurance Cover Rental Cars
Your personal auto insurance will cover most rental cars with the same coverage limits and deductibles. For example, if you carry comprehensive and collision coverage on your auto policy, you’ll be protected against physical damage to your rental car. Your liability coverage will also apply when you get behind the wheel of your rental.
Does My Credit Card Have Rental Car Coverage
Many credit cards offer rental car coverage as a perk, especially travel rewards credit cards. However, not all cards offer this benefit. And most only provide secondary coverage vs. primary insurance.
To find out if you have credit card coverage, you can call the number on the back of your card and ask. If it does, be sure to find out the exact terms of the coverage, including any exclusions.
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How To Tell If You Need Rental Car Insurance Coverage
The first step is to check your auto insurance policy, or contact your provider to see what type of coverage for rental cars may already be included in your personal auto insurance policy. If you carry comprehensive and liability coverage on your personal car, coverage typically will extend to your rental car within the United States.
If youre renting a car in the U.S. of similar value to your personal car, in all likelihood your auto insurance coverage will be adequate for the rental. But if youre off to a blowout beach weekend in a slick set of wheels like a Corvette Stingray and youre leaving your 2008 Subaru Forester at home, purchasing the extra auto insurance coverage offered by the rental company may be a good idea.
Do I Need Rental Car Insurance If I Have Travelers Insurance
Probably not. Travel insurance is a great way to make your next trip go smoothly, no matter what happens. It can provide trip cancellation or delay reimbursement, health insurance abroad, and lost baggage reimbursement. Its basically a combination of health and homeowners insurance, but just for the duration of your vacation.
Your travelers insurance policy can also substitute for rental car insurance. It might include collision coverage for rental cars, and its typically cheaper than what youll pay a rental company. Always read the fine print of any travelers insurance policy before buying in. Like with rental car insurance, you may find that you have enough coverage from your existing policies to protect you on the road.
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Top Tips For Insuring Your Rental Car
Before you rent any vehicle, its best to contact the company so that youre clear on what is and isnt covered during your trip requirements can vary locally and nationally, so the terms could be different each time you rent a car.
Its also worth checking if the agency accepts debit cards when you reserve the car , and whether they require the card to have embossed numberssome companies still use the card to take an imprint, but this is becoming less common.
Other Coverage A Way Out
There are a couple of alternatives to purchasing overpriced coverage from the rental car agency.
Full coverage travel insurance may cost less and often includes collision damage coverage besides covering the cost of missed flights, cancelled hotels and tours and medical emergencies.
Yonder provides a convenient way to compare coverage and cost from multiple insurance companies and includes a checkbox to filter for plans that include coverage for damage to rental cars.
Instant quotes with no e-mail, phone or sign-up required. If you choose one of the plans from the price comparisons using this link we will receive a referral fee.
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Buy Coverage Directly From The Rental Company
You can buy rental car insurance directly from a rental car company. But what most people think of as rental car insurance isn’t actually true insurance at all. Rather, a rental car company’s insurance is one of several types of damage waivers that cover rental cars:
- Collision Damage Waiver : Also known as a Loss Damage Waiver or Physical Damage Waiver , CDW covers damage or theft of the vehicle.
- Supplemental Liability Protection : This usually provides $1 million of liability protection, much more than most drivers have under their own insurance policies.
- Personal Accident Insurance : This coverage provides medical, ambulance and death benefits for the rental’s driver and passengers if the car is involved in an accident.
- Personal Effects Coverage : This provides additional coverage for any personal belongings in the car that are stolen. Typically, this coverage kicks in after you’ve used your own insurance policy benefits.
“It may make sense to pay for added coverage from the rental company when you are traveling abroad,” Savoy said.
You might also want to purchase rental car insurance to protect your existing insurance policy premiums from going up if you have to file a claim or you want to increase your coverage levels.
How much does rental car insurance cost from rental companies?
- Loss-damage waiver : $10 to $20 per day
- Supplemental liability coverage $1 million: $7 to $15 per day
- Personal accident insurance: $1 to $5 per day
- Personal effects coverage: $1 to $5 per day
Rental Car Liability Coverage
What It Is: Rental car insurance liability coverage protects you from lawsuits if youre in an accident. For example, this might kick in if you cause an accident and someone sues you for their medical bills. This doesnt provide any protection for damages suffered by you, your passengers, or the car. Expect it to run about $10-$16 a day.
The Verdict: Most states regulate minimum liability insurance, so every rental should already come with this standard coverage. You only need to pay for this if you want additional coverage. Think of it as bodily injury liability and property damage liability, but just for rental vehicles.
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Rental Car Insurance Coverage And Protection Plansrental Car Insurance Coverage And Protection Plans
Peace of Mind for Your Next Car Rental
Looking for rental car insurance coverage? If so, youre making a smart move that will protect you in unfortunate circumstances that may arise while driving your vehicle. Budget has a diverse selection of rental car protection choices. Whether youre traveling for business or pleasure, with family or alone, youre sure to find the right insurance plan for you. The right rental car insurance will give you peace of mind, no matter what situations come up on the road. Find plans to safeguard you in case of accident, injury, damage, or theft. Check out our rental car insurance options above.
Peace of Mind for Your Next Car Rental
Looking for rental car insurance coverage? If so, youre making a smart move that will protect you in unfortunate circumstances that may arise while driving your vehicle. Budget has a diverse selection of rental car protection choices. Whether youre traveling for business or pleasure, with family or alone, youre sure to find the right insurance plan for you. The right rental car insurance will give you peace of mind, no matter what situations come up on the road. Find plans to safeguard you in case of accident, injury, damage, or theft. Check out our rental car insurance options above.
Insurance For Rental Cars
Traveling is stressful enough. From security checks to flight delays to baggage claim, travelers have plenty to think about without worrying if they need rental car insurance.
But rental car companies are quick to offer coverage for just a few dollars a day. But is it right for you, or just another source of revenue for them?
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What Is A Loss Damage Waiver
Though its technically not an insurance policy, a loss damage waiver or collision damage waiver is a protection plan offered. The plan is designed to provide coverage in the event your rental is damaged during an accident. It protects the rental companys assets, and it protects you from needing to file a claim with your insurance company. However, its important to note that a damage waiver may not cover you against liability claims or provide stolen property coverage. You might be able to get add-ons to increase your coveragebut youll be spending even more.
Pros And Cons Of Rental Car Coverage
If youve looked into whether your personal auto insurance will cover rental cars and your policy comes up short, here are a few pros and cons to consider when deciding whether to purchase extra rental car coverage:
| Rental Car Insurance Pros | |
|---|---|
| It saves you the cost of repairing the rental car out-of-pocket in case of damage. | It might be a redundant expense if your personal car insurance covers rental vehicles. |
| If stolen, the coverage saves you the cost of reimbursing the rental car company for the vehicle. | Some rental car insurance policies are needlessly expensive. |
| It gives you added peace of mind on your trip. | The coverage limits might not be adequate to cover all parties in case of an accident. |
| You do not have to worry about replacing your valuables if theyre stolen when using a rented car. | Policies can come with high deductibles, which you must pay out of pocket before your coverage kicks in. |
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Car Rental Employment Practices Liability Insurance
Lets be clear that employers liability insurance wont cover wrongful termination, workplace discrimination, sexual harassment, and other related incidents. To protect yourself from hefty financial responsibility if any of these happens, decide to include employment practices liability policy in your commercial insurance for car rental business.
I Dont Have Car Insurance Can I Rent A Car
Yes, you can. If you dont own a car, so have no need for car insurance, you can rent a car. You wont have as much protection as you would with a personal auto insurance policy. In these cases, wed recommend choosing car rental insurance. The car will automatically come with the local minimum coverage required by law. However, that may not be enough if you get into a serious accident. And if youre traveling out of the country, laws can vary wildly, so you may or may not be protected.
If you dont own a car and you plan to regularly rent or borrow a vehicle, you should look into non-owner car insurance. One of the benefits of this insurance is that it is generally cheaper than paying the rental companies insurance rates if you are a frequent car renter.
Liability insurance is typically the only required insurance coverage in each state, so most rental cars probably wont include collision or comprehensive insurance unless you add these on. Without your own policy to protect you, youre at risk for huge repair bills, so adding extra protection here is a great idea.
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When Should You Opt For Rental Car Insurance
Sometimes its worth it to buy rental car insurance. This depends on if you:
Its up to you to do your research before renting a car.
Knowing how much your auto policy covers for a rental car will prevent you from signing on for coverage from the rental car company that you dont need. Itll save you money from paying for the same coverage twice.
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What Is Rental Reimbursement Auto Insurance
If your car is being repaired for an accident insurance claim, rental reimbursement coverage pays for transportation costs, such as a rental car or public transportation fees. Typically, this type of coverage can be added only when you have comprehensive and collision coverage in your car insurance policy.
Here are some key things to consider about rental reimbursement auto insurance:
Do I Get Roadside Assistance With Travel Guard Rental Vehicle Damage Coverage
Yes! You can hit the road knowing that you have access to 24/7 roadside assistance in the event that you need help. Our representatives can contact tow companies, arrange alternate transportation, and coordinate rental vehicle returns all while you focus on your trip.
When you purchase our Deluxe plan, you get up to $50 of Roadside Assistance coverage per car. Your travel plan may cover up to $50 for some of those annoying things that can happen on your road trip like needing a tow, lock-out assistance, or flat-tire assistance.
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