When you’re at the counter of a car rental company, you’re likely to be overwhelmed by a rental car insurance promotion.
The presentation will be more like a list of what can go wrong if you don’t fork out the extra money for their insurance. At this point, it may seem like you have no choice.
Fortunately, many personal auto insurance policies we will cover you with your rental car, so you don’t have to be afraid of intense advertising.
Chances are you don’t need their rental insurance at all.
Does your auto insurance cover rental cars?
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It is possible, even likely, that your personal car insurance will cover you. on a rented car.
Let’s take a closer look at the types of insurance coverage offered by car rentals and how to determine if they are already included in your existing car policy.
Read more: Auto Insurance Definitions: What Every Driver Needs to Know
If you have liability insurance, you can buy additional rental coverage.
An optional third party liability insurance policy covers damage to other vehicles or property.
If you don’t have liability insurance at all, you should consider buying this from a rental company.
Even if you have your own minimum liability policy, you can still add this coverage at your rental shop for added protection. coverage limit will depend on your car rental company, but the standard limit is $1 million.
Read more: Auto insurance liability limits: how much do you need?
If you have accident insurance, you do not need additional rental insurance
If you or your passengers are injured, accident insurance will take effect and may cover costs such as medical care and emergency calls.
Do you already have an injury protection policy? If so, personal accident insurance through your rental agency will probably be overkill.
PPersonal health accident insurance can also provide payouts in the event of a worst-case death. But if you already have life insurance, it’s easy to drop it.
If your auto insurance includes coverage for personal items, you do not need additional coverage.
You can buy personal effects insurance to protect the value of the items in your rental car. The dollar amount will depend on the unique policy option.
Do you have homeowner or renter insurance? If yes, then these policies should cover your property, even if it was stolen outside the home.
You will need to file a police report in order to file a claim for stolen items under this policy. And don’t forget that you’ll have to pay the deductible on the claim.
If you don’t have homeowners’ or renters’ insurance, think about the value of the items you have in your car. Do you have something that you cannot easily replace?
For example, this might No If you only take a second set of clothes and a toothbrush with you, you should take advantage of this policy through your rental company. But if you have a laptop and a camera, then protecting your personal belongings may be more important.
Weigh the cost of the items against the cost of the policy before making a decision.
Your credit card is your next best option for car rental coverage
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If you use your credit card to pay for your car rental, you may find that your card provides protection.
Details of credit card covered rental car insurance may vary. If you plan to use this option, take the time to find out the answers to the following questions before booking your next car:
- What is covered? Your credit card can only cover one type of rental car insurance.
- How can the coating be used? Make sure it’s not special requirements you must meet in order to use this coverage. Call your card company to verify.
- Are there any exceptions? Make sure coverage is available for the location you plan to travel to.
- Is insurance offered primary or secondary coverage? Secondary coating means it will work after your personal auto insurance policy is in effect. Primary coverage means that any claims will go through this policy first.
Read more: Should I get a credit card just for insurance payouts?
If all else fails, you can also buy your own private car rental insurance.
I can’t stress this enough: you don’t have to settle for the (often inflated) rental car insurance policies offered on the counter.
Here are some of the best providers:
- Insure my rental car – You can get up to $100,000 in damage coverage for your rental car for just $6.
- Rental coverage – You can get a no-deductible policy as basic coverage.
You can buy these policies in advance for your rental car insurance. This way you can say “No thanks” at the table with confidence – and save a lot.
Still need insurance on your rental car? Here’s how much it will cost you
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You can expect to pay insurance coverage from $10 to $30 a day. If you rent a car for a period of time, it will hit your budget hard.
For example, let’s say you’re enjoying a week-long vacation in Florida. The car rental company wants you to pay $25 a day in premiums for the entire week. This may seem reasonable at first, but it will result in a $175 bill for insurance that may already be covered by your auto insurance company.
When is rented car insurance a smart move?
If you don’t have car insurance or don’t have a carthen rental car insurance is a good idea. You don’t want to run into any trouble and unfortunately accidents happen. As the old saying goes, it’s better to be safe than sorry.
In addition, it is illegal in most states not to have car insurance. Make sure you meet minimum insurance requirements condition before starting the engine.
Read more: These states do not require car insurance.
Summary
Renting a car can be convenient. Pask for additional insurance when renting a car? Not so much.
Fortunately, there are many ways to avoid paying for an expensive rental policy, including the insurance you already have.