Chicago Tribune: Do You Really Need That Collision Damage Waiver for Your Rental Car? A standalone policy may offer a range of collision damage waiver policies that are cheaper and more comprehensive than those offered by car rental companies. At the car rental counter, when asked if they want insurance for their rental car, many travelers say "no." What You Do Need Even though it generally is the most expensive of the four insurance types, the loss/collision damage waiver is one you should consider buying. "Check your travel insurance to see if you're already covered," advises frequent traveler Nick Brennan, who runs a UK-based cell phone accessories site. Buying the LDW/CDW from the car rental company is one way to cover these expenses, should they happen. He previously was a business reporter for "The Press of Atlantic City" in New Jersey and "The [Brazoria County] Facts" in Freeport, Texas. He's. 2) Purpose of Rental- Yes, The reason why you are renting the car plays a big factor. Unfortunately, he had declined the car rental insurance, which meant he was responsible for a $400 repair bill. if you don't take the rental insurance and you do have an accident, the claim will be filed your car's insurance. If your family travels and rents cars frequently, consider buying a liability policy from an insurance company, which might save you money in the long run. Clark calls this coverage “overpriced semi-kind-of-insurance stuff that can take the cost of renting a vehicle through the roof.” You could also have coverage through your credit card. What kind of insurance do you need for your rental car? The case for your personal car insurance. Most personal auto insurance policies have coverage that will transfer to the rental car, so technically, you’re covered while driving the rental. you can take it, but for the most part, its just another way for the car rental firm to make more money. It depends on your level of insurance, your risk tolerance and your circumstances. A common question for drivers who are traveling is whether they need to purchase additional car insurance for their rental cars. This means that damage to a rental car will not be covered and so it would be worth looking into car rental insurance options. Christopher Elliott is the founder of Elliott Advocacy, a 501(c)(3) nonprofit organization that empowers consumers to solve their problems and helps those who can't. If they don’t offer renter’s insurance or if you want to shop around, check out www.insureme.com. The information in this article was obtained from various sources. Baker holds a Master of Science in journalism from Quinnipiac University in Hamden, Conn. It's also true that these bills led to extreme financial hardships. Others aren't as fortunate. First, contact the insurance company that provides your auto insurance—most will give you great discounts if you bundle both policies. // Leaf Group Lifestyle, How to Break Up With Someone You Live With, How to Get Paid for Caring for Your Loved One at Home, Esurance: Myth: Car Rental Coverage is Always Necessary, Allianz Global Assistance: The Four Types of Car Rental Insurance Explained. This is not technically an insurance plan, but an agreement that shifts liability for any damage that occurs to the vehicle from the renter to the rental company. If you already own a car, your car insurance policy might extend to rental cars. Does my credit card cover my rental car? The case for the rental company's optional insurance. But secondary insurance typically becomes primary if you're uninsured or if your current insurance doesn't work where you're traveling. State Farm: Rental Car Insurance -- What You Ought to Know. Your family's health and life insurance policies, as well as your car insurance policies, will cover injuries to you and your family. So when travelers ask me: Do I need insurance for my rental car, I say "yes." It's convenient. When i took the auto insurance policy, they have taken my car details and its present in the insurance … Each bank and credit card company will offer something different. The case for travel insurance. In one test Avis conducted with the technology at London's Heathrow airport, it increased its number of damage claims by 22%. Car rental insurance can be confusing. Personal effects coverage will compensate you for anything stolen from your car during the rental. Takeaway: Before purchasing rental car insurance, make sure that it provides all of the coverage you need and that it is not already covered by your personal insurance policy. Sure offers rental car insurance that covers up to $100,000 worth of damage to a vehicle, plus any of your belongings inside of it. Some insurance policies will only cover rental vehicles if it is a replacement rental. Opinions expressed by Forbes Contributors are their own. Unless you have full auto insurance coverage, including liability, comprehensive, and collision, you may need to get some kind of insurance coverage from the rental organization. As mentioned, your NH personal auto policy will most likely extend coverage to a rental car, but it will not pay for the additional expenses the rental company can charge you. Car rental companies offer four basic types of insurance, each covering a different potential cost. "Many people find rental car insurance confusing," says Ernesto Suarez, CEO of InsureMyRentalCar.com. His story repeats itself thousands of times every day and is about to become even more common. Some policies do not extend internationally, and some countries might not let you leave until you've settled up your rental car bill. While your car or credit card insurance will cover the cost of damage to the car, they might not cover some of the additional charges the car rental company could charge. Protects you up to a certain amount if you damage another person’s property. In rare cases, they may have to replace the entire vehicle, which can lead to financial ruin. First, a fact: You won't find a single expert who recommends not getting insurance for your rental car. Your liability insurance for your own vehicle, for example, will cover your liability while in a rental car as well, hence the "supplement" modifier on … They're on the hook for hundreds or thousands of dollars in damage. But others broadside you with inflated bills and "loss of use" charges. What You Don't Need. If you pay for a rental car with a major credit card, there's a good chance that the card issuer offers secondary car rental insurance at no charge. Rental car insurance is necessary if your personal policy, or company, does not cover the use of a rental car, or if you do not have auto insurance. There are times you might need insurance beyond the loss/collision damage waiver. You can also follow him on Twitter, Facebook, and LinkedIn, or sign up for his daily newsletter. you can take it, but for the most part, its just another way for the car rental firm to make more money. The short answer is “yes, it is.” But that doesn’t mean that you need the coverage that your rental car agency is trying to push. Buying insurance through the rental agency can help you avoid filing additional paperwork or haggling over tacked-on expenses, such as administrative fees, towing and storage charges. I have been wondering whether or not to get rental car insurance for a rental car I’ll be using in a few weeks. All Rights Reserved, This is a BETA experience. He's the author of numerous books on consumer advocacy and writes weekly columns for King Features Syndicate, USA Today, and the Washington Post. While all four insurance types sound like worthwhile investments on the surface, much of it could be redundant. If your family lives in a big city and you don't own a car, you will, of course, need liability insurance. "Conventional wisdom is that the added insurance on a rental car is a rip-off in most cases," says Jake McKenzie of Auto Accessories Garage. This is what experts recommend for insuring your rental car. There are so many options. There also other ways you’re protected that you may not know about. The last thing tired travelers want to do after arriving in a new city is to stand at the car rental desk and negotiate auto rental insurance with the on-duty attendant. If you do not have personal collision coverage or of you do not have your own auto insurance policy, it can be beneficial to purchase the rental policy so long as … "Monitoring vehicle damage is a really significant thing for car rental companies," says car rental analyst Neil Abrams. You may opt-out by. Whether you’re about to rent a car for the first time or you're an old pro, you might not know whether it makes sense to buy insurance from the rental car company. Review your rental coverage options you don't need rental car insurance. Reasons Why to Buy Insurance on a Rental Car. The truth is there is no clear-cut answer when it comes to purchasing insurance for your rental car, so it’s easy to understand why you’re hemming and hawing. "Where it gets complicated is when you start talking about what kind of insurance.". Copyright © 2020 Leaf Group Ltd., all rights reserved. Personal accident insurance covers costs of any injuries to you and your family if you have an accident. You might find a policy to cover your rental outside the car rental company at a better price. "I suggest before renting a car, that my clients check with their auto insurance carrier to see if they offer such an option," he adds. Michael Baker has worked as a full-time journalist since 2002 and currently serves as editor for several travel-industry trade publications in New York. His State Farm insurance can offer an endorsement that offers full coverage. if you don't take the rental insurance and you do have an accident, the claim will be filed your car's insurance. They will then offer you a “ collision damage waiver policy. When car rental insurance isn't needed The coverages above might all sound reasonable and even necessary, even though they may cost you a total of $40 or … Overall car rental insurance can be a good idea, but generally it is mainly covered in your existing auto insurance policy. Like rental car companies, services like U-Haul encourage customers to buy company-provided coverage that absolves them of financial responsibility for the vehicle if it is damaged. It is not necessary to get rental car insurance from your rental car company. Your auto insurance does not cover "loss of use" The majority of auto insurance policies will cover … A variety of credit cards include some level of rental car coverage, which might allow you to decline the insurance offered by the rental agency, says Sean Messier, an analyst for Credit Card Insider. "You definitely need insurance when renting a car," says Miguel Suro, a personal finance expert who runs the site Rich Miser. Rental car insurance can cost as high as $50 per day depending on the level of coverage selected. Here's how it works: National rental car companies sell primary collision damage waivers, which means your rental vehicle is covered at 100 percent. Most people don’t own cars for daily commuting because mass transit options are cheaper and more convenient for them in terms of parking and not having to drive. So they have to make a bet that they'll drive safely and return the car in working order. Reasons Why to Buy Insurance on a Rental Car As mentioned, your NH personal auto policy will most likely extend coverage to a rental car, but it will not pay for the additional expenses the rental company can charge you. Brush up on car rental insurance basics so that you buy only what you need when you reach the counter. Thanks for sharing this advice on choosing rental car insurance! This is not technically an insurance plan, but an agreement that shifts liability for any damage that occurs to the vehicle from the renter to the rental company. Supplemental liability insurance covers costs from damages or injury you cause to other cars. 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