If you are taking off on a road trip, you may begin thinking about insuring your rental car. There is a general disconnect when it comes to understanding the process of insuring a rental car, so here is the low down on what you need to do before you drive away in a rental car:
- Call your auto insurance company and find out how much coverage you carry on your own vehicle. Make sure your coverage and deductibles apply to a rental car, and that they are sufficient to cover a rental car. Keep in mind, however, that you will probably not be fully protected if you don’t have either comprehensive or collision insurance on your vehicle. In particular, you will not be covered if your rental car is damaged or stolen. While you’re at it, check with your insurance company to see if they cover related fees associated with a rental car, including towing charges and administrative fees. You may also check to see if your auto insurance company offers an insurance rider to cover rental car costs.
- You will also need to contact the credit card company on which you are securing a rental car. In particular, you will want to check with your credit card company to see how much rental car coverage you have on your car. It is important to check your coverage through your credit card company, as benefits vary widely between cards. Some credit cards, for example, may cover damages to your vehicle and towing charges, but bodily injury or death claims may not be covered.
- Once you have arrived at the rental car counter, you will need to decide how much coverage you will need on your rental car (if any). There are a number of coverage types you can purchase, including:
- Loss Damage Waiver – This waiver will protect you from being financially responsible for any damages to the rental car or if the rental car is stolen. This waiver may also include towing and administrative fees.
- Liability Insurance – If you have a good auto insurance policy with a high amount of liability protection, you may not need to purchase liability insurance for your rental car.
- Personal Accident Insurance – This coverage will provide coverage for you and your passengers for medical and ambulance bills. Many individuals do not need personal accident insurance, particularly if they have good health insurance coverage.
- Personal Effects Insurance – This type of coverage protects the value of your personal items if they are stolen. Many people, however, have adequate homeowners insurance that covers personal effects.
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