Do you need Rental Car Insurance?
Our agents are often asked this question by our clients when they are on vacation. The answer is “It depends”. Why shouldn’t you buy insurance from a rental car company?
- The person behind the counter is not a licensed insurance professional. They are not familiar with insurance laws or the coverage that may extend from your personal auto policy (which it usually does).
- They may tell you that you are required to buy the coverage (not true), or that you may be personally liable for any damage (probably not true).
- The coverage is extremely expensive. The cost is often 20 times more expensive than your personal auto policy, and often will double the cost of your daily rental of the vehicle.
- If you have full coverage on your own vehicles, including liability, collision, and comprehensive coverage you do not need rental car insurance (unless you are renting the car for business purposes). However, note that the deductible you carry on your personal vehicles extends to the rental vehicle as well. If you damage the rental car, you will be responsible for paying the same deductible.
- If you are travelling on business you may want to consider the coverage. It is a good idea to discuss with your agent if you are mixing business with pleasure on your trip.
- If you do not carry collision and comprehensive coverage on your own cars, you should probably consider buying the rental car coverage. If you have older cars and only carry liability coverage, you will be liable for any damage to the rental car. This includes damages to the car from accidents, theft, vandalism, fire, etc.
- If you carry minimum liability limits on your own cars, you may want to consider the rental car coverage. When renting a car, you are often on vacation in unfamiliar surroundings. This may put you at a higher risk of accidents. Minimum limits of liability ($15,000 per person, $30,000 per accident, $10,000 property damage) are likely to be inadequate in most accidents.