What do you know about rental car insurance?
If you’ve ever rented a car, you’ve probably been through the “ terrorism ” that many attendants do about the risks of renting a car without building insurance into the contract, right there at the counter. Are they wrong about the need for insurance? No, by no means can you drive a car without insurance, especially in the US, which is mandatory in almost every state.
However, there are other options and other means of obtaining insurance before you even arrive at the counter, or at least arrive at the counter with the right information to make an informed choice.
As this is a subject that generates many doubts we usually only think about them when we are ready to rent a car again. Because of that, we are offering this comprehensive guide on renting a car insurance. Enjoy.
If I am involved in an accident, what insurance do I pay?
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This doubt is common even among some brokers who do not deal directly with the subject. But the point is that if you are driving a rental car in your name, the responsibility for any accident will be yours.
That is, it is your insurance or your pocket. It remains to be seen what type of insurance you need to have and in which situations you can be calm and confident in the coverage purchased.
What is rental car insurance?
Rental car insurance is protection that you can purchase directly from the rental company to provide coverage while you are using the vehicle. Depending on the type of coverage you choose, a policy can cover legal costs if you are found guilty of an accident or medical costs if you are injured in an accident, as well as auto insurance for your private car.
The insurance works temporarily, during the rental period, and then it will be suspended. The value of the premium and the deductible take into account the time the car will be rented, but also where you are going, what kind of care you have and what the purpose of the lease is.
Do I need insurance to rent a car?
You don’t need to have your auto insurance policy to rent a car. However, car rental companies usually have minimal coverage on their vehicles, which means that if you have an accident, you will be responsible for all expenses.
Other options include purchasing additional insurance from the rental company, using a credit card for coverage ( check carefully with your card company and your contract ), or obtaining an independent policy through a third party.
Do I need rental car insurance?
For some drivers, rental car insurance is a necessity. For others, it’s an unnecessary expense.
Before renting a car, it is worth reviewing your personal auto insurance coverage. In some cases, your coverage may extend to a rental car. That’s why it’s so important to always be aware of the coverage you hire. It is for this reason that BRZ makes a point of serving you in your language and clarifying all points of your policy.
But ATTENTION! Don’t confuse rental car insurance with rental reimbursement coverage, which is an addition to your car insurance policy that provides reimbursement for a rental car in the event your car is in the shop because of a covered accident.
The extra cost of the rental car coverage that the rental company offers may make sense in some cases, however. For this reason, it is important to understand what your car insurance covers and what the rental company is offering.
You may not need to purchase insurance from the rental company if:
- You are traveling within the US or Canada and your auto policy provides sufficient coverage.
- Your credit card offers rental car insurance, however, it is important to confirm with your card company. There are specific rules for using this benefit, including the type of credit card. It is necessary to understand well how and when this possibility applies.
- You purchased independent coverage through a separate company.
You should consider purchasing insurance from the rental company if:
- You are worried about having to pay a deductible or a higher rate on your auto insurance if you damage a rental car.
- You don’t have car insurance or credit card coverage.
- You are traveling abroad where your personal car policy does not cover you.
- Value for money is usually worth it. Our recommendation is to take out insurance and ensure your safety.
So can my auto insurance cover rental cars?
In most cases, your auto insurance policy will provide equivalent coverage for a rental car as long as you use it for personal purposes. For example, if you have comprehensive and collision insurance, your rental car will likely be covered if it is damaged, stolen, or totaled, as long as the rental amount is equal to what is listed on your policy. Always and carefully check the policy you are purchasing to make sure you are paying for a value compatible with your vehicle. After all, $25 a day doesn’t pay for a Corolla or a Mustang…
Liability insurance covers injury or property damage that you cause to a third party in an accident, up to the limits of your policy. Your injuries and any damage to your rental car will not be covered if you only have liability insurance.
It is also important to remember that your policy will only be valid, if valid, for cars for personal use, to find out about the commercial use of a rental car, talk to your BRZ insurance specialist. It costs nothing and you can be sure you have the right insurance.
What is covered by rental car insurance?
Most rental companies tend to have a limited supply of rental car insurance. Find out in detail how your policy works, or write down the main points so you don’t forget. That way you will be able to make your decision with much more awareness.
But what does rental car insurance usually cover?
Rental car insurance is generally divided into the following coverages:
- Liability coverage
- Personal Accident Insurance
- Collision Damage Waiver (CDW)/Loss Damage Waiver
- Coverage of Personal Objects
- Sure you can already have
- Liability coverage
This is a basic component of most car insurance policies. If you have adequate liability coverage on your own vehicle (check with your insurer), you may choose to skip this one.
Check with your insurance broker, with your insurance company, with your credit card, research beforehand, and consider the insurance offered by the rental company. Don’t settle for what’s in front of you, or what’s easier. Insurance is about keeping your savings safe in times of adversity. Can you imagine the size of adversity in crashing a car that isn’t even yours?
Don’t drive a rental car without insurance.