Do You Need Additional Car Insurance When Renting a Car?

If you have occasion to utilize the services of a car rental company you’ll likely face the decision of whether or not to buy the supplemental car insurance coverage offered. The salesperson writing up your rental contract may highlight the importance of buying this insurance, which may include:

• A loss-damage or collision-damage waiver which, although not technically insurance, protects you from financial loss should your rental car become damaged or stolen
• Liability protection in case you cause bodily injury or property damage to a third person
• Personal injury accident protection, which covers you and your passengers in the event you’re involved in an accident and medical services are required. This covers medical costs, ambulance costs and includes death benefits
• Loss of personal effects protection, which covers your personal property in the event that anything is stolen from your rental car

Don’t Buy What You Already Have

Although typically recommended by most rental car salespeople, you’ll find in most cases that their car insurance policies are redundant because you already have similar coverage as part of your personal car insurance or homeowner’s insurance policies. One thing the car rental company has going for it, however, is that many of their customers have no idea exactly what coverage they already have. In an effort to be safe rather than sorry, you may feel the need to buy additional protection.

The best idea for you is to read through your car insurance policy to see exactly what coverage you have that applies to rental cars. If your personal vehicle insurance coverage includes collision and comprehensive, this will likely cover rental cars too. Your personal policy definitely covers liability (since this is required by law here in NC), but if you don’t have car insurance because you don’t own a car you should buy the liability coverage.

Supplemental personal injury insurance shouldn’t be needed if you have a good health insurance policy and death benefits would be covered by your life insurance policy if you have one of these. Finally, protection for your personal property is likely provided under your homeowner’s insurance policy.

Credit Card Coverage

Lastly, when you pay for your rental car with a major credit card, which most companies require, you may have built-in coverage with your card (although this may vary from one card to another). Check it out. If you have questions, call your credit card and insurance reps for clarification.