Rental Car Insurance Basics

By Michael Wong

rental car insurance coverage

Getting right car insurance for a rental car is a procedure full of improbability and more than a little perplexity. Shall I obtain insurance from the rental company? Am I protected if I use my credit card to rent the car? Does my car insurance policy protect rented cars? These are questions that occur when considering about getting rental car insurance.

Before renting a car, the first step you ought to take is to check on your existing auto insurance coverage and with your credit card companies to find out what kind of rental auto insurance you already have. This can be done before you ever rent a car so you enter the process with some background knowledge.

If you are renting a car for enjoyment and not commerce, almost certainly the coverage and deductibles you have with auto insurance on your car will apply to the rental. Your rental car will have the highest level of coverage if you have complete car insurance, but if you have dropped comprehensive or collision auto insurance on your car, remember that the rental won’t be covered in case of an accident or thievery. Also verify with your car insurance company for any riders it may offer that might be cheaper than buying car insurance through the rental company.

Rental car insurance offered by your credit card is going to differ broadly depending on the kind of card, the issuer and even the bank that gives your credit card. Normally any coverage provided by your credit card will involve loss or damage to the rental, but will leave out your personal possessions, personal liability, other cars and other’s property. You should verify with each credit card you have to learn which one proposes the most secondary coverage for rental car insurance.

You will have the choice to include coverage through the car rental service once you rent a car and you know where you are protected through your private auto insurance and credit cards. These alternatives include: liability insurance, loss damage waiver, personal effects insurance and personal accident insurance.

I suggest you check out my other guide on: Mobile Insurance and Budget Insurance