Vehicle Insurance
Car Insurance When Renting a Vehicle When you rent a vehicle you will be surprised by the amount of taxes and fees that you will pay on top of the rental cost. As you are checking out, you will be asked whether or not you want an insurance policy on your rental vehicle. This question may throw you if you are not prepared for it, because the rental agency agents are quite good at making it sound like you need the coverage to save yourself thousands of dollars in the event of a crash. Do you need this coverage, or is it simply an additional cost to put more money in the rental agency’s pocket? What Is Covered Answering this question begins with understanding what is covered by the policy. This will vary from Rental Company to Rental Company, but there are usually some similarities to these insurance policies.
There are four basic types of coverage: loss damage waiver, liability insurance, personal accident insurance, and personal effects coverage. Loss damage waiver covers your liability for damage to the vehicle if it is in a collision. This is not actually an insurance product, because it does not pay for the damage. Instead, it takes the liability for the damage off of you, as the renter, even if you caused the crash. The rental company’s insurance will cover the damage to the vehicle. Some exclusion apply to the waiver, such as accidents caused by offroading, drunk driving, or speeding. This waiver will also usually protect you from being charged for the loss of use that the rental company suffers while making repairs to the vehicle.
Rental cars automatically come with some liability vehicle insurance , because the state law will require it. However, the protection is minimal. Because most drivers need more liability coverage than what comes with the vehicle, rental agencies offer liability insurance. If you or your passengers are injured in a crash while driving the vehicle, your medical care could be covered under personal accident insurance. This is fairly affordable to add to your policy. However, you likely do not need it if you have health insurance. Personal effects coverage, the final type of coverage, will pay for any theft of the things you are transporting in the rental car. Keep in mind that your homeowner's or renter’s insurance policy probably already covers the theft of personal belongings, even while travelling.
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