When you already have insurance for your personal car, do you need rental car insurance?
What is rental car insurance?
A car rental agency offers insurance coverage that provides many of the same types of protections as your personal car insurance policy, but the classifications differ.
How much does rental car insurance cost?
Purchasing insurance at the rental car office can significantly increase the total rental cost. The Department of Insurance, Securities and Banking in Washington, D.C. outlines the typical cost ranges for rental car insurance:
What does your personal car insurance cover?
Your personal car insurance coverage may extend to the rental car. However, before you forgo the coverages offered by the rental agency, you should understand the terms of your personal insurance policy and consider the limits of each coverage, as well as your deductible.
What does your credit card insurance cover?
Some credit card companies offer limited coverage for rental cars, but you must carefully follow the rules specified in the terms and conditions. Typically, you must use the credit card to book and pay for the rental car, and the cardholder must be listed as the primary driver on the rental agreement.
Alternatives to rental car insurance
If you do not own a car but rent cars regularly, you might consider purchasing a non-owner insurance policy. This type of policy covers the named policyholder and provides protection regardless of the car you drive. Non-owner policies typically include the legally required coverage, such as liability insurance, physical damage coverage, uninsured motorist coverage, and underinsured motorist coverage. However, non-owner policies do not cover damages to the vehicle you are renting, so you will need to purchase damage and loss insurance from the rental agency.
Insurance for car-sharing services
Car-sharing companies often include a certain amount of car insurance in their rental fees, but it may not provide enough protection if you get into an accident. For example, Zipcar includes standard protection in its memberships at no additional cost. However, if you have an accident, Zipcar charges you a fee of $1,000.
Conclusion
Carefully read the terms and conditions of any coverage you plan to use, and contact your insurance company to ask questions if you are unsure.
Source: https://www.thebalancemoney.com/car-rental-insurance-what-to-watch-out-for-5088988
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