It’s vacation time and you are all packed and ready:
Sunscreen – check
Phone charger – check
Travel itinerary – check
Rental car insurance – ??????
Whether you’re traveling out of town or need a rental car because your car is in the shop, you’re likely going to be asked by the rental agency salesperson whether you would like to purchase insurance on the rental car. They’re trained to sell you a policy, so you may be quite convinced to purchase it. But do you really need insurance on a rental car?
Do you need rental car insurance if you already have a car insurance policy?
That depends. If you already have a car insurance policy, you may not need to purchase additional rental car insurance. But it depends on what type of coverage you have on your car insurance policy. If you only have liability coverage, you should really consider buying the physical damage waiver on the rental car from the rental company. Otherwise, you could be responsible for paying out of pocket for the damage to the vehicle, and the valuation of the car is pretty much at the discretion of the rental company and may be much higher than market value. Buy the physical damage waiver but you may can skip the liability coverage because your regular car insurance policy covers this, up to your policy limits.
If you have comprehensive and collision coverage, purchasing physical damage coverage on a rental car still may be a good idea. The rental car company could even choose to hold you responsible for the indirect loss of not being able to use the rental car while it’s being repaired. It can sometimes be a lengthy and messy process and having insurance may make it go more smoothly.
Is rental car insurance reimbursed by your insurance company?
Not usually. Rental car insurance is easily confused with rental car reimbursement, which is another name for “loss of use” coverage. Loss of use coverage can be added to your auto policy to cover the cost you incur for renting a rental car while your car is being repaired after suffering a covered loss.
Your agent can help you answer any questions you may have about navigating rental car insurance and your specific needs. Contact one of our local agents, today!