He's the author of numerous books on consumer advocacy and writes weekly columns for King Features Syndicate, USA Today, and the Washington Post. It's convenient. Your auto insurance does not cover "loss of use" The majority of auto insurance policies will cover … They will then offer you a “ collision damage waiver policy. Buying insurance when you're already covered may be too much — but then again, not buying enough coverage could decimate your personal finances. The case for your personal car insurance. If your family is on a tight budget, ask the car rental company what the waiver costs and check with third-party travel insurance companies about what sort of policies they offer. Remember, most car insurance covers your rental, with some significant restrictions. Takeaway: Before purchasing rental car insurance, make sure that it provides all of the coverage you need and that it is not already covered by your personal insurance policy. First, contact the insurance company that provides your auto insurance—most will give you great discounts if you bundle both policies. if you don't take the rental insurance and you do have an accident, the claim will be filed your car's insurance. Whether you’re about to rent a car for the first time or you're an old pro, you might not know whether it makes sense to buy insurance from the rental car company. Even though it generally is the most expensive of the four insurance types, the loss/collision damage waiver is one you should consider buying. If your family lives in a big city and you don't own a car, you will, of course, need liability insurance. To get a free quote on rental car coverage, call (855) 919-4247 and speak with an Insurance Specialist. The case for travel insurance. They will then offer you a “ collision damage waiver policy. Before buying Hertz rental car insurance check your policy to confirm you need it, check out the Hertz rental car insurance claims process, and use our quote comparison tool to find the lowest rates. There are times you might need insurance beyond the loss/collision damage waiver. Eager to appease the children yanking on your legs and the grumbling line of travelers building behind you, you agree, and suddenly, your bargain car rental rate has doubled in price. Each bank and credit card company will offer something different. This means that damage to a rental car will not be covered and so it would be worth looking into car rental insurance options. But secondary insurance typically becomes primary if you're uninsured or if your current insurance doesn't work where you're traveling. In one test Avis conducted with the technology at London's Heathrow airport, it increased its number of damage claims by 22%. His State Farm insurance can offer an endorsement that offers full coverage. This is not technically an insurance plan, but an agreement that shifts liability for any damage that occurs to the vehicle from the renter to the rental company. Car rental companies don't mess around when it comes to vehicle damage. All Rights Reserved, This is a BETA experience. 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Often, no additional car insurance coverage is necessary because your rental car is already covered by either your credit card or current insurance coverage. So they have to make a bet that they'll drive safely and return the car in working order. Thanks for sharing this advice on choosing rental car insurance! You could also have coverage through your credit card. Copyright © 2020 Leaf Group Ltd., all rights reserved. "Conventional wisdom is that the added insurance on a rental car is a rip-off in most cases," says Jake McKenzie of Auto Accessories Garage. In place of collision or comprehensive, you may be able to obtain a rental car company loss damage waiver, or LDW, which can help cover damage-repair costs, administrative fees, and towing. Do you need car rental insurance? Your personal auto coverage does not cover vehicles like moving trucks. 2) Purpose of Rental- Yes, The reason why you are renting the car plays a big factor. So if you are looking around for cheap car insurance then keep in mind that most will come with some kind of rental car insurance and it is not always essential … Sure offers rental car insurance that covers up to $100,000 worth of damage to a vehicle, plus any of your belongings inside of it. So when travelers ask me: Do I need insurance for my rental car, I say "yes." In addition, many credit card companies offer some level of car rental insurance as a benefit, so you might get extra protection just by paying with your credit card. First thing to note: you mention being new at driving. If you pay for a rental car with a major credit card, there's a good chance that the card issuer offers secondary car rental insurance at no charge. This is what experts recommend for insuring your rental car. A variety of credit cards include some level of rental car coverage, which might allow you to decline the insurance offered by the rental agency, says Sean Messier, an analyst for Credit Card Insider. "Rental insurance provided through your credit card usually lasts around 15 to 30 days, and it covers most basic types of vehicles while excluding things like trucks and exotic cars," he says. If you have a sufficient auto insurance policy, it may make more sense to add rental car insurance coverage to it. These easily could add up to thousands of dollars, which makes the $10 to $20 per day for the waiver a small price to pay, as it will cover all damage with no questions asked. The credit card with which he'd paid for his rental covered chipped windshields. you can take it, but for the most part, its just another way for the car rental firm to make more money. If they don’t offer renter’s insurance or if you want to shop around, check out www.insureme.com. Confused about whether or not to buy extra insurance when standing at the rental car counter? Auto Insurance. I write about customer service. © 2020 Forbes Media LLC. If you've forgotten about insurance, you can easily add it at the time of your car rental. A common question for drivers who are traveling is whether they need to purchase additional car insurance for their rental cars. Here's what the experts recommend. I'm a consumer advocate. But Preston McKinney, a travel agent with Odyssey Travel, a San Antonio travel agency, says it's worth checking with your insurance company. Car rental insurance can be confusing. I have been wondering whether or not to get rental car insurance for a rental car I’ll be using in a few weeks. A standalone policy may offer a range of collision damage waiver policies that are cheaper and more comprehensive than those offered by car rental companies. Christopher Elliott is the founder of Elliott Advocacy, a 501(c)(3) nonprofit organization that empowers consumers to solve their problems and helps those who can't. Does my credit card cover my rental car? you don't need rental car insurance. Want to avoid this common scenario? "Many people find rental car insurance confusing," says Ernesto Suarez, CEO of InsureMyRentalCar.com. Some policies do not extend internationally, and some countries might not let you leave until you've settled up your rental car bill. They're on the hook for hundreds or thousands of dollars in damage. Rental car insurance is necessary if your personal policy, or company, does not cover the use of a rental car, or if you do not have auto insurance. While your car or credit card insurance will cover the cost of damage to the car, they might not cover some of the additional charges the car rental company could charge. I have a car and have taken Auto insurance for it. Often times, people end up buying supplemental insurance … if you don't take the rental insurance and you do have an accident, the claim will be filed your car's insurance. Rental car insurance comes handy when you’re off on a road trip on a rental car, and the last thing you want to worry about is bearing expenses in an unfortunate incident. If you do not have personal collision coverage or of you do not have your own auto insurance policy, it can be beneficial to purchase the rental policy so long as … If you already own a car, your car insurance policy might extend to rental cars. It left a deep crack on his windshield. 1) Quality of your own insurance policy – If you have state minimum coverage don’t except much help from your insurance company if something were to happen. It's rarely necessary to buy rental car insurance over the counter at the rental agency. Damage claims are about to become an even bigger problem. It's also true that these bills led to extreme financial hardships. That's because those stories about car rental customers paying for a new vehicle are completely true. As insurance professionals, we typically advise our clients to purchase some level of insurance from the car rental company. Your insurance agent can help you determine if you have gaps between what you need to cover when renting and what your car insurance covers. The last thing tired travelers want to do after arriving in a new city is to stand at the car rental desk and negotiate auto rental insurance with the on-duty attendant. Clark calls this coverage “overpriced semi-kind-of-insurance stuff that can take the cost of renting a vehicle through the roof.” For example, some policies may not cover a specialty vehicle or one rented outside the country. Here are the options for insurance your rental car. you can take it, but for the most part, its just another way for the car rental firm to make more money. If your family travels and rents cars frequently, consider buying a liability policy from an insurance company, which might save you money in the long run. // Leaf Group Lifestyle, How to Break Up With Someone You Live With, How to Get Paid for Caring for Your Loved One at Home, Esurance: Myth: Car Rental Coverage is Always Necessary, Allianz Global Assistance: The Four Types of Car Rental Insurance Explained. This is not technically an insurance plan, but an agreement that shifts liability for any damage that occurs to the vehicle from the renter to the rental company. You could also have coverage through your credit card. Which option is right for you? It depends on your level of insurance, your risk tolerance and your circumstances. 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