Auto Insurance for Rental Cars

Renting a car can be an exciting part of your travel experience, allowing you the flexibility to explore on your own schedule. Many travelers are unsure whether they need to buy insurance from the rental company, use their auto insurance, or if their credit cards provide any coverage.

Why You Need Insurance for Rental Cars

Whenever you rent a car, you take on the responsibility for that vehicle during the rental period. Any damage or theft of the vehicle can result in hefty costs that you’ll be required to pay, unless you have appropriate coverage. Additionally, if you’re involved in an accident, there could be significant financial implications from damage to other vehicles and property and medical bills from injuries.

Understanding your insurance options is crucial to protect yourself from these potential expenses and to ensure peace of mind during your travels.

Existing Auto Insurance Coverage

Many personal auto insurance plans extend liability coverage to rental cars, so if you cause an accident, your policy may cover damages and medical expenses for other parties. If your personal policy includes collision and comprehensive coverage, it may also cover these damages to your rental car.

Contact your insurance provider to confirm that your policy extends to rental cars and understand the limitations or exclusions that may apply.

Credit Card Rental Insurance

Many credit cards offer rental car insurance as a benefit for rentals charged entirely to the card. This type of insurance typically serves as secondary coverage, meaning it only kicks in after other forms of insurance (like your personal auto insurance) have been applied.

Coverage through credit cards generally includes damage due to collision or theft of the rental vehicle; however, it may not provide coverage for liability situations. The specifics can vary between credit cards, so it’s vital to contact your credit card issuer to get the full details on what is covered and any prerequisites needed to activate the coverage.

Insurance from the Rental Agency

Rental car companies offer various insurance options at the counter, which may include the following:

• Collision damage waiver or loss damage waiver—This isn’t insurance but a waiver that removes your financial responsibility if the rental car is damaged or stolen. Waivers may also cover loss of use charges (the rental company’s lost income while the car is being repaired).
• Supplemental liability protection—This coverage may offer additional liability protection up to a million dollars for damages to other vehicles or property and injury claims from accidents.
• Personal accident insurance—This may help cover medical costs for you and your passengers in the event of an accident.
• Personal effects coverage—This may help pay to replace stolen personal items from the rental car.

Contact Us

Contact Quality Insurance Services in Irving, Texas, to learn more about your rental car insurance options and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.