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Rental Car Insurance – What Is It?

by pps-DUEditor

If you don’t have a car or are unable to use your car at the moment, you can consider renting a car. Renting a car is a fairly simple process, however, you’ll need to ensure that you have insurance to cover the rental car.

What is rental car insurance?

As the name suggests, rental car insurance offers you coverage against financial risks in the event of an accident. Typically, rental car insurance is of two types:

  1. Insurance coverage for the rental car
  2. Auto insurance coverage that pays for a rental car because your vehicle is undergoing maintenance or repair as a result of a covered loss

What does rental car insurance include?

  • Supplemental liability insurance: Liability insurance covers the medical and repair bills of a third-party that was involved in an accident with your vehicle.
  • Loss damage waiver: The loss damage waiver, also known as the collision damage waiver, protects you financially if your rental car happens to get damaged while you are in possession of it. If you don’t have this coverage, you will likely have to pay the rental car agency for the damages.
  • Personal effects coverage: This part of the policy covers your personal belongings that are in the car if it happens to get stolen, damaged, or destroyed. Remember that your homeowners insurance or renters insurance policy may also cover personal effects.
  • Personal accident insurance: Personal accident insurance offers financial coverage if you or anyone who was riding with you gets injured in an accident.
  • Covered losses: If your auto insurance policy covers rental cars, it will typically only offer insurance coverage if you are renting a car due to a covered loss that has been registered with the insurance provider.

How much does rental car insurance cost?

Much like a traditional auto insurance policy, the cost of rental car insurance can vary significantly based on where you purchase the policy from, the state you reside in, and how much coverage you opt for, among other things. To get a good deal on your rental car insurance, it is important to compare the prices of different policies. Make sure to only opt for a policy that meets your coverage requirements at a competitive price.

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