If you rented a car, the salesperson behind the counter probably warned you about the consequences of leaving without car rental company insurance. On the fly, you may not be sure exactly what coverage you already have. And that’s what rental companies expect when they offer you a sales fee.
However, in some cases, the extra cost of insurance coverage from the rental company may be reasonable. For this reason, it’s important to understand what your personal car insurance covers and what the rental company offers.
What is rental car insurance?
Traveling is a stressful enough process. From security checks to flight delays to baggage inspections, travelers have a lot to worry about if they need rental car insurance.
Does my insurance cover my rental car?
If you have private car insurance, it includes liability insurance and additional insurance of your choice, such as comprehensive or collision insurance. You can use your rental car as long as you use it for personal use. Private insurance coverage limits and deductibles also apply when you rent a car.
Liability insurance helps pay for someone’s medical expenses or damage to someone’s property if an accident happens to the vehicle (or rental car).
If your vehicle (or rental car) is damaged by hazards such as theft, wind, fire or natural disasters, comprehensive coverage allows you to pay for repairs. Your comprehensive insurance deductible applies.
Collision insurance helps you pay for repairs if your car (or rental car) is damaged in a collision with another vehicle or object, such as a fence or tree. Your insurance premium deductible for the accident applies.
Do I need insurance to rent a car?
You do not need to sign up for auto insurance to rent a car. However, rental agencies generally have few warranties on the vehicle, so accidents can incur significant costs.
Other ways are to get extra insurance from the rental company, use a credit card to take out insurance, or take out independent insurance through a third party.
Waiver of Collision Damage Waiver for Rental Cars
When you rent a car, you will be asked if you want to apply for rental car insurance. But, strictly speaking, it’s not insurance. Instead, it’s a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). This means that the rental car company is not liable for property damage to the rental car. This would be similar to accident insurance.
Rental car insurance is also limited in the amount of liability. And if you or your passenger is injured, it will cover the medical expenses.
Personal property is another coverage.
Private Automobile Insurance Policy
You should call your insurance agent before renting a car, but your rental car insurance must be covered by your own insurance.
If you have full coverage for your private vehicle, Private car Insurance offers collision and liability insurance. Your car insurance will also provide you with protection against injury. Medical expenses are also covered.
Rental Car Premiums
Car rental companies charge car rental fees on a daily basis. It is divided into conflict compensation, liability compensation, and personal effects guarantee fees.
The average price of rental car insurance ranges from $31 to $60 per day.
Non-Owner Automobile Insurance
If you do not own a private car, you will not have private car insurance. Therefore, if you rent a car often, you spend a lot of money on insurance when you rent a car. However, you can get private car insurance even if you don’t have a personal car.
Ask your insurance agent about non-proprietary car insurance. Non-owned car insurance is usually cheaper than rental car insurance.
Non-proprietary car insurance covers medical expenses and provides collision coverage and liability coverage.
You don’t have to have rental car insurance depending on your personal auto insurance. So don’t give in to the pressure when you’re standing at the rental counter. Instead, talk to your insurance agent and rest assured that you can both take out insurance and save money.