Rental car insurance coverage explained.
If you have ever rented a vehicle, odds are the person behind the counter has asked you whether you would like their company’s rental car insurance. After hearing the salesperson’s explanation, it may sound like a good idea to purchase their supplemental rental car insurance. The rental company’s extra coverage may make sense in a few cases; however, you may be paying for something you don’t need.
Are you overwhelmed by all the fine print on the contract? Feeling pressure from the person behind the counter? Here’s how to quickly decode your car rental coverage:
- Loss/collision damage waiver: The loss damage waiver is sometimes called the collision damage waiver. This lets you off the hook for costs if your rental car is stolen, vandalized, or damaged in a crash.
- Liability coverage: Helps to pay for another person’s medical bills or damage to another person’s property if you cause an accident in your rental vehicle.
- Personal accidents insurance: Covers medical costs for you and your passengers if you’re hurt in a rental car crash.
- Personal effects coverage: Covers you when personal items are stolen from or damaged in your rental car.
Are You Already Covered?
Before you take out rental car insurance, consider your own insurance. Rental car insurance is often redundant if you have other common safeguards in place. If you currently have auto insurance, talk to your insurer about your coverage. Just about everyone will offer liability coverage, which will help pay for others’ medical costs and property damage when you’re at fault in a car accident. This liability insurance will typically cover you when you’re driving a rental car.
Fewer people have comprehensive and collision coverage in their auto policies. Comprehensive coverage insures your vehicle against non-driving-related calamities, such as theft, fire, or vandalism. Collision coverage helps to pay for damage to your car from a crash, whatever the cause. If you have comprehensive and collision coverage already, you may choose to decline the rental company’s loss damage waiver. However, be aware that the rental car company may still charge you for loss of use if you damage one of their vehicles.
When accidents happen, car insurance is there for you. Contact insurance experts Perry & Carroll in Elmira, New York for all of your car insurance coverage needs.