When To Buy Rental Car Insurance

Contact Your Auto Insurance Provider

The majority of car insurance companies cover rental cars, but you should contact your car insurance provider ahead of time to make sure. Questions you might want to ask include:

• Does my liability insurance cover rental cars?

• How much liability coverage is included?

• How much collision coverage is included?

• Will my collision coverage cover luxury and exotic car rentals?

• Does the coverage still apply if I am driving out of the country?

• Is there any additional coverage I should consider purchasing from the car rental agency?

Contact Your Credit Card Company

If you plan to rent a car with a credit card, your credit company might provide a degree of auto insurance. Contact your credit car company ahead of time to inquire about the types and amount of coverage available to you. Do not assume that because you have been covered in the past, you are currently covered; credit card auto insurance policies tend to change frequently.

Discuss Coverage with the Rental Car Agency

After you have spoken to both your current insurance provider and your credit card company, you can make an informed decision regarding the purchase of additional auto insurance. The types of insurance available vary by company, but the majority of rental car agencies offer the following:

• Liability insurance, including property damage and bodily injury coverage.

• Collision damage waiver, which transfers responsibility for collisions from the driver to the car rental agency.

• Personal effects coverage, covering damage to items within the car, such as laptops and cell phones, in addition to stolen cash.

• Personal accident insurance, which covers the cost of medical expenses for the driver and passengers.

Essentially, if there is anything not covered by your existing auto insurance policy, you can fill in the gaps by purchasing some aspect of rental car insurance.

Non Owner Liability Insurance

If you do not own a vehicle, but you often rent vehicles for certain purposes, you might consider purchasing a non owner liability insurance policy, as opposed to a separate rental policy every time you rent. Car rental policies can cost up to $40 per day, but non owner liability policies can cost as little as $200 per year.