When you rent a car, you may wonder if your auto insurance policy covers it. After all, the last thing you want to do is pay for insurance twice. In this article, we’ll discuss whether or not your auto insurance covers rental cars and if it’s worth the extra money to purchase rental car insurance.
Does My Auto Insurance Cover Rental Cars?
Most auto insurance policies do cover rental cars, but it’s important to check with your insurance company to be sure. Your policy may have limitations, such as only covering rental cars in the United States or Canada. Some policies may also have a limit on the number of days they will cover a rental car.
If your auto insurance policy does cover rental cars, it typically provides liability coverage, which means it will pay for damages you cause to other people or their property while driving the rental car. However, your policy may not cover damage to the rental car itself.
What About Collision and Comprehensive Coverage?
If you have collision and comprehensive coverage on your auto insurance policy, it may also cover damage to the rental car. However, you may still be responsible for paying a deductible, just like you would if you were driving your own car.
It’s important to note that if you decline the rental car company’s insurance and rely solely on your auto insurance policy, you may be responsible for paying for the rental car out of pocket while it’s being repaired.
Is it Worth the Extra Money to Purchase Rental Car Insurance?
The decision to purchase rental car insurance ultimately depends on your individual situation. If you have comprehensive and collision coverage on your auto insurance policy and feel comfortable paying the deductible if something were to happen to the rental car, then you may not need to purchase rental car insurance.
However, if you don’t have comprehensive and collision coverage, or if you don’t want to risk paying a deductible, then purchasing rental car insurance may be worth the extra money.
What Are My Options for Purchasing Rental Car Insurance?
When you rent a car, the rental car company will typically offer you a variety of insurance options. Here are some of the most common:
- Collision Damage Waiver (CDW) – This typically covers the cost of repairs if the rental car is damaged or stolen.
- Loss Damage Waiver (LDW) – This is similar to CDW, but it may also cover loss of use fees and towing charges.
- Personal Accident Insurance (PAI) – This covers medical expenses if you or your passengers are injured in an accident.
- Personal Effects Coverage (PEC) – This covers the loss or theft of personal items in the rental car.
It’s important to read the fine print of each insurance option to understand exactly what is covered and what is not. You may also want to check with your credit card company, as some credit cards offer rental car insurance as a perk.
Conclusion
In conclusion, most auto insurance policies do cover rental cars, but it’s important to check with your insurance company to understand the limitations. If you have comprehensive and collision coverage, you may not need to purchase rental car insurance, but if you don’t, it may be worth the extra money for peace of mind. When renting a car, be sure to read the fine print of each insurance option to understand exactly what is covered and what is not.