Most car rental companies have their own insurance. Your rental car is covered for liability damages at the very least. Other rental companies may also opt-in for collision coverage. Without your own auto insurance, a car rental company might ask you to pay extra to be covered.
Rental cars are automatically insured, but you still have to pay for the damages that you caused. There is a state minimum of liability insurance that rental companies cover. However, it is easy to create damages beyond that minimum, and you owe the rest.
Car rental companies typically offer insurance to cover you. In case the accident was your fault, the car rental insurance covers your damages. Taking the car rental’s insurance offer can be expensive. Some rental places charge $25 to $50 per day for an uninsured driver.
Being uninsured and driving is never recommended. You always need the peace of mind of being able to pay for damages. Insurance is the difference between having to front a hundred grand in hospital bills or saving thousands.
What Types Of Coverage Do Car Rentals Offer?
Being insured protects you in the event of an accident. Car rentals offer minimum coverage, but you have options for additional insurance as well. Here are the types of insurance that car rental companies offer:
This type of coverage insures the driver in case of a wreck. Liability only insures the other driver. Add it to liability coverage to fully cover accident damages. Combining the two keeps you fully insured in the event of an accident.
Supplemental Liability Protection
If you caused an accident, the car rental company covers the damages that you owe. Consider it a way to protect yourself if you cause someone else damage.
Personal Accident Insurance
This coverage insures you and your passengers. Hospital bills and personal property damages are covered. Personal accident insurance may not be practical if you and your passengers are medically insured.
Personal Effects Coverage
Personal effects coverage refers to the value of items stolen out of a rental car. This type of coverage may be the least necessary. Keeping valuable items out of your car is easy; just take them with you!
Car rental companies offer those different types of coverage to fully insure you and the car. You choose to have none, some, or all of them. Prices vary depending on how much coverage you prefer.
Always remember that the cost of an accident may equal much more compared to the premium. Make absolutely sure that you are comfortable without full coverage. Even then, the peace of mind makes your car renting experience much better.
What Are My Options For Saving Money?
If you already have your own car insurance, then there is little point in opting into car rental insurance. Save money, and rely on your own car insurance. Especially keep your own insurance if you have full coverage or comprehensive insurance.
Being uninsured and driving a rental with no failsafe is not recommended. However, you might be covered in other ways. Your health coverage, for example, insures medical expenses, and you might not need certain types of auto insurance as a result.
Finally, some credit cards offer car rental insurance. Check with your credit card on the type of coverage and how much money is covered in the event of an accident.