When renting a car, you're frequently asked to purchase insurance on the rental vehicle to keep yourself protected should the car be stolen or an accident occur. What many fail to realize, however, is that adequate insurance on your own vehicle extends to rental cars as well.
When renting a car, you'll be asked to purchase four types of insurance. All of these are unnecessary if you already have adequate coverage, but you should verify your coverage with your insurance agent or be sure to buy a policy with plenty of coverage initially so you never have to worry about your protection.
Collision Damage Waiver
The first of four insurance policies optional for use with a rental car covers you in the event of any damage or if the car is stolen while in your care. The waiver obtained through the insurance company will likely be void if you caused the damage while speeding, driving while intoxicated or driving on unpaved roads.
While this is excellent protection to have as rental cars are often sought out by car thieves, it is unnecessary if you have enough comprehensive and collision coverage on your own policy. Typically the state's minimum is enough for both personal and rental coverage.
Liability Insurance
Liability insurance provides up to a million dollars in extra coverage should an accident occur. The rental company provides the state's minimum of liability insurance, but this is typically not enough to provide full coverage should a serious accident occur. Liability insurance is absolutely a must, but you can arrange the extra liability on your own auto insurance policy and be protected all the time – not just in a rental car.
Personal Accident Insurance
By arranging personal accident insurance with a rental car company, your hospital and ambulance bills will be covered. Of course, your own auto insurance policy should be arranged to have adequate medical expense coverage, so you can skip this insurance as well.
Personal Effects Coverage
The items inside a rental car can be protected as well by personal effects coverage. If your personal things are stolen from the rental car, this policy provided by the rental car company covers that amount. In this case, not only does your auto insurance provide protection against theft, but your homeowner's policy might as well. To use either form of coverage, you'll need to meet your deductible, but you are very likely covered easily without requiring additional insurance.
Buying Auto Insurance
When arranging auto insurance, you should consider not only what you need to get by in your state, but also what coverage will give you the most protection in all facets of your driving experience. Higher protection will not only make renting a car less expensive and hassle-free, it will also give you more assurance every day when you're out on the road.
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