Should I buy insurance from the car rental agency? If you’ve ever rented a car, you’ve probably asked yourself this question. The car rental agency offers you additional car insurance coverage at the time of the rental, but should you buy the extra rental car insurance? We’re here to help you with this very common dilemma.
Types of Rental Car Insurance Coverage Offered at Rental Car Agencies:
- Car Coverage: This may also be called, Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) or Damage Waiver (DW): It’s not actually an insurance coverage, but a waiver. Depending on the company, it waives or reduces your responsibility for damage to the rental vehicle. You may not have to pay your auto insurance deductible or file a claim with your personal auto insurance policy if you choose this coverage. This type of coverage may also exist as a benefit on one of your credit cards; just be sure to use this credit card for the rental car.
- Liability Coverage: This is also called, Liability Insurance Supplement (LIS) or Supplemental Liability Protection (SLP): Provides primary liability coverage & covers your liability if you’re involved in an accident in the rented vehicle. Liability coverage protects you from claims that others may make against you following an accident.
- Personal Accident Coverage: Sometimes called Personal Accident Insurance. Provides you and your passengers with medical coverage after an accident.
Whether or not you decide to purchase these additional rental car insurance coverage options at the rental car agency, will depend on what type of coverage you have on your personal auto insurance policy.
If you only have liability insurance coverage on your own personal auto insurance policy, you will want to add the car coverage option to your rental car contract. This will provide coverage to the automobile in the event of an accident.
However, if you do have comprehensive and collision coverage on your personal auto insurance policy, you have a decision to make. Adding the car coverage at the rental counter, will add a bit more expense to your rental car contract, however it could end up saving you money if you are in an accident. This coverage usually relieves you of financial responsibility for the rental car if it’s damaged or stolen, without involving your insurance company and your deductible. If you don’t add it, you will be responsible for your comprehensive or collision deductible, just as you would on your own personal auto policy.
*Coverage terms vary between states and countries. If you’re traveling out of the country, your USA personal auto policy may not apply at all in another country.
Rancho Cal Insurance Services has been helping our community of Murrieta, Temecula, Winchester, Menifee and all over California with their personal and business auto insurance for many years. We are here to help you too!