When you’re looking to rent a car, it’s important to know what kind of insurance coverage is included in the rental price, and what kind of coverage you might need to purchase separately. You never know what can happen on the road, so it’s always better to be prepared.
Although rental car companies typically include basic liability insurance in the cost of your rental, it’s always a good idea to review your options and make sure you have the right coverage for your needs. Here are all the details you need to know about rental car insurance.
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Should I Have Insurance Before Renting?
Before you decide to rent a car, make sure you find a local rental company and ask them about insurance coverage. You can also consult with local insurance companies to give you a detailed explanation of the prices of average or additional policies for a rented car.
For instance, if you are in Ontario, Canada, and are looking to rent a car, look for the best Ontario auto insurance companies that will explain to you all the necessary details. Keep in mind that if you decide to skip on insurance coverage, you’ll be liable for any potential damage that happens while you’re behind the wheel.
Determine if You Need Car Insurance
There are a few things to consider when trying to determine if you need rental car insurance coverage. Think about the insurance policy you have on your vehicle and what it covers. If you have coverage on your personal vehicle, you may not need to purchase additional coverage for a rental car. Contact your insurance company to get the needed information, just to be sure.
In addition, inform yourself whether your credit card company offers some kind of coverage. Some companies will offer it as a benefit, as long as you pay for the rental with a credit card. Contact them about additional information, requirements, and rules.
Consider your personal liability limits as well. If you don’t have auto insurance, or if your policy has low liability limits, you may want to purchase additional rental car coverage to protect yourself financially in the event of an accident.
Insurance Types That Are Required
Liability Insurance
This type of insurance is required by most states and represents one of the most important types of insurance. It can help protect you from having to pay out of pocket for damages or injuries caused by an accident that was your fault. Liability insurance can help cover the costs of repairs to the other person’s vehicle as well as any medical expenses they incur.
Personal Injury Insurance
Personal injury insurance provides protection in the event of an accident. It can help cover lost wages, medical expenses, and other accident-associated costs. It can be purchased as a standalone policy or as part of a larger auto insurance policy. When purchasing personal injury insurance, make sure the policy covers the type of accidents that happen frequently in your area.
Insurance Types You Need to Consider
Collison Damage Waiver (CDW)
Collision damage waiver, or loss damage waiver, is insurance that covers damage to a rental car. This type of insurance is not required, but it’s something worth considering. It may be included in the price of the rental, or it may be offered as an optional add-on.
The CDW covers damage to the rental car that is caused by collision, theft, or vandalism. It does not cover damage that is caused by other things, such as weather or running into something.
Personal Effects Coverage
Personal effects coverage is another optional add-on to your car insurance policy. It helps protect your personal belongings in the event that they are damaged, lost, or stolen while in your vehicle.
There are a couple of things to keep in mind when considering personal effects coverage. First, this coverage is typically limited to a certain amount, usually $500 or less. This means that if your belongings are worth more than that, you may not be fully covered.
Second, personal effects coverage is usually only applicable to items that are considered necessities. This includes things like clothes, phones, and laptops. Luxury items such as jewelry or art, are typically not fully covered.
Bottom Line
Rental car insurance can be a lifesaver, but it’s important to know what your policy covers. Make sure you are familiar with the terms of your rental agreement and your personal insurance policy before you hit the road. If you have any questions, don’t hesitate to call your agent or the rental company. Rental car insurance is an essential part of travel, lifting the burden off your shoulders, and making your trips carefree and exciting.
