Auto Insurance

Auto Insurance

Buying extra auto insurance for a rental car. Should you? Although renting a vehicle while on vacation can be a convenience, it is also an added responsibility – one that you’ll be liable for, should anything happen to it while in your care.

Thus, as a remedy, all rental car agencies offer their own insurance coverage to help with such hypotheticals. What if you get into a car accident? What if the car is stolen or otherwise damaged? Insurance helps protect you from having to pay resultant “damages”; yet there are things to consider prior to agreeing to anything extra, as you may already be covered. How? Through your own policy.

Your Policy and Theirs

To make an informed decision concerning car rental insurance, you need to do some research. Your first step is taking a closer look at your personal auto insurance policy. What does it cover? With most policies, you’ll be covered for any car that you drive, including a rental car (or car hire). If you have collision, comprehensive, and liability coverage, you should have all the protection you need.

Note that your insurance policy will be subject to the same deductibles as usual, and if you do purchase extra car rental insurance, then your policy turns into the second source of coverage. In other words, your car rental insurance takes precedence over your personal policy. However, this is only the case if of course, you purchase additional insurance.

As for car rental insurance, the two most common “waivers” offered are loss damage waivers (LDW) and collision damage waivers (CDW). While some agencies recognize this as “insurance,” others do not and will only say they’re waivers for responsibility, should there be damage, collision, theft, or vandalism. Ask detailed questions concerning these temporary policies, as some still require a deductible and in the end, might just be redundant of your own. In cases where the driver does not have regular insurance or perhaps is not fully covered, then these extra options might be well worth the price.

The Bottom Line

The bottom line for travelers regarding auto insurance is to thoroughly research your own policy beforehand and then ask all the pertinent questions of the rental agency at the time of booking. Avoid buying coverage you don’t need, but make sure you’re totally covered just in case the unfortunate happens. Be safe!