Should You Get Rental Car Insurance if You Have Car Insurance?

Reserving a rental car comes with many last-minute choices and upgrades. You will be presented with options to upgrade to a premium car, get a car seat, and overpay for a navigation system. Next comes rental car insurance that will cover collisions. Many people skip this, as it usually increases the daily rental amount per day. Although your insurance company may extend coverage when you rent a car, there may be limitations.

In every state across the US, car insurance is a requirement; however, each state has its liability minimum. Without collision coverage, you run the risk of not being covered in case of an accident. Even though all car rental companies offer insurance plans for their customers, rental car insurance is not required by law. The collision coverage offered by your car insurance may extend to rental cars. Even if your car insurance already covers collisions for rental cars, other potential uses for car rental insurance may not be covered.

Here are a few benefits of having additional car rental insurance:

  • Many auto insurance companies do not cover loss of use. This means that if your car is in the shop for repairs and you rent another car, your auto insurance may not pay for the loss of a rental car in an accident.
  • If you are planning to take your rental car out of the country, check your auto insurance policy to see if it will become void once you cross the border. Usually, rental car insurance will offer a policy with limits that extend beyond the border so you can remain protected in neighboring countries like Canada and Mexico.
  • Planning to travel with any expensive personal items like a laptop, digital camera, or jewelry? If any of your items exceed your personal insurance’s deductible, then you should consider purchasing rental car insurance. The chances of having your items stolen or lost are quite high when you travel, but if you buy rental car insurance, you will be reimbursed for any lost or stolen items.

Something to also consider, if you have had numerous auto accidents rental car insurance may be a requirement. On the contrary, if your record is clean, you will be given the option to purchase or forgo the insurance. Research the advantages of car rental insurance, and decide for yourself if you should pay the extra money for the protection.

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