Tuesday, August 16, 2022

Should You Buy Rental Car Insurance

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Does Your Credit Card Cover Rental Car Insurance

Should YOU BUY RENTAL CAR Insurance ?

Finding out if you have additional coverage is as easy as calling the 1-800 number on the back of the card to ask.

If your credit card comes with rental car insurance, keep in mind a few questions you should ask the issuer:

  • If theres rental car insurance, how do you get the coverage from your credit card?
  • Is the coverage primary or secondary?
  • Whats included and whats excluded in the coverage?
  • How long will the rental be covered for?
  • Coverage depends on the company as well as the card you have with them. For example, American Express only reimburses for losses or expenses not covered by other insurance plans. Acting as secondary coverage, members have limited coverage for theft or damage to the rental, medical expenses, and personal effects.

    Do some research, grab the right card from your wallet, and youll get a little extra protection on the next car rental you buy on a credit card.

    How Much Insurance Coverage Do I Need

    If you decide to purchase an independent rental car coverage plan, make sure you know the legal minimum requirements for your insurance, both in the state where you book as well as for any other states you might travel through. But you also might want to upgrade your plan, just in case.

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    For instance, you could purchase a bare-bones policy for a trip to Arizona that would pay up to the states minimum requirement of $15,000 for each person injured in an accident of your causing. But if the injured persons medical bills cost more than $15,000, youd need to pay the rest of their expenses out of your own pocket.

    So in many cases, it makes sense to spend the few dollars extra to get the maximum coverage.

    At a minimum, you should seek out a policy that covers some of the following costs for your protection:

    • Coverage for damages and medical expenses to a third party if youre at fault in a collision.
    • Coverage for damages to your own vehicle and potential medical expenses for you and any passengers.

    This checklist applies whether you go through your existing auto insurance, purchase a plan through your rental agency or rely on your credit card benefits.

    Your Personal Property Is Stolen From A Rental Car

    Rental Car Company Policies

    Most rental car companies will cover personal effects if you buy the companys total insurance coverage. If a thief breaks in and steals your laptop, the rental car company will pay to replace it. However, you will have to file a claim and may have to jump through a few hoops to get your money.

    Other Rental Car Insurance Policies

    Most other car insurance products do not cover personal effects. However, your homeowners insurance or renters insurance may cover stolen goods even when they are stolen away from home.

    But you will have to pay the full deductible and your home insurance or rental insurance rates may increase in the following year. Unless you have extremely valuable items stolen, paying to replace them yourself will probably save you the most money in the long run.

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    Reasons You Should Buy The Rental Car Insurance

    Disclaimer: This site contains affiliate links from which we receive a compensation . But they do not affect the opinions and recommendations of the authors.

    Wise Bread is an independent, award-winning consumer publication established in 2006. Our finance columns have been reprinted on MSN, Yahoo Finance, US News, Business Insider, Money Magazine, and Time Magazine.

    Like many news outlets our publication is supported by ad revenue from companies whose products appear on our site. This revenue may affect the location and order in which products appear. But revenue considerations do not impact the objectivity of our content. While our team has dedicated thousands of hours to research, we aren’t able to cover every product in the marketplace.

    For example, Wise Bread has partnerships with brands including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi, Discover, and Amazon.

    Erika Plank Hagan knows all too well the value of buying rental car insurance. In July 2013, Hagan and her family drove from Connecticut to Ohio in a rental car to attend her brother’s wedding. While they were on the road, Hagan’s eldest son, who has special needs, got bored in the back seat and decided to wrap the middle shoulder harness belt around his neck when it suddenly locked.

    How Much Liability Coverage Do You Have

    Rental Car Insurance FAQs: Should I Buy It, Is It Worth It?

    Liability coverage is required in almost all states, so you should have it. This pays for the other drivers injuries if youre at fault in an accident. It also covers damage you cause to other vehicles and property.

    As long as you have a level of coverage that youre comfortable with, you can usually skip on purchasing the supplemental liability coverage.

    But if you only have the state minimum limits for liability, it might be wise to buy the supplemental coverage for that extra protection. Itll ensure that youre properly covered if you get into a car accident.

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    What Happens If You Damage A Rental Car

    When a rental car is damaged, you are liable for the repair costs up to the excess. You are also liable for loss of use charges that cover the potential revenue lost when the vehicle is off the road for repairs. CarInsuRent car hire excess insurance for Australia will fully cover these costs. We encourage your to read the car hire excess insurance Australiareviews posted on our website and at TrustPilot.

    When You Dont Need Extra Car Rental Collision Insurance

    If youre like most Americans, you can skip the collision damage waiver offered at the rental counter, as it likely duplicates coverage you already have. This guideline applies if you own a car, since its highly likely that your car insurance extends to rental cars. To be sure, call your insurance company and ask:

    • Do I have collision and comprehensive coverage on my policy?
    • Does my collision and comprehensive coverage extend to rental cars?
    • Are there any limits on the type of cars I can rent?
    • Does my policy cover Loss Of Use and Diminution of Value?
    • What risks do I run if I file a claim for damage to a rental car?

    Ask AutoSlash for a Quote on a Cheap Car Rental

    Youre paying with a credit card that provides primary rental car collision damage coverage. Be sure your card offers primary coverage for rental car damage, which lets you avoid possibly filing a claim on your personal car insurance. To be sure, call your credit card provider and ask:

    • Does my policy cover rental car damage?
    • How can I activate that coverage?
    • Does anything void that coverage?
    • If you are using a business credit card, is the coverage primary for both business and personal rentals?
    • Are there any limits or exceptions for certain types of cars?
    • What is the maximum number of days for coverage?

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    Rental Car Insurance Options

    When you rent a car, you will be asked whether you want to buy rental car insurance.

    You will be offered multiple coverage options, and they may duplicate what you already have through your current auto policy. The daily cost for coverage can be high, often exceeding the amount it costs to rent the vehicle itself.

    Loss damage waiver: With this option, the rental company wont charge you if the rental car is stolen or damaged.

    Collision damage waiver: Similar to the loss damage waiver but limited to collisions, this type of coverage protects you in the event the rental car is damaged. Learn more about what happens if you crash your rental.

    Liability coverage: This coverage meets state requirements for bodily injury and property damage liability.

    Personal accident insurance: In the event there are injuries to you or your passengers while operating the rental car, this coverage will pay for the associated medical expenses. It also provides accidental death coverage.

    Personal effects coverage: This covers any belongings in the rental car in the event they are stolen.

    Does Your Credit Card Cover Rental Insurance

    Should you Buy the Rental Car Insurance?

    In many cases, credit card rental insurance can provide some coverage for motorists renting vehicles.

    This rental car insurance provided by credit card companies isn’t always as broad as cardholders expect, though. Often, it only replaces the collision damage waiver. It generally provides no coverage for bodily injury or liability. And it probably doesn’t cover personal property or medical care costs the cardholder would experience after an accident.

    Motorists wondering, “Should I insure my rental car?” need to be aware of the limitations of . This means reading cardmember terms carefully.

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    Do I Need Rental Car Insurance For International Travel

    If youre traveling internationally, should you get the extra car rental insurance?

    Renting a car outside the U.S. brings its own challenges. Fewer insurance companies cover customers who rent cars internationally. So contact your insurer to see if your rental is covered.

    Some people like to buy the extra coverage when traveling abroad because of the increased risk of accidents due to different driving conditions and traffic laws. The additional coverage will also help you avoid the hassle of filing a claim in a foreign country.

    See How Much You Can Save

    To learn more about how you can save on car insurance. Get in touch with the independent agents at LoPriore today. Our experienced insurance agents are available 24/7 to answer your questions, provide information about our auto insurance policies, or provide you with an instant quote.

    Contact LoPriore Insurance Agency TodayTo Get A Free Insurance Quote

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    Are Scooters And Motorcycles Covered Under Rental Car Excess Cover

    Most policies are applicable only to motorcars but exclude coverage for motorcycles. Study the contract carefully before leaving the rental office, ensuring that you have checked the optional extras.

    If I have car hire excess cover, do I need to purchase the additional cover offered by the rental company?

    The rental vehicle excess waiver insurance provided by CarInsuRent, which is considered among the best car rental excess insurance in Australia, is an alternative to car rental insurance with no deductible being sold by rental firms and you dont need to buy other insurance plans to cover your rented vehicle.

    When Should You Opt For Rental Car Insurance

    Should I Buy Auto Insurance on My Rental Car?

    Sometimes its worth it to buy rental car insurance. This depends on if you:

  • Dont have insurance because you dont own a car
  • Have insurance that comes with low coverage limits
  • Want peace of mind and dont mind the additional cost
  • Its up to you to do your research before renting a car.

    Knowing how much your auto policy covers for a rental car will prevent you from signing on for coverage from the rental car company that you dont need. Itll save you money from paying for the same coverage twice.

    Looking for car insurance? The Cover app compares rates from over 30 different providers to find you a competitive rate.

    Cover will get you an auto quote in as little as five minutes. All you have to do is answer a few short questions.

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    What Can I Expect From A Rental Car Insurance Plan

    Purchasing a rental car insurance plan is quite straightforward. You can generate a quote online in minutes by submitting your basic contact information as well as your location and dates of travel.

    Heres an example from InsureMyRentalCar.com:

    From there, youll typically see a few price points that show a breakdown of different coverage included in the quote, and then youll need to fill out the online form for your address and other personal information, a short four- or five-step process.

    Do You Really Need Rental Car Insurance

    Do you know that it may not be necessary to purchase insurance from a rental car company? If you own a car, your personal auto insurance policy may include coverage for rental cars. Also, depending on the type of credit card you have, you may be eligible for free rental car coverage. This means you may be able to decline the costly insurance from your rental car company and save some money.

    Typically, rental car companies offer insurance in the form of a loss damage waiver or collision damage waiver . Such insurance is beneficial because it provides protection if your rental car is damaged following a collision, vandalized, or stolen. It ensures that your rental car company won’t ask you to pay for repairs and losses.

    If you’re unsure whether you should get rental car insurance, you should find out if you already have coverage from the following sources:

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    Do You Already Have The Coverage You Need

    If you havent thoroughly examined your options, theres a chance that purchasing rental car insurance will be duplicating coverage. Before spending your hard-earned money, its time to take a look at your personal circumstances. It would help if you had a firm understanding of these details to know what coverage you really need.

    • Your personal auto insurance coverage: If you own a car and have personal auto insurance, your coverage may extend to a rental vehicle. Its important to determine if your current auto insurance policy includes collision and loss-of-use coverage.
    • The terms of the credit card you used to book the vehicle: Some credit cards include benefits like Collision Damage Protection. However, this perk typically works as secondary insurance. If you purchase the coverage offered by the rental company, the credit card benefit doesnt kick in.
    • Car rental insurance cost: Car rental insurance can be steep, but no coverage can be more expensive in the long run. If you cant afford the coverage offered by the rental company, there may be other options from your insurance provider.
    • Why youre traveling: If youre traveling for work or with a tour, coverage provisions may be included in your travel arrangements. Make sure to check all the details of your trip before you spend extra money.

    Youll Pay Up Front For All Damage

    Should You Buy Extra Rental Car Insurance? | Allstate Insurance

    You can cover your major damage responsibility by relying on your own insurance, a credit card with insurance, or a third-party policy. But in all of those cases you have to pay a damage claim up front, then recover as much as you can by filing a claim afterward. That means signing a credit card bill for hundreds or even thousands of dollars when you return the damaged car, and not knowing if youll get that money back.

    Thats why many rental companies wont accept rentals via debit card, or a credit card with a small limit. If you can pay the initial rental fee with a debit card, youll still need to provide a credit card to cover a possible damage claim, which would be filed before you can leave the return counter.

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    Does My Car Insurance Cover Rental Cars

    In general, yes, your auto insurance will cover your rental car the same way it covers your own car. So you probably dont need rental car insurance.

    For instance, if you have comprehensive or collision coverage, you wont need the collision damage waiver. And if you have the right amount of liability coverage, you dont need rental car liability either. Skip it.

    Also, you probably wont need personal accident insurance. Your health insurance or the personal injury protection on your auto policy probably provides enough coverage. As far as death benefits, youre better off buying term life insurance.

    Its still a good idea, though, to understand your personal car insurance policy before paying for your rental car. Dont assume youre covered. Check your coverage policy.

    Does My Current Auto Insurance Policy Cover My Car Rental

    The answer to this question is entirely dependent on your individual insurance policy. Your best bet is to reach out to your provider before your trip to see what coverage may be included on your current plan, especially if you plan to travel overseas. If youre not sure, or if your maximum limit for rental coverage is very low, you should look into purchasing a rental car insurance plan or double-checking your credit card benefits.

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    What Exactly Can This Rental Car Insurance Plan Cover

    The very first thing youll want to figure out before you purchase a plan is what it covers! Collision damage insurance can pay to repair or replace your rental car in case of loss, theft or damage. Liability insurance can protect you from lawsuits filed by other drivers for bodily injury or property damage. Personal accident insurance can pay medical, ambulance and death benefits for you and your passengers. And personal effects coverage can cover the theft of possessions from the rental car.

    Rental car companies may encourage you to buy all these types of insurance, but the most important protection to have is liability and the collision damage insurance, or CDI. The CDI is what well be focusing on in this article.

    Read more: The Four Types of Rental Car Insurance, Explained

    What Should I Do If My Rental Car Is Stolen

    Rental Car Insurance â Should You Buy It?

    The first step is to immediately report the theft to the police and to the rental company. Make sure that you get a copy of the report, as this is essential for insurance purposes . As we stated, our car hire excess waiver policy cover your baggage and personal belongings, thus you should also inform the police if any of your valuables were in the vehicle when it was stolen so that they are included in the report.

    Once youve notified the police, contact the car rental company, let them know what happened and ask for an alternative vehicle.

    Keep copies of the police report and any receipts/valuations of your personal belongings that were in the vehicle when it was stolen. You will need these later when you file your claim for reimbursement.

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