Do
I need insurance to rent a car?
When
renting a car, you need insurance. If you have adequate
insurance on your own car, including collision and
comprehensive, this may be enough.
Before you rent a car:
- Contact your insurance company.
Find out how much coverage you have on your own car. In
most cases, the coverage and deductibles you have on your
personal auto policy would apply to a rental car,
providing it's used for pleasure and not business. If you
don't have comprehensive and collision coverage on your
own car, you will not be covered if your rental car is
stolen or if it is damaged in an accident.
- Call your credit card company.
Find out what insurance your card provides. Levels of
coverage vary.
If you don't have auto insurance, you will need to buy
coverage at the car rental counter. The following coverages
are available to you at the rental car counter:
- Collision Damage Waiver (CDW).
Sometimes called a Loss Damage Waiver (LDW), this coverage
relieves you of financial responsibility if your rental
car is damaged or stolen. The CDW may be void, however, if
you cause an accident by speeding, driving on unpaved
roads or driving while intoxicated. This coverage
generally costs between $9 and $19 a day. If you have
comprehensive and collision on your own car, you may not
need to purchase this coverage.
- Liability Insurance.
This provides excess liability coverage of up to $1
million for the time you rent a car. Rental companies are
required by law to provide the minimum level of liability
insurance required by your state. Generally, this does not
offer enough protection in a serious accident. If you have
adequate liability coverage on your car or an umbrella
policy on your home/auto, you may consider forgoing this
additional insurance. It generally costs about $7 to $9 a
day. If you don't own a car, and rent cars often, consider
purchasing a non-owner liability policy. This costs
approximately $200 - $300 per year. Frequent car renters
sometimes find this more cost-effective than constantly
paying for the extra liability coverage.
- Personal Accident Insurance.
This provides coverage to you and your passengers for
medical/ambulance bills. This type of insurance, usually
costs about $3 per day, but may be unnecessary if you are
covered by health insurance or have adequate medical
coverage under your auto policy.
- Personal Effects Coverage.
This provides coverage for the theft of personal items in
your car. However, if you have homeowners or renters
insurance, you may be covered for items stolen from the
car, minus your deductible. You need to have receipts or
other proof of ownership. This type of insurance usually
costs about $1.25 per day.
Some rental car companies combine personal accident and
personal effects coverage together as one type of insurance,
while others sell it individually.
The cost of insurance at the rental car counter will vary
depending on the rental car company, state, and location of
the dealer and the type of car you rent.
Some rental car companies may check your credit and driving
history and may deny coverage. Check with the rental car
company to find out its policy.
