By Alexis Karapiperis | CSR at Learnandserve.org | Powered by A Plus Insurance
Rental Car Insurance
Rental Car Insurance is a coverage protection option that you can purchase when operating a rental vehicle. This coverage normally will include liability and a loss/collision damage waiver.
However, in some cases, it will also include personal accident insurance and personal effects coverage. Make sure when discussing the insurance to ask if all of these coverages are available, or which ones are included when purchasing.
You are able to get this insurance either through your insurance carrier directly or through the rental car company when using their vehicle.
Below is a table with the explanation of what is included in rental car insurance.
| Coverage | Explanation |
|---|---|
| Liability | Covers for any damages or injuries done to the other party that were caused while you were driving the rental vehicle. |
| Loss / Collision Damage Waiver | This waiver will free you from any responsibility for any damage that had occurred to the rental vehicle while in your possession. It will also cover things such as theft or vandalism. |
| Personal Accident Insurance | This coverage will protect your passengers and yourself when driving a rental car and then resulting in an accident. |
| Personal Effects Coverage | This coverage protects any of your personal belongings that were stolen from the rental vehicle. |
Depending on the coverage limits you have set on your primary auto policy will factor into the coverage set for the rental car.
For example, if your auto premium insures a vehicle in which is inexpensive or an older model, or there is little coverage set on the car, then you could expect the insurance carrier to not cover the full amount of the rental if the car is involved in an accident.
Therefore, when renting a vehicle of a higher value and then being involved in an at fault accident, do not expect your insurance carrier to fulfill the total cost of the accident expenses.
What Does Rental Car Insurance Cover?
A rental car insurance policy will cover liability, responsibility of the vehicle if it is stolen or damaged, reimbursement for personal items stolen from the vehicle, and for medical payments for the injuries from you and your passenger’s in the vehicle at the time of an accident.
Insurance That Is Needed For Rental Vehicles
All auto policies will require state liability limits for insurance on a vehicle.
Some States, however, will also require uninsured motorist insurance like in South Carolina. While in other States, such as Florida, will require Personal Injury Protection (PIP).
It is best to look into your State requirements for auto insurance, and if you have any further questions, you can speak with an agent for more clarity on those requirements and limits.
| Coverage | Explanation |
|---|---|
| Liability | This covers any bodily injury or property damage that occurred in an accident where you were deemed at fault for causing. |
| Collision | This covers any damage done to the vehicle from collision with another vehicle or object while car was moving or parked. [Your Deductible will need to be paid first before it goes into effect] |
| Comprehensive | This covers any damage that occurred to your vehicle from external factors such as fire, flood, tree branch, animal, theft, or vandalism. [Your Deductible will need to be paid first before it goes into effect] |
| Personal Injury Protection (PIP) / Medical Payments (MedPay) | This covers any medical expenses after the event of an accident, regardless of whose at fault, for yourself and your passengers. [Your Deductible will need to be paid first before it goes into effect] |
It is best to communicate with your insurance agent about if your personal auto policy will cover the vehicle you plan on renting. If the coverage you have is less than what is needed then you may discuss with your agent about the changes you may need to make on the auto policy to ensure that the vehicle has proper coverage.
If you do not carry the proper coverage on your personal vehicle and would rather not call to add coverages on to your personal auto policy then you could see if the rental dealership offers rental car insurance.
In fact, most, if not all, rental car dealerships will have to option to purchase the insurance coverage at the receptionist desk when you pick up the vehicle. They will typically offer an insurance plan and price point for the amount of time that you will be operating their rental vehicle, whether its for a week or for a month.
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