If you’re planning to rent a car, you may be wondering who pays for any damage to the rental car. If you lack proper insurance, that person could be you.
The rental car company typically has liability insurance that covers the bare minimum mandated by the state. However, you could still be left with hefty bills if you fail to adequately protect yourself. Policy Scout can help take the guesswork out of finding the right insurance for your rental car. We do the work to provide you with the best possible quotes.
Types of Rental Car Insurance
Rental insurance financially protects you in the event you get into an accident with the rental vehicle. Insurance policies are typically split up into several different types of coverage.
- Collision damage waiver (CDW). This coverage — also known as loss damage waiver — pays for the expenses incurred when the rental car is damaged in an accident. CDW usually includes coverage for towing and the rental company’s “loss of use” fees.
- Personal accident insurance. This policy pays for the medical expenses of you and your passengers if you have an accident while driving the rental. If everyone riding in the rental car has sufficient health insurance, then you may not need to purchase this coverage.
- Personal effects insurance. This coverage will reimburse you for any of your personal items that are stolen from or damaged in your rental car.
- Liability insurance. This type of policy provides coverage if you’re sued for various auto damages. This includes causing damage to other vehicles, damage to property, or bodily injuries to others while driving your rental car.
How to Purchase Rental Car Insurance
You can buy a rental policy in a few different ways. From the rental car agency itself, from a third-party insurer, or as a rider on your personal vehicle insurance. Certain credit cards also sometimes offer limited rental car insurance. Note that your personal car insurance or credit card insurance typically will not cover everything. You will likely have gaps in coverage if you get in an accident.
There are circumstances where you should purchase additional rental car insurance to fully protect yourself. For example, if your rental car is vastly more expensive than your own car, or if your personal auto policy carries a high deductible. Additionally, some coverage offered by credit cards is only secondary. This means it will cover only what your personal auto insurance fails to cover.
Find Top Rental Car Insurance Quotes Using Policy Scout
Traveling is stressful enough without the added worry of how you might pay for significant damages after an accident. To fully protect yourself, purchase a full rental insurance policy. You can find the best quotes for rental car insurance today using Policy Scout. Policy Scout helps consumers compare and find the best insurance quotes available. Our aim is to dispel the confusion and stress from the process of buying insurance.
We didn’t invent shopping for rental car insurance. We just perfected it.