When booking a rental, insurance plans, often thrown in with additional options such as child seats and fuel packages, can seem similar but different and can add up quickly. The decision can feel as high-stakes as a bomb defuse scene in an action movie. One wrong click and the cost of the economy compact will be double his.
Unless you have a bottomless checking account, you’ll definitely need some type of insurance in case something bad happens while you’re renting a car. However, whether you need to purchase it at a rental car company is another story. I reached out to industry experts to clarify the situation.
It turns out that there is no one-size-fits-all coverage option.Ellie Michaels, Vice President of Operations Advantage Rental Car What you need and how much it costs will depend on several factors in your personal life, the level of insurance coverage you want, the type of car you’re looking for, and where you rent from, from the company to your physical location.
Let’s take a look at these variables.
Variable 1: Do you own a car? Check your existing coverage.
Anyone who owns a car should (keyword, should) cover their rental car with their own insurance, at least for damage, theft, or injury they cause to others while traveling domestically.
“The coverage and deductibles in your auto insurance policy apply in most cases when you rent a car, as long as it’s for personal use,” AAA spokeswoman Brittany Moye said in an email.
Having insurance that includes comprehensive coverage protects your rental from damage caused by events beyond your control, such as vandalism or fire, said Ted Olsen, vice president of the company. goosehead insurance. If you also have collision coverage, it should cover the cost of your rental car if you collide with another vehicle or object.
Don’t guess. Call your auto insurance company and ask how much coverage you have and whether it covers your rental car. And “put it in writing,” says spokeswoman Melanie McGovern. better business bureau.
There is one small caveat. When it comes to personal insurance that covers your car, Olsen says it needs to be in the same class as the car you drive at home. Sedan insurance may not cover U-Hauls, motorcycles, ATVs, scooters, or boats.
There is one big caveat. If something unfortunate happens (damage, theft, injury, etc.) you will need to make a claim on your personal car insurance, which could affect your premium. Depending on your policy, “you could end up paying a high deductible,” said Alaina Hixson, director of sales and operations for the company. churchill officean independent insurance company.
That’s why some car owners still buy insurance from rental car companies, such as Collision Liability Waiver, said travel insurance director Dennis Bialek. price list. Just like your own collision coverage, it covers damage to your rental car in the event of an accident or theft. Bialek recommends adding additional liability insurance to cover damage to other vehicles or people.
Variable 2: Do you have a credit card with travel rewards?
More than a dozen credit cards (including Capital One Venture X, Chase Sapphire Preferred, and Chase Sapphire Reserve) offer major rental car insurance as a perk. Most tend to cover collision and theft damage up to the actual cash value of the car. Damages caused to others are often not compensated.
Call the number on the back of your card to learn about your benefits and ask whether your card offers primary or secondary coverage.
“Primary coverage initially covers the entire claim. This is the best-case scenario,” Olsen said in an email. “Secondary coverage is more common and requires you to first file a claim with your own insurance before credit card coverage kicks in, which negates many benefits.”
Hickson agrees that credit card insurance is “usually pretty comprehensive.” “However, you must always use that card for rental purchases,” she added.
Variable 3: Do you travel abroad?
If you’re renting abroad, all that advice changes. Olsen says it’s unlikely that personal insurance coverage will extend overseas because laws vary from country to country.
There are exceptions. “When you’re in Canada, you’re fine most of the time,” Hickson said. “Your insurance will likely be carried over.”
Bialek said many countries and jurisdictions require renters to carry a collision liability waiver policy. “If you rent a car in Europe, for example, you will need to provide proof of third-party insurance,” she said in her email. If your insurance company has sufficient coverage, credit card insurance may be sufficient, but check with your company to see which foreign countries (if any) may be excluded.
Some important notes at the end
Hixson reminds travelers that none of these insurance policies, such as personal auto insurance or credit card insurance, will protect you physically. “So if you are injured in the accident and you are at fault, you will either have to pay out of pocket or use your health insurance.”
Hickson says travel insurance can provide additional medical protection, especially if you’re traveling internationally.
Finally, if you panic at the rental car counter, ask for help.
“Don’t feel pressured to buy things you don’t need,” McGovern says. “A reputable rental car company will answer all your questions and guide you through the entire process.”
Chris Dong contributed to this report.
