Do You Need the Rental Company’s Insurance?

In some countries and states, a personal auto policy extends some coverage to rental cars, at least for domestic rentals. Call your insurer or read your policy to find out whether collision, comprehensive, and liability extend to rentals, and whether limits and deductibles apply.

Many credit cards include rental car damage coverage when you pay for the rental with the card and decline the rental company’s collision waiver. Coverage may be primary or secondary, may exclude certain countries and vehicle types, and usually does not include liability.

Rental companies may charge for “loss of use” while a damaged car is repaired, administrative fees, and diminished value. Check whether your personal policy or card covers these.

If you have no personal car insurance, are renting abroad where your coverage does not apply, or want to avoid any claim on your own policy, the rental company’s products may be worth it.