What Insurance Do I Need for a Rental Car?

Types of Rental Car Insurance

When you rent a vehicle, you'll have a few insurance options to choose from. Although the choice is ultimately yours, in order to ensure both you and the rental are protected, adding insurance is a smart idea. This won't only protect you, but it may also save you money if you find yourself in a less-than-ideal situation on the road.

• Loss-Damage Insurance: Also known as a Collision Damage Waiver, this insurance waives the responsibility if your rental car is damaged or stolen. It also covers loss-of-use at our facility and other similar fees.
• Liability Coverage: This is often required when renting a vehicle and covers you from potential litigation.
• Personal Accident Insurance: If you've been in a collision, this insurance covers medical bills for you and your passengers if you've been injured.
• Personal Effects Coverage: This covers any personal items you have in the vehicle if stolen- the vehicle or the items.

Does Your Insurance Cover Rental Cars?

Many drivers have auto insurance and, depending on your policy, some of the above may already be covered. Your home insurance and medical insurance may cover certain aspects as well.

Let's take a look at when your insurance will cover what you need and who'll need insurance add-ons when renting a vehicle. 

• Auto Insurance: Liability insurance is required when driving a car in most states. However, if you don't have automotive coverage, liability insurance is something you'll need when renting a vehicle.
• Health Insurance: Does your health insurance cover accident-related injuries or do you have personal injury protection on your auto policy? If so, then you may not need to purchase accident insurance when renting. If it doesn't, it's smart to opt for this coverage to protect you for possible collisions.
• Renters or Homeowners Insurance: Some of these types of policies include off-premises coverage that includes items stolen from vehicles. If you don't have this coverage, be sure you receive personal effects coverage when renting.