If you've ever rented a car, you've probably been asked the question, "Would you like to purchase rental car insurance?" It's a question that can leave many people scratching their heads. Is it worth it? Do you really need it? In this post, we'll explore the ins and outs of rental car insurance so you can make an informed decision the next time you rent a car, and hit the road with peace of mind.
What is rental car insurance?
Rental car insurance is an optional coverage that you can purchase when you rent a car. It typically covers the cost of any damage or theft of the rental car while it's in your possession. Depending on the policy, it may also cover liability for damage or injury to others or their property while you're driving the rental car.
Do you need rental car insurance?
The answer to this question depends on a few factors. Here are some things to consider:
Your personal auto insurance policy: Your personal auto insurance policy may already cover rental cars. Check with your insurance company to see what coverage is provided when you rent a car. If you have comprehensive and collision coverage on your personal auto policy, it may extend to rental cars as well.
Your credit card benefits: Some credit cards offer rental car insurance as a benefit. However, the coverage and requirements vary by card, so it's important to read the terms and conditions carefully. Keep in mind that you'll typically need to decline the rental company's insurance in order to be eligible for the credit card benefit.
Your travel plans: If you're traveling internationally, your personal auto insurance policy may not provide coverage. In this case, rental car insurance may be necessary.
Your risk tolerance: Even if you have coverage through your personal auto policy or credit card, you may still want to purchase rental car insurance for peace of mind. If you're concerned about the potential cost of damage or theft to the rental car, rental car insurance may be a good option.
What types of rental car insurance are available?
If you do decide to purchase rental car insurance, there are typically two types of coverage available:
Loss damage waiver (LDW): LDW is not insurance, but rather a waiver that releases you from financial responsibility if the rental car is damaged or stolen. This can be a good option if you don't want to rely on your personal auto insurance or credit card benefits.
Supplemental liability insurance (SLI): SLI provides additional liability coverage in the event that you're responsible for damage or injury to others or their property while driving the rental car.
The decision to purchase rental car insurance ultimately depends on your personal situation and risk tolerance. But it's important to do your research and understand what coverage you may already have before you rent a car. If you do decide to purchase rental car insurance, be sure to read the terms and conditions carefully so you know exactly what is covered.
And as always, feel free to reach out to your local independent Cushman Insurance agent with any questions. We’re always happy to help explain your coverage and walk you through your options.