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Rental Car Insurance Protects you Better (and Where to Get It)

Have you considered skipping that rental car insurance when you’re at the rental counter? Sometimes it triples the price of your rental!

Getting coverage through your rental company isn’t your only option, but specific coverage for each rental can be.

Rental car coverage doesn’t need to be expensive

Just because the policy the rental car company offers you is $30 a day on top of your $15 per day rental doesn’t mean it’s the best policy.
Comparison websites, booking websites, and other third parties offer rental coverage too and often at a fraction of the price. Often, working directly with an insurance company rather than through a rental company will cut the price of the same policy too.

But it’s up to you to check the specifics of your policy

However, if you opt to use your auto insurance policy, credit card, (or really any insurance policy) you do need to make sure you’re covered.

● Credit card policies usually require you to book the rental car with their card in your name. Always check the specifics!
● A credit card policy is usually only secondary coverage, meaning kicks in after your personal auto insurance pays out.
● Your auto insurance at home may not cover “loss of use” so you could end up paying to rent the car during its repair.
● Your auto insurance might have a higher deductible than a policy you purchase specifically for your rental.
● A business rental may not be covered under your personal auto insurance policy.

What kinds of coverage do you need?

Many different kinds of insurance can come into play with rental cars. If you don’t fully understand your own auto and homeowners insurance policies, purchasing specific insurance for your rental can help.

● If you’re in an accident or your rental car is stolen, a damage waiver can protect you from liability.
● Liability protection can help you cover the cost of damage you cause to other people’s property. If you only get one policy, this is the one to have.
● If you have health insurance, your medical costs should already be covered.
● If you have life insurance, an accident that results in your death should be paid out too.

Remember that you can buy rental insurance from someone other than your car rental company! It is generally a good idea to purchase insurance with a low deductible for short term car rentals.