Is It Necessary to Buy Rental Car Insurance?

What Is Rental Car Insurance?

In most countries it’s optional to buy rental car insurance. You might already have coverage in your home insurance or maybe rental car insurance is a benefit for you as a holder of a specific type of credit card. But either way it is recommended that you make sure you have a valid insurance to cover any injuries, damages or theft. You can buy rental car insurance from the rental company or from your insurance company and be protected financially.


Do I Need Rental Car Insurance?

You might need rental car insurance but it depends on your existing insurance and the coverage. They may cover rental cars but you should check with your insurance company. Some credit cards include insurance as a benefit so this might give you insurance coverage when renting a car. However, in some countries it is required to have a certain rental car insurance as well as if you rent a high-end or luxury car you will probably have to purchase additional insurance.


Does My Car Insurance Cover Rental Cars?

Your existing car insurance might also cover rental cars but it is not always the case. You will have to check with your insurance company what coverage you have when you travel and rent a car. If rental cars are covered by your insurance make sure that your coverage is sufficient.


Rental Car Insurance Coverage

There are several types of rental car insurance coverage that you can

purchase, including liability insurance, loss-damage waiver insurance, personal

accident car rental insurance, and rental car personal effects coverage. Read on to understand the difference between the types of rental car insurance.


Types of Rental Car Insurance:

Rental Car Liability Insurance

In most countries you are required to have a valid rental car liability insurance. This will protect you financially if you accidentally cause damage to other people or their property while driving a rental car. Check with your insurance company if your existing insurance has adequate coverage or you need to purchase additional insurance from the insurance company or where you rent the car for the journey.


Rental Car Loss-damage Waiver Insurance

Loss-damage waiver insurance is an optional policy that you can purchase from your rental car company to protect you financially if the rental car is damaged or stolen. This type of insurance usually covers the full value of the car and any loss of use fees the rental car company may charge.


Personal Accident Car Rental Insurance

Personal accident car rental insurance provides coverage for medical expenses if you or your passengers are injured in an accident while driving a rental car. This type of insurance is optional, and you may already have coverage through your health insurance policy.


Rental Car Personal Effects Coverage

Personal effects coverage provides coverage for your personal belongings if they're stolen or damaged while in the rental car. This type of insurance is optional and may be covered by your existing homeowner's or renter's insurance policy.


Credit Card Rental Car Insurance

Many credit cards offer rental car insurance as a benefit to cardholders. You should always check the terms and conditions to make sure that the coverage is sufficient for your needs. Credit card insurances typically cover collision damage and theft and maybe that is adequate.


Car Rental Travel Insurance

Car rental travel insurance is an optional policy that you can purchase from your travel insurance company to cover the cost of your rental car if it's damaged or stolen while traveling. This type of insurance usually includes collision damage waiver (CDW), which covers the cost of repairs or replacement of the rental car in case of an accident or theft. It may also include personal accident insurance, which provides coverage for medical expenses and personal liability in case of injury to the renter or other people involved in the accident.


Additionally, car rental travel insurance may also offer other benefits, such as roadside assistance, theft protection, and loss damage waiver. These benefits can provide renters with added peace of mind and protection while on the road.



International Car Rental Insurance

If you're renting a car outside of your home country, your existing policy may not cover it. In this case, you'll need to purchase international car rental insurance.


Is Rental Car Insurance Worth It?

Whether rental car insurance is worth it or not depends on your existing coverage, the rental car company's policies, and your specific situation. If you have comprehensive and collision coverage on your existing policy, you may not need to purchase the loss-damage waiver. If you have health insurance or personal injury protection, you may not need to purchase personal accident insurance. If you have renters or homeowners insurance, you may not need personal effects coverage. However, your coverage might not be adequate and in that case purchasing rental car insurance is a good idea.



Should I Get Rental Car Insurance?

Whether or not to purchase rental car insurance is subjective and it depends on the insurance you already have. You might be covered by your existing insurance even when renting a car.

With addCar Rental we always advise you to consult the staff at the office if you have any doubts about for instance insurance. They know the laws and regulations of your specific destination and they can help you make an informed decision.





How much is full coverage insurance on a rental car?

Full coverage insurance comes in different levels so you need to make sure what is covered and what is not. The cost varies depending e.g. on the rental car company, the location and the type of car. Ask the staff at the car rental office about the specific cost and coverage.


What happens if you damage a rental car without insurance?

If you damage a rental car without insurance, you could be held accountable for the expenses associated with fixing or replacing the rental vehicle up to the value of the excess. This can be an expensive burden, and it may be beneficial to obtain rental car insurance to shield yourself from financial responsibility.


Does your personal auto insurance cover rental cars?

Whether or not your personal auto insurance covers rental cars depends on your policy. Some personal auto insurance policies may provide coverage for rental cars, while others may not. It is important to carefully review your policy or contact your insurance provider to determine if rental car coverage is included.