Rental car companies often end up bombarding people with a lot of extra things, including rental car insurance, when they are renting cars for a vacation or even to use in the local areas where they live. The big question that a lot of people who rent cars have is whether they really need to get rental car insurance or if it is just an unnecessary expense. The answer to this question will depend on the car insurance you have for your own autos. If you have comprehensive, collision, property damage and personal liability insurance on your personal vehicles and you plan on driving rental car in either the U.S. or Canada, then the auto insurance that you already have should apply to rental vehicles as well and have the same insurance coverage, deductibles and limits.
Some rental car companies may require that you have certain car insurance coverage that isn’t covered under your insurance policy. In these situations you might have to buy the extra insurance coverage from the car rental company. Or you can buy extra insurance as an umbrella, like comprehensive or collision insurance, to increase limits that come with your car insurance for rental vehicles.
When you set out to rent a car, it is extremely important for you to understand what all of the rules are for renting cars and know as much as you can about the rental company. If you were to get into accident while you were driving a rental car, a majority of insurance companies will pay for comprehensive and collision claims in addition to personal liability and property damage. Comprehensive and collision pays on the cash value of the car, or the replacement value of the exact same type of vehicle. The amount that the insurance company pays is based on total mileage on the car, and wear and tear as well as the age of the vehicle. There is a good chance that your insurance company will not pay to replace the auto with a new one. The rental company may also end up charging you a surcharge for wrecking the car. You may also be charged for the lowered resale value of a damaged car or the loss of rental income on the car during the time it is being repaired or replaced.
Because of these extra charges, it is critical that you understand exactly what charges you will be held responsible for should you get into an accident. If the rental car company offers insurance for things that your personal auto insurance doesn’t cover, it is probably a good idea to buy the extra insurance. Another thing you can do is talk to your personal insurance agent concerning what coverage you will have with rental cars. There are some insurance companies that will treat a rental car the same as if it was your own car. However, it is very important that you check with both your insurance company as well as the rental car company to make sure you have adequate insurance coverage on a rental car.
If your auto insurance policy is from the U.S., it is valid only in the U.S. and Canada, and in some cases Mexico. If you are traveling outside these areas, you will need to find out what the insurance requirements are from the rental car companies in the area you will be renting from. There is a good chance that your U.S. or Canadian insurance policy won’t be valid in other countries, but you should check with your insurance agent to confirm this.
